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MINUTES 2019/05/28 (STUDY SESSION)CITY COUNCIL STUDY SESSION MEETING MINUTES TUESDAY MAY 28t", 2019 5:00 P. M. SAN SAN DIMAS COUNCIL CHAMBERS DIMAS CONFERENCE ROOM 1960 245 E. BONITA AVE. CITY COUNCIL: Mayor Curtis W. Morris Mayor Pro Tern Ryan A. Vienna Councilmember Emmett Badar Councilmember Denis Bertone Councilmember John Ebiner STAFF: City Manager Ken Duran Assistant City Manager of Community Development Larry Stevens Director of Parks and Recreation Hector Kistemann Director of Public Works Krishna Patel Assistant City Clerk Debra Black City Attorney Jeff Malawy CALL TO ORDER Mayor Morris called the Study Session Meeting to order at 5:00 p.m. ORAL COMMUNICATIONS (For anyone wishing to address the City Council on an item on this agenda. Under the provisions of the Brown Act, the legislative body is prohibited from taking or engaging in discussion on any item not appearing on the posted agenda.) Members of the Audience No oral communications were provided. STUDY SESSION Staff presentation of preliminary FY 2019-20 Budget and proposed Capital Projects City Manager Ken Duran explained that this year's budget process faces some challenges and unique factors, such as staff transitions and escalating expenditures. He added that the focus of this meeting will be on the Capital Improvement Programs, because of the significant projects staff will present. He also added that some of these may or may not be funded next year and that part of this process includes staff is looking at where the city will be in two or three years financially. He also stated that there will be another budget study session scheduled in two weeks before adopting a final budget. He stated that the General Fund Operating Budget is looking at $24.1 million in revenue, not much increase over prior years, $23.7 million in expenditures, a difference of $379,000 in revenue over expense. He stated that two years ago Council decided that the city loan City Council Study Session Minutes May 28, 2019 Page 2 reimbursement from Successor Agency would be transferred to fund capital improvement projects; however, this year staff is suggesting to use that money for a bridge budget towards operating expenses. We are looking at a $18.5 million fund balance at the end of the year, but the city would need to use about $2.4 million in reserves to fund the Capital Projects that are in this budget. On the revenue side, one area that hit harder than anticipated, was the minimum wage increase. He explained that on January 1, 2020 this will increase to $13.00 an hour, at an overall cost of $150,000 at the lower end of our minimum wage. Staff suggests revisiting increasing all minimum wage for all part-time staff, as it may cost more than can be managed, and will look at increasing wages proportionally at the lower end salaries. Responding to Councilmember Badar, Mr. Duran stated that the city does not have an employee's union. Mr. Duran explained that this year's election costs will increase due to the consolidation with the County of Los Angeles and the implementation of the new voting system. He added that the County has not been able to provide an accurate estimated cost at this time. He stated that a place holder of $200,000 has been set. He shared that Administration Department has budgeted $25,000 for continuous improvements such as trainings, IT upgrades, etc. and this number is another place holder. He also shared that additional increases are the PERS contribution to about $222,000 and the law enforcement contract to just over $ 7 million dollars, which is an increase of $350,000 dollars over last year's budget. Director of Public Works Krishna Patel reported on the status of the Badillo Street Project and Via Verde street projects; funding sources are from the Surface Safe Transportation Program, Prop C and Measure M. He also reported that we will be replacing seven old charging stations. He reviewed a proposed equipment replacement program, street signs replacement plan, Horse Thief Canyon flooding, pavement management Mr. Duran clarified for Council that if all of staff s recommended projects cannot be funded, then staff would come back with a list of their priority projects. Hector Kistemann Director of Parks and Recreation outlined the tools used by the department to identify the proposed projects for 2019-2020. He explained that an increase of about 10% in the general fund budget will facilitate delivery of service to the community, qualitative and quantitative matrix and benchmarks, facilities needs assessments, continued staff training, development and technology. He stated that the CIP's area of focus includes infrastructure, multi -use trail systems, tennis courts, basketball courts, sports fields, San Dimas Recreation Center, Senior Center, Water Conservation, Urban Forestry and programming of events. He explained that overall this presents an 8 8 % increase as opposed to previous years. He provided an overview of the tree replacement program, as well as projects related to MS4 Stormwater and conditions of the City's parks and their need of continued maintenance. Council and staff held a brief discussion regarding the tree replacement proposal and Mr. Kistemann confirmed that staff made a presentation to the Parks and Recreation Commission. Mr. Kistemann's presentation included updates on Lone Hill Park tennis courts, Horse Thief Canyon Park, Civic Center Park and the Recreation Center. City Council Study Session Minutes May 28, 2019 Page 3 Council and staff discussed these projects and Council asked to see information regarding total staff hours spent on mitigation at Horse Thief Canyon Park, additional assessment of the Recreation Center and replacement of exercise equipment in Civic Center Park. Councilmember Badar suggested the project for the Civic Center Park could be broken up into two segments. Mr. Duran explained that more money could be budgeted for these projects and additional analysis done to determine how to proceed; the figures tonight are mainly budget placeho lders and the needs can be determined after a more research has been done. Consensus was that additional analysis is needed to identify the actual needs of Civic Center Park. Responding to Mayor Pro Tem Vienna, Mr. Kistemann stated that the proactive approach has not been at it's best and having standards in place will help to know when scheduled maintenance is needed. Community Development Director Larry Stevens stated that now that the Successor Agency funds appear to be stabilizing at around $200,000 annually; and it is time to get back to a staffing configuration for the Housing Department. He recommended adding two positions, a Senior Analyst, an Admin Aide, keep the Administrative Analyst and eliminate the intern position. The funding breakdown for this is about 67% from the Successor Agency funds and the remaining from the General Fund. No changes proposed in Building and Safety or Community Development. He provided details for ongoing projects and programs along with their funding sources. Mr. Duran recommended the Study Session recess and continue after the regular meeting. decision. The Study Session was recessed at 6:56 p.m. and was reconvened at 9:00 p.m. Mr. Duran stated that in order to fund all the projects presented it would require a transfer of General Funds to Special Funds in the amount of $2.4 million, this also includes utilizing reserves in some of Special Funds. He added that this would not leave a lot of reserve funds in some of the Special Funds and so future projects would require a special fund transfer. The budget presented tonight shows $23.7 million in General Fund Expenditures, reserves at the end of year without any of the transfers would be about $18.9 million, for a 79.7% reserve fund balance. Transferring $2.4 million would reduce the reserves to $16.5 million for 69.6% reserve. Councilmember Ebiner and Badar expressed concern with not having the budget information prior to the meeting to evaluate and make a proper decision. Council and staff discussed the presentation process and made suggestions of how projects and numbers should be presented at the next meeting. City Council Study Session Minutes May 28, 2019 Page 4 Councilmember Bertone stated he is opposed to taking $2.4 million dollars from reserves; he is not opposed to taking some but not the full $2.4 million. He suggested the Via Verde Park project is a priority because of the safety concern, lights there could wait. He added that he would rely on staff to identify which streets need repairs. Mayor Morris commented that the city is going to have a structural operating fund deficit of more than 3/ of a million dollars and wondered how we could avoid having that in the future. He added that were are pulling the reserves down to dangerous levels. Mayor Pro Tem Vienna commented that he appreciates what staff presented tonight; and after the discussions realizes how much the sales tax measure is needed. Mr. Duran summarized City Council's concerns and proposed that staff present to Council a composite of this presentation by the end the week; as well as the funding sources for the projects, more prioritization of projects and what the city can afford while correlating them to the priority projects on the next study session on June 11, 2019. ADJOURNMENT The meeting was adjourned at 9:44 p.m. A-U", Debra Black, City Clerk Approved: February 25, 2020 Curtis W. Morris, Mayor