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HomeMy WebLinkAboutCC Min 1996-06-17 6-10-96 / 6-17-96 Approved: Attest: d,..~ - /} /~....y/.., Ma or / I Seal Beach, California June 17, 1996 The city council of the city of Seal Beach met in regular adjourned session at 5:30 p.m. with Mayor Forsythe calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Absent: Mayor Forsythe Councilmembers Brown, Campbell, FUlton, Hastings None Also present: Mr. Till, city Manager Mrs. Stoddard, Director of Administrative Services Mrs. Yeo, city Clerk I BUDGET WORKSHOP The City Manager presented the proposed 1996/1997 fiscal year budget and a five year Capital Improvement Program. He commenced an overview of the proposed budget with the anticipated revenues and fund balances. Some of the discussion and comments were as follows: * The utility Users Tax accounts for about one-third of the General Fund revenues; some means to reduce the dependency on that revenue source needs to be looked into; estimated cumulative refund of the utility Tax increase, should that become necessary after the November. election, could be in the millions; in the interim it is recommended that the budget be adopted, that a contingency plan be developed, as well as consideration of a ballot measure relating to the utility Users Tax; justification for the OUT will need to be developed as to reduction of services, personnel, etc.; if Utility Users Tax measure did not pass, an alternative would be an assessment district. I *. The budget is balanced, makes some strides towards meeting mandated reserves, $300,000 for Compensated Absenses with a deficiency of $650,000, $300,000 for the Self-Insurance Retention, a deficiency of $600,000, and $600,000 towards the Charter required Cash Basis Fund, a $400,000 deficiency. . ,.t .!I.. I I I , 6-17-96 * The estimated July 1, 1996 Unreserved Designated Fund Balance is $1.194 million, estimated Year End General Fund Balance of a mere $31,321. * The Reserve for Capital Improvements is $117,500, to be spent in some future year, capital improvements for fiscal year 1996/97 are $216,000. * with regard to Special Revenue Funds, the Jail Facility is realizing a profit of approximately $120,000 which is a transfer out to the General Fund; the Asset Forfeiture is an activity related to drug enforcement; the Air Quality Improvement -Fund is restricted, monies to purchase alternative fuel vehicles, etc., some monies to be set aside each year; Recreation Services is not self-supporting, requiring a $282,500 subsidy this year; the Recreation classes support themselves, sixty-five percent of the class fee covers the instructor . compensation, the remainder comes to the City for staff, supplies, etc.; aquatics programs have higher participation, the other programs have somewhat less; the expenses comparable to this past year. * As to whether non-residents can come into the City and use the recreation facilities, the response was yes with an uncertainty as to whether that is from a competition standpoint or if there is not enough participants from within the city boundaries; suggestion was made that a three year study be done to determine if the programs are recovering their costs or a more extensive survey to determine if the programs are in fact paying for themselves; inquiry if that would include a park policy with a fee schedule. * It was noted that there is a draw-down trend of the Special Revenue Funds. * Gas Tax monies are anticipated to be lower; Gas Tax is sometimes used to pay personnel costs for street inspections, etc., referred to as a maintenance of effort, and through that the city is. able to continue to qualify for future Gas Tax monies. * Revenues generated from beach parking goes into the Tideland Beach Fund, however the General Fund subsidizes the lots as well;-the $10,000 capital reserve, designated for a . phone system, an expenditure possibly next year. It was noted that even if Proposition 62 were to pass it could be determined unconstitutional; if passed public safety would definitely be negatively impacted. * * The_Enterprise Funds are self-sustaining. * The water system/rate study has been completed, funding for the next five, ten and fifteen years was looked at, approximately $1.5 million needed to maintain the system for the next five years; 6-17-96 the Water Maintenance/Operation Fund is $6 million, Sewer Maintenance/Operations is slightly more than $2 million, which is a fixed asset; the rate study will be presented for consideration first, the intent is to eliminate the standby fee; Leisure World needs to be alerted to any proposed change to the water rates; Leisure World gets no break on water rates, usage is through a single meter. I * A study has not been done of the sewer system, one needs to be done as it is equally as bad as the water system. * The water and sewer systems are depreciated at year end; depreciation can only apply to enterprise funds, can not apply to governmental funds; it may be wort~while to look into establishing enterprise funds for other operations, tree trimming mentioned as an example. * Sewer fees are a percentage of the water fees; when water rates increase so does the sewer fees; at this point the Sewer Plant and Equipment is a guesstimate which needs further study and justification. The Redevelopment Agency Fund begins the year with $9,852, estimated year end is $261,652, that the result of bringing the Zoeter Place lease payments current. * I The low and moderate income housing monies are set aside solely for that purpose. * The Reserves should be in the range of $2.8 million, at least twenty percent unobligated reserves. * * with regard to long range funding for beach nourishment, a public/private partnership was described as a funding commitment by the City in conjunction with an assessment of the beachfront property owners for the purpose of sand replenishment to ensure the destiny of the beach and results in increased value of those properties; mention was made that if such an assessment were considered it should be extended to property owners up to Electric Avenue. .- Question was raised-as to the life expectancy of the beach restroom facilities in that funding for their improvement is included with the 800 MHz communication system bonding, concern that they may need to be replaced once again prior to the bonds being paid. * I * with regard to parking and parking improvements for Main Street and a concurrent parking revenue stream, revenue stream was described as parking meters, at least in the parking lots, the need also to look at metering Main Street at some point. * Question was raised as to the meaning of the term 'internal factors' relating to -salaries and personnel; explained as what one is- paid I I I '.: ,JC.'~' 6-17-96 as compared to ones subordinates, including performance factors; the intent is to establish performan~e and productivity goals. Special events, not including filming, will be coordinated through the community services function; a new Department of Parks, Recreation and Community Services is created; assumes more responsibility than in the past, includes park maintenance, brings together the people who use and maintain the recreation facilities; this a new position however open to in-house employees. * As to the transfer of Lifeguards to the Public Works Department, question was raised as to why the Lifeguard Department can not stand on its own, inquiry as to what knowledge the Public Works Department has regarding life saving; response was that the intent is to consolidate beach operations and services, Lifeguards could operate independently however it is time consuming for the city Manager to mediate problems and disputes, prioritize duties, etc; bringing the functions together is a better work plan; a number of beach operations involve the Public Works Department; the Lifeguard Supervisor has several ideas to enhance the beach programs, the surfing classes an example; beach parking is being transferred from a Finance function to Public Works. * With regard to revenue generated from the beach parking lots, ideally the best method would be a fully automated parking system, currently it is a manned operation with fixed parking rates. * City Clerk personnel is reduced by one-half person to accurately reflect the current personnel. * * Objection was expressed to the proposal to utilize the Orange County Cities Risk Management Authority for claims adjusting and legal services for liability claims; the existing procedure favored, utilizing the services of the current liability attorney; such a change not worth the estimated $30,000 saving inasmuch as there will continue to be a cost for adjusting and legal services; response was that the intent is to reduce liability costs, retain the current liability attorney for only those claims having major liability exposure, OCCRMA would evaluate and determine action to be taken, refer general claims to their legal advisors, on minor. claims the city takes no action, waits for the. claimant to. file something, OCCRMA can not settle without City approval; there'was further objection to the proposal, the use of an inexperienced attorney and/or adjuster; a trial period was mentioned. To the proposed allocation of $12,000 for outside assistance to study and prepare. a Reclassification Plan, the suggestion was that it be done in-house; the response was that it will be a big job, was partially done by the prior City Manager,. there is uncertainty as to whether current staff. will have adequate time to prepare the Plan; the process to prepare such Plan was explained, each employee inter~iewed, new job titles created-as deemed justified, compared.to other positions, etc. * 6-17-96 strategic Plan - objection was expressed with regard to a proposal to retain a facilitator to bring the varied interests of the city, business and residential communities together in an effort to gain some consensus relating to future financial, legal and environmental issues; question was raised as to who would pay the cost; proposal was that the two major land holders and the city each share one-third of cost; comment was made that a facilitator would be resented; suggestion favored ~ two person Council sub- committee to meet with all interested parties; direction was that the strategic Plan be deferred. Mayor Forsythe excused herself from the meeting at 7:18 p.m. Mayor ProTem Hastings assumed the conduct of the meeting. * I * Multi-Year Operating Budget Comparison - increase of the City Clerk budget - explained that in the past the shared time of the Executive Secretary from the city Manager's office was not charged to the City Clerk, this year accurately reflects the compensation of the city Clerk, a part time person, a portion of the Executive Secretary compensation. The Manager noted that a change in the deployment of the Executive Secretary will be forthcoming. * Police Support Services, Account 23, question of a seventeen percent increase, lease payments and interest expense account for $62,000, salaries increased nearly $100,000; response was that