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06/13/1988CITY OF GRAND TERRACE CITY COUNCIL MINUTES ADJOURN JOINT REGULAR MEETING - JUNE 13, 1988 A adjourn joint regular meeting of the City Council of the City of Grand Terrace was called to order in the Council Chambers, Grand Terrace Civic Center, 22795 Barton Road, Grand Terrace, California, on June 13, 1988, at 6:30 p.m. PRESENT: Byron Matteson, Mayor Barbara Pfennighausen, Mayor Pro Tem Hugh J. Grant, Councilmember Dennis L. Evans, Councilmember Susan Shirley, Councilmember Thomas J. Schwab, City Manager/Finance Director Randy Anstine, Assistant City Manager David Sawyer, Planning Director Juanita Brown, Deputy City Clerk Ivan Hopkins, City Attorney Joe Kicak, City Engineer ABSENT: None The meeting was opened with Pledge of Allegiance led by Councilmember Grant. Mayor Matteson asked the City Manager for an introduction on the budget. City Manager Schwab presented for review and approval the estimated FY88/89 total budget of $4,880,210.00 and pointed out that in the General Fund outlays of $2,149,116.00 and requested that$2,124,516.00 be funded through current revenue; $38,050.00 out of the carryover prior year fund balance and the recommended amount for the OF Rescue Unit to come from the General Fund reserve. The budget includes a roll-over contract with the County Sheriff's Department with the level of manning to be the same as it is currently. This amounts to a 9.5% increase over the prior year and includes the MOU that the County currently has with the labor contract. The California Department of Forestry (CDF) is also asking for a rescue unit; the Chamber of Commerce has requested $41,000.00, but it is recommended that the budget for the Chamber of Commerce and the Foothill Journal be left at a level of $20,000.00; the Community Redevelopment Agency does not have any capital _ improvement projects for this particular year; City t obligations with the School District are now complete; the current budget proposal, making the assumption that we will make a purchase of the Roberts parcel, we are reducing the parkland reserve fund by $100,000.00 and are budgeting $40,000.00 per year for debt service and should that particular acquisition not happen, adjust the budget accordingly. The City currently derives enough revenue to provide all of the basic services for the citizens, but felt in order to be able to fund some of the amenities that people like to see in their community, we will have to continue to expand our revenue base as well as looking at what we are spending currently. He pointed out that the General Fund presented to Council leaves a $79,986.00 current year balance of revenues over expenditures with the reduction for non re -occurring capital outlay. Mayor Matteson felt that each year it seems that we have other funds that we have to appropriate for surprise reasons and asked if the only amount that we have to appropriate these things during the year for is the $79,000.00. City Manager replied, there are three sources for which we can make an appropriation in the upcoming year and those would be the current revenue which is the 79,213.00 which would be left over. The balance is a carry-over fund balance, an unallocated fund balance, the other is our allocated reserve. Councilmember Evans asked City Manager Schwab if he was saying that as of June 30th, we should have a General Fund balance of $700,213.00 and that does not include any of the carry-over fund balances that we may have in any of the other funding sources, such as gas tax, transportation tax that are used for various improvements such as park developments, storm drains, etc. City Manager Schwab replied, that is correct, in order to find that you have to look to the fund balance summary. Councilmember Evans asked City Manager Schwab if he was projecting that this coming year we will bring in $2,204,520.00 and asked if $520.00 is the correct figure or is it $502.00 because there is a difference on Page 1 from your narrative and your breakdown. City Manager Schwab replied, he shows it as $520.00 indicating it may be a typo if it was $502.00. Councilmember Evans stated his other question, you are projecting expenses from the General Fund of $2,124,516.00, but up in your narrative you show a capital outlay of $2,149,116.00, aren't these suppose to be the same. Council Minutes - 06/13/88 Page 2 GENERAL FUND City Manager Schwab pointed out that the reason those aren't the same is that we have nonreocurring capital outlay of $38,050.00 that he was asking to be funded from the carry-over fund balance from the prior year. He stated that he was showing all operating on -going program expenses being charged against current revenue and showing $38,050.00 of it being charged to prior year fund balance, indicating those are items that are not going to happen every year. Mayor Pro Tem Pfennighausen stated she did not understand the rationale regarding the OF Rescue Unit on Page 1, suggesting to add $50,000.00 to the G.F. rather than subtract $100,000.00. City Manager Schwab replied there is no reason it could not be done that way, indicating the only thing he wanted to continue to do is for us to always think that we need to appropriate a reserve every year. City Manager Schwab pointed out that the overall revenue for the City as a total is projected to go down and because we are not anticipating any major developments this year and are not budgeting for those capital improvement fees (about $350,000.00) that we received last year are not anticipated for this year. He stated that the true projected increase over last year's 4% is a 1% percentage of growth, indicating that we are not seeing any large increases in revenue. Mayor Matteson questioned the total revenue last year. City Manager Schwab replied projecting a total revenue of $2,189,000.00, pointing out that that concludes the revenue portion and now to go into the General Fund. Councilmember Grant recommended going by line item. Mayor Matteson suggested taking the people who came to give a presentation. Councilmember Evans asked for an explanation of the graph revenue expenditures analysis. Your General Fund correlates with your narrative, the General Fund expenditure of $2,152,566.00 doesn't correlate with your narrative. City Manager thing is in numbers, the expenses. Schwab replied they should because the only his narrative he broke it down into two program revenues and the nonreoccuring capital Council Minutes - 06/13/88 Page 3 California Mike Roppolo, Vice Department of Timmer, Time Chief, Forestry for the department Frank Wilson. President of CDF, Division Chief, John Howard Wright, our local representation in this area and the President of CDF, Mike Roppolo pointed out the need to supplement fire protection in Grand Terrace and asked for fundings for a new rescue squad for the upcoming year to serve the needs for the future. He gave a brief overview of the Grand Terrace fire and rescue squad the City purchased in 1982 and put into service July, 1983 and explained how it has been a very important piece of equipment for aiding in fire suppression. He explained the need for purchasing new heavy hydraulic equipment to move heavy items, pointing out how the City is located in a hazardous area and that Squad 23 now responds about 3 to 5 times daily to emergency situations. He passed out some information to Council and introduced Mr. Frank Wilson. Mr. Frank Wilson, explained that Mr. Roppolo was passing out