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HomeMy WebLinkAboutCC Min 1986-06-17 6-9-86 - 6-17-86 ADJOURNMENT Grgas moved, June 16th at date. second by Wilson, to adjourn until Monday, 6:00 p.m., or Tuesday, June 17th as an alternative AYES: NOES: Clift, Grgas, Hunt, Risner, wilson None Motion carried By unanimous consent of the Council, the meeting adjourned at 10: 12 p.m. .1 of the Attest: I Seal Beach, California June 17, 1986 The City Council of the City of Seal Beach met in regular adjourned session at 6:00 o'clock p.m. with Mayor Clift calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Clift Councilmembers Grgas, Hunt, Risner, Wilson Absent: None Also present: Mr. Nelson, City Manager Mr. Stepanicich, City Attorney Mr. Joseph, Assistant City Manager Chief Picascia, Police Department Capt. Garrett, Police Department Mr. Hemphill, Director of Public Works/ City Engineer Mr. Osteen, Recreation Director Chief Dorsey, Lifeguard Department Mrs. Yeo, City Clerk I 6-17-86 I BUDGET WORKSHOP Acknowledging the number of Swim Club members and parents present in the audience, Mayor Clift requested that a spokesperson for the Swim Club make their presentation at the beginning of the workshop session. Mr. Osteen reported tnat the Parks and Recreation Commission, at their last meeting, unanimously passed a motion requesting that the Council give strong consideration to reinstating funds in the proposed budget to retain the swim coach position as it presently exists. I Mr. Bob Herron, a resident of Surfs ide and 1986 Rough Water Swim Director, reported that over the past nine months the Swim Club has paid approximately $4200 to the City, representing a fifty cent per swimmer fee, which is intended to defray the $6000 annual salary that is paid to the coach by the City. He explained that $450 per month is paid by the City and a like amount paid by the Swim Club from its monthly dues. Mr. Herron stated his feeling that the community reaps a benefit from the swim program, most members retaining "B" average g~ades, many qualifying for scholarships and seek higher education, its members participating in Junior Olympic competition, Lifeguard programs, as well as the annual Rough Water Swim. Mr. Herron urged that consideration be given to continue the City's portion of funding the swim coach position, and advised the Council that there are presently ninety-five participants in the swim program. The Recreation Director acknowledged that the individual that serves as swim coach also acts as the pool manager and provides maintenance of the pool about nine months per year. Mr. Osteen pointed out that all of the Club's swim meets as well as the Rough Water Swim are conducted by parents and friends, as are the Club's business functions, constituting about 99.9 percent volunteer effort. Carla Watson, Swim Club parent and three year Assistant Director of the Rough Water Swim, spoke highly of the current swim coach and of the programs under his direction, which includes ocean orientation, and of the positive effect the swimming program has on the youth of the community. In response to Council, Mr. Osteen reported that the money paid to the City by the Swim Club is not credited to the Recreation Department, however goes directly to general revenue, and acknowledged that the swim program is very close to being self-sustaining. Pat O'Connor, 1712 Bayou Way, volunteer to the Club since its inception, briefly reviewed the history of the Club, organized with the assistance of the City nearly twenty years ago. She pointed out the benefits to the more than seven hundred eighty young people who have participated in the program during its existance. Mr. Izykowski suggested that in the event funding could be found, consideration should be given to increasing the salaries of the swim program employees, expressing his feeling that this particular program saves the City considerable money through its benefit to the participants, providing a valuable recreation and lowering law enforcement problems. I The City Council indicated its desire to reinstate this item in the budget if funding can be found, however it was determined that a list of desired changes to the budget should be compiled for further discussion at the conclusion of the budget review. The City Manager reported the proposed 1986/87 budget is the result of the efforts of the entire management team, and presented Council with an updated estimated fund balance 6-17-86 sheet which reflected revised 1986/87 estimated revenues to the General Fund and inclusion of a Property and Equipment Reserve Fund. Mr. Nelson noted that the revised figures reflect $13,829,800 estimated revenues. It was pointed out that the original budget document reflected a Redevelopment Agency loan repayment to the General Fund, which was prior to Council action to refinance