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Home My WebLink About2009 03-21 CC CDC ADJ MINBook 91 / Page 66 03-21-2009 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY, CALIFORNIA March 21, 2009 The Adjourned Regular Meeting of the City Council and Community Development Commission of the City of National City was called to order at 9:12 a.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Commission members present: Morrison, Parra, Sotelo-Solis, Van Deventer, Zarate. Administrative Officials present: Beard, Dalla, Deese, Eiser, Juniel, Ladrido, Post, Raulston, Smith, Zapata. STRATEGIC PLANNING WORKSHOP (Note: Copies of all presentation materials are attached as Exhibits) City Manager Chris Zapata provided an overview of the meeting goals which were to revisit, evaluate and set priorities; provide fiscal update and clarity; hear citizen, business, health care, school and regional thoughts and to integrate and understand plan timelines and costs. City Manager Zapata provided a progress report on key areas including Public Safety, Infrastructure, Quality of Life, Image, Community Engagement and Fiscal Sustainability; and reviewed current priorities, challenges and opportunities facing the City. (See attached Exhibit 'A') Finance Director Jeanette Ladrido provided a Financial Overview of the City's financial condition which included details on the City's Five largest revenue categories, General Fund Expenditures, Retirement Costs, Cost Containment Efforts, the 2009 Structural Deficit, City Reserve Policy, General Fund Financial Trends, Sales Tax Revenue, General Fund Revenue Forecast, Special Revenue Funds, Tax Increment Funds, the Funding of Future Projects and Low & Moderate Income Housing Fund Revenue and Projects. (See attached Exhibit `B') CDC Executive Director Brad Raulston discussed the opportunities and focus of the upcoming General Plan Update efforts, emphasizing such things as the City's location in the region, as a pacific gateway, in relation to transit systems and freeways as well as building blocks that would be used in the update process such as Community Centers, parks, business, neighborhoods and Neighborhood Councils. Mr. Raulston said that the guiding principles for the General Plan are Quality of life, Business, Education, Development, Health & Safety, pursuing opportunities and building on success. The proposed schedule and key milestones for the General Plan Update were reviewed. (See attached Exhibit `C') Book 91 / Page 67 03-21-2009 Assistant City Manager Leslie Deese gave a presentation on Service Levels: Striking the Balance Between Service Needs and Sustainability. (See attached Exhibit D') PUBLIC ORAL COMMUNICATIONS Julia Sandoval, National City, said problems in her neighborhood could be improved with street lighting. Adriana Calderon, Lorena Chavez and Margarita Garcia of National City told the Council their concerns were about auto body and paint shops that look and smell bad and are not good for residents. Leonor Garcia, National City, suggested the City utilize rooftops for solar power. Jacqueline Reynoso, National City Chamber of Commerce CEO, read a prepared statement from the Chamber outlining five primary objectives of a continuing partnership between the City and Chamber. (See attached Exhibit `E') Jerry Cano, National City, said problems in the city include traffic and abandoned vehicles on the west side, homeless issues and car washing on weekends. Tony LoPresti, Environmental Health Coalition (EHC), complemented the City for its planned approach to the General Plan update. He suggested that the West Side Specific Plan should be a priority and National City Blvd., should be considered as the first green enterprise zone. Jose Madina, National City, believes it is important to focus on entry ways, traffic lights, pursue transit oriented development and have more open space. Richard Kiy, International Community Foundation, commended the Council and staff for leadership excellence and professionalism and said National City can be a model for public -private cooperation. Geoffrey Schrock, National City, believes the City should look beyond 2017 and get the business community more involved. Bert Andrade, National City, said he is concerned about issues involving the homeless, having a good relationship with the military and improving the quality of life. Matias Garcia, National City, said he was pleased that the Costco development did not happen and that we need to balance the need for money with quality of life. Book 91 / Page 68 03-21-2009 PUBLIC ORAL COMMUNICATIONS (cont.) RECESS A recess was called at 11:57 p.m. The meeting reconvened at 12:34 p.m. All members were present. MAYOR AND COUNCIL Council Member Parra thanked the residents and staff for their participation. Mr. Parra said without the one cent district tax National City would be in bad shape and that it is important to focus on fiscal preservation by reaching out to the business community and residents. A major focus should be to buy distressed properties and work for a safe and healthy environment on the west side. Council Member Zarate said she appreciates the input from the