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HomeMy WebLinkAboutCC Min 1988-06-02 6-2-88 Seal Beach, California June 2, 1988 The City Council of the City of Seal Beach met in regular adjourned session at 5:01 p.m. with Mayor Hunt calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Hunt Councilmembers Laszlo, Wilson Absent: Councilmembers Grgas, Risner Councilmember Risner arrived at the meeting at 5:02 p.m. and Councilman Grgas arrived at 5:40 p.m. Also present: Mr. Nelson, City Manager Mr. Joseph, Assistant City Manager Mr. Thomas, Finance Director Mr. Knight, Director of Development Services Mr. Jue, Director of Public Works/ City Engineer Capt. Garrett, Police Department Capt. Maiten, Police Department Capt. Dorsey, Lifeguard Department Mrs. Yeo, City Clerk PRESENTATION Noting the resignation from Seal Beach of Mr. Dan Joseph to become the City Manager of Lawndale, Mayor Hunt presented Mr. Joseph with a City commemorative plaque in recognition and appreciation of his more than seven years service to the City as Assistant City Manager. 1988/89 FISCAL YEAR BUDGET WORKSHOP The City Manager noted that the budget had been presented to Council at the regular Council meeting of May 2nd, at which time an overview of the 1988/89 budget was provided, and at that time the public hearing was set for June 6th. Mr. Nelson reviewed the information requested by the Council and provided by the Finance Director with regard to bonded indebtedness showing the time frame of payments, the principal and interest amount, the outstanding balance, and the amount of money that will be freed upon retirement of certain bonds. He noted that the Seal Beach Administration Building Authority bonds will be paid in 1994, the 1968 Water Bonds in 1998, the 1963 Water Bonds in 1999, and the Redevelopment Agency Bonds in 2003 and 2014. Given recent comments and comparisons of this City's budget with other jurisdictions, the City Manager presented a chart comparing Seal Beach with the other incorporated Orange County cities, and based upon data contained in the State Controller's Report for 1985/86. He pointed out that the countywide per capita net assessed value was $46,111 as compared to Seal Beach at $43,126, and that the countywide expenditure for general government was $39 per capita versus $38 for Seal Beach. Mr. Nelson continued with a review of the various comparisons of expenditures for public safety, transportation, community development, leisure, enterprise, other services, total maintenance and operation, capital outlay, community redevelopment agencies, and total expenditures. He pointed out variations in some cities where for instance, fire services are paid through a special district rather than through general revenues, water, sewer, and/or trash services are provided by outside agencies, also that cities vary in their priorities for expenditure of their funds based upon policy decisions specific to their city. The City Manager asked that during the budget review I I I " 6-2-88 the Council consider setting aside some portion of the unallocated General Fund balance to meet unanticipated expenditures that may come forth during the fiscal year. I Mr. Thomas, Finance Director, reported certain noteworthy news articles in the Los Angeles Times this date relating to declining unemployment, increased bond prices, the stock market, and satellite contract award to Seal Beach Rockwell. He stated his personal evaluation that the economy is in a period of sustainable and moderate economic growth with steadily rising inflation, with an expectation that interest rates will increase appreciably in the coming year. Mr. Thomas described the percentage breakdown, increases and decreases of projected revenues for all funds as well as the General Fund. He then commenced review of the revenues anticipated to be received for fiscal year 1987/88 and those projected for 1988/89: taxes and franchises estimated to be 5.7 million in 1988/89, a minor increase due to an 8.1 percent increase of property tax, 4.7 percent increase of utility users tax, and 5.8 percent increase of sales tax, licenses and permits estimated to be $517,000, down somewhat due to an anticipated decrease in building permits, fines and forfeitures for 1988/89 expected to increase by approximately 14 percent as the result of the City taking over the administration of the citation processing, revenue from money and property, somewhat lower than 1987/88 although an increase is expected from off-street parking and interest on investments based upon an average investable balance of approximately 1.8 million, revenue from other agencies basically a known amount that the City has been advised by the State, charges/current services anticipated to increase basically due to revision of certain fees in the Police Department, and street sweeping and tree trimming fees, sundry revenues expected to increase with the possible auctioning of police 'vehicles, and a slight increase from the Tax/Revenue Anticipation Note, transfers from the General Fund which are basically subsidies to the City's