it is not a seventeen percent increase, acknowledged that there had been some significant pay increases, also a correction of a previous error; it was noted that there is an attempt to separate the different kinds of salaries, they receive one hundred twenty hours of holiday pay, and quite often the holidays are not correctly reported on the time sheets. I * Noted that the issue of triple time for holidays has been resolved. * There was an uncertainty as to whether the part- time salaries reflect reserves, noted however there is no hiring of full time personnel. * Beach Parking, Account 25, question of a ninety- five percent increase, an amount for lease payments and interest expense, question of the $10,000 capital outlay; $10,000 for First Street gate arm that was not accomplished in the current budget year, about $50,000 is lease payments. * Revenue Estimates, Business Licenses - approximately eight Senior Volunteers will be touring the businesses to check that they have a current, posted business license, if not, that will be followed up. Municipal Code Violations - down eleven percent, question if that is due to the lack of Code enforcement personnel; staff response was that the city does not have a Code enforcement officer, the building inspectors act in the capacity of Code enforcement. I * . .. * Abandoned Vehicles is a new revenue source. I I I 6-17-96 * The Saleen Mustanq was sold for somewhere in the $12,000 to $15,000 ranqe. * Alarm Fees - Inspection Fees - Buildinq and Enqineerinq Fees - variance Fees - all down considerably; staff offered to verify those estimates; Location Fee is filminq permits. Non-Departmental - $5,000 is for the tri-city 4th of July fireworks display at the Armed Forces Reserve Center. * * Planninq"Account 30 - Abatement - that amount reflects monies that are charqed developers throuqhout the year where, in prior years, those monies were reflected in the miscellaneous revenue account.' * Questioned if traininq and meetinqs are made available to the Planninq and Buildinq secretaries. * Capital Outlay - Computer Upqrade - suqqested that money not be spent on Lotus as Excel is much better; a computer policy needs to be established in the next budqet cycle. * Public Works Administration/Enqineerinq, Account 42, decrease in salaries - response that the time of the City Enqineer/Director of Public Works is reflected in more than one account. Air Quality Fund, Account 70 - the Senior Transportation proqram is in conjunction with the Senior Meals proqram; Air Quality also reflects the Electric Vehicle Charqinq Equipment; the three replacement electric trucks about half the price of a conventional qas vehicle. * Environmental Reserve Tax Fund, Account 030 - Comment was that diqitizinq of Assessor Maps is important and needs to be done, will save a tremendous amount of time. * * Noted that the Parks, Recreation and Community Services Director is reflected as 0.6 of a person; as to the increased dollar amount for office supplies and services, it was explained that when the budqeted amount is inadequate either a transfer is made or a deficit amount is reflected. * A correction was made to the Sports Leaques, Account 71, the reflected Frinqe Benefit amount of $42,000 should be $1,250. * Question was raised relatinq to Recreation Proqrams, Account 72, if Camp Colleqe Park East is beinq eliminated; response was that the list of proqrams was not all inclusive. * It was noted that the $8,400 amount shown for Field Trips is an offset, and the Rossmoor Land Lease, $6,000 is for the North Seal Beach Community Center. , . The City Manaqer requested a brief adjourned meetinq on Monday eveninq to review the Capital Improvement proqram and explain the set-asides versus proposed fiscal year expenditures, as well as the Asphalt Replacement proqram. ~-17-96 I 6-24-96 ADJOURNMENT It was the order of the Chair, with consent of the Council, to adjourn the meetinq until Monday, June 24th at 5:30 p.m. for further budqet review and to meet in Closed Session if deemed necessary. By unanimous consent, the meetinq adjourned at 8:00 p.m. I Approved: ~IIA /~~~LJ~ Mayor , Attest: Seal Beach, California June 24, 1996 The City Council of the City of Seal Beach met in reqular I adjourned session at 5:30 p.m. with Mayor Forsythe callinq the meetinq to order with the Salute to the Flaq. ROLL CALL Present: Mayor Forsythe Councilmembers Brown, Campbell, Fulton, Hastinqs Absent: None Also present: Mr. Till, City Manaqer Mr. Barrow, City Attorney Mrs. Yeo, City Clerk APPROVAL OF AGENDA Forsythe moved, second by Hastinqs, to approve the order of the aqenda as revised to consider the personnel matter first, the public employee performance evaluation of the City Manaqer pursuant to Government Code section 54957, then the other items identified on the aqenda, anticipated litiqation pursuant to Government Code section 54956.9(b), and a conference with the City's labor neqotiator pursuant to Government Code section 54957.6 with reqard to Non-represented employees and the Oranqe County Employees Association, and a budqet discussion. AYES: NOES: Brown, Campbell, Forsythe, Fulton, Hastinqs None Motion carried I CLOSED SESSION The Mayor announced that the Council would meet in Closed Session to discuss the items identified on the aqenda. It was the order of the chair, with consent of the Council, to adjourn to Closed Session at 5:35 p.m. The Council reconvened at 6:54 p.m. with Mayor Forsythe callinq the meetinq to order. The city Attorney reported that the Council qave direction with reqard to