workshop. She has many questions about the federal government's stimulus plans and how they will affect the City and help tap into job creation efforts. Member Zarate favors the partnership efforts and working with the Chamber of Commerce. Vice Mayor Sotelo-Solis thanked staff and said she was excited about the plan to collaborate with the schools for community outreach. Ms. Sotelo-Solis said we need to look at creative ways to preserve our green space and we need a concrete water conservation plan. She believes recognizing outstanding citizens and finding ways to engage youth are important. Council Member Van Deventer said he would have liked to see more attendance at the meeting. He believes pension issues must be addressed and that the City needs to encourage businesses and non -profits to be more involved; The City, Chamber and business working together is key. Mayor Morrison said he believes in a holistic approach to public safety because public safety is more than police and fire. It is also such things as libraries, parks and recreation facilities. It is important to identify and justify sustainable revenue sources for everything we do as a city and make necessary changes to be current. Mr. Morrison said it is important to look at the City golf course property to determine if there is a way to better use the property as open space and a revenue source. On issues relating to water, Mayor Morrison said we need to do more to promote conservation while being flexible and realistic. ADJOURNMENT The meeting was adjourned to the next Regular City Council and Community Development Commission Meeting to be held Tuesday, April 7, 2009, at 6:00 p.m., Council Chamber, National City, California. The meeting closed at 1:16 pm Book 91 / Page 69 03-21-2009 Ci a Clerk / e•• rding Secretary The foregoing minutes were approved at the Regular Meeting of July 7, 2009. Mayor / CDC Chairman EXHIBIT 'A' City of National City Finance and Planning Retreat March 21, 2009 • 9 am • 9:15 • l0am • Break • 10:30 • llam • Noon • 12:30 AGENDA Call to Order - Mayor & City Council Overview - City Manager Finance Presentation - Finance Director Planning -Executive Director Service Reports - Assistant City Manager Public Comment - 12:30 Lunch City Council Discussion and Direction CITY MANAGER OVERVIEW GOAL: Revisit, evaluate and set priorities GOAL: Fiscal update and clarity GOAL: Hear citizen, business, health care, school & regional thoughts GOAL: Integrate and understand plan timelines and costs PROGRESS REPORT What you've done with community, business, schools & organization: • Public Safety • Infrastructure • Quality of Life • Image • Community Engagement • Fiscal Sustainability PROGRESS REPORT • District Tax - meeting projections and segregated • Financial Stewardship - New development /department savings have built reserve • Housing stock upgrades -market rate, senior, single family, affordable • Significant leveraging -grants, private investment • Maintained a stable workforce to provide services & carry out Council direction • Boards & Commissions doing their duty • Seniors & Youth PRIORITIES -CURRENT • Financial Monitoring & Projections -short and long term • City Manager's Office Department Savings Requests • Cost Containment & Efficiency • Revenue Generation - Diversify • Consolidation of organization/Coordination of planning efforts PRIORITIES -CURRENT • Retool Capital Improvement Program • Resource/grants gathering and preparation • Neighborhood and environmental cleanup • Service level sustainability and financial impact analysis • Customer Service -Citizen & Community communication PRIORITIES -CURRENT • Legislative Program Development • Event planning and city responsibilities • Local and regional Board and Commission placements • Water Conservation • Retention of Quality Workforce/Organizational Development/Labor Negotiations HEADLINES REVEAL SEVERITY OF ECONOMIC DECLINE Global National at Best pluannets Toyota predicts firs loss since 1938 !Wino it Imo Maw to global auto U As people NIA less, fobs are cut State Governor orders Job cuts, days off Non-profit Local Diego budget woes pale to some other cities' u ties hamstrune as costs rise, mvenue falls La Mesa, El Cajon L face trio of tax proposals CHALLENGES • Circuit City Closure • Mervyn's Closure • Loss of Costco Project • Loss of Home Depot Project • Government Conditions - San Diego, San Diego County, Chula Vista, Escondido, Vista LOCAL IMPACT OF AN ECONOMY IN CRISIS LOCAL IMPACT San Diego Set to Sue State Monday Feb 16, 2009 I NBCSanDiego.com San Diego -- and dozens of other counties -- are expected to sue the state of California Nine Sinking Cities Wednesday Jan 21, 2009 ( San Diego Reader This month and in early February, city managers and finance directors in cities across San Diego County are appearing before their respective city councils to report significant budget deficits. Budget Woes Plague Cities Across Coon Friday Nov 21, 2008 I NBCSanDiego.com The city of San Diego's budget deficit has been well publicized. But what about other cities in the county? How hard have they been hit by the economic downturn? CHALLENGES • National Impacts to