insurance reserves and the tideland beach fund, and transfers back to the General Fund, defined as loan repayments, interest and general overhead payments. Mr. Thomas continued, estimating that 1988/89 water fund revenue will be 1.8 million, the increase basically due to rate restructuring during the past year, reflecting an increase to cover the cost of an additional employee to handle certain state mandated reporting Obligations, and because of a loan repayment, $254,410 has been set aside for replacement or repair of water utility equipment, the Sewer Fund, based upon water billings, reflecting an approximate ten percent increase; other funds reflective of the Lighting Assessment District, the increase in the Tideland Beach Fund largely attributable to the pier restaurant, the Capital Project and Equipment Fund and the Environmental Reserve Fund, relating directly to development activities, producing modest revenues, Gas Tax Funds reduced due to the lack of OCUTT funds to the City; a modest increase in the Traffic Safety Fund which is generated from vehicle fines; the Workers Compensation and Liability Reserve Funds being set- asides for those purposes; the Redevelopment Agency revenues projected to be down in 1988/89, the 1987/88 revenues reflecting the final Surfside Revetment Loan repayment. Mr. Thomas concluded that the projected revenues for 1988/89 are $14,427,730. I I Staff acknowledged that there may be a typographical error relating to the revenue versus expenditure figures for refuse collection services, and with regard to an upcoming County increase of dump fees, the City Manager stated that prior to January 1, 1989 the staff would be presenting 6-2-88 revised figures to the Council to consider taking an action to pass those charges on the the consumer. The Finance Director explained that the Refuse Franchise Fee reflects a negotiated contract with Briggeman Disposal effective October 1st, revising the method of payment for that service, where the contractor is now paid ninety-three percent of what the City is paid instead of the previous method based upon water meter, the remaining seven percent a revenue source to the City, and confirmed that the franchise fee does not apply to the Leisure World refuse collector. Mr. Thomas also explained that the Business Inventory Tax comes from the State, a tax based on personal property which is remitted to the City on an annual reduced schedule, with the intent to phase out this tax, and that the Workers Compensation and Liability Reserves were established from the proceeds of a tax allocation bond issue to cover estimated obligations. As a point of clarification, the Finance Director advised that the 1986/87 revenue for alley improvements was actually revenue that was applicable to a prior year, and with regard to the groin fund, the City Manager noted that in 1987/88 the Council appropriated $10,000 to that reserve, however at the time the proposed budget was prepared there were not sufficient revenues to make an additional appropriation. Captain Garrett, Police Department, reported that parking citiation processing is currently administered by the Municipal Court of Orange County at a cost to the City of fifteen percent, the City also contracting with an outside firm to provide notices and tracking of the citations, however a recent change in the law provided the court the option of delegating back to the municipality the administration of processing and collection of fines, which the Orange County court has done. He explained- that the City has expanded its contract with the parking citation processor to also handle the collection of the fines at a substantially lower cost, thus the City will receive approximately $40,000 of increased revenue that previously went to the County. As a matter of information, Captain Garrett also reported the City's bail schedule for parking violations has not been adjusted for at least five years and is being revised to be commensurate with State fines, generally $32 with the exception of street sweeper violations which will be $20. Captain Maiten advised that although the City does have a burglar alarm ordinance, due to lack of administrative personnel and automation there is currently no follow through or charge for the approximate fifty false alarms per month, therefore the City has contacted two contractors to submit proposals to provide alarm tracking and billing services. He noted that this is an attempt to deter false alarm calls, explaining that the ordinance allows three false alarms in a twelve month period, and requires that the City be noticed when an alarm problem has been corrected. Ms. King, Administrative Aide, reported that the staff has compiled a master fee schedule for gOOds and services provided, evaluating each fee for its cost recovery and benefit provided, however is not significantly related to revenue generation. The City Manager added that the Council, at their next meeting, may wish to make certain determinations as to the public benefit of certain services, whether there should be full subsidy or total