blueprints and pictures of situations the department has started going to and have now found that the squad they now have is not capable of carrying all of the needed equipment, pointing out that approximately $8,000.00 worth of equipment is being left at the station currently because there is not enough room on the squad to carry it. He listed needed equipment, such as 2 1/2 ton chassis; crew cab; power chain, red lights, sirens, breathing apparatus cylinders, generator, breathing support etc. and listed some ball park figures they received from some vendors. He recommended the Salisbury Fire Equipment Unit which would allow the storage of equipment today, as well as future equipment. Mr. Roppolo gave a slide presentation showing their inability to transport equipment to the scene. Mayor Matteson asked the mileage on the old squad and what his plans were for that vehicle. Mr. Roppolo stated there was 27,000 miles on it and they wanted to sell it and put the proceeds towards the purchase of a new squad. Councilmember Evans asked what unit was Mr. Roppolo leaning towards from the photos. Mr. Roppolo stated the recommendation from the department is the Salisbury Unit. Councilmember Evans asked if the quoted cost was for the basic unit and not any other equipment and pointed out that in the budget $100,000.00 was requested, asking where was the additional $43,000.00 anticipated to come from. PI Council Minutes - 06/13/88 Page 4 I 0 Mr. Roppolo responded that is correct, the chassis is about $45,000.00 alone and that after a meeting with the Chief Officers they came to the conclusion that this might meet the City's needs now and fifteen years from now. Councilmember Evans asked right now you are looking at an additional $44,000.00 appropriation to purchase this unit. Mr. Roppolo replied, correct, the $143,000.00 represents a ball park figure that the vendor gave them and after meeting with the Chief in charge of the equipment for the department, it was felt as a result to finetuning the specifications and going out through the bidding process, they could finetune that figure even more. He requested Council to consider that as a not -to -exceed figure because they feel they could get it at a lower figure. Councilmember Evans questioned the cost of the unit purchased in 1982 and what was expected to be the resale value of the unit. Mr. Roppolo stated $27,342.00 was the cost of the buildup and the total cost to the City at that time was $40,560.00 which included the purchase of rescue equipment. He stated they have not pursued to any extent, but believed at least $15,000.00. Councilmember Evans stated it would then be applied to the initial cost of the new unit and asked if there were any anticipated costs over and above that you foresee during the next year of any acquisition of equipment that the City would purchase or because of the obvious size, more gasoline, wear and tear on the unit. Mr. Roppolo turned this over to Chief Timmer who explained that all of the maintenance requirements, liability requirements, utilities, the building are being paid for by the County Fire Warden Department, pointing out that the City generally does not contribute dollars to the direct running of the fire department unless the City of Grand Terrace would like to increase the level of service to the community, that is then taking care of by the City. He did not foresee a great increase in cost. Councilmember Evans pointed out there was an obvious difference between the two and questioned the reason for picking the Salisbury over the Supervac. Chief Timmer main reason mainly, being crew. told about each unit and explained that the for choosing one vehicle over the other; able to carry more equipment and a larger Council Minutes - 06/13/88 Page 5 Councilmember Evans questioned the difference between the two units and would they not both service the same. Chief Timmer explained the difference regarding safety for fire fighters, equipment space and fire fighters capacity. City Manager Schwab explained for clarification that bid specifications would have to come back to Council to be approved before authorization to go out to bid, as well as the final bid award would also be done by the City Council. He explained that the two units that had been talked about would not be the only units that would be under consideration. Mayor Matteson asked if we allocate $100,000.00, where is the balance of the money coming from to pay for a unit that cost over $100,000.00? City Manager Schwab replied initially when we were looking at this in the development process, they really did not have a number tied down, they were looking at somewhere in the neighborhood of $100,000.00. They have done substantial research since that time, initially we were looking at $100,000.00, plus the trade in value of the current unit which would give us about $115,000.00 to work with. Obviously, if they want this particular unit that costs $144,000.00, we would require an additional appropriation either tonight or in the future when we wanted to award a bid. Councilmember Evans stated the money as he understands it comes from that $700,000.00. City Manager Schwab replied it could come from there or the reserve. Councilmember Shirley wanted to know if there was a more valuable use of the old squad to maintain that rather than sell it. Chief Timmer replied he wasn't aware of any use, but our department does have a use for it in possibly the desert areas where there is not such a need for such equipment we carry today, pointing out that the squad is owned by the City and is on a lease to the County Fire Department who takes care of all of the maintenance, fuel, insurance, etc. Councilmember Evans asked if they anticipated any problems on resale. Chief Simmons replied they already have offers. Mayor Matteson voiced concern regarding not knowing what it will cost. Chief Timmer replied they would not be going over the $144,000.00. Some of the vendors indicated being a little bit high to be in the ball park. il LI Council Minutes - 06/13/88 Page 6 Mayor Pro Tem Pfennighausen pointed out that if the present squad could be sold for $15,000.00, we are talking about $28,000.00 additional from the City and felt our fire service is the best bet that the City has and gave her reasons for saying so. She felt Council should consider the potential of not having an adequate unit as opposed to the additional expenditure of approximately $30,000.00. Mayor Matteson agreed with Mayor Pro Tem Pfennighausen, but felt Council had a financial responsibility to the citizens, stating if she was willing to cut somewhere else he would support it. CC-88-74 MOTION BY MAYOR PRO TEM PFENNIGHAUSEN, SECOND BY COUNCILMEMBER EVANS, that $144,000.00 be allocated to the purchase of a new Salisbury Rescue Squad or comparable as to how it would come in as bid. Councilmember Grant concurred with Mayor Pro Tem Pfennighausen and supported the motion. Mayor Matteson asked if there was any suggestions to come up with $44,000.00 and if there was he would vote on it. Councilmember Shirley stated to put off this motion until we have found $44,000.00 somewhere else. Mayor Pro Tem Pfennighausen asked the City Manager if he considers, not the $44,000.00 because we have a value on being sold would be applied against it, so we are talking about approximately $30,000.00, would we be putting money into a reserve fund, do we have funds left over from this year that could be applied to this. City