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HomeMy WebLinkAboutMinutes - May 3, 2016 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, MAY 3, 2016 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, May 3, 2016, commencing at 7:00 a.m. Present: Council Member Johnson, Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and Mayor Chandler Absent: None Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo NOTE: Mayor Pro Tempore Kuehne left the meeting at 7:59 a.m.; and Council Member Nakanishi left the meeting at 8:10 a.m. B. Topic(s) B-1 Receive Information from Staff on Potential Uses for Potential Sales Tax Measure Revenue (CM) City Manager Schwabauer provided a PowerPoint presentation regarding possible uses for potential sales tax measure revenue. Specific topics of discussion included overview; additional revenue objectives; Fire Department spending plan; Police Department spending plan; Parks, Recreation, and Cultural Services (PRCS) spending plan; PRCS needs; and discussion points. Mr. Schwabauer explained that a general tax can be spent on non-specific purposes and requires a 50 percent plus one public approval to pass; whereas, a special tax is dedicated to a specific purpose and requires a two-thirds vote of the public to pass. Regardless of general versus special, a four-fifths vote of the Council is required to support the ballot measure. Council Member Nakanishi stated he could not support a tax measure because it is not a suitable time to do so. He expressed concern that Lodi has an unfunded liability and it may be necessary to make a decision on a tax measure years down the line if the fiscal condition worsens; a decision he prefers to come from Council. Additionally, any money spent today will increase ongoing costs, and that is something the City should not do at this time. Mayor Pro Tempore Kuehne stated that PRCS has done a stellar job in assessing the needs, polling and surveying, and doing the necessary legwork that convinces him maintenance is a top priority. He expressed concern that there may not be enough time to do a sufficient job to get the PRCS tax as a solo item on the next ballot, but he was willing to support the measure and let the citizens speak as to whether they want this or not. He further opined that adding Police and Fire to the ballot would likely water down the measure and he would prefer to see the public safety measure stand on its own, adding that the timing was insufficient to place it on the next ballot because there may not be ample time to educate voters and walk the precincts. Mayor Pro Tempore Kuehne stated the recommendation is that it be a 1/8 percent special tax, requiring a two-thirds vote of the citizens, with a spending plan to make the public aware of how the money will be spent. He suggested that the 2018 election cycle include a ballot measure for public safety because he was concerned that a measure will all three issues would fail. Mayor Chandler questioned what the Department Heads thought of the timing on the public safety measure. Police Chief Tod Patterson opined that a standalone measure seems to work the best, stating there is a short time before the election and he would like to see how the PRCS measure fares with the public. In the meantime, the Department will do what it needs to in order to prepare for a potential public safety measure. Fire Chief Larry Rooney concurred with Chief Patterson, stating that he believed there was insufficient time to educate the public on the issue. In response to Mayor Chandler, Parks, Recreation, and Cultural Services Director Jeff Hood stated there is no commission or foundation set up to solicit funds for this measure, but one could be created by the community as there are many local groups that are parks specific. Council Member Johnson stated that he was not opposed to exploring a combined sales tax measure. The PRCS deferred maintenance is appalling and cannot continue in the same fashion, and the issue is whether or not to include public safety. Council Member Johnson questioned the proposed spending plans and whether some of the positions, such as lieutenant, crime prevention officer, and dispatcher, were necessary because the more important need is additional police officers on the street. In response to Council Member Johnson, Chief Patterson stated that in the past the crime prevention officer was a lateral duty for a dispatcher, and Mr. Schwabauer added that currently a retired officer handles the duties in a part-time capacity. Council Member Johnson stated that he does not question the need for funds, rather, he is questioning the proposed use of the funds because he would prefer to see it dedicated to combatting crime. With regard to Fire, he questioned what the current call volume is and whether it makes more sense to hire additional permanent personnel or to continue with overtime hours. He stated that overall he supports pursuing a measure that would cover PRCS, Police, and Fire, but he was uncertain of the makeup of the spending plan. Council Member Mounce stated that it was her suggestion to package the measure together because it makes no sense to fix the parks if they continue to be overrun with gangs, drugs, vandalism, blight, and homelessness because public safety cannot meet the needs. She agreed that the PRCS maintenance is lacking, stating the City is $40 million in arrears in repairs, but sales tax money over a 20 -year period will only scratch the surface and, after 20 years, the price will only quadruple. Council Member Mounce stated that she believes the City needs additional police