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HomeMy WebLinkAboutMin - CC - 2016.05.11 Burlingame City Council May 11, 2016 Approved Minutes 1 BURLINGAME CITY COUNCIL Approved Minutes Budget Study Session on May 11, 2016 1. CALL TO ORDER A duly noticed Budget Study Session of the Burlingame City Council was held on the above date in the City Hall Council Chambers. 2. PLEDGE OF ALLEGIANCE TO THE FLAG The pledge of allegiance was led by Police Chief Eric Wollman. 3. ROLL CALL MEMBERS PRESENT: Beach, Brownrigg, Colson, Keighran, Ortiz MEMBERS ABSENT: None 4. PUBLIC COMMENTS There were no public comments. 5. INTRODUCTORY REMARKS – Lisa Goldman, City Manager City Manager Goldman began by stating that the proposed budget did not include any major changes. She explained that a few years ago the City made structural changes to the budget so that true costs are reflected and associated with the right departments. Accordingly, she stated that by making those adjustments it helped stabilize the budget. City Manager Goldman stated that the main changes in the budget for FY 2016-17 are: (1) funding for a few additional staff positions; and (2) capital improvement projects. She thanked Finance Director Augustine and Deputy Finance Director Ghahremani for their time putting the budget together. 6. STAFF REPORTS AND COMMUNICATIONS a. STUDY SESSION: FISCAL YEAR 2016-17 BUDGET Finance Director Augustine presented her staff report concerning the proposed Fiscal Year 2016-17 budget. Burlingame City Council May 11, 2016 Approved Minutes 2 She stated that the budget is aligned with Council goals and confirms the long-term focus of identifying and funding accrued liabilities. She stated that there are no major changes from the five-year forecast. She stated that the General Fund challenges are limited debt capacity, anticipated increases in CalPERS and health care benefit rates and unfunded infrastructure needs. Finance Director Augustine gave a brief overview of the proposed budget. She stated that the proposed budget requests strategic staff increases, reflects wage increases and higher pension and health benefits. As well, she explained that the proposed budget assumes a historically low investment return. However, General Fund revenues are up 8.2% from the 2015-16 adopted budget and General Fund expenditures are up 5.1%. Accordingly, she explained that the General Fund balance is predicted to increase by over $2.9 million. Next, she reviewed General Fund revenues. She stated that the top three sources of revenues for the City (property tax, sales and use tax, and transient occupancy tax) comprise 85% of the revenue. In reviewing the largest source of revenue, transient occupancy tax (“TOT”), she explained that the occupancy rate remained steady with the 2015-16 TOT up 6.3% from the prior year. She stated that staff projects a 3.2% growth in 2016-17. Accordingly, she stated that this would amount to a $4.3 million share for capital projects. In reviewing property taxes, Finance Director Augustine explained that the City retains 17% of the property taxes with the rest divided between different districts and the County. She stated that the housing market remains strong with a growth of assessed value for the City of Burlingame of 6.6%. Lastly, in reviewing sales tax, she explained that in the 2015 calendar year, automobile sales were up 6.7%, restaurants and hotels were up 6.1% and general consumer goods were up 3.6%. Finance Director Augustine went on to discuss expenditures stating that citywide there were increases in personnel costs due to: (1) a strategic increase in full time employees (3.7 citywide); (2) fully budgeting for the costs of premium pay, holiday pay, and administrative leave; and (3) increased cost of pension and health benefits. Overall, she explained that personnel costs were up 8.7% and non-personnel costs (such as contracts, supplies, etc) were down .4%. Finance Director Augustine briefly reviewed the different City reserves including the Economic Stability Reserve, Catastrophic Reserve and the General Plan Reserve. As well, she stated as a result of the payoff of the Library Lease Refunding Bonds, the net debt service paid from the general fund is down 16.2%. Finance Director Augustine stated that the next step was to hold a public hearing on the budget at the City Council meeting on June 20, 2016. Vice Mayor Ortiz asked about the increase of $1.6 million in costs for the police department. Finance Director Augustine stated that a portion of this is attributable to the necessity of hiring additional police officers. City Manager Goldman stated that the $1.6 million was comprised of salary and pension increases, and new staff. However, she stated that she would get back to the Vice Mayor on an itemized list to show how the additional funds would be spent. Mayor Keighran voiced her support for hiring additional police officers. Mayor Keighran asked Councilmember Brownrigg to discuss his suggestion that the City award additional funds (beyond the annual award of $45,000) to select community groups in fiscal year 2016-17. Burlingame City Council May 11, 2016 Approved Minutes 3 Councilmember Brownrigg stated that he believed that for this next fiscal year, the City should award additional funds to community organizations that focus on housing. He explained that each year, the City donates $45,000 to different community groups that carry out a public purpose through the services they offer to San Mateo County and Burlingame residents. Accordingly, he stated that because the City was fiscally solvent and because the community was facing a housing hardship, he believed that it was important for the City to help fund those organizations that help those in need. He explained that he believed the City should award an additional $100,000 this next year, to those organizations that focus on housing needs. Vice Mayor Ortiz stated that he would be in favor of giving an additional $55,000. Councilmember Colson asked if the City could require the organizations to match what the City is willing to award them. City Attorney Kane said that the Council could define requirements as they saw fit for the additional funding. Mayor Keighran asked if other cities in the area award annual funds to non-profit organizations. City Attorney Kane replied in the affirmative. Mayor Keighran asked if there was a way to ensure that the additional funding is spent in Burlingame. City Attorney Kane stated that the Council could require that the money be spent in Burlingame. City Manager Goldman stated that from a staff perspective the easiest way to handle the additional awards would be for Council to pick a dollar amount and let them know which organizations should share in the additional funding. Councilmember Colson suggested a subcommittee of two people be created that could determine which organizations should receive the additional funds. Councilmember Colson proposed that an additional $45,000 be given out to nonprofit organizations of the Council’s choosing. Councilmember Brownrigg agreed with Councilmember Colson’s suggestion. He explained that splitting the additional $45,000 between a few organizations would greatly benefit the chosen organizations. Mayor Keighran agreed with Councilmember Colson’s suggestion and asked the Council if they would support a subcommittee of two awarding the one-time additional funding of $45,000. The Council was in agreement. Mayor Keighran appointed Councilmember Colson and Councilmember Brownrigg to the subcommittee. Mayor Keighran asked the subcommittee to come up with their proposal and bring it back to the Council for their approval. b. CITY COUNCIL REVIEW OF DRAFT FY 2016-17 CAPITAL IMPROVEMENT PROGRAM DPW Murtuza presented his staff report on the proposed Fiscal Year 2016-2017 Capital Improvement Programs (“CIP”). He stated that staff is proposing $4,685,000 in general fund projects in six areas. DPW Murtuza briefly reviewed the six funding areas: (1) He explained that the City maintains 116 miles of sidewalks with an estimated $7-11 million backlog of necessary work He stated that for the next year staff is recommending $500,000 worth of repairs. Burlingame City Council May 11, 2016 Approved Minutes 4 (2) 1,280 ADA curb ramps are need in the City with an estimated cost of $4 million. He explained that for the next fiscal year, staff is recommending spending a $100,000 to install 25-30 ramps in high use areas and $200,000 for Bayfront ADA improvements. (3) He outlined the Parks and Recreation projects that staff is recommending at a cost of $1,575,000. (4) He reviewed staff’s recommendation for $1,350,000 worth of improvements in building facility projects. (5) For traffic and pedestrian safety improvement projects he stated that staff is requesting $900,000 in improvements. (6) He stated that staff is requesting $60,000 to finish the police station antenna upgrade. DPW Murtuza discussed the Gateway Signage project. He stated that the preliminary design concept was completed for the new gateway entry signs at the north and south City limits along El Camino Real. He explained that the estimated cost for the project is $335,000. DPW Murtuza presented Council with two options for the Gateway Signage project; Council could either proceed with the project as planned or roll the project into the overall future vision of El Camino Real. Mayo r Keighran stated that $335,000 is expensive for a project that isn’t a necessity. She stated that she would prefer holding off on the project and working with the El Camino Real stakeholder committee. Council was in agreement with Mayor Keighran’s opinion. Next, DPW Murtuza discussed “Gas Tax, Measure A and M Funded Projects”. He stated that staff is recommending that the City spend $2,500,000 on its annual street resurfacing program and $200,000 on citywide street curb and gutter replacement. Councilmember Brownrigg asked if “See Click Fix” was working. City Manager Goldman stated that the public was very active on the app and that it was a good way to track and locate issues. DPW Murtuza reviewed the Water System Capital Improvement Program requests for FY 2016-2017. He stated that the City has over 105 miles of water system. He explained that previously the Council requested staff prioritize the necessary improvements to the water system. Staff prepared a priority list of $120 million improvements. He explained that with Council’s assistance, staff completed $38 million of improvements including replacing 22 miles of old deteriorated transmission and distribution pipeline, installing 1,600 water services, rehabilitating 1,200 linear feet of fire services and completing the well water distribution at Washington well. He stated that for next fiscal year, staff is proposing $2.5 million in improvements. DPW Murtuza reviewed the proposed Fiscal Year 2016-17 Sanitary Sewer System Capital Improvement Program. He stated that the City has 100 miles of sanitary sewer system and that staff created a master plan prioritizing over $160 million of improvements. As a result, the City completed over $66 million of work including 32 miles of pipelines being replaced, 2,500 private laterals being replaced with cleanouts, and $1 million of upgrades at the Waste Water Treatment Plant. He stated that for next fiscal year, staff is proposing $4.7 million in improvements. Lastly, DPW Murtuza covered the Storm Drainage System proposed capital improvements for the next fiscal year. He stated that the City has 50 miles of storm drains, drainage channels and pump stations. He explained that after passing the Storm Drain Bond in 2009, the City completed $21 million in projects. However, he explained that there is still a $26 million backlog of necessary improvements. He stated that in the next fiscal year, staff is proposing $5 million worth of work. Burlingame City Council May 11, 2016 Approved Minutes 5 DPW Murtuza stated that in total staff is proposing $19,635,000 in projects for the next fiscal year. Councilmember Brownrigg stated that it was hard to know how to give advice when the list of unfunded projects was so long and expensive. Accordingly, he stated he relies on the experience and knowledge of the Director of Public Works to prioritize projects and let Council know what needs to be done next. DPW Murtuza stated that it is the role of staff to keep the Council informed of what the priorities are and what improvements the City must tackle first. Councilmember Beach discussed the S.P. Circle Plaza improvement project. She asked about the total cost of the project. DPW Murtuza stated that staff estimated that the total cost of the project would be $500,000. Councilmember Beach stated that she questioned whether this project was a priority when there was a large backlog of infrastructure needs. Mayor Keighran stated that she would like to see this project completed as it is the focal point of Burlingame Avenue. She noted that while part of the project is aesthetic it is also being done for safety concerns. Councilmember Colson agreed with Mayor Keighran. She stated that the importance of the project to her was safety and that she was concerned about pedestrian traffic from the train and Burlingame High School. Vice Mayor Ortiz stated his agreement with Councilmember Colson and Mayor Keighran. Councilmember Brownrigg acknowledged that he as well didn’t see the project as a high priority. He asked that staff provide Council a visual of what the project would look like when completed. DPW Murtuza agreed. 7. ADJOURNMENT Mayor Keighran adjourned the meeting at 8:12 p.m. Respectfully submitted, /s/ Meaghan Hassel-Shearer City Clerk