08-0509_CRA_Minutes_Adjourned Regular MeetingMINUTES
MAY 9, 2007
SAN JUAN CAPISTRANO CITY COUNCIL ADJOURNED REGULAR MEETING; AND
CITY COUNCIL AND COMMUNITY REDEVELOPMENT AGENCY
JOINT BUDGET WORKSHOP
Mayor Allevato called the Adjourned Regular Meeting of the City Council of the City of
San Juan Capistrano & City Council and Community Redevelopment Agency Joint
Budget Workshop to order at 4:00 p.m. in the City Council Chamber. Council Member
Hribar led the Pledge of Allegiance and Mayor pro tem Soto gave the invocation.
ROLL CALL
COUNCIL MEMBERS & COMMUNITY REDEVELOPMENT AGENCY DIRECTORS
PRESENT: Tom Hribar, Mark Nielsen, Dr. Londres Uso, Mayor pro tem Joe Soto, and
Mayor Sam Allevato
COUNCIL MEMBERS & COMMUNITY REDEVELOPMENT AGENCY DIRECTORS
ABSENT: None
STAFF PRESENT: Dave Adams, City Manager; Bill Huber, Assistant City Manager;
John Shaw, City Attorney; Maria Morris, Deputy City Clerk; Cynthia L. Russell,
Administrative Services Director; Nasser Abbaszadeh, Engineering & Building Director;
Steve Apple, Planning Director; Karen Crocker, Community Services Director; Steve
Montano, Assistant Director of Administrative Services; Lt. Mike Betzler, Chief of Police
Services; Michael Cantor, Senior Management Analyst; Jill Thomas, Management
Analyst II; Lynnette Lehmann, Management Analyst II; Kathleen Springer, Management
Analyst II; Douglas Dumhart, Economic Development Manager; Teri Delcamp, Historic
Preservation Manager; Brian Perry, Project Manager; Peter Salgado, Senior Civil
Engineer; Alan Oswald, Senior Traffic Engineer; Ziad Mazboudi, Senior Civil Engineer;
Jack Galaviz, Public Works Manager; David Contreras, Associate Planner; and Eileen
White, Recording Secretary
DISCUSSION ITEMS:
2007-2014 CITY SEVEN-YEAR CAPITAL IMPROVEMENT PROGRAM
PROJECTS AND BUDGET ALLOCATIONS PRESENTED. (330.40)
Description: Each year the City develops a seven-year Capital Improvement
Program (CIP) to provide consistency with the requirements of the State
Congestion Management Program and the County Measure M Program. A CIP
Project Committee, consisting of representatives of each of the City
Departments, met to review and prioritize the projects based on set criteria. The
CIP Project Committee has prepared a draft Seven -Year Capital Improvement
Program for Council review. Staff recommended Council receive the report and
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provide input and direction to staff regarding Capital Improvement Project
priorities.
Written Communications: Report dated May 9, 2007, by Jill Thomas,
Management Analyst II.
Presentations and Staff Reportin
Steve Montano, Assistant Director of Administrative Services, narrated a slide
presentation including an overview of the budget purpose and categories as well
as pie charts indicating citywide revenues and citywide expenditures.
Jill Thomas, Management Analyst II, addressed the CIP background, process,
and funding sources; and reviewed the following projects: City Council Priorities,
grant funded, Traffic Congestion Relief Program (TCRP), circulation, Community
Redevelopment Agency (CRA), miscellaneous, Park & Recreation, sewer,
domestic water, and recycled water. She noted no drainage projects are
proposed due to a negative balance in this category; and advised the CIP has
been approved by the Planning Commission and Water Advisory Commission.
Cindy Russell, Administrative Services Director, responded to questions
concerning budget calculations, grant funding details, and budget timing issues.
She agreed to provide copies of the seven year development sheet to Council
Members.
Teri Delcamp, Historic Preservation Manager, provided details of the Para Adobe
House rehabilitation project, noted staff will be applying for grants to help fund
the project, and clarified the budget amount of $155,000.
Public Comment:
Gail Zukow, Parks, Recreation and Equestrian Commission, expressed her
appreciation for the workshop and will address comments to the City Council in a
letter.
