CITY OF CRESCENT CITY
Mayor Pro Tem Blake Inscore
Council Member Jason Greenough
Council Member Kelly Schellon:
MINUTES
BUDGET WORKSHOP CONTINUATION
WASTEWATER TREATMENT FACILITY
210 BATTERY STREET
CRESCENT CITY, CA 95531
THURSDAY MAY 11, 2023 5:30 P.M.
OPEN SESSION
Call to order Mayor Wright called the meeting to order at 5:33 p.m.
Roll call Council Members present: Council Member Jason Greenough, Council Member Kelly Schellong, Mayor Pro Tem Blake Inscore, Council Members absent: Council Member Ray Altman
Staff members present: City Manager Eric Wier, City Attorney Martha Rice, City Clerk/Administrative Analyst Robin Altman, Finance Director Linda Leaver, Public Works Maintenance Manager Jason Wylie, and Public Works Director Dave Yeager Pledge of Allegiance led by Mayor Wright
CONTINUING BUSINESS
1. FY 2023/2024 Proposed Budget of the City of Crescent City • Pily Manager and: Ringnce Director, provid dredun regaring fy 202-24 budget take action as necessary and appropriate.
Insurance update - Director Leaver reported to the Council that GSRMA has significantly raised the annual cost for coverage. The new estimate is $360k increase.
Mayor Wright stated that rates are going up across the country and at last night's GRMA's meeting, it was discussed that they were taking on more liability. Council Member Schellong asked if local insurance companies would have the capacity to have insurance coverage for government agencies? Both City Manager Wier and Director Leaver were not sure. City Manager Wier advised the Council that if they wanted to give direction to seek insurance elsewhere they could, however putting out an RFP for that would be very difficult. Director Leaver stated that the final number will be in June; presently, some of the information GSRMA had was incorrect, therefore they will be giving another estimate once the errors are changed. Mayor Pro Tem Inscore suggested reaching out to other comparable cities as well as League of California Cities 1 Page
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Redwood Empire Division Representative Sara Sanders to see who they use; Director Leaver stated she has reached out to other Finance Directors to ask the question about coverage and if their rates had also been raised as much.
Director Leaver went over the funding for the new City Hall and how the debt service would work. City Manager Wier went over the following items that are not currently included in the budget presented:
Debt service for City Hall ($200k - $250k?)
Additional part time Parks Maintenance Workers ($22k each) Mason Mall fountain $40k to revitalize and reinstall it Cultural Center staining $85k for all four sides - west side 23k, east 20k, south 12k, north 30k
Phase 2 of Cultural Center Feasibility Study $205k
Tri-Agency funding $30k
Public Works Maintenance Manager Wylie explained how having more Public Works Maintenance Workers would help the department. City Manager Wier explained what will be done to have the fountain back in place to include possibly having the epoxy like what is proposed for the pool locker room to cover the concrete. Council Member Greenough asked if the fountain could be installed and then cover the concrete; Director Yeager stated it could be done. City Manager Wier showed some design concepts for the fountain area and is outlined within the EDSAP. Cultural Center siding prices have changed since Tuesday night after Director Yeager spoke to a local contractor that was able to bring the costs down. Other items that are not included in the budget are additional Beachfront Park funding, dispatch, other economic development projects and other one-time projects. Mayor Wright said with insurance and labor negotiations, he does not feel comfortable with adding any of the not included items into the budget.
Council Member Schellong wanted additional parks worker, fountain, and information on debt service for City Hall. Would like to take out the $10k for the airport and put it in next year's budget. Would like the worst side of the Cultural Center done. City Manager Wier stated the side that is the worst is the west side, which faces Kid Town. Finance Director Leaver stated that when we discuss equipment later, the purchase of PW trucks can be held off on as they have very large prices. Council Member Schellong suggested getting one now, and one in September when budget to actuals are known; City Manager Wier stated that the budget to actuals would be that much difference City Manager Wier stated regarding the Cultural Center Study - if the Parks commit to the plan, the cost could be cut in half. Mayor Wright would be in support of City Hall and the new trucks. The Council was in consensus to move forward with the debt service for City Hall. Council Member Greenough would like to add Tri-Agency and the fountain.
Council Members Schellong and Greenough would like the fountain done once the budget actuals are known. Inscore: City Hall, Tri-Agency, worst side of the Cultural Center, would like to allocate $5k for the fountain so it can be displayed. Feasibility study to be done at mid-year.
The Council was in consensus; for City Hall, fountain reinstallation, west side of Cultural Center. For the funding for Tri-Agency, Council Member Greenough was in favor, Mayor Pro Tem Inscore was in favor, Council Member Schellong was in favor but wanted a plan to be drafted first, then funded, Mayor Wright was in favor, but wants it to have a specific line item, Council Member Altman dissented and did not supporting Tri- Agency since so much money had been lost already.
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Mayor Wright asked what the time table was for Tri-Agency to use the money? How long is it expected to sit in a bank account? $30k can be used well elsewhere. Mayor Inscore stated that October is when everything is finalized.