cost recovery, the intent being to move the City towards a full cost recovery policy. Members of the Council indicated support for total cost recovery of some services, however noted there may be others that the Council may want to subsidize, and made specific reference to the charge for parking I I I 6-2-88 stickers, suggesting that any increase in cost should be done incrementally. I The City Manager noted that the Council had been provided the report relating to revision of the City's business license tax to gross receipts, retaining the $50 minimum fee for businesses of less than $166,700 gross receipts, or $0.20, $0.30, or $0.40 per $1000 thereafter dependent upon the category of business. He advised that the report was provided to various businesses, merchant associations, and individuals, and that meetings have been held with the business communities to discuss the proposal, the general consensus being that an adjustment of the business tax is warranted, however there is some question as to what formula should be used for calculation purposes. Councilmember Risner questioned the inequities where some businesses have a greater profit from their product than do others, suggesting that categories of businesses may be in order. The City Manager responded that the first goal is to produce revenue, the second to treat like businesses in the same manner, stating he felt that the gross receipts formula does accomplish that goal, however suggested that the Council may wish to reconsider the rates for the classes of businesses, or the monies that are reflected in the budget could be accomplished through the increase of the flat fee. I Captain Maiten reported that the State Department of Corrections, Parole and Community Service Division has made a proposal to the City for the lease of a portion of the jail within the Police facility, the jail being an operational facility with a low level of use and not staffed full-time. Captain Maiten explained that at the present time when an arrest is made the individual is booked and detained in the Seal Beach jail for a set period of time, only felons or persons with an outstanding warrant are taken to the Orange County jail. Captain Maiten reported that the Parole Division stressed to the City that the individuals detained would be low threat level, technical violators of parole or furlow programs, detained until the time of a hearing or transfer to the parole office, the maximum number of prisoners would be twenty per day, the average stay about twelve hours, and at no time would the person be released from custody in this City. He added that any prisoner that may be a custodial problem would not be booked into the Seal Beach facility, nor would any high risk or violence prone individual be housed. Captain Maiten advised that the Parole Division would provide twenty-four hour a day staffing of the facility with State Correctional Police Officers, as well as a low risk trustee to be housed at the facility who would perform janitorial duties that are presently performed by an outside contractor. The Captain reported the potential revenue to be derived from the use of the facility is $144,000, the costs associated with that use approximately $5700, $4500 of which would be recoverable, amortized over a ten year period. Members of the Council indicated a tentative support for the jail lease proposal, however asked that more information be provided. The City Manager reported the State's willingness to make a presentation to the City Council. with regard to the recommended bail increases, Laszlo moved, second by Risner, that street sweeper violations remain at the current bail and not be increased to $20. I AYES: NOES: ABSTAIN: Laszlo, Risner Hunt, Wilson Grgas Motion failed 6-2-88 It was the order of the Chair with consent of the Council to declare a recess at 6:52 p.m. The Council reconvened at 7:03 p.m. with Mayor Hunt calling the meeting to order. By unanimous consent, the Council amended the agenda to provide for Oral Communications from the public at this time. ORAL COMMUNICATIONS Mayor Hunt declared Oral Communications open. Mr. Bob Griffith, 1225 Catalaina Avnue, stated he did not believe that there is anyone system of business tax that would be fair to all, however he felt that the gross receipts method has a number of inequities, and spoke in support of the flat rate method as the fairest and accomplishing simplicity of administration. He stated he has not heard concern with raising the tax from the business community, however objections have been raised with the gross receipts method. Mr. Griffith stated that if the objective is to raise revenues by about $35,000, he would suggest that the flat rate tax be increased fifty to one hundred percent and that the CPI be applied each year thereafter. He added that if the gross receipts method is approved, he felt that could be construed as an invasion of privacy by a governmental agency, and further, if the revenue goal is achieved he would also suggest that consideration then be given to adjusting down the rate per thousand. The City Manager reported that Mr. Craig Knudsen, property manager for Leisure World Center, had expressed his preference for a flat rate schedule based on gross receipts similar to the method used by Costa Mesa, also having expressed concern relative to disclosure of information if specific gross receipts are required to be reported, and that Steve O'Connell, Countryside Trust and Loan, representing the Seal Beach Center, spoke in support of the same flat rate schedule based on gross receipts or various brackets, Mr. O'Connell also pointing out a confusing section relating to calculation of tax for travel agents. With regard to concerns expressed with a gross receipts formula, the City Manager advised that method is simple to administer, and the business owner would sign an oath under penalty of perjury that the gross receipts reported are accurate. He added that currently seven hundred fifty-five businesses on a flat rate formula generate $49,000 of the business license tax, with the three businesses on gross receipts generating the balance. It was the consensus of the Council that the staff provide three alternatives for adjustment of the business license tax for Council consideration, one alternative being the flat rate tied to the CPI. The City Manager reported that pursuant to a request from the Friends of the Animal Care Center, $6700 should be added to the unfunded budget requests to cover the cost of paving the areas adjacent to the Center, this to be a loan that would be repayable to the City over a period of five years. It was confirmed that if approved, this amount would be added to account 2900 as a capital expenditure. The City Engineer confirmed that the cost was based upon written bids received. The Assistant City Manager reported that the 1988/89 budget is basically unchanged with few exceptions, each department having been requested to reduce their non-personnel expenditures to the degree that this budget equals ninety- two percent of 1987/88 with the exception of expenditures over which there is little or no control. He noted that one change in expenditures not included in the budget document relates to the Fire Department, explaining that each year an I I I 6-2-88 I estimate of costs is provided to the City, and after their budget process is complete they provide a final cost figure, and reported the City was recently notified that the cost is $136,000 higher than what is reflected in the budget, or $1,746,920. Mr. Joseph reviewed the more significant changes to the 1988/89 expenditures which reflect an eleven percent reduction of off-season Lifeguard staff, the Assistant City Engineer position replaced by an Engineering Aide, the addition of a Capital Project/Purchase Account which reflects 1988/89 projects for reconstruction of Dogwood Avenue from Candleberry to Fuchsia, sidewalk reconstruction, water main replacement at Anaheim Bay Bridge, beach sand replenishment, and replacement of twelve police vehicles and three public works vehicles, and noted capital items that remain unfunded are Bolsa and Ocean Avenue overlays, traffic signal loop replacement, street sign replacement, Lampson Avenue and Eisenhower Park landscaping, carpet and painting of the Police Department, and completion of the volleyball/basketball court at First Street. He explained that the purchase of vehicles is proposed to be accomplished through the League's purchasing plan over a period of four to five years, and reported the budget also reflects the replacement of service revolvers for all police officers, that the City's portion of the Leisure World bus financing is proposed to be eliminated, and a Senior Water Utility Operator added to perform State mandated testing and reporting. Mr. Joseph concluded that expenditures are up 3.2 percent over the last fiscal year, excluding employee compensation adjustments, maintenance and operating costs below the inflationary rate of approximately 4.2 percent, and pointed out the listing of unfunded items in the amount of $751,490 as well as the $2500 request for additional funds for the Old Town Senior Nutrition Program. After brief discussion, the Council gave tentative approval to budgets for Mayor/Council, City Manager, City Clerk, Elections, City Attorney, Finance, and Non-Departmental. In response to Council, the Assistant City Manager reported there are no changes to Police Department personnel, that as of last year there were forty-one sworn police personnel allocated, thirty-nine the previous year, and reported the City is currently recruiting for six officers. He noted that at the present time six persons are off work due to injuries, with two persons on light duty. With regard to overtime expenditures, Captain Maiten stated that an analysis of that account was performed for the period July through December 1987, breaking down the hours used by sworn supervisors, non-supervisory sworn personnel, and non-sworn personnel, the analysis showing that a great percentage of the overtime was attributed to employees working on holidays, extended shifts, or on regular days off. He noted