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Home My WebLink AboutCC Min 2012-05-30 Seal Beach California May 30, 2012 Mayor Levitt called the adjourned Budget Study Session meeting of the Seal Beach City Council to order at 5:30 p.m. in the City Council Chambers and Councilwoman Deaton leading the Salute to the Flag. ROLL CALL Present: Mayor Levitt Council Members: Deaton, Miller, Shanks, Sloan City Staff: Jill R. Ingram, City Manager Sean P. Crumby, Assistant City Manager/Public Works Chief Joe Bailey, Seal Beach Marine Safety/Lifeguard Department Chief Robert Luman, Seal Beach Police Department Shally Lin, Interim Director of Finance Greg Hastings, Interim Director of Community Development Linda Devine, City Clerk Also Present: 5 community members; 11 staff members; and reporter (Sun News) CITY MANAGER The City Manager stated the process and purpose of the study session, indicated the City Council Goals were used to develop the budget, and thanked the staff for their work on the proposed budget. BUDGET STUDY SESSION Economic Outlook — Howard Longballa, HdL Companies, provided an overview of the sales tax showing a comparison of the City and the State for 2011 and the forecast for 2012/13. Vehicle Replacement Program/Fund — Cathy Standiford, Management Partners, presented an analysis on the City's vehicle replacement and maintenance practices; focused on the replacement part of the analysis; 4 goals — long-term replacement schedule, replacement policy, identify and evaluate funding mechanisms, and assess fleet maintenance practices; current replacement value for total fleet is about $3.4 million; replacement best practices — replacement process schedule, financing and funding process, and identify "optimum point" for replacement with available resources; provided a recommended replacement schedule (criteria) — using number of miles and number of years; currently 20 units have exceed the recommended criteria; recommended the City contribute a fixed amount of money ($310,000) to the vehicle fund annually based on projected replacement costs over a multi-year period (current fund balance $1.8 million) and develop a cost allocation plan and transition to a chargeback system enabling departments to contribute. to replacement costs of assigned units annually. With no objections the Mayor called a recess at 6:30 p.m. and reconvened the study session at 6:45 p.m. Council Goals — The City Manager provided a copy of the City Council goals that were developed at the goal setting session: 9 areas include — intergovernmental relations, identity/quality of life, technology, recreation/marine safety, development services, manage/balance infrastructure needs, Main Street/beach/pier, public safety, and financial stability. Page 2 - City Council 05/30/12 Budget Goals –The Interim Director of Finance reported: • The study session will only cover general funds. • Stated the budget goals: present a balanced budget; preserve current service levels; preserve core work force; pursuing employee share 3% PERS cost (executive/mid management-OCEA-SBSPA); maintain 20 – 25% fund balance (Council Policy 300-11); and is to audit utilities user tax, franchise, business license, and transient occupancy tax. (Council Goal) • Presented an overview of: Fund Balance Reserves - Revenue Projections - Expenditure Projections (does not include any budget implications from the bargaining groups currently in negotiations). • Pointed out the known expenditures: medical for sworn officers ($74,400); fire station bond ($600K principal and interest through 01/15/2024); OPEB lifetime medical for retirees ($196K); and pension bond total of $1.6M including police $1.1M (06/15/19) and fire $.5M (last year FY 2012-13). • Other expenditures: added/reclassified employee positions; supplemental department requests; and items not built in the proposed budget. • Provided a listing of special event in-kind costs the City provides totaling $109,351 this fiscal year. With no objections the Mayor called a recess at 7:55 p.m. and reconvened the study session at 8:05 p.m. Community Input Forms – The Assistant City Manager/Director of Public Works stated that there were 16 forms turned in with 20 requests – added one item not listed - Gary Johnson – underground utilities in beach parking lots. Mayor Pro Tern Miller added: Heather Park tennis court resurfacing, helicopter noise study, planting of trees in College Park East, and replant shrubs by Lampson well. The City Council briefly discussed the items and will continue discussion during the May 31st budget study session. Speakers – Nat Ferguson, Seal Beach Chamber of Commerce, requested the City support the summer concert series – provide $5,000 for lost revenues by eliminating the village vendors and waive special event permit fees of $1,000 (there was no objection to add the request to the FY 12/13 budget); Esther Kenyon, Seal Beach Chamber of Commerce, thanked staff for the information of in-kind funds that the Chamber receives – was not aware of this; and Robert Goldberg, Clipper Way, expressed his appreciation in seeing the carryover funds listed in the proposed budget, questioned the police IT budget of $50,000 – gasoline/fuel cost of $163,000 – operating budget increase of $1.4 million. Council Discussion –The Council briefly discussed items of the proposed budget and no other direction was given (only Chamber request). With no objections the Mayor adjourned the meeting at 9:10 p.m. to May 31, 2012 at 6:00 p.m. to continue the Budget Study Session (CIP) and to meet in Closed Session, if deemed necessary. ( £L1 Cit Clerk City of Seal Beach I -/ Approved: �� Mayor Attest: Aro, A A, ity ler