Budget Goal Setting Workshop Tuesday, February 12, 2013 City Hall, 100 Civic Center Plaza BUDGET GOAL SETTING WORKSHOP FY 13-15

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1 MINUTES Final Minutes Approved 4/02/2013 Budget Goal Setting Workshop Tuesday, February 12, 2013 City Hall, 100 Civic Center Plaza 8:30 A.M. - Council Chambers Council Members Present: Bob Lingl, Dirk Starbuck, DeWayne Holmdahl, Mayor Pro-Tempore Ashley Costa and Mayor John Linn. Staff Present: City Administrator Laurel Barcelona, City Attorney Joseph Pannone, City Clerk Stacey Alvarez, Economic Development Director/Assistant City Administrator Teresa Gallavan, Public Works Director Kevin McCune, Utilities Director Larry Bean, Library Director Ashlee Chavez, Fire Chief Kurt Latipow, Fire Battalion Chief Stan Hart, Fire Battalion Chief Mark Bray, Fire Battalion Chief Mark Clayton, Police Chief Larry Ralston, Police Capitan Ed Lardner, Wastewater Treatment Plant Superintendent Tim Smith, Senior Administrative Analyst Susan Segovia, Solid Waste Superintendent Claudia Stine, Broadband Manager Richard Gracyk, Urban Forestry Manager Cindy McCall, City Engineer/Assistant Public Works Director Michael Luther, Recreation Manager Mario Guerrero and Recreation Manager JoAnne Plummer. ORAL COMMUNICATIONS: None NEW BUSINESS: BUDGET GOAL SETTING WORKSHOP FY Introduction Administration City Administrator Laurel Barcelona presented a brief introduction of the Budget Goal Setting Workshop, asked Council to confirm how Council would prefer the Workshop would proceed, announced Staff will present an update on the Budget process at the April 16, 2013, Regular Council Meeting and the goal of adopting the 2013/15 Biennial Budget at the June 4, 2013, Regular Council Meeting. Mayor Linn stated Council will ask questions during each department presentation and give direction at the end of those presentations. Ms. Barcelona presented the budget requests for the Administration Department and stated the Administration Department budget requests for the 2013/15 remains at a status quo level, with a single change in the City Clerk s Office. An open position for an Office Staff Assistant I will be relocated from the City Clerk s Office to the Finance Department and reclassified as a Treasury Clerk, to help assist with transitioning the Business Tax Certificate program from the Clerk s Office to the Finance Department. This change will be a cost savings to the General Fund. Council Member Costa asked where the personnel costs for Economic Development can be found. Ms. Barcelona stated the personnel costs approved in the 2011/13 Biennial Budget for the Economic Development Director/Assistant City Administrator are included in the salaries, wages and benefits of the Administration Department and can be found on page 6 of the 2011/13 Biennial Budget. Public Comment: None 2. Financial State of the City Presentation Management Services Management Services Director Brad Wilkie presented a summary of the Financial State of the City and explained this Workshop is the first step in the budget process. Mr. Wilkie pointed out the General Fund Revenue in the 2013/15 Budget is almost 10 percent greater than the projected 2011/13 Budget, due in large part to grant revenues and tax revenue increases. The preliminary expenditures shown for the 2013/15 Budget is the best estimate, based on current information. The estimate includes additional expenditures of $152,372, if Council approves to continue the funding of the Adult Literacy program and the continuation of the North County Rape Crisis and Child Protection Center Services. These services were approved for funding subsequent to Council s adoption of the 2011/13 Budget and were funded through June 30, Employee concession reductions in health benefits were also approved subsequent to the 2011/13 Budget and will add $550,000 to the 2013/15 Budget. 02/12/2013 Lompoc City Council Budget Goal Setting Workshop Agenda Page 1 of 5

2 NEW BUSINESS: (cont d) Item No. 2 Council Member Costa asked if City funds are available to cover the added costs associated with the Police Department grant. Mr. Wilkie stated $180,000 has been estimated and is included in the proposed 2013/15 Budget. Mayor Linn asked Mr. Wilkie to comment on the usefulness of a Cost of Services Survey, if the Survey should be completed by an outside consultant and what the approximate price would be for the Survey. Mr. Wilkie explained a Cost of Services Survey prepared by an outside consultant would cost approximately $40,000, would be quite helpful to ensure the City is charging appropriately for the services provided by all departments, and with the use of an outside consultant, the Survey would be very objective. Council directed Staff to add funding for a Cost of Services Survey in the 2013/15 Budget. Council discussed current employee retirement costs to the City and pension formula changes made by the City to help mitigate rising employee retirement costs. Council requested Staff to return to Council at a later date with information on the possible use of a Pension Obligation Bond. Council approved to continue funding the City s graffiti blight removal program at a cost of $41,000 annually and the Economic Development Promotion Programs at a cost of $50,000 annually, which were previously funded through the Lompoc Redevelopment Agency. At 10:10 A.M. Mayor Linn announced a break. At 10:25 A.M., the meeting The Economic Development/Community Development presentation was moved ahead of the Management Services/Finance presentation. 3. FY 2013/15 Biennial Budget Staff Presentations by Departments Economic Development/Community Development Economic Development Director/Assistant City Administrator Teresa Gallavan introduced Planning Manager Lucille Breese, Recreation Manager JoAnne Plummer and Recreation Manager Mario Guerrero and presented the proposed 2013/15 Budget requests for the Economic Development/Community Development Department. Council directed Staff to develop a cost recovery fee structure for Community Development Block Grant projects and return with funding options and recommendations for the proposed program changes to the Economic Development Department, which includes the addition of a Development Specialist III, Social Media Management and Outreach Program Materials. The proposed 2013/15 Budget requests for the Planning Division and the Recreation Division were presented. Mayor Linn stated he received a letter from a developer who recently completed a project inside the City Limits and gave praise to the Planning Division for their sterling customer service. NEW BUSINESS: (cont d) Management Services/Finance Management Services Director Brad Wilkie commended all staff members in the Financial Services Division, Purchasing and Materials Division and the Information Services Division, which are the three separate divisions inside the Management Services Department, for being able to meet the challenges of the last two years. Mr. Wilkie presented the proposed 2013/15 Budget requests for the Management Services Department. 02/12/2013 Lompoc City Council Budget Goal Setting Workshop Agenda Page 2 of 5

3 Item No. 3 Council Member Starbuck asked Staff if the City will be able to offer on-line payment options for utility billing. Mr. Wilkie stated the Information Services Division is currently working on testing the on-line system and should be able to offer that service to its customers soon. Council discussed the presented Budget requests and with a general consensus approved Staff to move forward with all recommendations as shown and present again for Council s final review and action at a later date. Fire Department Fire Chief Kurt Latipow presented the 2013/15 Budget requests for the Fire Department, stating the requests are at $1,209,900 above the status quo, because many requests have been presented in earlier budget requests, but were unable to be funded. Council discussed the presented requests, the most essential or critical requests, possible outside funding sources, the newly received Staffing for Adequate Fire & Emergency Response (SAFER) Grant and the addition of firefighters through that Grant and the City s responsibility of funding the additional firefighter positions in year two of the 2013/15 Budget. Council directed Staff to include the Fire Department as part of the Cost of Services Survey. At 12:00 P.M. Mayor Linn announced a break. At 1:00 P.M., the meeting Police Department Police Chief Larry Ralston and Police Captain Ed Lardner presented the 2013/15 Budget requests for the Police Department. Council discussed the presented requests and asked Chief Ralston to comment on the Police Department s choice between funding the Victim Advocate position or the requested Longevity Pay. Chief Ralston stated the Longevity Pay is vital to being able to retain officers. Library Library Director Ashlee Chavez presented the 2013/15 Budget requests for the Lompoc Public Library System. Council discussed the budget requests, suggested the City, with possible use of AB1600 Funds, match State Grant amounts to continue the Library s Literacy Program and directed Staff to return with all funding source possibilities identified that may be able to fund any of the Library s 2013/15 Budget requests. Public Works Public Works Director Kevin McCune thanked all Staff members, especially the supervisors in the Engineering Division, Building Division, Fleet & Facility Division, and Parks & Urban Forestry Division for their commitment to customer service and hard work maintaining services even with several cuts and changes in these divisions. Mayor Linn asked Staff if, as a time saving feature, the Engineering Division would be able to review water and wastewater items during the plan check phase of a project. Public Works Director Kevin McCune explained the Engineering Division assembles all the comments from each department or division, but would be uneasy to allow the Engineering Division to comment on items that are directly related to other divisions, such as water and/or wastewater. NEW BUSINESS: (cont d) Item No. 3 02/12/2013 Lompoc City Council Budget Goal Setting Workshop Agenda Page 3 of 5

4 Council discussed the budget requests and with a general consensus, directed Staff to move the proposed Facilities Capital Outlays for the Library be funded by Community Development Block Grant (CDBG) Funds, directed Recreation fees be reviewed as part of the Cost of Services Survey, approved the replacement of a copier in the Building Division Capital Outlay request, approved the transfer of two hours/day to the River Park Campground Program, asked Staff to provide information on a possible internal loan or borrowing of Impact Fee monies to fund any of the listed Parks Capital Outlay requests and to move forward with all other presented requests and return at a later date for Council s review. At 3.30 P.M. Mayor Linn announced a break. At 3:40 P.M., the meeting Utilities Utilities Director Larry Bean presented the 2013/15 Budget requests for the Utilities Department, which includes Utilities Conservation, Utilities Administration and Customer Service, Broadband, Solid Waste, Wastewater, Water, and Electric. Council discussed the presented budget requests, unfunded State Mandates to the Solid Waste Division, current replacement schedule of water and wastewater lines, the need to replace very old water mains, the scheduled end to the City s Franchise Agreement with Comcast, and a possible City-owned fiber system. Mayor Linn distributed a typed request to direct the City Administrator to review and reorganize the City s management structure of staffing. Council discussed this presented information. City Attorney Joseph Pannone requested clarification from Mayor Linn regarding this suggestion, stating his understanding of this typed request is to direct the City Administrator to review all departments and make any changes she sees as appropriate, without relying on input from the Department Heads. Mayor Linn stated his expectation would be for the City Administrator to work with the Department Heads, but be more proactive in her approach to making changes to staffing to achieve greater savings. Council Member Costa stated she expects all Department Heads have brought forward all their best and most efficient staffing levels that is in-line with the well-being of their departments and is in favor of the City Administrator and Department Heads to continue to look for any and all cost savings and efficiencies available, and would expect Department Heads to continue these conversations with the City Administrator throughout this Budget process. Council Member Lingl voiced his support for the City Administrator to work in concert with and continue consulting the Department Heads for recommendations on staffing levels and not just make personnel changes or cuts without input from those Departments. Mayor Linn presented a list of items he typed up titled Budget Allocations for Council Priorities and asked Staff to include the following items in the Budget process: Funds to update the City website Funds for a grant writing program Funds to create a volunteer coordinator whether as Staff or as a volunteer Funds to install a water meter and provide water to the new community garden at 518 North T Street and any other recurring costs Funds to implement the creation of a low-income down payment assistance program using City housing-in-lieu fees Identify $15,000 in funding for the Ryon Park arch repair Recommend a best practice system for repairing pot holes and the necessary funding Funds for a sign structure at both entrances to Lompoc to display the non-profit s logo signs Funds to repair the watering system in the downtown medians Funds for the Wastewater plant to make modifications to accept septic hauler s waste and chemical toilet pumper s waste Budget Allocations for Council Priorities (cont d) Fire Chief s recommendation for Medical Squad Truck and the costs 02/12/2013 Lompoc City Council Budget Goal Setting Workshop Agenda Page 4 of 5

5 Budget $2,000 for material for the Shop Lompoc campaign Add an additional $8,000 over two years for time and materials to repair blighted alleys Allocate $5,000 in Streets funds to put in way finding signs Allocate funds from Solid Waste collection to repair pavement damage at the entrance to alleys and damage caused to alleys by heavy solid waste trusts to Street Department. Council requested the list of items be incorporated into the Budget process and directed Staff to return with recommendations. With a general consensus, the Council agreed to achieve a balanced budget without the use of General Fund Reserves. ORAL COMMUNICATIONS: None ADJOURNMENT: At 5:23 P.M. Lompoc Council adjourned to a Regular Council Meeting on Tuesday, February 19, 2013, at 7: 00 P.M. John H. Linn, Mayor Stacey Alvarez, City Clerk March 26, /12/2013 Lompoc City Council Budget Goal Setting Workshop Agenda Page 5 of 5