District 1: Elbert Holman Jr. and Xochitl Paderes
District 3: Paul Canepa and Arthur Murrillo
District 5: Susan Eggman and Ralph Lee White

A panel of staffers also is to interview the candidates. It is unclear when or where on Sunday the panel interviews are to be done.

Anyone hoping for a return of Gus Vina to Stockton as city manager (some people at City Hall were crossing their fingers) saw him take over as interim city manager of Sacramento on Wednesday instead. He worked in Stockton for a decade, including in the city manager’s office, before leaving for Sacramento in the late 1990s.

Community Development Director Michael Niblock is taking questions from City Council members. When that is done, the council is to talk about its upcoming town hall meetings. And then the meeting is to be over.

The blog is done first. Goodnight.

Community Development Director Michael Niblock is up. He is talking about the possibility of requiring a general fund subsidy in community development for non-fee related tasks, such as medical marijuana, the state hospital and annexation concerns.

Niblock is proposing $1.2 million in reductions, including nine layoffs. Last year staff was reduced by 52 percent, he said. Adding these reductions will bring the department to a 63 percent reduction over 2009 levels. Such a reduction will reduce services in building, plan check and inspections, among other services.

He said staff losses could render the city unable to deal with planning when the economy recovers.

“I’m concerned that we will not be prepared to handle that,” Niblock  said.

Revitalization Director Gus Duran is up. The department’s name is to be changed next week to the Economic Development Department.

Economic development is to be prioritized, Duran said. Redevelopment is to “take a back seat,” he said.

O’Rourke said, “Currently you have one staff person dedicated to this (economic development).” He said this will be the rare time staff suggests an increased subsidy.

The additional subsidy request of $168,000 would subsidize one staffer, O’Rourke said.

Duran said, “Our focus is going to be on business attraction and retention.” He said his department will go to other places in northern California to recruit businesses to Stockton.

Regarding the dry stack storage facility, Duran said no general fund money is going to construct that facility.

O’Rourke said the dry stack storage facility came up during staff meetings. He said he promised no general fund money would be spent on the project and that if general fund money is required, it will not go forward. He said there may be some operations and maintenance money to start, but that soon after it opens it would reduce debt service (and the general fund subsidy of the marina project, overall).

Regarding the move to Chase Bank Plaza, Duran said the move would be made, hopefully, during the next year. He said the city will save money by doing that.

7:42 p.m.:

In the housing division, Duran said CDBG funds are being reduced by 17 percent. The affordable housing program will be reduced by $600,000, he said. One vacant position will be eliminated, Duran said.

In redevelopment, revenue is down from $25.6 million in 2009 to $18.4 million in 2010.

Duran is discussing the Strong Neighborhoods Initiative, former Mayor Ed Chavez’s program. There is expected to be a balance in June of $24 million, he said.

Duran said he is proposing a $5 million construction of a firehouse in south Stockton, a $4 million project in University Park. He said he is proposing that $15 million be used to reduce bond payments.

The state intends to take away more than $10 million this year and more than $2 million next year.

The SNI bond redemption could pay for much of the state takeaway. A staff reduction could pay for much of the rest, he said.

“We’re now cutting bone,” Duran said.

Mayor Ann Johnston is asking about the proposed increase in economic development staff, as it relates to proposed reductions elsewhere. Staff is to be shifted, Duran said.

7:56 p.m.:

Duran is talking about risk.

“The city has spent a lot of money on a lot of projects, not assessing the risk correctly.”

Mayor Ann Johnston is asking how moving to the Chase building will have a $300,000 savings.

O’Rourke is answering. He said, “No plans have really been completed for the buildout of the eight stories.” He said the city manager’s office and revitalization will do an analysis to determine viability. He said part of the answer is political (People will be upset about a move to nice quarters when budget cuts are being made), but in part an analysis will be done.

Vice Mayor Kathy Miller said she is concerned about losing key employees in redevelopment. She said, “I’m not seeing a whole lot of interaction between departments.” She said she is concerned that some longstanding employees in redevelopment will be hired elsewhere and will not be here in two years when the city needs them.

Johnston said, “How many will be left in your department?”

The department has 22 employees, he said. The reduction is almost half, he said.

Mayor Ann Johnston said, “Thank you Mr. Madison. You did good.”

Interim City Manager Kevin O’Rourke said the City Council need nod have late, back-to-back meetings. He said to Mayor Ann Johnston, “You need to tell me when you want to call this.”

Councilman Dale Fritchen suggested 7:30 p.m. O’Rourke said Fritchen does not count.

There is now some joking about Municipal Utilities Director Mark Madison’s reputation as a director who takes some time when he makes a presentation.

Madison is opening his presentation.

“Water conservation seems to be working, so we’re not selling as much water,” he said. Still, the water utility is in reasonable shape, he said. A phased rate increase was approved last year. “The water utility appears to be balanced and healthy,” he said.

Regarding wastewater, Madison said, “It is unbalanced and unhealthy, and the reason is revenue is down about $2 million from what we projected.” He said that is related to foreclosures and interest-earning reductions.

He said, “The numbers aren’t good on the bottom, as you can see.” He said about $13.2 million in capital improvement projects are being held off to mitigate.

He said, “We have enough cash to pay our bills.” However, he said the fund does not have enough revenue to satisfy bond coverage requirements.

Madison said he will propose next week that a rate study be done, and he said, “We will be heading towards a rate adjustment.” He said he does not know how much that will be.

The stormwater utility is both unbalanced and unhealthy and is also “in a very bad state,” Madison said.

He said, “We must do something with the stormwater fund.” All capital improvement projects have been halted, he said. Fees have not increased since 1991, he said. The fee is $2.10 per home per month, he said. It has been that since the 1990s, he said. Madison said regulatory compliance requirements are becoming more stringent. He said the rate study to be done will include this fee. However, a stormwater utility rate increase requires a ballot process. That will be “difficult,” he said.

“It’s not a pretty picture,” Madison said. “But that is where we are.”

Vice Mayor Kathy Miller is asking about staff increases at MUD. Madison said that in general the hires relate to the taking back of the utilities from OMI-Thames.

Councilwoman Diana Lowery is asking why it has been 15 years since the city reviewed rates. Madison said the standard is to review rates ever 15 years. He said part of it might have involved Proposition 215 hurdles. The last time a formal rate study for wastewater was conducted was in 1993, Madison said.

Councilwoman Susan Eggman is asking if any of Madison’s staff here tonight is on overtime. One is, Madison said. Eggman said it might be wise not to have that.

The City Council has been in closed session since 5:30 p.m. It is now coming back, and the budget hearing is likely to begin momentarily.

Arthur Murrillo filed in District 3.