the Redevelopment Agency bonds to allow repayment of the Agency's debt to the City. I The City Manager stated that the budget document is deceptive in that it reflects non-recurring revenues of $33,000 Revenue Sharing Funds, $330,000 reimbursement from the Federal Emergency Management Association for pier reconstruction, and the loan repayment from the Agency in the amount of $1,710,270. Mr. Nelson stated he felt revenues will increase in future years, one area being increased bed tax realized from the new Radisson Inn, proposed hotel developments on the State Lands and DWP sites, the development of the Hellman site, and with completion of the Bixby project. The City Manager clarified that funds previously budgeted and committed by contract or similar document will be encumbered. Mr. Nelson stated he had reviewed the estimated revenues with the Finance Director and concurred with the manner in which the estimates were based, those figures should also be closely comparable with the annual audit. with regard to the Liability Reserve Fund, Mr. Joseph clarified that the June 30th balance of $215,000 is an estimated fund balance after claims and liability insurance premiums are paid, that $200,000 has been set aside in reserve to cover settlement of outstanding claims as estimated by the City's insurance adjuster. He reported also that $300,000 has been placed in reserve to satisfy the requirements of the Orange County Cities Risk Management Association, which the staff will be recommending that the City join, I the premium of this coverage included within the expenditure amount of $290,000. with regard to paying the premium . from the $215,000 ending balance and reducing the reserve, the City Manager stated he would not recommend that the City take that risk since the amount is much less than what the potential liability could be. Councilmember Risner stated she felt it would be helpful if the Council were provided a balance sheet setting forth the specific monies available for liability claims filed through the end of June 1986 and projected for 1987. The City Manager indicated that a forthcoming staff report would provide that information, as he understood the request. with regard to a question regarding the previously approved Seal Beach Boulevard Overlay project and slurry seal of Marina Hill streets, it was explained that Los Alamitos, as the lead agency for the Seal Beach Boulevard project, did not receive approval of plans and specifications from Caltrans during the fiscal year, and that remaining Gas Tax funds were more than likely used for ongoing street and highway maintenance and operation costs, and noted that if not used, Gas Tax funds would be lost. The City Manager offered to look into why the Slurry seal project was not accompliShed during the 1985/86 fiscal year, noting that this particular project was cut from the 1986/87 budget and placed on the priority list. I The staff explained that the Trust Funds inclUde, in part, $350,000 set-aside for Zoeter School, water deposits, construction deposits, some POST monies, swim pool fees, recreation deposits, animal control deposits, County Sanitation fees, etc. Mrs. Risner stated she would like to see the recreation and pool fees shown as revenue and expenditure items for clarification of those programs. CLOSED SESSION The City Attorney reported the Council would meet in Closed Session pursuant to Government Code Section 54956.9(a) 6-17-86 to discuss OCSC Case Number 48 43 07, D'Amico versus Seal Beach. The Council adjourned to Closed Session at 7:26 p.m. The City Council reconvened at 7:50 p.m. with Mayor Clift calling the meeting to order and reporting the Council had discussed the matter previously reported by the City Attorney. I CONTINUED BUDGET DISCUSSION The City Manager continued his budget message, setting forth potential revenue sources that could be considered if the Council wished to make available additional revenue for desired services not included in the 1986/87 budget, such as 1) an all-encompassing adjustment of fees to more closely align with the actual cost of the services provided1 2) revision of the business license tax from a flat rate to one based on gross receipts1 3) application of Utility Users Tax to cable television1 and 4) reimplementation of street lighting and landscaping assessment district. He also reported that staff would be recommending an adjustment of water and sewer rates at the next regular meeting to offset projected deficits and to enhance the capital improvement capability. With regard to adjustment of fees, the City Manager clarified this would include fees of all departments for all services provided, staff to analyze current revenues, compile a comparison with other cities, and make recommendations to Council. It was the consensus of the Council to direct the City Manager