Discussion on the additional public works worker was held at length; the Council was in consensus to hold off on hiring at this time; they would like to see an evaluation done of the Mason Mall area to determine a greater use for the space. Mayor Pro Tem Inscore asked if E3 workers could be used in Public Works; Maintenance Manager Wylie stated great deal. HR Manager Gonzales explained how the 22 workers from Workability will be coming to the City and will be helping in the Parks. There is flexibility in this group for what the City can do with them.
Regarding the RV Park, Mayor Pro Tem Inscore would like rates to be reviewed for an increase. The apartment at the RV Park could garner good revenue if used as an AirBnB. Council Member Schellong stated that raising rates during events as other cities do is something she'd like to see considered. City Manager Wier went over the new website for the RV Park as well as what is included in the budget. What is not included in the budget: road/drainage improvements $225k regrading/eliminating gutter design, $410k road paving, restrooms - $184k. Director Yeager went over the current conditions of the restrooms and that they need to be updated. Mayor Pro Tem Inscore stated that we cannot raise the rates until the bathrooms are taken care of. Council Member Greenough asked for the toilets that are currently not up to code be fixed.
Director Leaver went over the Sewer Fund and explained it is impacted by the timing of the capital improvement projects. She reported that a rate increase hasn't happened since 2015. For the Sewer Fund - we are working with the State to fund an updated rate study and applying for grant funding that would reduce CIP funding. CIP anticipated to be completed this fiscal year are: mem pulse, RBC valve, C water meter, MBR lighting, chem room lighting, chlorine analyzers, laser alignment, contributions to the equipment fund for new equipment. Mayor Pro Tem Inscore suggested putting a CPI into the rate structure.
Director Leaver went over the Water Fund explaining that without a rate increase, the budget goes into the red. There are some important CIPs that will not be able to be done because we don't have the revenue to cover it. For FY 23/24, the budget includes an adjustment to the Amador Tank project to transfer $433,418 previously budget CIP back into working capital as there are other needs for those funds. It has been decided that a debt service will be needed to fund the next phase of capital improvement projects. By FY 2028, there will not be enough revenues to cover our operating expenses. She explained the Water Fund - Working Capital vs. Recommended Reserve and showed through the years it has been a lot of ups and downs. However, by 2027, the budget will be in the red as the working capital will be decreasing in her four to five year forecast. What can be done about this is a rate study; staff has been working with RCAC on a rate study and it's nearing completion, a rate study will assume new debt service for capital projects, and the correct projection does not incorporate new rates and will be brought back to the Council when the study is finalized. She detailed what is being included in the budget - the reallocation of some public works time to install remote-read meters, existing CIP to be carried over and some new CIP. 3 | Page
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Council Member Schellong asked for an update on the revenue from Pelican Bay State Prison; City Manager Wier stated that they are included in the rate model. Mayor Pro Tem Inscore asked what the $76k for the elevated tank was for; City Manager Wier explained it is a roll-over from past years and once the surge tank is installed, the $76k is what would be used toward the removal of the tank. Mayor Pro Tem Inscore asked when construction would be complete; City Manager Wier stated he anticipated it would be done the following year. Council Member Greenough asked how the tank was powered, City Manager Wier explained it was done by hydraulics. Council Member Greenough asked about a situation in where there was an extended power outage; City Manager Wier explained there is a plan to put generator on site, it's just not critical as it will run itself.
Director Leaver reported on the Internal Service Funds which are funds that provide services to other City departments such as Information Technology, Building Maintenance, Equipment Maintenance, and Property & Liability Insurance. These funds get allocated out to all of the other funds based on their proportionate share of using those services. What is included: upgrade to Finance software, planning for IT Administrator retirement, additional repairs to the Corp Yard, replace two service trucks and to purchase a crack seal machine. Director Yeager explained that repairs are needed for the equipment canopy and column replacement at the Yard. Director Leaver explained that have of the cost of the crack seal machine will be covered by Measure S funds. What is not included in the budget: further repairs to the Corp Yard: equipment storage support column replacement ($30k), interior office/layout remodel ($45k), aggregate storage canopy ($20k), and additional engineering/design budget. Council Member Schellong stated she would like to see a policy for an annual set-aside for equipment replacements. City Manager Wier stated that staff would like that as well and is seeking Council direction to do so. Director Yeager stated that the two projects happening this year are the canopy removal and a door at the back of the shop to be fixed, and a rain seepage rod on the back wall of the shop. The support column at the Yard was damaged and is in serious need of repair. City Manager Wier stated that particular item should be prioritized for funding.
The Council was in consensus to add the following items to the budget: storage support column replacement (out of this year's RMAP funds) and the aggregate storage canopy.
CITY COUNCIL ITEMS
› Legislative Matters - None
> City Manager Report and City Council Directives - None • Reports, Concerns, Referrals, Council travel and training reports - None 4 | Page
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ADJOURNMENT
There being no further business to come before the Council, Mayor Wright adjourned the meeting at 8:47 p.m. to the regular meeting of the City Council of the City of Crescent City scheduled for Monday, June 5, 2023 at 6:00 p.m. at the Flynn Center, 981 H Street, Crescent City, CA 95531.
ATTEST:
Palma
Robin Altman
City Clerk/Administrative Analyst
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