Manager Schwab replied, yes, we have unallocated reserve as well as a fund balance, indicating if he had known that the piece of equipment would have been $144,000.00 he would have still recommended that the City purchase the equipment and gave his reason why. Councilmember Evans explained the reasons he supports having this unit. Councilmember Shirley agreed with needing equipment that will service all of our needs, but felt a need to know where this money is going to come from. Mayor Pro Tem Pfennighausen pointed out that the Finance Director has explained it is not a financial burden to the City to purchase this equipment and her motion still stands. Council Minutes - 06/13/88 Page 7 Motion CC-88-74 carried 5-0, that $144,000.00 be allocated to the purchase of a new Salisbury Rescue Squad or comparable as to how it would come in as bid. Chamber of City Manager Schwab reported that the Chamber of Commerce Commerce had presented a proposed budget, their current granting is for a dollar amount of $30,000.00 in the current fiscal year, they are requesting an allocation this year of $40,000.00 and it is staff's recommendation to recommend for $20,000.00. Councilmember Grant indicated Page 2, Item 3 -- for funding level for either or both activities, referring to the half page ad in the Foothill Journal and the funding for the Chambers' budget, would be $20,000.00, but on Page 56 -- Chamber of Commerce grant $20,000.00 advertising, Line Item 230 -- events and information in the Foothill Journal $5,200.00, is that a part of the $20,000.00. City Manager Schwab replied basically this is a mistake, but his initial recommendation for $20,000.00 for that particular purpose is still his current recommendation. Councilmember Grant stated so Line Item 230 would really be incorporated as a part of the total would be $20,000.00. City Manager Schwab replied, "that's correct." Dick Yost, President of the Chamber of Commerce, introduced tie C m er of Commerce Board of Directors. He explained the reason for their recommendation and explained what the Chamber of Commerce does. He explained the Chamber of Commerce Survey which consisted of approximately eight different Chambers in the surrounding area, Grand Terrace, Colton, Loma Linda, San Bernardino, Riverside, Rialto, Redlands, Fontana and Ontario, giving a little background as far as the population of members, number of businesses and the amount of grants they are receiving from their respective cities, not sure how accurate, but this is the figure given to us. Percentage of members versus number of licensed businesses in the community. They range with Loma Linda 24 percent; Redlands & San Bernardino 20 percent on down to Ontario; 7.6 percent of the businesses being members, but if we take a look at Grand Terrace, we know what our figures are, we're looking at as a 62.5 percent of the licensed businesses in the community being members of the Chamber. Showing that kind of percentage we can't realistically look at any huge type of increases of revenue from increased membership. There is another sheet that says what does the the Chamber do and it lists forty different activities that we are involved with and down at the bottom, three -asterisk items are a combination of City and Chamber issues that we participate in, two -asterisk items are City issues, which we feel are basically to the Council Minutes - 06/13/88 Page 8 City activity and one -asterisk item to Chamber issues and if we look at the 40 where Chamber and City are combined, we have a total of the forty. One of our major budget items is the newsletter, which is at 5,000 started at that high level going to every home first-class mailbox during the year of David Terbest and during that year we were showing substantial losses not because of David, but because of the expense of getting the information in the community to the community because there were no other newsletter or newspapers in the community. Over the years into Barbara Bayus' years, we showed a continued decrease of the cost of the newsletters and up to about six months ago we had progressed to where the newsletters advertising expenses just about balanced out to where we had a zero expense, but with the event of the Foothill Journal coming into town, it took away some of our advertising revenue. When they came into town, we went back into a negative figure as a cost factor and we are running about $400.00 per month in lost revenue or $100.00 minus a break even figure that is one of our big expenses right there. Postage expenses have gone up and that was a heavy burden to bear. One of the biggest areas we are looking for to move ahead with is economic development. The past Board a year ago decided not to spend any money on economic development for a variety of reasons, but shortly after I came into office we looked at what was happening on the economic development. We are right at the key -point of the Inland Empire area so we did decide to go back into economic development through cutting expenses in every place that we possibly could. He stated they have been able to put considerably more money into economic development in the area of attending the large Inland Empire Conference which was a very expensive activity for us and we just participated in the Mall Development Conference held in Las Vegas which was another expensive thing. We are constantly on a weekly basis getting notifications of different lunches and seminars that are going on that could be very beneficial to staff and board members to attend to expand our knowledge as to how to better bring more business into the community. Our increase request in our grant is money that we would like to use for the economic development, it takes money to make money. Our job is to keep the businesses that we do have and to increase the business of our community. If you can't see in favor of at least maintaining the budget that we had last year, we will be able to continue to give the service that we have to the community by again very carefully watching the dollars spent and hope to be even to cut in some other areas wherever possible to use every extra dollar that we can to be used in the area of economic development. Council Minutes - 06/13/88 Page 9 Barbara Bayus, past President of the Chamber of Commerce, pointed out that a dedicated volunteer force expands the effectiveness of the Chamber and an extension of the City. She reported that the Chamber was trying to bring some developments into the City and had made offers on three properties. She felt the Chamber is on the threshhold of breaking it open with our new General Plan changes and is moving ahead with the development that is going on in the Inland Empire and now was the time to pursue economic development and asked Council to seriously consider their plea for the requested money. David Terbest, shared his ideas regarding the old. squad. He felt there was a need for this communication link. He felt that if the Chamber has to go back and look for other funding sources, with the latest tax changes, they are not there and there will be fewer donations because the Chamber is not tax deductable. He shared his doubt about the Chamber of Commerce having fund raising events that are going to bring in the kind of revenues to operate this kind of Chamber and what Council will have to do to keep a number one Chamber. Gene Carlstrom, explained that the Chamber went over the budget as they felt it needed to be affective as the Chamber of Commerce for the next year and arrived at a $41,500.00 figure. He shared his views on why he felt the Chamber of Commerce should receive the requested needed monies explaining the uses for the money. 0 Councilmember Evans questioned the anticipated cost for this coming year. He questioned if the projected figure for 1987/88 of $20,676.00 was an adequate figure on the past years cost? Mr. Yost responded yes and explained that the Chamber has had a substantial increase in postage and the printing is going up. Councilmember Evans asked what was projected for this coming year for the newsletter. Mr. Yost, replied the newsletter's projected expense for printing, postage, labor and handling, approximately $21,550.00. Councilmember Evans indicated believing Mr. Carlstrom mentioned that the circulation is at 5,000 and questioned the areas being serviced. Mr. Yost, replied the newsletter encompasses all of the City and is mailed outside the area, specifically, to individuals and businesses requesting one is there policy. Council Minutes - 06/13/88 Page 10 U.� Council for that ad and did not feel that you can ever get too much information out to the public. She felt that one of the things that has caused the most problems in the City of Grand Terrace, is lack of information and therefore, the Foothill Journal has its place in our community and I would hope that it is very successful and continues to function. She felt that the Chamber wishes the same thing and hoped that they don't continue to look at the Foothill Journal as a competitor because it shouldn't be competing with you. Maybe in the real word of advertising that is a fact, but they should not be a competitor. The Foothill Journal is able to get information out at an advantage because they come out once a week, there is a disadvantage when the publication is published once a month. I think both publications have their positive function within this community, however, rather than lose some of the other benefits that the Chamber brings and could bring to us in the future, if I had to sacrifice one thing, it would be the mailing of the newsletter to every house, if indeed that's what we have to do and then go to the membership and try that for a year. I'm not saying that's what we need to do, I'm not at this point prepared to address that, I'm just saying if we have to cut something, I would sooner cut that. I did not and I don't think that any member of this Council took an ad in the Foothill Journal to bail out or subsidize a private business. Mayor Matteson concurred with Mayor Pro Tem Pfennighausen pointing out that it has bothered him every time someone said that Council was subsidizing because that was not the intent, the intent was to get communication out and make sure that the citizens were informed and this avenue was a weekly thing instead of a monthly thing. He felt the Chamber's main function was to promote business in the City, and felt their time should be spent promoting the City in economic development. Mr. Yost, pointed out that the cost of the newsletter is approximately $400.00 per month and at one time was at a break-even figure where it was plus a $100.00 a month. At one point they were at a balance where the newsletter wasn't costing anything because of the advertisement, then there was an organization in the community that some advertisers went with rather than the Chamber. He pointed out that the newsletter was going out to 5,000 members, costinq $400.00 a month feeling that is a low price for putting a communication in every mailbox. Mayor Matteson asked if that figure included staff time? Council Minutes - 06/13/88 Page 13 N Mr. Yost, replied no and asked staff how much less time wow d you put into publishing a newsletter just to members versus the 5,000 residents that are being published here now. Sandy Windbigler, replied the same amount. Mayor Matteson stated so it's the distribution that costs a lot more, but your staff is not doing the stuffing, folding and all of that. Mr. Yost, stated that within the last four months, the seniors wanted to run a survey just to the seniors and they used the newsletter as a vehicle for the survey and they cooperated with us to add a few more questions to their survey regarding the desire of a newsletter versus not having it. Councilmember Shirley requested that this be put over until tomorrow night so that the Chambers' budget could be reviewed. Councilmember Grant concurred with Councilmember Shirley. and asked City Manager Schwab how much was the monthly cost to the Foothill Journal advertisement was and the prorate over a twelve-month period. City Manager Schwab replied at the current level approximately $12,000.00. Councilmember Grant expressed his feelings about expecting $12,000.00 a year for advertising for one newspaper where each and every month much of the same thing is said in addition to new things, such as the statement of the Agenda and other statements of events and felt there was a place for private enterprises as well as the Chamber which is basically private enterprise too. He felt the Chamber is an integral part of the future of this community in the sense that it is promoting the welfare of its members and in doing that, it's promoting for the welfare of the community. He felt good things are coming out of the Chamber and agreed with Councilmember Shirley a need to know how much of these funds are going for advertising, salaries, benefits and other associated things. David Terbest, expressed his feelings regarding the Foothill Journal, Chambers Newsletter and other newspapers. City Manager Schwab stated that he knew he was going to get a lot of flack when he made the recommendation, but felt it was his responsibility to make a decision, pointing out that he could have just rolled over and recommended the $41,000.00. He explained this was not a personal attack Council Minutes - 06/13/88 Page 14 Mayor Pro Tem Pfennighausen stated that the Chamber is mailing her three newsletters a month to her house. Mr. Yost, stated that the mailing is coming from the firm that they contract that buys the mailing list and to the best of his knowledge, they buy the mai 1 i ng list from the post office. Councilmember Grant pointed out that the original intent with the Foothill Journal was to help them remain viable and felt that we've done our job to the Foothill Journal and felt that now it is up to them explaining that they have expanded to Colton and have always been with Loma Linda. He felt the Chamber has a direct relationship with the future of this City and is an integral part of the community. He stated that he is still struggling with the dollar figure, but as far as an appropriation of the Chamber he was certainly in favor of it. Mr. Yost, commented on a Councilmember being a past member of—TFe Chamber of Commerce and she could varify the circumstances the Chamber operates under and what they are trying to do. Councilmember Shirley stated that as a member of the Chamber, they did a lot and watched the dollars that they spent, but she could see some places where they save some more. She felt it would have helped Council if they had a copy of the Chamber's budget. City Manager Schwab stated that all Councilmembers were provided with a copy and if you didn't get one, there's a problem. Councilmember Shirley replied that she did not get one presently. Mayor Pro Tem Pfennighausen stated that she did remember the package that every Councilmember did get one. Mr. Yost, stated that there has been several things been brought to City Hall and Councilmembers have not gotten theirs. Mayor Matteson expressed his concerns of the Chamber competing with the Foothill Journal and felt that other Chambers were sending their newsletters to members only, wondering why our Chamber should send newsletters to people who are not paying dues. He felt thousands of dollars could be saved by doing that. Council Minutes - 06/13/88 Page 11 Ns Mr. Yost, replied when the Chamber initially received the grant t was for the purpose of publishing a newsletter to the community as a form of communication to them and they were here operating and the Foothill Journal came in and competed with the Chamber's Newsletter. 0 Mayor Matteson stated it is not a matter of who's competing with whom., it's what the necessity was. At one time it was the necessity for communication in our community, now a regular newspaper is here and you don't want to give it up, you want to keep that monthly newsletter and I don't see the purpose of it. Mr. Yost, replied it's not a point of argument here, but as Cou�7—member Grant mentioned the money for advertisement was approved to the Foothill Journal to keep it alive. We've had communication that has been very effective to the community for a number of years and whenever you have an enterprise that is on an empty situation, we aren't just going to throw away the towel and back away from supplying the community with the communication that we have and if they didn't survive, we would then have the whole process of trying to re-establish our advertising and all of the things involve with re -issuing newsletter to the community. Councilmember Evans pointed out that last year the Chambers two biggest expenditures within the budget was the newsletter and insurance and through some process the Chamber was able to considerably decrease the insurance and wanted to know what was the cost this year for insurance? City Manager Schwab replied $2,500.00 is budgeted currently in their proposed budget for insurance. Mr. Yost, stated it was through a collition of Chambers of Commerce where basicially it moved to somewhat of a self insurance where we were able to cut those expenses and was able to adjust our budget to be able to put monies into economic development. Mayor Pro Tem Pfennighausen clarified that at no time did her vote go to bail out or subsidize a private enterprise with City funds. When I cast my vote in favor of placing an ad in the Foothill Journal, it was as another avenue of getting information out. I have not said anything about this because I've gotten a lot of flack from business people throughout the community that are saying my business isn't doing too well either so you subsidize the Foothill Journal are you going to subsidize my business too. The answer is no and that was never my intent and I can't think that was the intent of this Council that we subsidize private businesses to keep them from going broke. She felt it was a poor choice of words when the issue was before Council Minutes - 06/13/88 Page 12 against the Chamber, but when putting together a budget, you have to consider that we are also looking at very limited resources as well. When you put $41,000.00 into perspective for the City of Grand Terrace that represents �- 130 percent of our total income for business licenses; represents almost 20 percent of all of the sales tax that we collect which is like a 20 percent rebate directed back to the Chamber. He explained that in order to fund the Chamber $41,000, you -would have to go down the street and count two hundred homes, it would take the amount of property tax that they paid, the portion that comes directly to Grand Terrace after the County. He pointed out that those are the types of things that staff has to consider in order to make a recommendation to Council, it's not an easy recommendation. He explained having to take out the Assistant City Manager's recommendation for employees. He stated this is not a personal thing against the Chamber of Commerce and felt they have done an excellent job. He explained the reason he put the two together is that they both serve in the area of getting the word out as far as the newsletter and what we are doing for the Foothill Journal, I want to do a compromise and if we are going to put an ad every single week in the Foothill Journal, that should affect our decision on what we do with the Chamber of Commerce and if we don't give the Foothill Journal any money, that would affect our decision on what we do with the Chamber of Commerce, that's how those things are tied together. Mayor Matteson expressed his feelings regarding putting both the Chamber's Newsletter and the Foothill Journal together. CC-88-75 MOTION BY MAYOR MATTESON, SECOND BY COUNCILMEMBER SHIRLEY, to maintain the $30,000.00 for- the Chamber of Commerce for the next year. Councilmember Grant stated that we have decided to provide advertising in a publication which we feel provides communication and news to the people in Grand Terrace, but you must keep in mind that that same expenditure of funds pays for the distribution of a newspaper which goes to two other communities. Both of the communities are larger in population than Grand Terrace and probably more households in each of the two. He wondered if the City of Colton is budgeting X-dollars for any particular newspaper, indicating understanding that Loma Linda may be doing that or may be thinking of doing that. Mayor Matteson reported that Loma Linda does do it and Colton has their own newspaper and it's irrevelant to them. Council Minutes - 06/13/88 Page 15 Councilmember Grant replied not irrelevant to them in the sense that this paper is now a tri-city newspaper and felt that we should look at budgeting for advertising. Mayor Pro Tem Pfennighausen expressed her feelings regarding coming up with a simple advertising budget and reported that she asked Jim Copeland of the Foothill Journal how long were they going to be able to distribute this newspaper free. She pointed out that the Foothill Journal is going to have to become a newspaper and do all a newspaper is suppose to do. She stated that $12,000.00 a year for advertising seems a great deal and indeed it is a considerable amount of money and felt we probably could do with less than a half of a page of material going into the Foothill Journal. We are not now and do not intend to subsidize a private enterprise. Councilmember Grant asked Mayor Pro Tem Pfennighausen why we cannot budget a specific amount for all advertising, why we must indicate X-number of dollars for one publication, Y-number of dollars be for another publication, what is there that would cause her to say that. Mayor Pro Tem Pfennighausen replied she could have agreed if he hadn't gotten into the legal advertising element, indicating those kinds of expenses are charged against specific departments within our budget. We could find ourselves in a position where we would constantly have to change that budget because of public hearing notices and personnel hiring notices, that type of thing is difficult to look forward to, to include it into a budget. Mayor Matteson asked for casting of votes, indicating this could go on all night. Councilmember Grant replied that's okay we are dealing with taxpayers money, we may just have to go on all night. Councilmember Shirley stated that she called for the question. CC-88-76 MOTION BY COUNCILMEMBER GRANT, SECOND BY MAYOR PRO TEM PFENNIGHAUSEN, to overrule the call for a question. Councilmember Grant stated to the Mayor that a motion was on the floor. Mayor Matteson asked Councilmember Shirley if she would withddraw her request for the call for the question. Councilmember Shirley replied, "no." Council Minutes - 06/13/88 Page 16 Mayor Matteson called for casting of votes, explaining that this is to override the call for the question. Motion CC-88-76 carried 5-0. Councilmember Evans asked for clarification as to the item that is being voted on, indicating that it seems like we are lumping Foothill Journal and the Chamber together. I will also go on record that when I voted for the Foothill Journal, it was not to subsidize that entity in anyway shape or form. Something that this City has lacked and still lacks is good comprehensive coverage of City activities and business and it was a vehicle that he hoped this information would get out to the people. He asked the City Manager if Council go ahead and grant the $30,000.00, would the Foothill Journal still be considered? City Manager Schwab replied that was his initial recommendation, but it has been through the discussion with Council tonight and he is assuming that if the motion passes that we have basically split those items and we would take up the Foothill Journal as a separate line item. Mayor Pro Tem Pfennighausen asked if we entered 230 as Foothill Journal .... City Manager Schwab replied, "yes," and under 230 he initially thought about what he could take as a minimum in that area for the Foothill Journal should we want to continue to do so and his recommendation was $5,200.00 which is going to buy us slightly less than a half -page ad twice -a month. The reason for that is he felt it is really important to get the entire Agenda in the newspaper for the meeting of that day, but -we are running into instances where a half of page is sometimes difficult for staff to fill on a weekly basis. He felt we could drop to twice a month, slightly less than a half page and provide good coverage for $5,200.00 a year. Councilmember Evans stated we are possibly looking right now if this motion passes and the advertising passes, the expenditures is $35,200.00. City Manager replied, that's correct. Councilmember Evans stated which is an increase of $10,000.00 from what you had recommended. Councilmember Grant replied $15,200.00. City Manager Schwab stated $10,000.00 net, when staff put in the $52,000.00 he did not realize that they didn't blend those, but it would affect our fund balances and our projected $77,000.00 overage of revenues over expenditures by ten so it would reduce that number by sixty seven. Council Minutes - 06/13/88 Page 17 1 Councilmember asked if the motion on the floor was for $30,000.00. The response was, "that's correct." Mayor Matteson for any other questions, being none, he asked for casting of votes. Motion CC-88-75 carried 5-0 to maintain the $30,000.00 for the $30,000.00 for the Chamber of Commerce for the next year. Mr. Yost, thanked Council for their consideration and stated that for the last three months they have asked for City information for the newsletter and for some reason they have not received any and did not know whether it was a breakdown in communication, but they will solicit information for the newsletter every month from the City. Sandy Windbi ler, stated the Chamber will be happy to pick up the $4,700.00 cost of the newsletter and she did not feel that should be the issue tonight and gave her views of what the issue should be. Barbara Bayus, stated the Chamber is having a car wash and everybody will be invited. Gene Carlstrom, felt that in regards to the General Plan and to the C,ty Manager's comments about the amount of money that it would take (20 percent revenue) to pay the Chamber what they felt they needed for the budget, recommended taking another look at the General Plan and postpone that until September. He suggested to try to keep as much commercial zoning up and down on Barton Road as we possibly can and eliminate some of the AP and maybe take another look at some of our R3. Recessed at 8:30 p.m. Reconvened at 8:45 p.m. Councilmember Evans requested cutting off at 9:30 p.m. and if necessary go into the 3rd night. He also requested that the Crime Prevention Committee make their presentation next. Crime Prevention City Manager Schwab reported that the Crime Prevention Committee Committee is a recommending body to the City Council and the committee's budget was submitted as is from the committee and he did not take any liberties with any committee budget. The Crime Prevention Committee has requested $6,200.00 and that is what we put into our recommendation. Council Minutes --06/13/88 Page 18 U Councilmember Grant asked the City Manager if each of the committee's proposed budqets were based upon an assumption that that committee analyze their needs, submitted it to the City Manager during budget call and is strickly from the committee. City Manager Schwab replied, that is correct. Mayor Matteson questioned the reason for the increase. City Manager Schwab reported that in the past we have had the budget for the Community Services Officer included in the contract with the Sheriff's Department, stating that has been reduced somewhat so that some of the expenses will be coming out of this area, but they wanted to expand some of their activities and that is in Line Item 220. Ral ph Buchwalter, Chairman of the Crime Prevention Committee, explained their budget and listed their arguments in favor of requesting additional funds ($3,654.00 more). He reported that they have, at present, approximately 73 active volunteers working with the Crime Prevention Committee in one capacity or another and expressed his beliefs as to the amount of money the committee is saving the City and was requesting only $3,600.00 more than last year. He recommended that Council show consideration in making the Community Services Officer a Cityemployee, indicating that would save the City approximately $13,479.00. He made it known that he was not suggesting that the City discontinue the use of the Community Services Officer because the entire program of the Crime Prevention Committee centers around the efforts of the Community Services Officer. Councilmember Shirley asked how many newsletters were sent out monthly and if there was any information in that newsletter that would comprise the work of the Crime Prevention Committee if it went to everyone in the City. Mr. Buchwalter, replied approximately 500 a month and no, but they had considered expanding distribution of the Crime Prevention Newsletter, by utilizing the services of the City's Sewer Department. CC-88-77 MOTION BY COUNCILMEMBER SHIRLEY, SECOND BY COUNCILMEMBER EVANS, CARRIED 5-0, that we follow the Crime Prevention Committee's recommended budget of $6,200.00. Mayor Pro Tem Pfennighausen asked Council to consider what Mr. Buchwalter said regarding the Community Services Officer. Council Minutes - 06/13/88 Page 19 Councilmember Evans asked Mr. Buchwalter if he had a breakdown of where the savings of $13,000.00 would come from. The response was, "yes." Councilmember Evans requested it to be made available to the City Manager before tomorrow night's meeting. Mr. Buchwalter replied he wasn't sure if he could have it ready by the meeting, but he would do his best. City Engineer City Manager Schwab stated that Page 40 represents a rollover budget for the City Engineer and was requesting a Professional and Special Services $29,000.00; Coordination With The Public $8,000.00, Staff Engineering $35,000.00, Public Works Engineer $30,000.00; Building & Safety $50,000.00. For notation purposes only and it has been requested in the past, we also have $3,000.00 budgeted in Waste Water Disposal. City staff is looking for a motion for $152,000.00 for the City Engineer's Department 170. CC-88-78 MOTION BY MAYOR PRO TEM PFENNIGHAUSEN, SECOND BY COUNCILMEMBER EVANS, that the amount of $152,000.00 as presented in the proposed budget for the City Engineer Department 170 be approved as presented. Councilmember Evans stated for clarification, you carried out previous years and under 1987/88 under Coordination With The Public, you showed that we approved $7,000.00, we had an adjustment of $1,250.00 and you estimated at the end of this year that we will have only expended $7,400.00. Am I to assume then, that when we made the adjustments that that was at that time to have given us an $8,250.00 end of year expenditure and we're not going to spend all of that, is that why it's now $7,400.00? City Manager Schwab replied, "that's correct," that's just our estimate when we developed the budget. Motion CC-88-78 carried 5-0. City Manager Schwab stated if there is no other request to move to any specific area, then the beginning of the budget is on Page 32, City Council Department 110. We are budgeting $9,000.00 for the Council stipens, we are requesting office supplies for $250.00; special departmental expense this year to be increased to $2,200.00 and the reason for that is this is our loth year Anniversary and we would like to be able to do some special events and also have a 10-year commemorative City Pin to be developed, travel, conferences and meeting a rollover of $9,000.00, a total appropriation of $20,450.00. 11 Council Minutes - 06/13/88 Page 20 Mayor Matteson stated he had noted tremendous increases on a lot of line items except for Line Item 120, it remains constant. Stan Hargrave, expressed his feelings regarding Line Item 120, to increase the Council's stipends and recommended that to the City Manager. Councilmember Grant asked if at one time City Attorney Hopkins said that this is all that the City Council could get? City Manager Schwab replied, that's correct, it's set by the Government Code, indicating otherwise, that Line Item would see some action every single year. Mayor Pro Tem Pfennighausen stated there are variety of ways. City Manager replied if you want to put anything in there, I guarantee we can figure out a way to make that possible. I think the cut off is 10,000 and we'll just count, we are at 9,991, we'll count the next 9 people who moves in, we can work with it if that's what Council would like to do. Stan Hargrave, how about if we put a line item for car expenses for Councilmembers, that is not a stipend, that is an expense item and as of last week that does not litigate any federal, state, county, city, chamber regulation that he knows about since last week. He felt that is where most of Council spends considerable dollars. He believes if you keep the line items the same and we don't at least make some attempt at paying Councilmembers a little better than we are, then we are going to eventually get what we don't want and that's people who really shouldn't be there and they are there because nobody else wants the job. Councilmember Evans stated possibly whatever the stipends are may be set by the Government Code, I remember there was some discussion some time back as to whether you want to call it Council's income versus stipend as far as recording. He explained we are not talking about a raise for Councilmembers and asked if it was in the Government Code that if a decision was made to increase that it would impact this Council that it will have to take affect each election year or two years. City Manager Schwab replied he wasn't familiar with that, I think basically the definition we are using right now for stipends is that it is a reimbursement of your expenditures and it is based on that interpretation and that as of now is not taxable. I believe this is the first budget year in Council Minutes - 06/13/88 Page 21 N which we did not provide mileage reimbursement for Council, last year the discussion centered around the fact that $300.00 or $150.00 is suppose to reimburse you so therefore, no one ever utilized that. There are ways that if you would like to increase the reimbursement and felt working with our City Attorney we could do that. Mayor Pro Tem Pfennighausen stated there are a number of things that as member of Council that you are almost ceremonially obligated to do and some of these are a variety of functions in surrounding communities that you are invited to. She explained it has become very selective as to which one she will attend because of the limited amount of funds and she never felt that she had the freedom to charge the City to go even though the invitations come specifically to the elected people in this community. It would probably cost a great deal more than a budget item to cover those if we just simply turned in and said, you call and make a reservation for us at this. Mayor Matteson stated that all of the cities that he knows of around here that doesn't have expense accounts and turn in all of those expenses in, in Rialto they even have their own credit cards. This is the only city that I know where we don't get reimbursed on our mileage and stuff. City Manager Schwab stated that many cities provide them for benefits and some even pay deferred compensation, but a common benefit for City Council is health insurance or life insurance, or both which does not fall within the code amount for the stipends, it's flexible, it's what the Council would like to do. CC-88-79 MOTION BY COUNCILMEMBER SHIRLEY, SECOND BY COUNCILMEMBER GRANT, CARRIED 5-0 to approve the City Council's Budget Department 110 in the amount of $20,450.00. Mayor Matteson stated $20,450. Councilmember Shirley replied, "right." City Manager Schwab asked Council if they would like to have a discussion to talk about the policies for the travel meetings as far as if you want to go to Mayor so and so's Retirement Dinner, that that would be something that's eligible. Mayor Matteson stated that it should be now the way the policy is set up, people just have to turn in their expense report and just pay it, that's the way it should be. Councilmember Shirley asked why doesn't staff write up a conservative proposal. 0 Council Minutes - 06/13/88 Page 22 City Manager Schwab replied, staff will do that and put it on the Agenda for discussion. Mayor Matteson asked the City Manager to look it up in the Policy Manual and see what it says now. City Manager replied, he will do that. City Manager Dept. City Manager Schwab stated that Department 120 as indicated Salaries in the Management Letter does not have any increases set currently for salaries other than program increases for merits that exist for any employees if they are not at the top of their range. The dollar figures that you see in front of you are either actual and the only leeway is under our merit pay system and as we've done in the past, we've left that for last. In the City Manager's Department, with the current level of staffing, we are asking for $96,200.00 in salaries, there have been some shifts within the departments between City Manager and City Clerk's Department. The City Clerk's Department Budget has gone done, the City Manager's Budget has gone up, we've transferred some positions between those two, but the net result is a reduction. The benefits correlate directly as a percentage with the exception of health insurance; two salaries with medical care $250.00; deferred compensation & insurance $17,420; retirement $11,935; SUI $840.00 and health and life insurance $2,335.00 total personnel budget of $128,980.00. Mayor Matteson question why the salaries go from $64,000 to $96,000? City Manager Schwab replied, because we have two part-time employees that have been transferred to this particular budget unit. One is from the City Clerk's Department and the other one is new. Seventy percent of the City Manager's Budget is there, thirty percent in finance, but that doesn't change as far as the amount of increase. The shift of employees when we get to the City Clerk's Department, there is a reduction from $67,000 to $49,000.00 and that's the lack of not having a City Clerk position, as well as some of the part-time. Mayor Matteson stated that before we discuss this item, we should discuss the City Manager's Merit Increase. City Manager Schwab replied that he had that scheduled for the last item after all personnel is taken care of. City Manager Schwab reported there is net increase and that is for two half-time positions that did not exist and that is one in the City Clerk's Office, Brenda Moore in the afternoons and Lavon Cottrell in the mornings, both half-time positions that have been added. With the Council Minutes - 06/13/88 Page 23 reduction of the City Clerk and the addition of the two part-timers, we have a net decrease between those two departments, but it is an increase over the level that we had estimated in 1987/88. 0 Mayor Matteson stated this one goes up $41,000 and the other department goes down $18,000, so it's a $23,000.00 increase. Mayor Pro Tem Pfennighausen pointed out that we have an increase in the City Clerk's Department from a clerk to a secretary, one of the people, have we not. City Manager replied that's in the City Manager's Department. Mayor Pro Tem Pfennighausen pointed out that accounts for part of that, indicating that it's very difficult to understand the task and the scope of work and the quantity of work that is done by our City staff unless you have the opportunity to observe it, explaining that the upstairs employees sometimes even at its present level is stretched far too thin. She pointed out that it is easy to sit and look at figures and question those, but sometimes we can be penny wise and pound foolish. We do not maintain any excess staff and wherever possible we use part-time employees so that we don't have people just sitting around with nothing to do, therefore, any staff that is reflected in any of our departments is both necessary and worked to death. She felt that one thing to remember is that these figures are not reflecting an across -the -table salary increase for the same employee load that we had a year ago, there is an increase in employee load because as our City grows the amount of things that need to be done continues to grow. She pointed out that our staff does not grow as fast as the need throughout the City does and when we are talking about figures, due to the fact that there was a shift in responsibilities and that the responsibility of our staff grows, therefore, we've had to expand our staff to some degree. She stated that is what is reflected in these figures and asked the City Manaqer is she correct. City Manager Schwab replied that and he noticed as he looked back and study the City Clerk's Department for a minute, the 1987/88 estimate showed $67,000.00 and Council approved $88,000.00, it's just that we didn't spend all of that money because the City Clerk position was unfilled for sometime during the year and also the Deputy City Clerk was not on board the entire time, so the budget we would have spent had we had all of those employees would have been $88,000.00. I Council Minutes - 06/13/88 Page 24 Office Expense City Manager Schwab reported that under office expense we are spending more than we programed for, office expense of $1,000.00 and we are requesting that the office expense line item be increased from $1,000.00 to $1,500.00. Councilmember Evans questioned who makes the different recommendations referring to the recommended difference of $2, 000. 00- and $1,500.00. City Manager Schwab replied that the office expense was developed by the clerical staff, but basically we put together the entire budget and then -we kind of looked at how much money do we have and during the first cut, I went through and took everything that I thought we could trim out of it and that didn't exempt my own budget. Special City Manager Schwab stated that he was requesting $500.00 Departmental under advertising indicating we were spending more Expense advertising for recruiting and we are requesting $850.00; maintenance & operation of equipment requesting $1,000; insurance, since we are self -insured, it's basically an estimate because we only paid deposits in retros based on experience and we are recommending $35,000.00; membership and dues $400.00. Councilmember Evans referred back to the sizable jump in the insurance rate and wanted to know if that contributed to particular one. City Manager Schwab explained about an individual who had broken his ankle sliding into home plate at a softball game and he sued the City and got an award close to $25, 000.00 because he said it happened because of an unsafe condition. Councilmember Evans stated so essentially what you are telling us is that we are seeing a substantial increase because of this one case that this insurance company had to pay out on. City Manager Schwab replied not insurance company, we are self -insured. Councilmember Evans stated self -insured through JPIA. Mayor Matteson felt we would have been better settling it ourselvers rather than reporting it to the joint .... City Manager Schwab replied we would be violating our own agreement with them and if we did that everybody would settle all of the small and then would only turn in the big ones, we don't have any recourse unfortunately in that J area. Hopefully, that was a one-time experience. Council Minutes - 06/13/88 Page 25 N Employee Training City Manager replied that in our Personnel Manual there is a reimbursement for employees training if they take classes that are beneficial to the City in general, pointing out that we provide reimbursement tuitions for books with the completion of a grade of "B" or better. We do have one of our planning aides who is currently enrolled at Cal State Fullerton and that is the reason for the increase of $1,500.00. Travel, Conference City Manager stated that we are asking for the same and Meetings $1,500.00 and mileage of $1,000.00 for a total of that budget unit of $172,230.00. CC-88-80 MOTION BY MAYOR PRO TEM PFENNIGHAUSEN, SECOND BY COUNCILMEMBER EVANS, CARRIED 5-0, to approve the City Manager's Budget Department 120 in the amount of $172,230.00. CC-88-81 MOTION BY MAYOR PRO TEM PFENNIGHAUSEN, SECOND BY COUNCILMEMBER EVANS, CARRIED 5-0, to adjourned the meeting until tomorrow night at which time we will continue the budget session. Mayor Matteson adjourned the adjourn regular meeting at 9:40 p.m. until the next adjourn regular meeting which will be held on Tuesday, June 14, 1988 at 6:30 p.m. DE U CITY CLER the City o Gtod Terrace MAYOyf t e City of orand Terrace Council Minutes - 06/13/88 Panes 99