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HomeMy WebLinkAboutCC Min 1987-06-09 6-9-87 Seal Beach, California June 9, 1987 I The City Council of the City of Seal Beach met in regular adjourned session at 6:30 p.m. with Mayor Wilson calling the meeting to order. Councilman Hunt led the Salute to the Flag. ROLL CALL Present: Mayor Wilson - Councilmembers Clift, Grgas, Hunt, Risner Absent: None Also present: Mr. Nelson, City.Manager Mr. Joseph, Assistant City Manager Mr. Thomas, Finance Director Mr. Hemphill, Director of Public Works/ City Engineer Acting Chief stearns, Police Department Captain Garrett, Police Department Mrs. Yeo, City Clerk WAIVER OF-FULL READING Grgas 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: Clift, Grgas, Hunt, Risner, Wilson I NOES: None Motion carried AGENDA AMENDED Wilson moved, -second by Clift, to consider Item nFn prior to the budget workshop. AYES: Clift, Grgas, Hunt, Risner, Wilson NOES: None Motion carried ORDINANCE NUMBER 1243 - AUTHORIZING AMENDMENT - PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRACT Ordinance-Number 1243 was presented to Council for second reading entitled nAN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF SEAL BEACH AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' .RETIREMENT SYSTEM. n By unanimous consent, full reading of Ordinance Number -1243 was waived. - Clift moved, second by Risner, to adopt Ordinance Number 1243 as presented. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson - None Motion carried I RESOLUTION NUMBER 3695 -.SIGNATURE AUTHORIZATIONS Resolution Number 3695 was presented to Council entitled nA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, PROVIDING AUTHORIZATION TO SIGN DEMANDS AND CHECKS FOR THE WITHDRAWAL OF FUNDS ON DEPOSIT WITH THE BANK OF AMERICA, SECURITY PACIFIC NATIONAL BANK, CROCKER BANK, AND FIRST INTERSTATE BANK, AND AUTHORIZING ALTERNATE SIGNATURES AND RESCINDING RESOLUTION NUMBER 3600.n - -By unanimous consent, full reading of Resolution Number 3695 was waived. Risner moved, second by Clift, to adopt Resolution Number 3695 as presented. 6-9-87 AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried CONSENT CALENDAR.- ITEMS nCn and nDn Risner moved, second by Clift, to approve the recommended action for items on the Consent Calendar as presented. C. Approved regular demands numbered 65116 through 65254 in the amount of $333,486.42 and payroll demands numbered 25619 through 2578l in the amount of $155,250.55 as approved by the Finance Committee and authorized warrants to be drawn on the Treasury for same. D. Waived formal bidding procedures as permitted by Municipal Code Section 2-25(f) and .authorized appropriation of $2000 from Account 5241, Building Maintenance/Repairs, and-$8379 from Account 5251, Building Contract Services, to Police Building Repair Account 2441 for repairs to the Police Facility Jail. I AYES: Clift, Grgas, Hunt, Risner, Wilson NOES: None Motion carried ITEM nF~ - APPOINTMENT - CIVIL SERVICE BOARD Risner moved, second by Clift, to approve Mayor Wilson's nomination of Mr. Irwin zeiger .to the Civil Service Board representing District Two for the unexpired term ending July 1988. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried I BUDGET WORKSHOP The City Manager recalled that the Council had established four dates for budget workshops if determined to be necessary, that the public hearing has been set for June l5th and reported all persons and groups requesting consideration have been notified of the hearing date. Mr. Nelson commenced the budget workshop with an overview of the proposed 1987/88 fiscal year budget. He .stated that General Fund revenues, before transfers and implementation of any new revenue sources, are projected to increase by only 0.8% over the previous year, while proposed expenditures will increase 4.25%. Mr. Nelson reported that the proposed budget included reinstatement of the lighting assessment . district, the Utility Users Tax applied to cable television, increase of trash collection fees to recover ,actual costs, an eight percent water rate increase to cover maintenance and operation costs, and possible increase of the Utility Users Tax and/or the Transient .Occupancy Tax, -adding that the only alternative to increasing revenues is to decrease expenditures by eliminating programs and laying off staff. He explained that it has been determined that the deadline to implement the assessment district can not.be met for this 1'- fiscal year, however recommended that it be acted upon so it will be available for the following year. Mr. Nelson pointed out that possible revenue-sources not included in the budget are a street sweeping assessment district, the financing-of public .safety under Mello-Roos, ,or -a general obligation bond measure. The City Manager reported that the budget also reflects that the Cash Basis .Fund has .been eliminated, those monies becoming a reserve of the.General Fund, a new account created for traffic signal maintenance, 6-9-87 I and Recreation program trust accounts reflected, that the first annual payment of the Coastal Conservancy pier restaurant loan is included, and the Zoeter School lease/purchase payment is reflected in the Redevelopment Agency budget. With regard-to personnel items, he noted that the budget reflects estimated compensation adjustments in accordance with the two year Police Officers Association Memorandum of Understanding, the reclassification of two Account Clerk positions to Senior Account Clerk in the Finance Department, the addition of a full time Account Clerk position in the Development Services. Department/Building, and reclassification