local Employment • Sales Tax and Business diversity • New and Continual State Raids - $1,067,000 this year - potentially ongoing at 10% (tax increment funds) • PERS two year lag - rate increases FY 11/12 CHALLENGES • Health Care Costs • Operating dollars for new facilities & restoration of older facilities • Monitor foreclosure properties while seeking resources to prevent foreclosures • Non -profits and City sponsored events OPPORTUNITIES • Work with Chamber of Commerce, Business Improvement Districts, Port of San Diego • Strengthen Partnerships - Schools, Business, Automotive Industry • Stimulus Package Readiness • Aesthetics & Brand Integration -Gateways, Signage, Bridges OPPORTUNITIE S Development Focus • Plaza. Bonita Site • Drive -In Site • Home Depot Site • Golf Course Site • I-5 Marina Gateway • Plaza/Highland Redevelopment City of National City DEVELOPMENT FOCUS • Plaza Bonita Site 11111 Drive -In Site Horne Depot Site Golf Course Site I-5 Marina Gateway Plaza/Highland Redevelopment. OPPORTUNITIE S Plan Completion & Integration • General Plan Update • Redevelopment Plan Amendment • Westside Specific Plan • Transportation Plan • Capital Improvement Plan • Facility & Open Space Plan • Public Safety Plan EXHIBIT 'B' Strong financial condition in a chaUeriging financial environment — Clean financial audits Standard & Poors Rating remains = A- -- Continuous review of operating Costs seeking revenue enhancements Limited Debt — Reserves projected @ $7.5 million which is 19% contingency reserve policy (25% - 50%) CATEGORIES (FY 08/09 Aci.justed Budget Sales Tax 12.2 million District Tax 8.6 million In Lieu of Vehicle License Fees 5.0 million In Lieu of Sales Tax 4.1 million Property Tax 3.3 million Total of Top 5 Revenue 33.2 million Represents 89% of General Fund co 5 $25 $20 $15 $1 0 $5 $- P '03 '04 '05 '06 '07 '08 '09 '10 UND - PJOPEFJY T T.I. to General General Fund Fund 11 640 Tax Increment/Housing g 7:11611. 1 800 Local Control Artriric Outside Agencies 200 PROPERTY TAX ISTORY 8::; FOIUE.CAST $3.5 ran .° $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $- 1111-11111 11111111 111111 111111 '03 '04 '05 '06 '07 '08 '09 '10 E Maintenance & Operations 15.9% BY T >8/09 Budget Debt Service 1.3% Capital Outlay 0.4% BACKGROUND • During FY 07/08, CalPers investment returns were -5.1% • For FY 08/09, CalPers investment returns are -20% • Rate increase will be reflected in FY 11/12 COST TO CITY MINIMUM = 2`)/0 OF PAYROLL $ 500,000 MAXIMUM = 4% OF PAYROLL $1,000,000 c 0 g PERS EXPENDITURES 03/04 04/05 05/06 06/07 07/08 08/09 09/10 MEA ■ PUBLIC SAFETY LOCAL CITIES FUNDED RATIO " Employer Name Misc Plan City of Oceanside City of Poway City of National City City of Vista City of La Mesa City of Carlsbad City of Escondido City of El Cajon City of Chula Vista City of Encinitas City of San Marcos 105.3% 92.7 91.6 % 88.3 % 88.0% 84.0% 82.8 % 82.2 % 80.9% 74.8 69.4% " Source: C'alPers. Funded Ratio as of 6/30/06 Employer Name Safety Plan City of Oceanside City of La Mesa City of Chula Vista City of National City City of Carlsbad City of Escondido City of El Cajon 99.9 % 93.2 % 90.9 88.6 % 86.6 % 84.8 83.3 % MOU's — CALPERS % EMPLOYEE PAYS Agency Miscellaneous Employee paid Safety Employee Paid Vista 8% 8% Del Mar 8% 5% Imperial Beach 6% 0% Encinitas 5% 0% Solana Beach 2% 2% Oceanside 2% 0% National City 2% * 0% Carlsbad 1 % 1 % Escondido 1 % 0% Lemon Grove 1% 0% Chula Vista 0% 0% Effective 1/1/09 Plan Year 2001 HEALTH & DENTAL INCREASES 12.8% 0% 12% 5.7% 4.1 % 2002 10.1 % 19.3% 26.7% 3.2% 3.5% 2003 12.3% 12% 12% 8.4% 4.1% 2004 16% 13% 21% 0% 0% 2005 4.6% 6.1 7.2% 0% 1.2% 2006 13% 6.6% 5% 0% O% 2007 4.2% 12.8% (Created HN Silver & Gold) 6.15% 0% 2008 14.4% 10.5% (HN Silver) 10.5% (HN Gold) -4.13% 2% 2009 0% 10.0% 13.2% 0% 0% HEALTH CARE COSTS $3.0 0 $2.5 04/05 05/06 06/07 07/08 08/09 09/10 COST CONTAINMENT • Staff have closely monitored expenditures - Cost -reduction and Revenue Efficiency (CARE) Committee - Employee Driven - Position Review Committee - Purchasing Review Committee COST CONTAINMENT Currently 37 vacant positions 3 - City Manager's Office 2 - Library 13 - Police 2 - Community Services 2 - Finance 6 - Community Development 3 - Fire 1 - Human Resources 1 - MIS 2 - Engineering 1 - Public Works 1- Planning PROJECTED SAVINGS tuofJanuary zco9 $ 1,084,109 ENHANCED REVENUE • Actively seeking Grants • Revenue from Tax Increment Fund - AB1290 • Increase in Economic Development Plaza Bonita Mall Expansion FY 09 STRUCTURAL DEFICIT • During Mid -Year Review, Council authorized staff to balance the budget with General Fund Contingency Reserve Fund Balance • After covering the GAP, Contingency Reserve Balance = $ 7.5 million First time in 5 years reserves have been used to balance the budget GENERAL FUND STRUCTURAL DEFICIT Estimated FY 09 Revenue $37,403,981 Estimated FY 09 Expenditures 40,746,991 FY 08-09 Structural Deficit (3,343,010) Tax Increment Revenue - AB1290 778,398 Salary Savings 1,084,109 FY 08-09 Structural Deficit ($1,480,503) RESERVE POLICY • Contingency Reserve - General Fund Reserve: 25% - 50% of operating expenditures is current Policy • Begin FY09/ 10 with $7.5 , which is 19% of current