officers on the street, park officers in the parks, and code enforcement officers to make any sort of difference. She stated that PRCS should take the lead on the measure to ensure its success. The Strategic Plan and survey appear to indicate public support for the PRCS measure, and she believed that people will support paying more for things they value and, for her, she finds significant value in police and fire and their service to the community; therefore, she believed the measure should be a complete package drilled down to those items the community wants and needs. If Lodi strives to be less like Stockton, it needs great park facilities, a Fire Department that will respond timely, and enough police officers to ensure the community is safe. A PRCS measure alone will not suffice, and perhaps more time is needed to communicate to the public why it is important to create a community it wants. Council Member Mounce stated she would only support a special tax if it includes an oversight committee with a 10- to 15 -year sunset clause. In response to Mayor Chandler, Mr. Hood stated that the only public outreach has been through the survey and a follow-up questionnaire that corroborated the survey, but without clear direction from Council, staff felt it was not appropriate to drill down further with additional surveys of other demographics or groups. Mr. Schwabauer asked for clarification from Council on which direction to proceed. It appeared Council primarily agreed that, if the City moves forward this year, it would be for all or none; however, he doubted there was adequate support to put a measure on the ballot for all three issues: PRCS, Police, and Fire. Once Council determines what issues are moving forward, he will need input on the makeup of the spending plan, oversight committee, sunset clause, etc. Mayor Chandler stated he felt it may be too much to get done this year and the half cent is a million dollars short. Mayor Pro Tempore Kuehne stated he would not support a combined measure, but would support a standalone PRCS special tax with an oversight committee and sunset clause. His fear is that a combined measure would fail and that does not give public safety an opportunity to market its position to citizens. He would like to see the PRCS measure move forward this year 2 and the public safety measure move forward on its own in the near future Council Member Johnson suggested that, if the City moves forward with all three issues at the 2018 election and includes a sunset clause, it use the additional time to consider a 1/2 cent sales tax that could cover all of the needs, including any hidden maintenance or equipment replacements needs for public safety as well. Mike Lusk agreed that PRCS is in dire straights and supports additional funding for the department based on the deferred maintenance needs for its facilities; however, he would not be supportive of building any new facilities, adding that new facilities in a subdivision should be paid for by the developer through impact fees. Mr. Lusk stated that he is a proponent for a sales tax that would support Police, Fire, and the California Public Employees Retirement (Cal -PERS) debt and that those three issues alone equate to $5 million, which would be 1/2 percent sales tax. He believed a long campaign was unnecessary to prove the need for additional police officers and a survey would be redundant because the need for a special tax would speak for itself and the public can either vote for or against it. Mr. Lusk believed that the PRCS measure should be a separate ballot measure from public safety and Cal -PERS debt, pointing to the past failed sales tax measure that would have given $7 million, out of $18 million, to public safety. He believed that two years was too long to wait and the public is educated enough to vote on the issue now. In response to Mayor Chandler, Mr. Schwabauer stated that the 2016 ballot appears to be less impacted with ballot measures, while the 2018 ballot may have a Measure K extension and a school district measure. From a crowded ballot aspect, 2016 would likely be a better year to put forth a measure. In light of that information, Mayor Pro Tempore Kuehne stated he would not be opposed to having the PRCS measure as one issue and the public safety issue as a separate measure on the 2016 ballot, but he was uncertain as to what rates they should each be. Mr. Schwabauer explained that a 1/8 percent sales tax would raise what the Recreation Commission asked for and 1/4 percent would be sufficient for the public safety issue, adding that those amounts would be less confusing to the public than a combined measure of 3/8 percent. The proposed amounts of 1/8 percent and 1/4 percent would raise the dollars for both spending plans, but staff would need agreement from Council on the spending plans. Mayor Pro Tempore Kuehne reiterated that he would prefer a special tax with an oversight committee and would defer to Council on the duration of a sunset clause for the PRCS measure and whether or not there should be one at all on public safety. In response to Myrna Wetzel, Mr. Schwabauer explained that park officers work for the Police Department, but their staffing is determined by the PRCS Director according to the needs. In further response, Mr. Hood explained that the PRCS sales tax measure is solely for capital repairs, replacement, and maintenance; not for personnel. Currently, PRCS funds the equivalent of one part-time officer for parks, and that funding level would not be increased. Mr. Schwabauer explained that the proposed spending plan provided at this