of the Clerk Typist in the Water Department to Secretary. The City Manager pointed -out that the General Fund reflects a proposed reserve of l.l.million dollars, stating that he would recommend that the contingency reserve be maintained at at least ten percent of the General Fund expenditures or $855,000, .noting that funds must also be set aside to meet negotiations with the employee organizations, also referred to the .sewer fund reserve .of $9350 and water operations reserve of $82,000, .both of which fall short of a ten percent reserve. Mr. Nelson noted a number of services and programs not included in the proposed budget, refurbishment or purchase of police -vehicles, tree trimming, Leisure World to Rossmoor Center bus service, and departmental requests of $623,340 for services, -supplies and equipment, and further, reviewed -the nine capital projects proposed as set .forth in his memorandum of May 22nd and included in the budget. He noted other items that may be subject to discussion, such as the proposal to re-establishing the City Fire Department, Animal Control/Shelter services, and a visitor marketing and promotion proposal of .the -Seal Beach Chapter of the Chamber of Commerce and the Rossmoor Merchants Association, to be funded by a percentage of the Transient Occupancy Tax. The Assistant City Manager reported that certain- modifications have been .made-to the original budget figures, the estimated 1986/87 property tax.increased by $98,000 and the projection for 1987/88 increased.by $58,000, based upon resolution of a payment error under the Exxon franchise agreement, oil royalties now expected to increase by $38,000, and the Tidelands Fund increased by $21,670 to reflect ten months minimum rent from the pier restaurant lease. With regard to establishing a separate pier fund, the City Manager.stated it is felt the contractual requirement of the State has been met and is reflected in the Tidelands Fund and the Pier Maintenance Account. Mr. Grgas suggested there should -be some discussion regarding reserves and the legal .requirement to retain same, also that the staff consider pursuing a more thorough method of tracking and calculating sales and use tax, as.well as property tax, reimbursable from the County Assessor and the State Board of Equalization, noting that in certain cases cities have found -calculations to be up to five percent in error. In response to Council, Mr. Joseph advised that -a legal opinion has been obtained regarding an increase to the Utility Users Tax, that opinion being,that.it is not a new tax, merely an extension of an -existing tax, and likewise .an assessment district would be considered.a fee-for services rendered. Staff-also advised that it is not anticipated that any fees -would .be forthcoming .from the Hellman property 'development in the next.fiscal year. After verifying that the budget figure for Utility Users Tax included-the estimated $70,000 that could be derived from placing that tax on cable television, Mr. Hunt reported that the-Leisure World Mutual Presidents have indicated their opposition to an increase of any tax. I I 6-9-87 In response to Council, the-Finance.Director clarified that the -City is presently.operating on a cash basis method of accounting, however .with the.assistance of the auditors approximately half of the .accruals have been calculated that will be applied - to the books on June 30, 1987, -that action requiring some-adjustment of-July 1986 revenues .that should be applied -to the prior.fiscal year, and with some adjustments there will be a matching of twelve month" revenues and expenditures. He advised that there is not adequate information at.this time to project fund balances and cash flow, nor can an additional general net be anticipated, however noted that the financial statements will be prepared on an accrual basis. With regard to implementing monthly versus bimonthly .water billing of large water users as a potential for increased-revenue, Mr. Thomas responded that -such change would most likely increase cash flow, noting however that the trend of most cities is the opposite, -semi-annually and quarterly, citing the increase of administrative costs with monthly billings, also advising that the City's larger water users presently pay -on a monthly basis. Staff clarified that revenue from the rental of property.is derived from the old .city hall.building, the community centers, and child care centers, explaining that the leases being -negotiated for the child care facilities are not at fair market value and cover only minimum costs and -minor repairs, clarifying that the .annual $13,000 lease payment for the -oil transmission station located -at the First Street parking lot is reflected in the-Tidelands account. ~r. Joseph reported -the-staff is developing a comprehensive fee schedule.for Council consideration, however he could not foresee any-significant revenue generated from the recommended revised fees. Discussion continued regarding a number of budget related considerations, animal licenses and related fees, the drop in production and price of-oil which affects the City~s oil production.revenues, percentage increase .of .the Utility Users Tax and/o~ its application to cable television, increased revenue by raising a number of .fees by a .small amount, revision of revenue estimates, .or cuts of services and personnel. .Mr. .Hunt asked .that the Council-keep in mind the ratio of taxes-paid by Leisure World residents compared to city services -received, noting that Leisure World residents also assess themselves for the privilege -of special services. Staff.explained that a one percent increase of the Transient Occupancy Tax would generate about $16,000, if raised to ten percent a $45,000.increase would be realized, that adjustment of various fees -is hoped to raise an additional $20,000, that a one percent increase of Utility .Users Tax could raise approximately $276,000, or if the current five percent were applied to cable.television it would result in an additional $70,000 of revenue, or -if raised one percent and applied to cable .the result would be about $350,000. The Finance Director asked that the Council keep in mind that there is an-exemption -to the UUT that applies to a number.of residents.who verify their .$12,000 or less annual income to the .City,-and further pointed out that the Utility Users Tax does not apply to water, which could be a consideration. The Council, by-unanimous consent, declared a recess at 8:09 p.m. and reconvened .at 8:38 p.m. with Mayor Wilson calling the meeting to order. The City Manager again recommended a prudent level of reserves -would .be ten .per-cent, -noting that -the $800,000 under the Community Redevelopment budget must be .retained for the bond debt. In response to Mr. Hunt's suggestion to I I I 6-9-87 I subtract the estimated $4,000 annual cost for administrative services from the $75,000 annual cable grant prior to forwarding same to the Cable Foundation, Mr. Joseph advised he had presented a request to the Foundation for reimbursement of administrative costs for two years as well as the costs the City is incurring for special events that are being cablecast, which is an allowable expenditure of those funds however a request the Foundation has yet to consider, and in turn -pointed out that the Foundation could determine to seek an outside fiscal agent rather than use City staff. Should the reimbursement from the Foundation be forthcoming, Mr.. Thomas recommended that it be placed in the reimbursement for miscellaneous services account. With regard to the liability reserve, the City Manager stated the City is obligated, under the insurance pool, to make some progress towards a-$900,000 reserve, and .recommended there be no use of the existing $683,000 reserve. The Assistant City Manager advised that the report from the City's workers compensation administrator estimates future costs and reserves, their -reserve estimate in excess of $400,000, however the current City reserve of $312,000 is felt to be adequate, explaining that expenditures from that reserve are made over a long period of time rather than during a given year. With regard to the Water Operation Fund, the staff stated that the proposed eight percent increase of water rates reflects -the increase in maintenance and operation costs excluding any capital costs, that $51,310 must be reserved for the water bond debt, and that it is foreseeable there would also be -an impact on the Plant and Equipment Fund for .the water system.without the rate -increase. With reference to alley improvements, staff clarified that forty percent of the project cost is for water main improvements, funded by water revenues, with HCD funds financing the alley replacement portion of the project. Discussion continued. The Council commenced -their departmental review with the Police Department budget with Acting Chief Stearns and Captain Garrett responding to a number of questions -posed by the Council. Mr, Joseph noted a correction with regard to personnel to reflect fifty-four full time and five part time employees. The Acting -Chief explained that many items that had been of concern have already been cut from the proposed budget, that the funds allocated for reserve officers in the previous budget year were eliminated because of the inability to attract personnel due to the training requirements, and although-it is easier to attract Cadets since they.would -have an interest in police work as a career, the preference would be to have reserve officers. He explained that if there were to be one hundred percent efficiency, 4.5 additional police personnel would be necessary, noting that the department is working towards a civilian personnel plan plus the additional sworn personnel to reach that objective. The City Manager suggested that the use of Explorers be discounted, as they are a part of the BOy Scout program and are not a productive unit in the Department. With regard to overtime costs, Captain Garrett reported that in the 1986 calendar year there were 13,800 overtime hours ' worked, both paid and compensatory time for sworn and civilian employees, of that total twenty-two.percent was actual overtime expenditures mostly due to manpower - shortages arising .as -the result of injuries, sickness and vacations, the remaining seventy-eight-percent -was -court time, coverage of-dispatch, report writing, processing of arrests, etc., with a great percentage of the cost related directly to callout of detectives to interview suspects, conduct major case investigations, training, meeting I I 6-9-87 expenses, range expenses, .SWAT-team and hostage negotiation training, and.the-remainder attributed to non-sworn personnel. He stated that in order to reduce the -overtime account the twenty-two percent, it would be necessary to add five police officers at approximately $250,000 to save- $42,000, explaining that the personnel is needed .for various reasons, not just to reduce overtime, and noted specifically that it is not possible to totally eliminate overtime. He again stated their intent to -pursue a.larger civilian program in .the Department, noting specifically -that a I civilian employee is .presently acting-as the Court.Liaison, that employee also performing.civilian investigative