policy $10.0 $8.O $6.0 $4.0 $2.0 $- '01 '02 '03 '04 '05 '06 '07 '08 '09 SALES TAX REVENUE • Statewide additional 1 cent tax effective 4/1/09 - Overall cap of 10.25 • City's Bradley Burns Tax (1%) is declining - Automobile revenue down 8% - Building & Construction down 17% • District Tax revenue is on target - ($7 to $9 million) GENERAL FUND SALES TAX HISTORY & FORE CAST N $18 0 $16 - g $14 $12 $10 $8 $6 $4 $2 $0 —♦—Sales Tax —U--District Tax '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 GENERAL FUND REVENUE FORECAST Revenue Category Actual 07-08 Projected 08-09 Forecast 09/10 10/11 11/12 Sales Tax $11.8 $10.2 $9.7 $9.9 $10.3 District Tax 8.5 8.6 8.5 8.7 8.8 Property Tax 3.2 3.0 3.1 3.2 3.2 Franchise Fee 1.4 1.5 1.5 1.5 1.6 Transient Occupancy Tax .9 .9 1.2 1.2 1.2 Other Revenue 13.3 13.2 13.2 13.2 13.2 TOTAL REVENUE $39.1 $37.4 $37.2 $37.7 $38.2 Assumes 2% increase in all revenue categories except for other revenue. Other revenue does not factor an increase GENERAL FUND REVENUE FORECAST Revenue FORECAST Category 12/13 13/14 14/15 15/16 16/17 Sales Tax $10.3 $10.5 $10.7 $10.9 $11.1 District Tax 9.0 9.2 9.4 9.6 0.0 Property Tax 3.3 3.4 3.4 3.5 3.6 Franchise Fee 1.6 1.6 1.7 1.7 1.7 Transient Occupancy Tax 1.3 1.3 1.3 1.4 1.4 Other Revenue 13.2 13.2 13.2 13.2 13.2 TOTAL REVENUE $38.7 $39.2 $39.7 $40.2 $31.0 Assumes 2% increase in all revenue categories except for other revenue. Other revenue does not factor an increase GENERAL FUND REVENUE & EXPENDITURE FORECAST 50 45 40 35 30 25 20 15 10 Prop D GAP 5 -+- Revenue —II— Expenditures 0 lilt! II I III 1 I III LOOKING AHEAD • Sales Tax Revenue is anticipated to continue to decrease • State takeaways to balance State Budget • Continue to seek grants • Continue to reduce expenditures • 5%, 10% and 15 % cuts requested by City Manager's office Reserves cannot continue to fill the GAP SPECIAL REVENUE FUNDS Gas Tax Fund ✓Okay Proposition A Fund ✓Okay Library Fund ✓Okay Sewer Service Fund ✓Okay Nutrition Center Fund Approximately $ 1.4 million General Fund obligation due to Tax Increment Fund BACKGROUND • Consists of 1 project area with 7 subareas • Each subarea receives tax increment revenue and has expiration ranging from 2010 - 2025 • Additional 10 years tax increment revenue to pay debt BACKGROUND • Tax Increment Revenue is restricted for specific purposes - Payment of Debt Service - Payment of Statutory Pass 'Through Payments - Payment of Operating Expenses - Funding of Capital Projects TI REVENUE & EXPENDITURES ACTUAL ESTIMATE FORECAST DESCRIPTION 07/08 08/09 09/10 10/11 11/12 TI Revenue $11.7 $12.0 $12.4 $12.8 $13.2 Expenditures: Administration 2.8 5.9 6.2 6.5 6.8 TABs 3.1 3.1 3.2 3.4 4.0 AB 1389/ 1290 .2 .2 1.5 1.5 1.5 ERAF 0 1.0 0 0 0 Pass Through 1_8 1_9 1_9 1.0 1.0 Total Expenditures 7.9 12.1 12.8 12.8 13.3 Difference $3.8 ($.1) ($.4) $0 ($.1) TIF HISTORY AND PROJECTION $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $- -4—TI Revenue -lir-TI Expenditures 1 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 TAX INCREMENT PROJECTS • TI Reserves, 6/30/08 $ 7.8 million • More Projects than Available Funds - Marina Gateway - 8th Street Public Improvements - Paradise Creek Park & Housing project TAX INCREMENT FUNDING • State Take Aways - ERAF payment due May2009 = $1,062,028 - ERAF shift may become permanent • AB1290 Payments to eligible taxing entities - AnnualEstimate = $980,000 HOW DO WE FUND FUTURE PROJECTS? • Needs assessment and capital improvement program • Prioritization of projects • Capacity analysis - "Pay as you go" financing - Borrow to fund projects • Awareness of Project Area Expiration dates and ability to pay debt LOW AND MODERATE INCOME HOUSING BACKGROUND • 20% of Tax Increment Revenue must be 'set aside' for Housing • Purpose is for increasing and improving the communitys supply of low and moderate income housing LOW & MODERATE INCOME HOUSING REVENUE $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $- HOUSING PROJECTS • National City Westside Infill Transit Oriented Development • Senior Village Expansion • Rehabilitation Program 2009-10 BUDGET CALENDAR March 21, 2009 Finance &Plannin.g Workshop May 26, 2009 FY 2009-10 Budget Workshop June 2 or 16, 2009 Budget Approval co z 0 1- co cn 0 EXHIBIT 'C' Mil Mil VOL Our City - Our Community - Our Neighborhoods A NATIONAL CITY A Guiding Document to Adapt Priorities GENERAL. PLAN UPDATE City of National City NORTH \ , NO SCALE A National City 2 "In the Center of it AI?' LOCATION •RegtonalCenter •National Center •Padfic Gateway •True Center: NEIGHBORHOODS •Reglonai Demands vs. Local Needs MORIH O NO SCALE A National City 3 A Historic City with "Good Bones" )0.1i4 ilk 0%4 CNEC,0 BAY 0 li00° 11*111° A National City THE GRID •Traneft System •Freeway System •Major Streets •Approx 3 x 3 Mlles NORTH i NO SCALE 4 A Triangle in a Square A National City SAN DIEGO CHULA VISTA BUILDING BLOCKS • Regional Parka • Mobility (beyond the Grid) • People NORTH 0 NO SCALE 5 Our City is Our People Residents/Businesses/Visitors 6 Public Participation — Individuals through Centers swop \ l 1 \ \ \ Alp \\ • A National City COMMUNITY CENTERS • Kimball, Las Palmas, EI Toyan • Cantors- Business, Senior, FRCS, — • Empower individuals • Bridging the Understanding Gap • Issues versus Areas •Building Unka NORTH 0 NO SCALE 7 Engaging Students and Involving Families A National City Leveraging Resources SAN ono CHULA VISTA PARTNERING WITH SCHOOLS • National School Pietrict •SUNS & Middle Schools •Safe Routes to Schools •Community Gardena •Better Parke NORnI (I i NO SCALE 8 Organized for Outreach & Participation A National City N. SAN EGO BAY \ SAN NEGO \ \ \ CHUU VISTA NEIGHBORHOODS • Toyon/Rancho de la Nadon • Harbison • Palmer Way • Las Palmas • Lincoln Acres • OlNewood • Central • Otis • Kimball 0NO 9 Putting All of the Pieces together. Prepare — Create — Review - Implement SAN MOO SAN DIEGO SAY 0* A"0 LOOK, LISTEN, ACT • Neighborhood COundis - SSCs Co•Community Workshops •City undl Worldng Meetings •Innovative outreach / • Student Maps & Survey / .411 • Guiding Principled 141"tilt iP4°‘ YeA111001 A National City CHUTA VISTA co ii4 41,097 6Nfk t.ra Pal 'sky 10 Guiding Principles Policy Goals Strategic Objectives Vision and Mission Overall Urban Framework Community Links Community Links — Guiding Principles A Nmttnn, City QUALITY OF LIFE 4 1 a /lik • 1 BUSINESS Rkill 0 / DEVELOPMENT Alup....iikEDUCATION I iiill I111 I ilir 11! No vs AIL HEALTH & SAFETY 111111Prr ❖ 12 Community Links — Guiding Principles A National City QUALITY OF LIFE 13 14 15 16 17 National City is a National City ... . SAN OfEGO SAN OIEGO BAY 1•e• 101.10, ?bor .**1 71114111,40J1 ,10.40 A National City SIG CITY ISSUES & OPPORTUNITIES • Guiding Principles • Finding & Prioritizing Resources • Time Talent & Treasury • Implementation NORTH \ , No SCALE 18 Keep it Simple — Keep it Real A National City \ SAN DIEGO dit CHUU VISTA BUILD ON SUCCESS • Mobility • Public Places • Private Enterprise • Infrastructure • Individuals NORTH 0 NO SCALE 19 Manage the Process A National City v� TIME 15 MONEY Resourceful • Never Fully Engaged A / � Gbbal/Regbnal va. Local �� • Immovable Deadlines /r • IndMduals NOR H O No scArE sw Deco BAY 111M*41 G}NHA VISTA Proposed Schedule and Key Milestones 200q PREPARE 2010 CREATE 2011 REVIEW A National City 2012 IMPLEMENT O 5 yr C.I.P. 5ep .mberl7- 125th nniversary O Adopt GP / Certify El 00 Pu tic Hearings 05yrC.I.P. 0 Dr ft General Plan 00000January 19 - irst Council Working M--ting 00 Join Planning/Policy Meeti gs — 5ch..1 Board/Planning Co mission OMarch 21 - 5tr.: tegic Planning Worksh • P 21 Accomplishments A National City PAST CHECKLIST O General Plan Last Updated lgg6 O Housing Element Updated 2008 O New Library 0 Arts Center El Education Village O Fire Station El Preserve Historic Assets (Granger -Kimball) 0 Marina and Sycuan Hotel El National City Boulevard El Highland Avenue O 5afe Routes to School El Street Resurfacing Program El Parks Rehabilitation Project El Paradise Creek Educational Park El Plaza Bonita Expansion El Downtown Specific Plan El Port/City Concept Plan El Westside Specific Plan (EIR) 22 Aspirations A National City DRAFT FUTURE GOALS (GUIDING PRINCIPLES TO BE FURTHER DEFINED THROUGH JOINT PLANNING MEETINGS) ➢ Improve Quality of Life ➢ Fiscal Sustainability ➢ Think Globally, Act Locally ➢ Improve Health and Safety ➢ Partner with Schools ➢ Build Needed Housing ➢ Improve Aging Housing Stock ➢ Improve All Circulation/Transportation ➢ Preserve Historic Resources ➢ Simplify and Enforce Land Use Regulations D. Leverage Resources & Build Value ➢ Create Economic Opportunities ➢ Anticipate Change and Plan Properly 23 Process and Regulatory Requirements co 200-1 , 2010 , 2011 PREPARE ❑ Set Policy Goals ❑ Community Outreach ❑ Develop Budget ❑ Find Resources ❑ Hire Experts ❑ Recruit Volunteers CREATE ❑ Public Participation ❑ General Plan Update ❑ Related Documents ❑ 5 Year CIP REVIEW ❑ Public Participation ❑ CEQA ❑ Related Documents ❑ Align 5 Year CIP A National City 2012 IMPLEMENT ❑ Public Celebration ❑ Integrate Related Documents ❑ De Ready for Funds 0 Execute 5 year CIP 24 General Plan Update 200q PREPARE �� ❑ Initiation ❑ Program 5cope ❑ Organization ❑ Resources ❑ Budget ❑ Process ❑ Timeline 2010 CREATE ❑ Elements ❑ Additional Studies ❑ Alternatives ❑ Policies ❑ Projects ❑ Programs ❑ Specific Plana 2011 2012 REVIEW ❑ Public Review ❑ Environmental ❑ Evaluation ❑ Recommendation 0 Adoption 0 Align Related Documents A National City IMPLEMENT ❑ Fund ❑ Leverage ❑ Build ❑ Maintain ❑ Refine ❑ Amend 0 Restart 25 A Complicated Process ao 200q PREPARING 0 Scope of Work ❑ Timeline/Schedule 0 Budget Development 0 Funding Sources ❑ Participation Process ❑ Staff Resources 0 Consultants ❑ Technical Resources 0 Legal Counsel 0 Regulatory Oversite A National City 2010 , 2011 ; 2012 PLANNING 0 Council Workshops ❑ Community and Neighborhood Centers Workshops 0 Neighborhood Councils 0 Student/Youth Advisory 0 Chamber of Commerce - Business & Industry 7 ELEMENTS 0 LAND U5E 0 CIRCULATION ❑ HOUSING ❑ SAFETY 0 NOISE 0 CONSERVATION 0 OPEN SPACE 0 ENERGY 0 ECONOMIC DEVELOPMENT 0 HEALTH RELATED 1 PROJECTS DOCUMENTS 0 Land Use Code / Zoning 0 Subdivision Ordinance 0 Design Guidelines 0 Strategic Plan 0 Redevelopment Plan ❑ Local Coastal Program 0 Specific Plans 0 Master Plans 0 Capital Improvements Program 0 Parks & Recreation Master Plan ❑ Bikeways Master Plan 0 Noise Ordinance 0 Community Appearance Code ❑ CEQA Implementation Guidelines ❑ Westside Infill TOD 0 Senior Village Expansion 0 Morgan Square Revitalization 0 Cultural Arta & Education District 0 Las Palmas Park Maste Plan 0 Navy TOD Jobs Center 0Gateway Shopping Center 0 Granger Hall Project 0 SOS/Plaza TOD 0 Marina Gateway 0 Harbor Drive Trade Corridor 0 Plaza Blvd Widening ❑ Drive-in/Swap Meet Redevelopment 26 National Citys Story is Being Told Everyday Now is the Time to Listen SAN DIEGO 01131A.