meeting funds three areas: 1) Engine No. 1 and training in the Fire Department; 2) new police officers in the Police Department; and 3) park improvements. The proposal does not fund additional park officers, but additional officers on the street could allow the Department to fund park officers on an additional basis. Ms. Wetzel stated that she believed the public would be inclined to support the measure if they were aware it could put more officers in the parks, but perhaps not if it were for construction of facilities. Mr. Schwabauer reiterated that this measure would not fund the construction of new parks in the City or in subdivisions; rather, it is proposed to preserve the City's current assets, including Lodi Lake, which is slowly washing away due to severe erosion. The City has an obligation to either protect its assets or let them go, and that is what the PRCS spending plan addresses - it will reclaim them; not build anything new. Ms. Wetzel pointed out that the presentation mentioned more than just Lodi Lake, to which Mr. Schwabauer responded that the majority of the list is for repairs or replacements, while other items are to finish partially completed or damaged parks and facilities. In further response to Ms. Wetzel, Mr. Schwabauer stated that citizens have volunteered hours to help maintain Candy Cane Park, but not for the replacement of the $70,000 play structure. Mr. Hood added that funding continues to be set aside in the budget to replace the structure, but there are no donations lined up to handle the entire cost. Council Member Mounce expressed concern that Ms. Wetzel, who attends every Shirtsleeve Session and follows City business, does not understand how funds from the sales tax measure would be used, which proves this issue will be confusing for the public to understand. She believed greater effort needs to be made on communicating the goals of this measure to the public. Mayor Chandler agreed, stating that the synopsis of the spending plan was a simple explanation and more work is needed to refine and better explain the list of goals. Mr. Hood stated that the presentation was simplified, but assured Council that he has an extensive list of what each park project would consist of, including costs. Council Member Mounce stated that she believed redevelopment failed because it was too ambiguous, adding that if the math does not add up on this measure and the goals are too vague the public will not support it. The citizens should know what they are getting out of this measure and the timeline of when projects will be done. Mr. Hood stated he has a detailed plan on what will be accomplished each year, much of which is based on the survey results. Some of the projects include repairs at Lodi Lake, including the parking lots, erosion control measures, park furniture and drinking fountains, and nature trail, as well as improvements at PRCS facilities and other parks. Council Member Mounce stated that a specific, detailed list is what needs to be presented to the public and, if it is not ready, it needs to be tightened up before it is presented. Mr. Hood confirmed that the list is 90 percent complete. Larry Long, Chair of the Recreation Commission, stressed that the community is losing Lodi Lake, Pigs Lake is slowly washing away, and the roadway at the Lake is in significant disrepair. The Commission spent considerable time determining the needs in order for the public to understand what will be done with the sales tax money. Whether the measure is a standalone or combined effort, it must pass or many of the parks will be forced to close because of unsafe conditions. Based on the Strategic Plan and survey results, the Commission feels the votes are there to pass the measure, and he urged Council to put it on the ballot. Council Member Mounce stated that some of the confusion may stem from the presentation of the Strategic Plan, which listed community wants for new facilities, walking tracks, and multi- family destinations and not about repairing Lodi Lake before it washes away. She believed if new facilities were combined with maintenance, the measure would not be successful and that significant effort will be necessary to fine-tune the spending plan and educate the public by walking the precincts. Mr. Long agreed, stating that any ballot measure requires educating the public with precinct walks and signage and that volunteers and donations will be necessary to accomplish this. Mr. Schwabauer stated there is nothing in the spending plan for those new, creative ideas that came out of the Strategic Plan. Alex Aliferis stated that 7.5 percent of sales tax goes to the State; the current sales tax is the highest in 15 states; and the cap for cities and counties is 1 percent. He questioned that, if the current budget cannot maintain the parks, why is the City adding more and why is it not setting aside money every year. Mr. Aliferis stated he believed that staff should be in the field working, instead of in the office, and pointed out that the average firefighter is paid 55 percent more than those in other states and that the budget is 60 percent public safety. He stated he has an issue with overpaid salaries and the Cal -PERS component, which will only increase if more police officers are added to the force. He believed that, if the public safety measure were to pass, it would still not cover the costs, adding that many communities are turning to private security, which is likely the direction Lodi is headed as well. Mr. Schwabauer responded that there are two people in PRCS who do not run a program or wield 0 a shovel: the