to study the revision of fees for services rendered and to make recommendations to the Council. I The City Manager reported it is the intent of staff to revise the business license formula to a gross receipts formula that would be based upon percentage, including a registration fee and related enforcement costs. Two members of the Council spoke in support of proceeding with such revised system1 one member spoke for postponing this action until after the November election. It was the consensus of the Council to not apply the Utility Users Tax to cable television. The City Manager noted a potential resource of $300,000 to $350,000 that could be made available by reimplementation of a lighting and landscaping maintenance district. He also stated such mechanism should be considered for implementing future improvement projects such as Seal Beach Boulevard north of the freeway and south of Pacific Coast Highway, and in conjunction with the Hellman development. Councilman Hunt indicated his support for the assessment district theorY1 Councilmember Risner stated she would not favor a landscape district given the variables of cost. I The City Manager pointed out the possibility for increased revenues through an increase to the Transient Occupancy Tax. Mrs. Risner indicated she would support an increase from the current seven percent to eight percent given the recently opened Inn and the potential for two other hotel developments in the future. Councilmembers Grgas, Hunt and Clift expressed their feeling that such increase should be postponed for the present. Mr. Nelson referred to the negative ending balances estimated in the Sewer and Water Operation Funds, and the inadequacy of the Reserves. He stated he felt a strong effort should be made to establish reserves in all operating funds that 6-17-86 are sufficient to cover contingencies and historical expenditures that are not anticipated. Mr. Nelson reported staff would be returning to the Council with recommendations for adjustment of the water rates, which in turn adjusts the sewer rates, from a common charge to a readiness-to- serve charge and a commodity charge, therefore producing a neutral revenue. Councilmember Risner referred to funding for alley I reconstruction projects, a major portion of that funding coming from the Water and Sewer Funds, and requested a report setting forth the reasons why such a high percentage of reconstruction costs are allocated from those funds. The City Engineer stated that of prime importance in prioritizing alley reconstruction projects is repair and replacement of water lines. The City Manager explained the cost effectiveness of reconstructing the entire alley in conjunction with the water and alley lines, rather than an area only large enough to replace the lines. The City Manager reported that the budget reflects a General Fund Reserve which'includes contingencies of three percent of the estimated expenditures and.allows for adjustments relating to the meet and confer process, the addition of a General Property and Equipment Reserve, the Cash Basis Reserve recommended to be retained at one million dollars, a Park Fund Reserve of $44,150 that can only be expended for specific purposes, Sewer and Water Reserves that should eventually be an amount equal to ten percent of those operating budgets, and stated that as previously requested, staff would look into placing certain trust funds into revenue and expenditure accounts. Staff clarified that there are Park Funds reserved for repair of the bleachers, that those I funds could be made available for another Quimby Act relating project if not used. With regard to the Environmental Reserve Funds, the Recreation Director noted that those funds are used as a match for grant monies. It was the consensus of the Council that this meeting be adjourned to Thursday, June 19th for another workshop session. The Assistant City Manager reported that when the preliminary departmental budgets were submitted, it was realized that proposed expenditures exceeded revenues by $1.1 million dollars and initial cuts were made totaling $895,000 as shown on the non-priority list. He stated that the management team then collectively made additional cuts, some of which were replaced in the budget as revenues permitted, the remainder prioritized for Council consideration, noting that the total cuts equal $1,108,540. Mr. Joseph pointed out that the budget includes three major capital expenditures, Westminster Boulevard overlay, improvement of the Dolphin and Electric Avenue Alleys between lOth and 12th Streets, and the overlay of Seal Beach Boulevard north of the freeway. He noted there were a number of capital items proposed which were felt to be of great need however not included in the budget due to lack of funds. Departmental budget review commenced with Mr. Hunt suggesting Account 1033 be reduced by $926.00, dues for the National League of Cities. Risner moved, second by Hunt, to approve said reduction. I AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried 6-17-86 The City Manager's budget was reviewed with no change. Mr. Nelson noted that certain funds had been provided for in Account 1151 in anticipation of needs and objectives that may occur during the year that are not presently known. Mr. Joseph confirmed that Account 1152 reflects expenditures for medical examinations for all new employees. I The City Clerk clarified that the funds in Account 1214 relate to an on-going contractual agreement for the lease/purchase of a microfilm reader printer utilized by all departments. The City Manager reported receipt of a proposed five percent increase of the City Attorney fees, which he stated he would approve however would attempt to stay within the budget as proposed. He noted that the City Attorney would not be attending Planning Commission meetings unless an issue warranted his attendance, nor will the City Attorney commence requested studies without City Manager approval. With regard to the Finance Department budget, the City Manager noted the proposed change to an accrual accounting method and reported the.City's auditing firm will provide services to implement the transition for an estimated $500 charge, with most of the implementation being accomplished by existing personnel. I Discussion continued regarding various insurance expenses set forth in the Non-Departmental budget. It was pointed out that the contingency amount of $11,000 reflects labor costs for special co-sponsored community events, and the City Manager noted the intent in the future will be for the City to be reimbursed for material costs incurred relating to all approved events. The City Manager confirmed that the City will be submitting an application to the State for reimbursement of unemployment insurance pursuant to State law, explaining that a claim process has been established however the legislature has not as yet appropriated funds to honor those claims, therefore no estimated amount was placed in the budget at this time. I The Police Department budget was discussed at length, specifically relating to overtime, consideration of an additional officer, and strengthening of the Reserve Program. The Chief acknOWledged that considerable overtime is involved in mandatory hire-backs and call-backs, noting that the overtime account also includes holiday pay, etc. The Chief noted that it was the intent of the Department to request the addition of one officer each year over the next three years, however on a priority basis, the copier, typewriters, PAC sets, and parking control vehicles are of a higher priority given their importance to the overall departmental function and given the condition of existing equipment. Chief picascia stated that should an officer be added he could not guarantee that the affects would be realized for some time given the need for training and familarizing a new officer with the community, nor could he guarantee that the overtime account would be decreased given the projected increases in Part I crimes and called-for services. With regard to the Reserve Program, the Chief pointed out that most jurisdictions now pay their reserves a salary as well as purchase their equipment, Seal Beach only paying $50 for uniform cleaning and gasoline, and noted the difficulty in retaining reserve officers. The Chief and the City Manager reported that a request would be forthcoming to 6-17-86 / 6-19-86 the Council to utilize 1985/86 budgeted microfilming funds to purchase two Hewlett-Packard computers for the Department, therefore encumbering those funds. With regard to crime statistics, the Chief reported 1984/85 Part I crimes increased thirty-one percent during 1985/86 with a forty percent increase is projected for this year, that called-for services were up seventeen percent last year, this increased activity ultimately having an effect on the Department's overtime. ADJOURNMENT At 10:16 p.m. the Council, by unanimous consent, adjourned the meeting until Thursday, June 19th at 8:30 a.m. I Attest: Approved" I Seal Beach, California June 19, 1986 The City Council of the City of Seal Beach met in regular adjourned session at 8:35 a.m. with Mayor Clift calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Clift Councilmembers Hunt, Risner, Wilson Absent: Councilmember Grgas Councilman Grgas arrived at the meeting at 8:41 a.m. Also present: Mr. Nelson, City Manager Mr. Joseph, Assistant City Manager Mr. Thomas, Finance Director Chief Picascia, Police Department Capt. Garrett, Police Department Capt. Stearns, Police Department Mr. Hemphill, Director of Public Works/ City Engineer Mr. Osteen, Recreation Director Chief Dorsey, Lifeguard Department Mrs. Yeo, City Clerk I