that a considerable amount of the overtime is the result of understaffing, noting the difficulty in maintaining a full contingent of dispatch and sworn personnel for various reasons, also explaining that employees have the option of taking overtime pay in their regular salary or placing the overtime in a compensatory bank. With regard to the lack of reserves, the City Manager explained that State standards for reserves now equal that for regular sworn officers, therefore individuals tend to either drop the program or become sworn officers. Captain Garrett reported officers are currently on a twelve plan, which is two shifts of twelve hours each, due to the shortage of personnel and in an effort to reduce overtime and the burden on the officers. It was the consensus of the Council to hold over the Police Department budget to allow members of the Council to discuss their specific concerns with the Department directly. I I 6-2-88 Discussion continued with Council tentatively accepting the budgets for Beach Parking, Fire, and Lifeguards. Members of the Council indicated their displeasure with the increased cost for contract fire services which, if known, may have affected the recent decision regarding City versus County fire services. Councilmember Risner asked that the Council be provided with a report setting forth the local responses by the Fire Department. Risner moved, second by Grgas, to include in account 2900 the $6700 loan to the Friends of the Animal Care Center to cover the costs of paving. I AYES: NOES: Grgas, Hunt, Laszlo, Risner, 'Wilson None Motion carried The City Manager noted that an agreement will be forthcoming setting forth the terms of the maintenance and operation of the Animal Care Center. The Council tentatively accepted the Animal Control budget as amended. Wilson moved, second by Risner, to reinstate the City's portion of financing the Leisure World/Rossmoor bus. Councilmember Wilson reported that the cost of this bus service has been increased to approximately $44,000, and with the addition of a stop at the Bixby Office Park the Bixby Ranch Company has agreed to participate in the funding of the bus service in the amount of $9,000. Discussion continued regarding the percentage of credit that would be realized by the City and Rossmoor Center from the Bixby contribution, the Council indicating their preference that the City be afforded the credit. It was the consensus of the Council that the City Manager negotiate the this matter with the Rossmoor Center and report back to the Council. Vote on the motion to reinstate funding of the Leisure World bus: I AYES: NOES: Grgas, Hunt, Laszlo, Risner, Wilson None Motion carried The Council determined to set another budget study session date at the next regular meeting. ORAL COMMUNICATIONS Mayor Hunt declared Oral Communications open. Mitzi Morton, 13th Street, objected to the City's participation in the funding of the Leisure World bus service, suggesting that Leisure World assess each of its residents a minimal annual fee to cover the related costs. Members of the Council responded that at the time the Rossmoor Center was annexed there was a commitment that the bus would be equally funded, and noted that the sales tax return to the City from that shopping center far exceeds the cost of the bus service. There being no further communications, Mayor Hunt declared Oral Communications closed. CLOSED SESSION No Closed Session was held. I ADJOURNMENT Laszlo moved, second by Risner, to adjourn the meeting at 8:40 p.m. AYES: NOES: Grgas, Hunt, Laszlo, Risner, Wilson None Motion carried I I I 6-2-813 / 6-6-138 e Attest: ApprO\'ed: Seal Beach, California June 6, 1988 The City Council of the City of Seal Beach met in regular session with Mayor Hunt calling the meeting to order at 7:04 p.m. Councilman Grgas led the Salute to the Flag. ROLL CALL Present: Grgas, Hunt, Laszlo, Risner, Wilson Absent: None Also present: Mr. Nelson, City Manager Mr. Rudell, Assistant City Attorney Mr. Thomas, Finance Director Mr. Knight, Director of Development Services Mr. Jue, Director of Public Works/ City Engineer Chief Stearns, Police Department Captain Garrett, Police Department Captain Maiten, Police Department Mr. Osteen, Recreation Director Chief Dorsey, Lifeguard Department Ms. King, Administrative Aide/Engineering Mrs. Yeo, City Clerk WAIVER OF FULL READING Wilson moved, second by Risner, to waive the reading in full of all ordinances and resolutions and that consent to the waiver of reading shall be deemed to be given by all Councilmembers after reading of the title unless specific request is made at that time for the reading of such ordinance or resolution. AYES: NOES: Grgas, Hunt, Laszlo, Risner, Wilson None Motion carried Councilmember Risner introduced Josh Hansen and Tesan Richard, residents of the Hill area and members of Pack 116, Den 2, and welcomed them to the meeting of the City Council. PRESENTATION Mr. Pete Arnold, Chairman of the Cable Communications Foundation, presented a status report of the Foundation, its finances and activities. He reported the Foundation has