‘eg TEP `NEXT 5 5 •Meet with and Realign Neighborhood Councils 004140 • Work with School Site Committees �� • Refine Timeline d Finalize Budget • Distribute Meeting Calendar 400141a • Engage Students, FamJUes. Seniors dples into ork dualnAdividual, ,\ /*.*L SAN DIEGO DAY Q1ULA VISTA A National City 27 Questions, Concerns, Comments GENERAL PLAN UPDATE City of National City NOR1N 0 NO SCALE A National City 28 EXHIBIT 'D' Striking the Balance Between Service Needs and Sustainability My presentation will focus on service levels throughout the organization. We've heard from our City Manager, Finance Director and Executive Director about the opportunities and challenges we face today, despite the steps we've already taken. And consistent with those presentations, city services are also very much impacted by the current economic situation. 1 Click 1: We normally think of services as the core or basic services a city provides, such as.... I like to think of city services as building blocks that when stacked upon each other, provide the support & stability needed to carry out almost any City service. Click 2: There are other services related to development and housing, as well as the services necessary to enforce the City's municipal code. These services include.... Click 3: Capital Projects and maintenance services are a must to ensure that our facilities are safe and well maintained, & that our vehicles and equipment be in top operating condition. These services include Facilities and Equipment Maintenance & the City's CIP Program. Click 4: These next services are critical to the City running smoothly - they are often the employee's behind the scenes, paying the bills, buying equipment & ensuring every last detail is just right at City events. You can't have a police department without the behind -the -scene support - public works maintaining patrol cars, purchasing ordering uniforms, attorney's advising of new laws, & finance paying the bills. We also need employees to manage records, coordinate community meetings & events, organize youth programs, oversee budgets & audits, hire & train employees, serve seniors nutritious meals, conduct elections, and oversee the numerous grants & legislative efforts on behalf of the City. Short Term: Today The Cost of Services Striking = alance Between Service nd Sustainability Long Term: Beyond 2016 NC is in a precarious spot — while we are in a better position than some cities, we're also faced with striking the balance between service needs and being able to sustain them both for the Short Term & the Long Term, beyond 2016 when the sales tax sunsets. As you will see in my presentation, a great deal of work has been accomplished by our departments over the last year; but we are once again faced with some uncertainty due largely to the economic situation and other factors not in our control. 3 Meeting the Challenge • Across -the -Board Budget Reductions for FY's 08-09 & 09-10 - 5%, 10%, 15% • Department Strategic Plans • Department SWOT's - An analysis of a department's strengths &weaknesses (internal) and opportunities & threats (external) — 14 departments; 5 divisions — 533 employees (350 FT; 183 PT) — Correlates to their ability to provide services National City has been dealing with "challenges" since 2004. We've closed the library and swimming pool, turned off lights in the parks, we've reduced code enforcement, graffiti and recreation; we've suspended vehicle replacements; and froze positions. We've become lean and efficient. But we had to do it for a different reason as Chris and Jeanette have outlined. And, once again, we are preparing to meet the challenge. The City Manager recently asked each department for 5, 10 and 15% cuts from their operating budgets. Also, several departments have done Strategic Plans, which guides the department in carrying out projects, plans, and programs that build a sustainable economic base and provide quality of life to the residents and businesses of NC. Also, each department prepared a SWOT, which is an analysis of a department's internal strengths & weaknesses and external opportunities & threats. I will highlight the results of the SWOTs and discuss areas of commonality amongst the departments. I also discuss how these areas impact the City's ability to provide short term and long term services to the community. 4 Strengths • Community Support — District Sales Tax Maintained • Engaged & Supportive City Council • Active Boards & Commissions • Dedicated & Knowledgeable Employees — Committed to the City's Core Values — Strong Regional Network Some of the strengths identified by departments include...Community Support which was recently acknowledged again this past November by the voters to not repeal the 1-cent sales tax. Residents understand there is a cost to maintaining city services. Core Values: We Pledge to Provide: Customer Service — We provide excellent service to residents, businesses, visitors, and colleagues. Courtesy — We treat everyone with dignity and respect Commitment — We strive for excellence, as we serve the public and each other with integrity, compassion, responsiveness, and professionalism Communication — We communicate openly, honestly, and with clear, consistent messages Collaboration — We work to achieve common goals and value our differences. We have an excellent mix of employees from both the public and private sectors which allows for a strong regional network. 5 • 7-Day Operations — Library, Code Enforcement, Graffiti Abatement, Pool • Public Safety Dramatically Improved — EMS/Paramedic Program — New Police Storefront at Plaza Bonita Mall — 15-months without a homicide — Zero DUI traffic fatalities in over five years — State -of -the -Art Equipment — Public Education Programs - Disaster Preparedness • .Grants totaling over $14M — Safe Routes to Schools — Homeland Security — CDBG/HOME/Section 8 — Nutrition Center Hitting the Mark 4 A Year In Review These next slides highlight the past year which was accomplished through the City Council's vision, priorities, direction and teamwork. READ PUBLIC SAFETY Service levels are higher — our library and pool are now open 7 days a week, as well as code enforcement and graffiti abatement services. The City has more than doubled its effectiveness in winning outside grants, averaging over $14 million per year over the past four years. In 2008 dollars, that amounts to about 1/5th of the city budget. READ GRANTS 1963 — last homicide free year 6 Hitting the Mark A Year In Review • Enhanced Quality of Life — New Arts & Culture Center — New Skate Park — City Park Rehabilitation & Enhancement ($1.2M) — Soccer Field Designed — Community and Cultural Events • Improved Communication & Technology — Webcastinq, new City website — www.nationalcityca.gov online service request; online E-News; online job application system; automated council agenda preparation — Interpretation and Translation Services • Lowered Carbon Footprint — Gross Polluters - Compliance w/California & County Air Resources — 15 new police cars w/2 more coming; state-of-the-art police command vehicle; new street sweeper; hybrid "green" vehicles The City Council places a great emphasis on enhancing quality of life for our residents which is evident by the projects. READ PROJECTS Community events are a big part of what we do. The City sponsors and co-sponsors several very successful family events, such as 4th of July Carnival and Parade; Bayfront Concert; National Night Out Against Crime; Taste of NC; Auto Heritage Days; Technology continues in the forefront of the Council's priorities. Webcasting or video streaming allows our CC meetings to be viewed online; also allows for archived records. PLAY VIDEO Public Works has removed 14 gross -polluter vehicles and 12 pieces of equipment from the fleet. This equipment will be replaced thru a grant. Opportunities • Port of San Diego • Planning for Future Development • Increased Homeownership Opportunities • Senior Housing • Affordable Housing • Operational Efficiencies • Consolidated departments & divisions • "One Stop Shop" for permits • Increased Organizational Development & Customer Service Training • Technology Enhancements • Wireless Access Corridor(s) • Electronic Payments via Internet • Capitalizing on and expanding our existing technological platform for improved productivity and service • Making existing document database available to the public on the web Even in difficult economic times, we must continue to seek and seize opportunities as they present themselves. Continue working with the Port — Fair Share 8 Opportunities — Public Safety • Improve ISO Rating, which helps businesses • Fire Aerial Truck Grant • Third Fire Station Study — Enhanced Youth Involvement • Youth in Government Day • Youth Advisory Board — 2010 Census — Economic slowdown permits staff to revisit City services and needs — Economic Stimulus Program Coordination with the Census Bureau will have revenue and public awareness opportunities for NC. Like all cities, NC is positioning itself for the stimulus money in the areas of CDBG & HOME, Transportation, Public Safety/Homeland Security; Environment; Energy; Telecommunications. Staff is closely monitoring the data, which is rapidly changing. 9 Weaknesses • Aging Facilities, Fleet & Equipment • Financial Constraints • Technology Constraints • Constant Training & Organizational Development Needed • Some departments heavily dependent on part-time employees • Promote our successes more We must consistently look at ourselves in the mirror to ensure we are doing all we can to provide an efficient, cost-effective service to our residents. But as with any organization, we feel there are areas we can still improve on. 10 Threats • What We Don't Know — How much more revenues will decline — When the economy will turn • State Budget Crisis - 1 cent sales tax increase effective April 1, 2009 • May 19 Statewide Election • Departments are faced with maintaining service levels with reduced budgets and resources • Rising Health Care, Employee & Retirement Costs • Increasing Operating Costs — Utilities, Fuel, Water, Materials • Drought & Mandated Water Conservation New Budget — Closing a $41 Billion deficit. New Budget raises the State sales tax by 1 cent beginning April 1 for a little over 2 years (July 1, 2011) & raises income tax and vehicle license fees. May 19 Statewide Election. If the voters approve Proposition 1A, these taxes would be extended an additional one year (July 1, 2012). Retirement Costs: NC has begun to address retirement costs, beginning with our MEA who now contributes 2% into their retirement; the City Council, City Manager and City Attorney have recently followed their lead. 11 Threats • Foreclosures & Aging Housing Stock • Mandated Legislative Costs • Decreasing Grant Opportunities — Federal, State, Local • Built -out City with Limited Open Space • Keeping up with Technology — Digital Divide — Automated City-wide permit tracking, GIS, website connectivity • District Tax Sunset in 2016 12 Striking the Balance Between Service Needs and Sustainability 13 Looking Ahead to 2010 ►.110 • A difficult budget environment for next two years •'7 is anticipated — Contain Costs — Preserve the delivery of City services to residents and businesses to the extent possible — Continue to pursue new, and enhance existing revenue sources to recover costs of programs and services — Not commit future revenues or make Tong -term operating expenditure commitments without identified and sustainable revenue source • Live within existing revenues — Strike the balance between service needs and affordability • Continue evaluating services and service delivery — Do we continue to provide the same level of services? In Closing...No Crystal Ball 14 Questions? 15 EXHIBIT 'E' City of National City Strategic Planning and Budget Workshop March 21, 2009 (9:00am) National City Chamber of Commerce Public Input by Jacqueline Revnoso, President/ CEO NCCC thanks the City of National City for their ongoing contribution and support of the National City Business Community. National City Chamber represents 2/3 of the City's economic interests — Business and Visitors, and in many instances, residents. Local businesses and city visitors are critical to the City's economic livelihood and prosperity. National City residents benefit from the current sales tax measure; the economic impact is largely attributed to Business activity and visitors. National City businesses are the back bone to the City's economy. We will continue to serve as the portal for all business communications and representation. We urge the City to continue partnering with the National City Chamber of Commerce to achieve 5 primary objectives: 1. The National City Chamber of Commerce serves as the business hub in National City. The NCCC proactively responds to Business needs and provides free business resources to its members. These services are much needed and especially critical in these difficult economic times. The NCCC will continue to partner with the City to continue providing these services. 2. Economic Development Program Administration including a. Enterprise Zone Program b. Technical Assistance Program c. Economic Development Forgivable Loan Program d. Storefront Improvement Program e. Renewable Energy Program (partner with Businesses) *** The question is always asked, "What is the City's return on investment on these programs. However, it is equally important to contemplate, what are the results of disinvestment in the business community...the reality is stark!" ***The Chamber should be viewed as the economic development arm of the City. This is not a routine effort; it is vital to sustain our City at the forefront of Economic Progress. 3. Partner on Revitalization Projects a. 8th Street and Morgan Square District Revitalization Program b. Plaza Blvd. Street Widening Project- facilitate business cooperation and involvement c. 8th Street Smart Growth Corridor TRANSNET project. 4. Serve as the Voice for Business and Serve as a Community Partner on a. Public Policy issues b. General Plan update c. City's Strategic Planning d. Community Relations 5. Collaborate on City Promotions and Marketing Initiatives a. Position National City as an attractive destination to shop, live, dine, and do business b. Market the City at Visitor Information Center c. Create City Marketing Material (local demographics, shopping and dining lodge, etc) d. Partner on Community Enhancement and Promotional events that highlight City destinations i. National City's Farmer's Market highlights Downtown Morgan Square ii. Taste of National City highlights Historic Brick Row iii. Bayfront Expo and Job Fair highlights the waterfront and local industry iv. Automobile Heritage Day highlights Community recreational facilities and our own "Central Park" — Kimball Park v. Civic Engagement Day for youth highlights our commitment to youth civic involvement and education.