Bob Cardoza, Planning Commission, felt that the workshop improves
communication and the opportunity to express points of view, and helps with the
Commission's recommendations to the City Council.
Council Discussion:
Council Member Nielsen established that inclusion of CIP funded projects in the
budget does not commit the City to the projects, which will come to the City
Council for final review and approval.
Mayor Allevato recommended the trail signage budget include language to
ensure the multi use trails are identified as such.
5-9-2007
Council Action: No action required. A public hearing is scheduled for June 5,
2007 for adoption of the Seven -Year Capital Improvement Program and budget
allocations.
2. FISCAL YEAR 2007 -- 2008 OPERATING FUND BUDGETS INTRODUCED.
(330.20)
Description: The City's Fiscal Year (FY) 2007108 operating budgets provide the
financial guideline for City operations in the coming year. The budgets include
projected costs for general operations, water and sewer operations, and other
programs. Overall, the City's financial outlook is stable and current year
expenditures are for the most part able to be funded with the current revenues
and proposed utility rate increases. Reserves balances are also sufficient to meet
the City's needs and provide funding for future projects. Staff recommended the
introduction of the FY 2007108 operating budgets for discussion. Adoption of the
budgets is scheduled for a Public Hearing to be held on June 5, 2007.
Written Communications: Report dated May 9, 2007, by Steve Montano,
Assistant Director of Administrative Services.
Presentations and Staff Re ortin :
Steve Montano, Assistant Director of Administrative Services, narrated a slide
presentation featuring information concerning General Fund revenues and
expenditures classifications, rollover expenses, new or expanded programs, and
technology projects.
Cindy Russell, Administrative Services Director provided a presentation
concerning the Enterprise Funds Water Operations projected costs and
revenues; and Sewer Operations projected costs and revenues. She also
provided preliminary information as to why various sewer districts are funded at
different rates. She responded to questions concerning the budget process, fund
transfers, litigation expenses, department allocations, and General Fund
reporting procedures. She reported potential future budget challenges such as
projected loss of development revenue; the need for a more diversified tax base;
and un -funded mandates by state and federal regulations that increase costs
without providing a revenue stream.
Lt. Mike Betzler, Chief of Police Services, reported the benefit of having a school
resource officer assigned through the Sheriffs Department, as this assignment
allows the officer to respond to other types of police services needs.
Karen Crocker, Community Services Director, explained Community Services
Department budget increases due to changes in reporting contract classes
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income; changes in 4 t of July event revenue collection procedures; cost
increases due to an upgraded sound system at communitywide events; and
anticipated impacts due to the implementation of the JSerra High School joint
use agreement.
Staff responded to Council Members' questions into various operating costs
including customer service; parking violation costs and charges; building
operating costs and depreciation; Community Services program staffing and
costs; liability and general insurance costs; sponsorship fees related to
community events and the value of the sponsorship; lobbying costs; sewer
funding, variation of rates from district to district, alternatives for establishing
sewer rates, and sewer maintenance; and water recycling costs and rates.
Public Comment:
Medi Rahimi, City resident, inquired into the likelihood that the Alipaz Extension
would be built as he owns property in the project area. Nasser Abbaszadeh,
Engineering & Building Director, reported that the project is listed and would be a
benefit to the community. It has not proceeded because projects of this type are
usually tied to development. Council Member Hribar informed Mr. Rahimi that the
Open Space Committee planned to contact him concerning his property.
Council Discussion:
Council Member Nielsen suggested analysis to determine whether it would be
more fiscally responsible to use in-house staff or temporary staff to accomplish
on-going programs and needs, while using consultants for one-time specific
projects. He felt increased lobbying efforts at the state and federal levels would
benefit the City's revenue; and event sponsorship fees should be increased to
reflect the appropriate value to sponsors. He requested analysis of water and
sewer rates including applying Consumer Price Index increases since the last
rate increase. He encouraged a zero -based approach to budgeting.
Council Member Hribar established that the city cameras about 15% of our sewer
lines annually, while 50% is ideal. He suggested that rates be established to
cover needed costs related to photographing sewer lines. He encouraged a
phased approach to convert septic connections to public sewer connections
which are needed to protect groundwater quality.
Council Member Uso recommended sewer rate increases that are realistic to pay
the true cost of providing the service, at the most efficient method of providing
service, rather than a series of rate increases which would require interim rate
subsidizing. He suggested the water recycling plant may be a preferred plan for
providing water in the future, but the facility needs to be fiscally palatable for the
community
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Mayor pro tem Soto felt the City needed to develop a plan for funding more
camera work of sewer facilities. This work can uncover significant problems,
while protecting our groundwater.
Mayor Allevato supported the use of a city funded school resource officer and
increased lobbying efforts.
Council Action: No action required. A public hearing is scheduled for June 5,
2007 for adoption of the Fiscal Year 2007 - 2008 operating budgets.
3. FISCAL YEAR 2007 -- 2008 COMMUNITY REDEVELOPMENT AGENCY
OPERATING AND CAPITAL IMPROVEMENT PROJECT FUND BUDGETS
INTRODUCED. (330.70)
Description: The Fiscal Year (FY) 2007108 Community Redevelopment Agency
(Agency) budget provides revenue and expenditures projections for the coming
year. The coming fiscal year forecasts sufficient tax increment revenues to
provide adequate funding for current debt service costs. Administrative costs and
new capital funding will require cash-flow loans from the City's General Fund.
The Agency will be experiencing major debt service requirement during the
coming year due to loans related to the Kinoshita Farm acquisition, loans
between the City's sewer enterprise fund and the Agency, and loans for the
Lower Rosan Ranch property. Agency funds are sufficient to cover the Kinoshita
and City debt; however the short term loan on the Lower Rosan Ranch property
will need to be refinanced. Staff has prepared projections for all Agency funds
through the remaining life of the Agency, will be reviewing best strategies to
capitalize on future tax increment revenues with the City's financial advisor, and
will prepare a report for the Agency board during the first half of the coming fiscal
year. Staff recommended the Agency Board of Directors review and discuss the
proposed FY 2007108 Community Redevelopment Budget. Adoption of the
budget is scheduled for a Public Hearing on June 5, 2007.
Written Communications: Report dated May 9, 2007, by Cindy Russell, Finance
Officer,
Presentations:
Cindy Russell, Finance Officer, summarized the staff report and reviewed slides
outlining the Agency's administration costs, projected projects, affordable
housing plans, and debt service.
Lynnette Lehmann, Management Analyst II, discussed the City's compliance with
State regulations concerning the number of affordable housing units within the
City limits.
Public Comment: None
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Council Comment:
Council Member Uso acknowledged the City's need to prepare for the future; and
stressed the need to educate residents as to the City's situation so they
understand the difficult decisions that have to be made for the good of the entire
community.
Council Member Nielsen commended staff for the work involved in preparing the
budgets; advocated long range planning to improve the City's financial outlook;
and requested 5 year projections for operating budgets in order to address any
issues. He suggested a one-time increase to sewer rates to cover true cost of
providing service. He also encouraged diversification of the City's revenue
sources and leveraging the City's assets to attract more funding, such as grants.
Council Member Hribar suggested the City retain a full year of expenses in
reserve and exploring new revenue sources. He preferred sewer rate tiers and
rates to be raised as needed to cover costs.
Mayor Allevato felt the City was too dependent on auto dealership sales tax for
revenue and supported seeking out other major revenue sources such as a
destination hotel. He felt the City needed to provide more workforce affordable
housing and suggested considering higher density for low- and very low -
affordable housing developments. He also felt that staff professional
compensation was a consideration.
Council Action: No action required. Adoption of the budget is scheduled for
the June 5, 2007 meeting.
ORAL COMMUNICATIONS: None
COMMUNITY REDEVELOPMENT AGENCY ADJOURNMENT:
Mayor Allevato adjourned the Community Redevelopment Agency Board meeting at
8:30 p.m. to Tuesday, May 15, 2007, at 5:30 p.m. for Closed Session, and 7:00 p.m. for
the Public Business Session, in the City Council Chamber.
Respec ally subm7��
I JAI,
RET R. MONAHAN, AGENCY SECRETARY
d: June 5, 2007
ATTE-iT:
—MARK NIELSEN, CHAIRMAN
6 5-9-2007