PRCS Director and Management Analyst; however, Parks Superintendent Dutra and all of the Department employees work extremely hard to maintain the City's assets. He reiterated that this proposal does not construct anything new; it maintains what the City has today. Mr. Lusk expressed appreciation for the PRCS staff, stating they have the City's interests at heart and deserve credit for the efforts they have made. He stated that he, too, thought the spending plan included items presented in the Strategic Plan and he would like further information to clear up that confusion. He supported pursuing a tax measure for the vote of the people and suggested the City consider a 1/2 percent sales tax because anything less will fall short and, if the City came back with another measure to make up the difference, it would likely be unsuccessful. C. Comments by Public on Non-Aaenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 8:12 a.m. ATTEST: Jennifer M. Ferraiolo City Clerk 5 AGENDAITEM B"l &J& CITY OF LODI W COUNCIL COMMUNICATION TM AGENDA TITLE: Receive Information from Staff on Potential Uses for Potential Sales Tax Measure Revenue MEETING DATE: May 3, 2016 PREPARED BY: City Manager RECOMMENDED ACTION: Receive Information from staff on potential uses for sales tax measure revenue. BACKGROUND INFORMATION: The Parks Recreation and Cultural Services (PRCS) Department has performed extensive work addressing both community recreational needs and the Department's capital needs. The effort resulted in a request from the Parks and Recreation Commission that Council consider a sales tax measure to fund the outcome of that effort. In considering that request, Council directed staff to return with a sales tax expenditure plan that would address public safety elements as well. Revenue Projections: The Draft 2016/17 Budget currently projects sales tax revenue of $11.5 million based on the City's share of 1 percent of taxable sales at an 8 -percent sales tax rate. Assuming Lodi sales remain steady next year, PRCS' proposed one -eighth -cent measure would increase the sales tax rate to 8.125 percent and, therefore, raise an additional $1.4 million annually. A half -cent to pull in public safety (Police and Fire services) needs would increase that amount by $4.3 million for a total of $5.7 million per year. It should be noted that there is no guarantee that sales will remain constant. Sales tax revenue can be significantly reduced (or increased) by external influences. We have seen this recently as a result of the drop in gasoline prices. Gasoline sales made up 13.9 percent of Lodi's total sales tax revenue in FY 2014/15. For the first two quarters of FY 2015/16, fuel and service stations accounted for 9.2 percent. As such, a large drop in fuel prices significantly depresses Lodi's total sales tax revenue. The economy can also have a major impact as we saw with the significant sales tax drop in 2009. Police Needs: The Lodi Police Department (LPD) has noted a significant increase in total crime and call volume. Indeed, most shifts have as many as 12 calls waiting for officers to respond. At the same time, authorized staffing levels are at their lowest in more than 20 years. In 2009, LPD had 79 authorized sworn positions. Today it has 71 due to increased personnel costs and little additional funding. Staffing reductions have killed initiatives like the downtown bike patrol, closed the traffic unit and removed two detectives from the Special Investigations Unit that works gangs and narcotics. In addition, LPD's minimum staffing during late-night hours has dropped from five officers to four. Meanwhile, the State's prison realignment scheme, coupled with the a significant rise in the number of calls to deal with people in financial, dependency and mental distress, has left most police shifts unable to keep up with their call volume without significant wait times. To address these needs, LPD would propose to add 12 positions at a total cost of $1.7 million annually. The positions would include an APPROVED: ity Manager additional lieutenant, six officers, two community services officers, a dispatcher, a crime prevention coordinator and a second youth intervention worker. Fire Needs: The Fire Department began browning out Engine 1 in 2009 in response to reduced revenue in the Great Recession. Although the City has been able to restore some funding to the engine, it is still browned out roughly 40 percent of the time. The brown -out impacts response times in high call volume times, reduces firefighter strength necessary to provide optimum response and puts unnecessary wear on the truck that responds to all calls. Fire also significantly cut its training budget to respond to the economic downturn. Fire proposes that the City consider providing the funding level that should allow full-time staffing for Engine 1 of $800,000 and an additional $200,000 in training dollars. PRCS Needs: Parks, Recreation and Cultural Services has a significant capital maintenance crisis. Staffing has been reduced so that the Department can cobble together a nominal amount of funds to address some critical repairs affecting safety and potential liability. At the same time, it has spent significant energy determining Lodi citizens' priorities for PRCS needs through its Strategic Plan. Many of our Lodi citizens' desires align with actual capital needs. PRCS proposes additional funding to provide the repairs and upgrades so desperately needed for many of those valuable assets including reconstructing paved surfaces at Lodi Lake Park, constructing and rehabilitating park trails, and upgrading neighborhood parks with new playground equipment, picnic facilities, drinking fountains and renovated restrooms. Funding Options: The Parks and Recreation Commission recommended a one -eighth -cent sales tax measure. That would add 12.5 cents cost to a $100 taxable purchase and raise approximately $1.4 million in annual revenue. An additional quarter cent would raise $2.8 million and would fully fund the proposals from Police and Fire. A three -eighth -cent sales tax may cause confusion among voters, however, and Staff requests input from Council on the amount. Timing: A number of factors play in on the timing analysis. First, experts generally recommend sales tax measures take place in a presidential year. However they also recommend a one-year effort to provide information to the electorate about the proposal. Moreover, multi -sided measures tend to fail with a greater frequency than single -issue measures. PRCS has been at its task with polling and a capital campaign but safety has not. Staff will engage the Council in a conversation about these various issues before determining its next steps. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. C7 T �� I Stephen Schwab'au City Manager SALES TAX DISCUSSION City Council Shirtsleeve Session May 3, 2016 Why we're here •Parks and Recreation Commission's request: 1/8 -cent sales tax for capital needs • Council asked staff to outline potential plan to include public safety departments • One-quarter cent tax = $2.8 million annual revenue Additional revenue objectives *Fire Department, $1 million • Return Engine 1 to full service ($798,929) • Improve training ($205,000 annually) Police Department, $1.68 million • Add 11 '/2 full-time positions PRCS, $1.4 million •Parks capital program Fire Department spending plan • Cost to return Engine 1 to full service Cost of captain staffing to reach minimum level Top Step Overtime $53/hour X 24 hours per day $1,271 X 365 days per year $463,930 x 3 positions $1,391,789 Minus current OT budget ($592,860) Total $798,929 Fire Department spending plan • Need for additional training Specific Training Opportunities: Special Teams annual training $22,000 Fire Captain Academy (five personnel) $50,000 Haz-Mat specialist certification (two personnel) $56,.000 Classes at National Fire Academy (four personnel) $32,000 Special team advanced training $45,000 Total $205,000 Police Department spending plan • Hire seven sworn officers • Six officers, one lieutenant • Includes equipment/training • 71 sworn positions currently funded •Hire 4%fulktime support staff • Two Community Services Officers • One Dispatcher/Jailer • One Crime Prevention Officer • 1/2 fu I I -time Youth Outreach Coordinator • Community Development to fund other half, plus benefits PRCS spending plan •Reflects community wishes • Scientific community survey/Strategic Plan • Follow-up online survey •Focus on capital • No additional staff in plan • Would include planning, community outreach, etc. •Contracted specialized maintenance • Examples: Irrigation, turf management •Estimated needs >$40 million PRCS spending plan PLAYGROUNDS Replace or build new structures that maintenance/repairsfund fall zone are closed,previously removed .deficient, Candy Cane Park Playground replacement Lodi Lake Park Youth Area Playground replacement/relocation Emerson Park Playground replacement Beckman Park New playground Henry Glaves Park Playground replacement English Oaks Common Playground replacement Century Meadows Park Playground surface Various playgrounds Repairs, replacements New playgrounds Construction PRCS spending plan Lodi Lake Park Nature Trail Repairs/maintenance Lodi Lake Park Riverfront Trail Lodi Lake Park water crossing Construction (new paths) Construction Construction (if feasible) PRCS needs ENHANCED. es nee . ...utilization;improve.conservation enses and closures; provide Tree trimming/replacement Maintenance Drinking fountains Replace, construct Turf conversion Construction Irrigation systems Repairs, replacement Sports fields Maintenance Skate Park Maintenance/repairs Park restrooms Replacement, repairs Lodi Lake Park Nature Area Maintenance Picnic shelters Maintenance, repairs PRCS spending plan FACILITY REPAIRS AND UPGRADES Expand, upgrade, repair or replace park facilities, amenities Lodi Lake Park South Parking Lot Reconstruct Lodi Lake Park Erosion Control Construction Lodi Lake Park North Pavement Reconstruct Lodi Lake Park Restrooms Reconstruct Lodi Lake Master Plan, Development Planning, design, construction Beckman Park picnic shelter Construction Legion Park, various Repairs, construction Salas Park, various Repairs, construction English Oaks Commons, various Reconstruct Vinewood Park, various Repairs, construction DeBenedetti Park, various Construction Spray ground Construction PRCS spending plan Blakely Park, various Repairs, construction Softball Complex, various Repairs, replacement Peterson Park, various Repairs, construction Kofu Park, various Repairs, replacement, construction Chapman Field, various Repairs, replacement Zupo Field, various Repairs Parks Annex roof replacement Reconstruct Henry Glaves Park shelter Construction Various parks, furniture Replace Various parks, security Construction Lawrence Park restrooms Repairs, construction Grape Bowl, various Repairs, construction Aquatics Repairs, replacement Parks mechanic shop upgrades Construction Discussion points • Four-fifths of Council needed to support ballot measure • Pursue all now? • Special vs. General Measure? • Oversight Committee • Amount to Pursue? • Additional information needed? • Spending Plan Input?