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HomeMy WebLinkAboutCC Min 1987-06-23 6-23-87 Seal Beach, California June 23, 1987 The City Council of the City of Seal Beach met in regular adjourned session at 6:31 p.m. with Mayor Wilson calling the meeting to order. Councilmember Risner led the Salute to the Flag. ROLL CALL Present: I Mayor Wilson Councilmembers Clift, Hunt, Risner Absent: Councilmember Grgas Councilman Grgas arrived at 6:33 p.m. Also present: Mr. Nelson, City Manager Mr. Rudell, Assistant City Attorney Mr. Joseph, Assistant City Manager Mr. Thomas, Finance Director Acting Chief Stearns, Police Department Captain Garrett, Police Department Mr. Hemphill, Director of Public Works/ City Engineer Mrs. Yeo, City Clerk READING legislative items on the agenda for no action was taken on the waiver of reading. WAIVER OF FULL There being no consideration, AGENDA AMENDED Clift moved, second by Hunt, to amend the agenda to conduct the Closed Session prior to the budget workshop. -I AYES: NOES: ABSENT: Clift, Hunt, Risner, Wilson None Grgas Motion carried CLOSED SESSION The Assistant City Attorney reported the Council would meet in Closed Session to discuss a matter of pending litigation. The Council, by unanimous consent, adjourned to Closed Session at 6:33 p.m. Councilman Grgas arrived at the meeting at 6:33 p.m. The Council reconvened at 6:46 p.m. with Mayor Wilson calling the meeting to order. The Assistant City Attorney reported the Council had discussed the matter previously reported and that no action had been taken. BUDGET WORKSHOP/CONTINUED PUBLIC HEARING The City Manager reported the Council had been provided with certain revised budget pages as well as supplemental information as an aid to budget discussions, specifically a proposed summary of changes to General Fund revenues and _ topics for discussion compiled from previous Council comments, pointing out that although discussed, no changes have been made to budget expeditures with the exception of the reinstatement of the part-time Parking Control Office in the Police Department. He reported also that Council had been provided copies of memorandums from Mayor Wilson, Councilmembers Hunt and Risner setting forth their budget recommendations. I 6-23-87 I There were no members of the public requesting to address the Council regarding the 1987/88 proposed budget. Mr. Hemphill stated that the proposed budgets for the Public Works and Engineering Departments are virtually unchanged from that of 1986/87, the departments to continue operation and maintenance with the current level of materials, equipment and manpower. The Assistant City Manager pointed out that a separate Signal Maintenance Account had been added to more clearly reflect that activity, also that there had been a change in funding distribution to reflect $40,000 from the Water Plant and Equipment Fund for water main replacement in connection with alley replacement, with $60,000 from the General fund covering the remaining cost of such replacement. In response to Councilman Hunt's inquiry regarding the $30,000 reflected in the Street Maintenance Account for improvements to the 300 block of Main Street, Mr. Hemphill advised that there is structural failure in that area which is thought to be the result of bus traffic, and he would recommend repair of the areas that are currently in a state of failure since in the long run the cost of maintenance may exceed the cost of reconstruction. With regard to sidewalk repair, Mr. Hemphill noted that there are currently an approximate twelve hundred locations that are in need of repair exclusive of Leisure World, many of which are serious and should not be ignored, explaining that as the scope of a repair project goes up the cost goes down, and recommended that the scope of the upcoming project be no less than $10,000, clarifying that monies budgeted for sidewalks and curbs are directed to repair of the most severe problems. He advised however, that sidewalk repair is a discretionary decision of the Council. With regard to the slurry seal of Marina Drive and Electric Avenue, he advised that the project consists of the entire of those streets, reporting that asphalt can erode as much as a tenth of an inch per year and currently there is exposed aggregate which will result in potholes on the subject streets in a short period of time. He stated that slurry seal is one of the best investments the City can make at a cost of approximately four cents per square foot, recommending that this item remain budgeted. The Assistant City Manager clarified that there were no funds budgeted in 1986/87 for College Park East street reconstruction, that the project funded the previous year was completed in 1986/87. The City Engineer stated that standing water and drainage problems in College Park East are not directly related to the continuing street reconstruction program, the most significant problem being the unstable sub-surface conditions that affects the condition of those streets. The City Manager added that due to the poor soil conditions of College Park East, that area has been determined to be the most likely for damage in the case of an earthquake. Mr. Hemphill stated that Seal Beach has historically provided tree trimming services whether it be related to safety or asthetic issues, and that the landscape crew would like to see that program reinstated. He added that the budget amount would cover emergency maintenance, diseased and root problem trees, also that the amount shown in Account 51 would cover outside emergency tree services, noting specifically the need for professional trimming of the tall palm trees. Councilmember Risner expressed her suppport for budgeting some funds towards tree trimming, not necessarily reinstating the contract service, suggesting it would be preferable to add a Public Works employee for tree trimmming and some park maintenance duties. I I Review of the Public Works/Engineering budgets continued. Staff requested the Council consider an action to direct the 6-23-87 staff to initiate the necessary