work which has .allowed -an officer to return to .the street. -He advised however that the Court Liaison position has been left out of the proposed budget, therefore a sworn officer will act in that capacity. .The Captain noted -their intent to use Cadets in the conduct of various duties, and . explained that there has-been some revision of duties in the Department, for example the Records Clerks now assume certain duties that had been performed by Dispatch - personnel. The City Manager advised of staff's intent to over-hire for Police Officer and-Dispatch personnel in anticipation that twenty-eight persons can be employed for the cost of twenty-seven through salary savings from turnovers, etc. Mr. Nelson added that consideration is also being given to reducing Animal Control field personnel by one, a position now vacant, and in turn use that saving to fund the Court Liaison position, then supplement Animal Control with part time personnel. He-noted that it had been anticipated that Seal Beach Animal Control would be providing field.service to Los Alamitos, however they have now chosen to -remain with the County. .Chief Stearns -pointed out that although supplementing Animal Control with part-time personnel is I economically attractive .there will not.be the level.of service that -presently exists. The City Manager-advised that the personnel change will necessitate some policy.. changes, -for example, traps .will be required to .be picked up by residents for their use .rather than-the present policy of Animal Control delivering same. Discussion continued regarding various fees or potential charges.for animal services that could be imposed. The City Manager stated that should the animal shelter become a reality, a .fee schedule specific to that operation would be prepared, however many of the services of the shelter would ,be performed by volunteers rather .than City-staff, and again noted that all established fees are presently being evaluated by staff. Chief Stearns pointed out that the -part-time Parking Control Officer was .deleted-from the proposed budget and .recommended that it be reinstated, advising that that enforcement takes place on Main Street and produces -revenue in the-area of $200 per day. By unanimous agreement of the-Council, the part-time Parking Control Officer was reinstated at a cost of $8200. Councilman Grgas requested that there be a press release prior to the time .the one hour summer parking enforcement program gets underway. The City Manager acknowledged the .Council 'os request to transfer the funding for psychological testing to the Personnel budget. with regard to the suggestion.that .the special legal counsel for the Police Department be used on a limited basis, and I 6-9-87 I that the City Attorney's office -may have the expertise and be able to provide the same.services, Chief Stearns responded that the legal council for .the Department is specialized in this field and is recognized throughout the State as the foremost adviser for -Police Departments, and pointed out the precautions that must be taken to insure against potential violation of police officer's rights, as well as the possibilities of litigation. .Discussion continued regarding various budgeted items, and the Chief specifically explained that the cost for the Parking Citation-program is somewhat -higher due to the transfer of that service to another vendor, noting -that the .cost to process a citation is approximately seventy-nine cents. Captain Garrett pointed out that the Police budget is virtually unchanged with regard to personnel, minus the reserves, and void of capital expenditure. I Discussion continued as to a means to raise revenues in order to increase .police personnel, with Councilman Grgas speaking in support of presenting a Mello-Roos safety services measure or secondly, a General Obligation Capital Expenditure measure to the voters, or in the absence of that the Council should consider cutting services and personnel. Councilmember Risner suggested an assessment -district for alleys. The City Manager stated that a ten or more year capital improvement.bond measure could be a consideration. Councilman Hunt stated he felt a two-thirds voter approval could not be obtained, that the answer to resolving the budget problems is to reduce expenditures. In conclusion, the City Manager reported that -at this session the Council added $8200 for a part-time parking Control Officer, supported recovery of the $4000 annual cost for administering the Cable Foundation grant funds-and the costs incurred for special events if possible, that application of the Utility Users Tax to cable television may be a consideration, -and that a Capital Improvement General Obligation Bond measure may.be considered. The City -Manager stated that staff would-provide additional -information to the Council regarding Mello-Roos, and requested that the Council provide any-questions regarding the budget to the staff,. to which a written response will be provided by the next session. ORAL COMMUNICATIONS There were no Oral Communications. CLOSED SESSION The City-Manager reported the Council would meet in Closed Session to discuss personnel matters and property negotiations. By unanimous consent, the Council .adjourned to Closed Session at 10:20 p.m. The Council reconvened at 12:05 a.m. with Mayor Wilson calling the meeting -to order, and the City Manager reported Council had discussed the matters previously reported. I ADJOURNMENT Risner moved, 12:07 a.m. second by Clift, to adjourn the meeting at AYES: NOES: Clift, G as, Hunt, Risner, None carried erk.and_ex-'off Beach City Council Attest: Approved: