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HomeMy WebLinkAboutMinutes - September 26, 2017 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, SEPTEMBER 26, 2017 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, September 26, 2017, commencing at 7:01 a.m. Present: Council Member Johnson, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Absent: Council Member Chandler, and Council Member Mounce Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo B. Topic(s) B-1 Discussion Regarding Programs and Staffing Levels (CM) City Manager Schwabauer prefaced the meeting presentation with an update on the California Public Employees Retirement System (Cal -PERS) pension crisis and how the hit to the City's budget is equivalent to 40 percent of payroll, which represents police officers, fire station, library, or the Parks and Recreation Department. He stated the City is faced with difficult challenges and must begin discussions on whether the answer is a reduction in staff or elimination of services. During the last recession, City staff levels reduced by 100 employees. Mr. Schwabauer praised Parks and Recreation staff that does a phenomenal job with the resources it has, especially during the last difficult winter and the hit to the Lodi Lake Nature Area. He stated there are currently two vacant positions in Parks and Recreation and that Council will be presented with the impacts of not filling those positions. He further stated that discussion will center around potential cost saving ideas that would still enable the City to provide the current level of service, as well as elimination or reduction of items unrelated to staff. Parks, Recreation and Cultural Services (PRCS) Director Jeff Hood provided a PowerPoint presentation regarding programs and staffing levels. Specific topics of discussion included Parks staffing trends, PRCS trends, downsizing, contingency plans, and PRCS personnel expenses. Mr. Schwabauer stated Council should consider whether or not to eliminate community events that come with costs, such as the Fourth of July event at Lodi Lake, or whether to continue the Lodi Arts Commission grants and partnerships with community organizations that Lodi supports with staff. He stated that, as staffing decreases, there will be inadequate resources to support these programs, and not solely in Parks and Recreation, but Citywide. Council Member Johnson expressed concern that it seems Parks and Recreation is typically the first department hit with cuts whenever there is a budget crisis. He stated his preference is to go through the process for all departments with a side-by-side look, which may result in eliminating positions or special events. He agreed that a thorough review needs to take place; however, he felt it was unfair to put forth one department over all others. For that reason, he believed it was premature to take any action at this time. Mayor Pro Tempore Nakanishi expressed support for not increasing employees, but stated he too believes it is premature to cut any department, including eliminating the two PRCS positions. Many special events are sacred to Lodi citizens, and he expressed concern that cutting those events would be detrimental to the City because he felt that, compared to other cities, Lodi is still doing well. He stated he is not prepared to act on this at this time. Mayor Kuehne stated he recently participated in a discussion at the Chamber of Commerce on ways to make PRCS a profitable venture and his preference is to explore those opportunities first 1 before making any cuts. He pointed out there is legislation in the works that may provide a funding opportunity for PRCS, which could stave off cutting positions and events. He stated that, if most of the visitors to the Fourth of July event are from out of town, the City could consider charging more for non-residents and offer discounts to citizens. He stated the City will need to be more creative and explore other opportunities to be more profitable. Mayor Kuehne agreed that it was premature to talk about cutting positions. Deputy City Manager Andrew Keys shared that Sacramento County relies on volunteers and parents to help maintain parks and run concession stands, which results in a significant reduction in costs to the department. He stated he was not suggesting a cut to existing staff; rather, there are ways to retool programs and utilize volunteers, organizations, and parents that should be further explored. He stated consideration should also be given to the use of part-time employees and the constant turnover, which significantly increases staffs workload associated with recruitments. He cautioned that a savings in one area could result in a backlog in another. Mr. Schwabauer agreed there needs to be a conversation on the larger organization because it is difficult to make decisions by individual departments and positions; however, he stated he wants to be cautious in filling positions before bringing it first to Council because it becomes much more difficult to eliminate a position once it has been filled. In response to Mr. Key's earlier comment, Council Member Johnson agreed with the statement about levels of volunteer and parent support and participation, stating that when he lived in East Bay he helped line fields, cook hot dogs, and clean bathrooms. He stated he was surprised when he moved to Lodi to learn that the Boosters of Boys/Girls Sports Organization (BOBS) handled those responsibilities. He stated this would be a major change in how Lodi does business and cautioned it may be difficult to sell a new approach to the community. Mr. Hood stated he has had conversations with BOBS regarding taking on more responsibilities and stated registration fees should increase to offset costs. Council Member Johnson added that over the years many community groups have come to expect City support during events such as Zinfest and Rotary Club fundraisers and groups may be disappointed to learn they have to use their profits to pay for set-up and clean-up costs. He stated it may be worthwhile to get this message out to the community to encourage buy -in by groups. Mayor Pro Tempore Nakanishi pointed out that, even though many Fourth of July participants are from outside the city, many residents have local parties and watch the fireworks. Citizens like and want the Fourth of July event. He stated he does not know the future of parks, but suggested it be set up similar to the Library, with its own board that can give funds and grants. Mr. Schwabauer stated he testified in front of the Cal -PERS board last week and was surprised that its reaction was to pretend there is no problem and not consider any changes or options to reduce costs to cities. The Cal -PERS board's concern is to protect pensions first and foremost, yet it is ignoring the fact that the system is running into failure, which means less benefits to retirees. He stressed the City cannot pretend there is not a problem, which is the reason behind the discussion this morning. Mike Lusk stated he previously supported the sales tax efforts last election that would have aided PRCS and public safety and, in light of the looming Cal -PERS crisis, he still advocates for the possibility of a sales tax increase. He stated the City should consider putting it back on the next ballot and consider a half -cent sales tax instead of one-quarter divided among the departments. He pointed out that, even with a half -cent increase, Lodi will still have the lowest sales tax rate in the area. Visitors to Lodi who benefit from and use Lodi parks and public safety services would also be contributing to support those programs. He suggested Council consider a special assessment district for parks in new developments, similar to the Community Facilities District (CFD) for maintenance of landscaped areas in new developments. Mr. Schwabauer confirmed there is an assessment mechanism to deal with new housing in Lodi. Originally, most of the maintenance of parks and street landscaping in new subdivisions were handled under Lighting and Landscaping District regulations. The State, however, tightened up what can and cannot be covered under that code as it relates to what is a general benefit versus 2 a special benefit to neighbors. The courts ruled there is no special benefit to neighbors for a park; therefore, cities can no longer use the Lighting and Landscaping District code. The City created the CFD, which falls under a different law and structure, that collects $500 per year, with a 5 -percent escalator, for each new house, which goes toward increased maintenance in neighborhoods. C. Comments by Public on Non -Agenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 7:39 a.m. ATTEST: Jennifer M. Ferraiolo City Clerk 3 0 -1 TM CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Discussion Regarding Programs and Staffing Levels MEETING DATE: September 26, 2017 PREPARED BY: City Manager RECOMMENDED ACTION: Discuss programs and staffing levels. BACKGROUND INFORMATION: As Council is aware, the General Fund is experiencing increasing pressure from rapidly accelerating PERS costs. With PERS costs on track to increase to 38 percent of salary for miscellaneous workers and 78percent of salary for safety workers, it is apparent that even budgeted vacant positions must be evaluated prior to being filled. However, it must also be recognized that with staff being 20 percent below 2008 levels, any unfilled positions must come at the cost of reduced service levels. Although this report focuses on PRCS positions we will have more discussions regarding positions in other departments as they come forward. For instance, we have no plans to refill the vacant Neighborhood Services Manager position, spreading most of those tasks among other City staff and Michael Baker International. In addition we are only replacing one of two positions that will be vacated in the coming months among City Hall's administrative support staff. Due to a recent retirement and resignation, the Parks Division has two vacancies the Parks, Recreation and Cultural Services Department desires to fill. The positions are funded in the Fiscal Year 2017/18 budget. PRCS' full-time staffing has already shrunk dramatically. The department has the same number of full- time employees it had in 1972, when the City was half its current size and before Hutchins Street Square became a PRCS facility. Overall position count is down 43 percent since 2004, and the Parks Division's maintenance budget is 29 percent lower than it was 10 years ago, factoring a reduction in actual dollars and inflation, while the number of acreage needing regular maintenance increased by nearly 15 percent. Not filling the full-time positions will provide an opportunity to better align our costs and revenues, but it would mean dramatic reductions in service. Staff would likely seek to eliminate field preparation for BOBS programs and close park restrooms to deal with the staffing reduction. The General Fund could alternatively achieve savings through reduction in programs. As an example Arts grants total $36,000 and the overall cost of the Fourth of July program with overtime totals about $75,000. At this time, staff is seeking general direction about whether Council prefers service reduction options (staff) or programs. We will come back with at a regular meeting to address any changes subject to Council direction. FISCAL IMPACT: Two vacant Parks Maintenance Worker positions are worth approximately $150,000 to $160,000 per year. FUNDING AVAILABLE: In FY 2017/18 budget. APPROVED: Step Schwabale( City Manager Step ens?" abauer, nager PARKS STAFFING TRENDS Authorized Parks Division full-time staffin Parks Maint. Worker I/II Parks Maint. Worker III Park Supervisor Mechanic/welder Sr. Facilities Maint. Worker Park Superintendent TOTAL FY 2007/08 11 5 2 1 1 1 21 FY 2017/18 5 4 1 1 1 1/2 12.5 Note: Parks Division full-time staffing was 22 in 1992/93 with 90 fewer acres PRCS TRENDS Parks Maintenance in -the -field budge 2007/08 Parks, Sports Fields, Lodi Lake, $2,001,205 Maintenance Shop $2,050,000 $2,000,000 $1,950,000 $1,900,000 $1,850,000 $1,800,000 $1,750,000 $1,700,000 $1,650,000 $1,600,000 Park Maintenance spending 2017/18 $1,774,130 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 DOWNSIZING Causes Department previously operated at a deficit Stagnant budget, higher employee costs By design: Traded operations for capital budget Very lean operation at approved staffing levels Minimum wage/benefits for part-time employees Hours reduced by one-third in last three years WHAT DO WE DO IF...? Mowing will continue Unable to perform sport -specific youth sports field maintenance Unable to staff Fourth of July Unable to assist community groups with special events Unable to respond timely to dangerous conditions Unable to maintain restrooms Unable to respond timely to water leaks, sewer plugs Unable to perform special projects PRCS PERSONNEL EXPENSES Overall staffing, benefits 2007/0 , 2017/18 70 change PRCS $4,091,097 $4,160,620 1.7% Police $13,141,724 $17,096,030 30% Fire $7,845,161 $10,304,250 31.3 $18,000,000 $15,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $5,000,000 $4,000,000 $2,000,000 so • Police Fire Public Works Internal Services Library PRCS 2007/08 • 2017/18