actions to implement a Street Lighting Assessment District for next year. Staff explained that the present refuse contract does not expire for several years, however some restructuring of the document may be forthcoming, also that the gang mower used by the landscape maintenance crew has been of great assistance throughout the City. Councilmember Risner again suggested that a tree trimming and street sweeping fee be considered. With regard to vehicle maintenance/replacement, I Mr. Hemphill indicated he is not particularly disturbed by the condition of the City's rolling stock and it is felt that no one is operating unsafe equipment, however stated the Police rolling stock would be the major concern, particularly when maintenance costs start to exceed that of replacement. The City Manager advised that police vehicle replacement will need to be addressed next year. With regard to signal maintenance Mr. Hemphill reported that the City has made progress in recent years with the replacement of controllers, however the need remains to replace and upgrade much of the hardware. He stated the water system is reported to be in a better condition than it has been historically, with continuing minor repairs and improvements to pumps, wells, and the reservoir. The Assistant City Manager pointed out a classification change from Clerk Typist to Secretary in the Public Works budget, and responded that the increased cost associated with the Water Meter Reader was due to salary adjustment in the past year and turnover in the position. The City Manager reported that during the Fire Department drill recently conducted on the pier, they were able to pump one thousand gallons of water per minute at a minimum of sixty-five pounds pressure with three engines pumping, without effecting the water needs of the old town area, which was a very successful test. In response to a question of Councilman Hunt, Mr. I Hemphill advised that the water Superintendent would like to initiate a water meter replacement program to take place over a period of years, explaining that most of the meters in the City have reached or are over their lifespan with a number thirty-five years or older, even though they are still operational. The Director noted that $30,000 has been retained in the budget for sand replenishment. Councilman Hunt advised of his intent to request consideration of reducing the part-time help in beach maintenance, as well as lifeguards, if it becomes necessary, and asked what impact or negative result would be realized from such action. Mr. Hemphill responded he felt the impact would be mostly from public complaints that would result from the summer beach crowds and the resulting litter of the beach and parking lots. Councilmember Risner referred to the City's present practice of contracting for plan check and the resulting time delay that is quite frequently inconvenient, and asked if plan check could be accomplished in-house. The City Manager responded that with the complexities of the Codes and the expertise required to do plan check, it is more economical for the City to contract for that service. With regard to the Pier Maintenance Account, the City I Engineer reported funds are budgeted for pier piling inspection this year, and the City Manager added that in the future the staff would be establishing a Pier Piling Fund as part of pier maintenance, setting aside $50,000 annually after the fourth anniversary of the new pier. Mr. Hemphill acknowledged that the relative cost of maintaining the boat landings is significantly more on a square foot basis as compared to the pier. , 6-23-87 I Mayor Wilson asked that the Council give consideration to participating in the continuation of the Rossmoor Shopping Center/Leisure World bus service, the proposed private contract of $20,450 only $702 over the 1986 contract with Long Beach Transportation. She advised that there is an approximate forty percent return to the City from patronage of the Shopping Center through sales tax and without this transportation service Leisure World residents would most likely frequent other shopping areas. She also indicated her desire to seek funding for this program through the participation of the restaurants that will be forcoming to the Bixby Business Park when they are operational. Councilman Clift asked if a nominal fee charged of the bus riders could be a consideration to offset a portion of the cost. Councilman Hunt expressed support for providing this service, also cautioned that without this bus other shopping areas will recruit the Leisure World patronage and thus reduce the City's sales tax return. Discussion continued. Wilson moved, second by Risner, to approve participation with the Rossmoor Center to equally share the cost of the contract bus service between Leisure World and the Center. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried I Councilman Clift expressed his desire that the Council consider reinstating the summer beach buggy, that service provided in 1985/86 at the minimal cost of $1230. The Assistant City Manager reported that in the past the City has utilized a Huntington Beach High School bus with a part- time driver at minimal compensation, and that the service was fairly well used. He added however that a provision of the Orange County Risk Management Association specifically excluded the beach buggy from liability coverage. The City Manager stated a private provider could be considered, however he would doubt that the service could be provided at such low cost. Discussion continued with specific concern expressed regarding potential liability, also with regard to the positive aspects of providing transportation to the beach for the City's'youth. Grgas moved, second by Clift, to direct the staff to investigate contracting for private beach transportation services, with a report back to Council with an analysis of whether or not it would be feasible to provide the service without insurance coverage. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried The City Manager briefly reviewed the Mayor/City Council and City Manager budgets. By unanimous consensus, the Council account 34 was reduced by $4500 for the League of Cities City Council/City Manager team workshop. Risner moved, second by Clift, to eliminate the Southern California Association of Governments annual membership~ approximately $1800, from account 33. I AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried Risner moved, second by Hunt, to transfer the cost of the City Link Agreement, $2,000, to the City Manager account sl. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried The City Manager clarified that the City is no longer a dues paying member of the National League of Cities, however is a member through the League of California Cities. 6-23-87 The Council declared a recess at 8:34 p.m. and reconvened at 8:45 p.m. with Mayor Wilson calling the meeting to order. The City Council reviewed the City Clerk, Election, and City Attorney budgets. With regard to the special legal counsel to the Police Department, Acting Chief Stearns again pointed out that Mr. Mayer is considered to be one of the top legal advisers to Police Departments, with specific expertise in that field, and noted that his services have been used on numerous occasions with considerable time and information I provided to the City without charge. The Assistant City Manager advised that account II of the Non-Departmental budget includes the cost of City personnel providing services for special community events. The City Manager informed the Council that the City has agreed to absorb the personnel costs relating to the Rough Water Swim this year, however the sponsors have been advised that they should plan to cover the full costs of that event in the future. Risner moved, second by Wilson, to allocate $2000 of account II to the American Cancer Society IOK Run, as requested by that organization. With regard to the Non-Departmental Contingency Fund and in direct relation to the motion, Councilman Hunt suggested that the Transient Occupancy Tax be raised by two percent, that one percent of that amount be used to fund the Contingency Fund for community promotion, the remaining one percent be divided by five, allowing the individual members of the Council to allocate all or a portion of their designated funds to a specific funding request. Mr. Hunt stated his suggestion was based upon the fact that he felt there is and will be requests in excess of funds available. Vote on the motion on the floor: I AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried The Assistant City Manager reviewed the budgeted amounts for liability insurance and components thereto, explaining that at year end the projected reserve balance for liability insurance will be $683,000 of the OCCRMA recommended $900,000 reserve, with a $312,000 of the $438,000 recommended reserve for workers' compensation. In response to Council, Mr. Joseph noted that the Cable Foundation had not approved the reimbursement request for City costs incurred as the result of community promotion activities, however did approve the $4,000 reimbursement for fiscal administration, and stated that the disposition of the 1987/88 $75,000 Cable grant will be at the discretion of the City Council. The City Manager reviewed the budget to this point, commencing with the original General Fund balance, adding staff proposed revenue sources, then deletion of the Assessment District and adjustment of established revenues I for an adjusted General Fund total of $8,493,490, or a positive balance of $57,670. The Assistant City Manager reported Council action to add the Leisure World bus at a cost of $20,450, deletion of the Council/Manager workshop in the amount of $4500, elimination of SCAG membership of approximately $1800, addition of the part-time parking control officer at a cost of $8200, addition of personnel cost in the Finance Department of $6400, for an adjusted total of $28,920, which included utility Users Tax on Cable and adjustment of the refuse collection. 6-23-87 Each member of the City Council presented for consideration their individual proposals to reduce expenditures, modify services, increase and/or add revenue sources. ,'I Discussion continued with concerns expressed with regard to the City approaching the Gann limit. The City Manager stated it would be staff's desire to request appropriation of $5,000 to retain the services of a consultant to assist the staff in studying and re-evaluating the base year under Gann. He advised that in talking to the consultants he has been informed that in almost every instance after re- evaluation, cities have been able to increase their base and realize more flexibility, also noting that such study would provide some assurance that the City would have some legally defensible determination, consistent with what other cities have done, should a challenge ever be brought forth. Mr. Nelson advised he would recommend that the Council adopt the Gann limitation as it is presently computed with the understanding that based upon further analysis it may be adjusted by mid-year. Clift moved, second by Hunt, to eliminate consideration of placing the Utility Users Tax on Cable Television. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried I With regard to water rates, the City Manager stated that increasing water rates would not create a problem under Gann as the increase would be based upon the commodity rate and not considered to be a proceed of taxes, however placing the Utility Users Tax on water could pose a problem under Gann. He asked that the Council keep in mind that a one percent increase of the existing UUT would generate $262,000 to General Fund revenues. He also noted staff's recommendation to implement a street sweeping and tree trimming fee. Councilman Grgas pointed out that should the Council increase the Transient Occupancy Tax and return half of that amount for community promotion, the City would only realize - the benefit from the use of half of the increase while the entire increase would be applied to the Gann limit, however if half of the increase were designated to cover the community services budget, it would relieve the General Fund of that obligation and allow the City the full use of the increase. With regard to the proposed eight percent water rate increase, the City Manager noted that the impact of not increasing the water rates will be the capital improvement program in the Water Department. Councilmember Risner asked that alternatives to the flat eight percent increase of the commodity rates be considered, such as reduction of the minimum cubic feet, a readiness to serve charge, etc. The City Manager recalled that the staff had recommended a number of alternatives the previous year that were not approved by the Council. Councilman Hunt concurred with implementing a readiness to serv~ charge, however suggested that that action be delayed until the Finance Department has more complete, computerized data that can be used in connection with implementing that charge. Mr. Hunt stated he would support reducing the 750 cubic foot minimum to a lesser amount, possibly 600 or 500 cubic feet, which would be an acceptable proportionate increase for Leisure World. The City Manager stated the staff would also recommend a one dollar increase of the beach parking lot fee to $4.00 year- round, which would increase revenues by an estimated $50,000 and reduce administrative costs. .J The City Manager noted Council comments regarding the possiblity of contracting with the County for animal 6-23-87 control, and discussions regarding the proposed animal shelter. He recommended that the Animal Control Officer II full time position be converted to a court liaison/community relations position, and that a half-time Animal Control person be added to cover the remaining full-time position on weekends, for vacation and sick time, at a cost of $12,370. Mr. Nelson stated he would propose consideration of year- end financial reports which would provide a better I_~ representation of costs, a balance sheet format, showing whether a fund is paying for itself or not, suggesting that if it is implemented it should include all of the enterprise funds. Mr. Nelson distributed copies of a memorandum from the Acting Police Chief regarding the non-sworn court liaison/community relations position, another from the Development Services Director regarding evaluation and cost recovery relating to the combined Development Services Department versus build~ng and safety only. He noted the Council's request for a report on the feasibility of reinstating the beach buggy on an uninsured basis, also that Councilmember Risner had asked that all members of the Council review the report regarding the Gum Grove park trees. Mr. Hunt indicated he would be interested in knowing what the ridership of the beach buggy had been. The Assistant City Manager reported the budget balance to this point was a negative figure of $41,000. REPORT - SPORTFISHING STOCK TRANSFER The City Manager reported receipt of a communication from Francis T. Phalen, to whom Mr. Frank Hale is proposing to transfer Sportfishing stock, a transfer of something less than fifty percent initially, phased over a minimum of five years, and ultimately purchasing Mr. Hale's interest in total. Mr. Nelson reviewed Mr. Phalen's background and 1-. experience. He advised the Council that the proposal was being presented pursuant to the terms of the sportfishing lease, requiring Council approval for transfer or assignment of stock. Councilman Hunt asked if it would be feasible to renegotiate the contract, possibly to be more economically beneficial to the City. Discussion followed. Staff pointed out that the term of the existing lease is twenty-five years, and that it may be of benefit to review the maintenance and repair provisions of the lease. The City Manager stated the staff would evaluate the lease provisions, and provide Council with a copy of Mr. Phalen's resume', for consideration at the July 6th meeting. ORAL COMMUNICATIONS There were no Oral Communications. PIER RESTAURANT LEASE UPDATE The City Manager reported copies of the proposed pier restaurant lease have been transmitted to the State Fish and Game, the State Coastal Conservancy, Mr. Cavanaugh, and the City Attorney for review, and advised that the lease would be presented to the Council at the earliest date possible after final legal review and concurrence of lease terms. ADJOURNMENT Hunt moved, second by Grgas, to adjourn the meeting until Monday, June 29th at 6:30 p.m., for continued budget discussion. I~ AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried The meeting adjourned at 11:18 p.m. 6-23-87 / 6-29-87 erk of the I Approved: ~ e ~t a-~ ~ J ~ ~.., .-c-:-/ Mayd . Attest: Seal Beach, California June 29, 1987 The City Council adjourned session meeting to order. Flag. ROLL CALL Present: of the City of Seal Beach met in regular at 6:33 p.m. with Mayor Wilson calling the Councilman Grgas led the Salute to the Mayor Wilson Councilmembers Clift, Grgas, Hunt, Risner I Absent: None Also present: Mr. Nelson, City Manager Mr. Joseph, Assistant City Manager Mr. Thomas, Finance Director Mr. Knight, Director of Development Services Acting Chief Stearns, Police Department Mr. Osteen, Recreation Director Mr. Jue, Assistant City Engineer Chief Dorsey, Lifeguard Department Mrs. Yeo, City Clerk WAIVER OF FULL READING Clift moved, second by Hunt, to waive the r~ading 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: Clift, Grgas, Hunt, Risner, Wilson None Motion carried I AGENDA AMENDED Risner moved, second by Clift, to amend the agenda to consider the agreement for the senior meals program, the existing agreement due to expire June 30, 1987. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried AGREEMENT - SENIOR MEALS PROGRAM Risner moved, second by Clift, to approve the Agreement with Senior Meals and Services, Inc. for continuation of the Senior Meals Program for the period July I, 1987 through June 30, 1989, and authorize the City Manager to execute the Agreement on behalf of the City. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried