SALINAS REDEVELOPMENT
AGENCY
MINUTES OF MEETING
FEBRUARY
21, 2006
The Agency convened at 7 p.m.
Present:
Chairperson Anna Caballero
Agency member Janet Barnes
Agency member Maria Giuriato
Agency member Jyl Lutes
Agency member Roberto Ocampo
Agency member Sergio Sanchez
Absent:
Agency member Gloria De La Rosa
Also present:
Agency
Counsel Vanessa Vallarta
Secretary
Ann Camel
CONSENT RESOLUTION
Upon motion by Agency member
Barnes and second by Agency member Ocampo, the Agency voted unanimously to
adopt the Consent Resolution. Agency
member Sanchez abstained on the February 14, 2006 minutes.
1.
Approved minutes of
February 14, 2006.
The Agency
recessed at 7 p.m. and reconvened at 8:30 p.m.. Agency member De La Rosa was present.
JOINT CITY
COUNCIL/REDEVELOPMENT AGENCY CONSIDERATION
1. Mid-year Budget Report
Tom Kever, Finance Director,
stated that ongoing General Fund revenues increased by $2.8 million. After allocations for the remaining budget
structural deficit of $1.5 million and $349,000 for debt service and transfers,
a balance of $962,800 remains for on-going expenditures. One-time revenue payments total $661,500,
which is recommended for capital maintenance items. Adjustments to the General Fund total $200,000 including $50,000
for the Downtown Parking District Fund because of the inability to come to
agreement with Monterey County regarding parking fees. Additionally, $150,000 is recommended for
the Emergency Medical Services Fund.
The recommended operating budget increase of $462,500 includes increases
to the Fire Department budget, web site services, televising of Council meetings, $100,000 for contingency, and
$300,000 for a liability claim paid in August 2005.
Mr. Kever outlined General
Fund capital projects that need immediate attention for a total of
$683,600. The recommended General Fund
Carryover allocation includes $700,000 to supplement the Rally Salinas library
budget from January through June, $300,00 for liability insurance reserves,
$1,792,042 for the operating reserves and $811,900 to the capital projects
reserves. The General Fund operating
reserve would total $3,610,000, which meets the five percent operating reserve
policy.
Mr. Kever stated that,
except for the operating reserves, significantly greater reductions would have
been required, including public safety budget reductions. He stated that a recent survey indicates
that reserves should range from five percent to twenty-five percent of the
operating budget. The City is at the
low end of this range, but must balance its requirement for reserves with the
need for capital improvements.
Monterey County’s budget
impacts on the City are
unpredictable. The use of SB 172
funding for 911 communication systems has been reduced from over $1 million to
$579,200 and charges have increased, as have booking fees. The City is seeking CSA 74 for a portion of
the City’s paramedic services costs.
The City invested considerable funds in street maintenance in 2000-01. The ability to sustain this has been
virtually eliminated, primarily to provide funding for the NPDES program, which
is an unfunded federal mandate. The
Fairways’ golf course requires subsidies, and the City is seeking to privatize
the golf course. The City’s workers’
compensation shortfall is $4.5 million.
This fiscal year, it appears that workers’ compensation costs will be
reduced for a savings of approximately $500,000. A federal mandate
requires the City to transition to the next generation radio system by
2011. A task force of County and City
personnel is seeking alternatives, and the cost would be shared by agencies
County-wide. The City’s estimated share of the cost is $3.7 million.
In response to
Council/Agency member Lutes, City Manager Dave Mora stated that the City’s
request for $100,000 in CSA funding was endorsed by the EMS Council and Budget
Subcommittee. County staff initially
determined that it was a gift of public funds, but did not follow up on
that. They asked the County Fire Chiefs
to come up with a comprehensive request.
The EMS Council has endorsed a proposal that has not yet been submitted
to the Board, because County staff is opposing it. He anticipates that the Board will receive a budget
recommendation by no later than the end of this fiscal year.
Councilmember Sanchez asked
how the joint task force would be funded if the grant funding runs out on June
30, 2006. Mr. Mora stated that
Congressman Farr has secured an additional $500,000 in funding, although the
funds have not been received.
CITY COUNCIL/REDEVELOPMENT
AGENCY
Upon motion by
Council/Agency member Lutes and second by Council/Agency member Giuriato, the
Council and Agency voted unanimously to approve adjustments to estimated revenues,
appropriations, transfers, and reserves.
AYES: Council/Agency members
Barnes, De La Rosa, Giuriato, Lutes, Ocampo, Sanchez and Mayor/Chairperson
Caballero.
The
Redevelopment Agency met in closed session pursuant to GovernmentCode Section 54956.8, conference with
real property negotiators City Manager/Executive Director Dave Mora,
Redevelopment Director Alan Stumpf, and City Attorney/Agency Counsel Vanessa
Vallarta to discuss the price and terms of payment for the sale or lease of
property located at 100 Main Street (proposed hotel site on west side of 100
Main Street) with Salinas City Center Company, LLC. Agency member Sanchez announced that he would abstain from
voting on this item because his wife manages a restaurant in this Redevelopment
area and may purchase the business
ADJOURNMENT
The meeting adjourned at 9:15 p.m..
APPROVED:
_____________________________
Chairperson
ATTEST:
Secretary
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