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HomeMy WebLinkAboutCC Min 1983-03-12 2-28-83 / 3-12-83 Laszlo, to approve the extension as requested. AYES: Brownell, Grgas, Laszlo, Risner, Vanderstaay NOES: None Motion carried BUDGET WORKSHOP I The City Manager requested that a budget workshop be established at the earliest convenient date. It was the consensus of the Council to set a budget workshop for Saturday, March 12th at 10:00 a.m. ORAL COMMUNICATIONS Mayor Vanderstaay declared oral communications open. Councilmembers Risner reported that the Save Our Pier group have accumulated approx- imately $32,000 towards the pier restoration. There were no other oral communications; Mayor Vanderstaay declared oral communications closed. ADJOURNMENT Laszlo moved, second by Brownell, to adjourn the meeting to Saturday, March 12, 1983 at 10:00 a.m. I AYES: Brownell, Grgas , Laszlo, Risner, Vanderstaay NOES: None Motion carried The meeting adjourned at 8:17 p.m. Approved: \..0 ~ J _____ ~ '"t.~ Mayor <e::::::3' Attest: 4( ~c. <-, City Clerk I Notice of Adjourned Meeting NOTICE IS HEREBY GIVEN that the regular adjourned meeting of Saturday, March 12, 1983, scheduled for 10:00 a.m. is hereby adjourned to Saturday, March 12, 1983 at 2:00 p.m. IS 12th 3-12-83 Seal Beach, California March 12, 1983 The City Council of the City of Seal Beach met in regular adjourned session at 2:00 p.m. with Mayor Vanderstaay calling the meeting to order with the Salute to the Flag. I ROLL CALL Present: Mayor Vanderstaay Councilmembers Brownell, Laszlo, Risner Absent: Councilmembers Grgas Also present: Mr. Parker, City Manager Mr. Joseph, Assistant City Manager Mr. Johnson, Director of Public Works/City Engineer Mr. Thomas, Finance Director Mrs. Yeo, City Clerk Councilman Grgas arrived at the meeting at 2:06 p.m. BUDGET WORKSHOP City Manager, Mr. Parker, stated that pursuant to Council request, staff had prepared the report presented to the Council setting forth the City's financial status based upon the methodology of the Municipal Services Institute revenue and cost study, modified by staff to more I appropriately reflect fees and charges for fee-financed revenue sources as well as modified fixed asset depreciation. Mr. Parker' pointed out that the Council had recently taken action to adjust water and sewer utility funds taking into account the fixed asset depreciation. The City Manager presented an overview of each of the related tables of the report. Table A, General Overhead Costs, identifYing indirect overhead costs reasonably borne, converted into a percentage and applied against direct service charges, calculated at 14.75 percent; Table B, Vehicle Depreciation Expense, detailing the City'S rolling stock and appurtenant equipment, at an estimated value of $I,306,250'and an annual fixed asset expense of $194,700. Council briefly discussed vehicle replacement, specifically police I vehicles, with a member of the Council requesting a breakdown on the number of vehicles and their use as referred to in Table B. Fixed Asset Expense set forth in Table C, eliminated and/or modified the fixed asset depreciation recommended in the M.S.I. report by approximately one-fifth for Lifeguard wooden buildings, streets and 3-12-83 I sidewalks, traffic signals and other equipment, parking lots, storm drains, pier and park facilities, resulting in a suggested annual fixed asset expense of $611,940. It was clarified that building replacement was not included in the report. Staff noted that the possibility of private enterprise providing certain major expendi- ture-items to the city is being looked into. Director of Public Works, Mr. Johnson, presented a proposed Capital Improvement Program, addressing the transportation system, water system, sewer system, storm drains and public buildings. Explaining that adequate funds have not been available for the last ten to fifteen years for a proper maintenance program of local streets, Mr. Johnson stated that most residential streets are now in need of rehabilitation, overlay or reconstruction and review the estimated cost to repair the thirty-two miles of residential streets based upon a five to ten year program with the annual cost based upon $75,000 per mile, as well as maintenance of the public streets and the arterial system which are eligible cost sharing projects. Mr. Johnson recommended that should funds be set aside for a street maintenance/repair program, a company should be retained who specialize in setting up such programs and have the expertise to test the streets for structure, weight tolerance and soil conditions and prioritize repair of the streets with the greatest need with the most appropriate techniques. The Director of Public Works cautioned that the cost of repair/replacement of the city's transportation system will be greatly increased with deferred maintenance. It was acknowledged that street, alley and sidewalk repair could be accomplished through assessment districts. Mr. Johnson stressed the importance of a continuing program to maintain the arterial system because of the traffic volume and matching funds assistance. Referring to recent Council action adjusting the water and sewer utilities, the Public Works Director continued his report stating that storm drain improvements are minimal with some local maintenance and small capital outlay which could continue to be funded through the General Fund, noting that most city storm drain facilities are relatively new with flood retention basins for College Park East and I I 3-12-83 and Leisure World maintained as County facilities, The Director. proposed no staff recommendation for.the replacement of public' buildings at this time, suggesting replacement could be accomplished through the sale of bonds at such time as necessary. Mr. Johnson concluded his report recommending an annual set-aside for a.city capital improvement program of $949,000. The City Manager reviewed Table D, a Summary Cost Spread by cost. centers based upon the 1982-83 fiscal year budget, identifying personnel and operating costs, fringe benefits and overhead of 14.75 percent and adding the capital outlay expense, resulting in a budget total of $9,915,190. Mr. Parker continued with Table E, which set forth estimated, revised 1982-83 annual revenues of : $9,379,300, as modified to reflect anticipated revenues from rental of the old city hall facility and the Riverbeach in-lieu payment, noting that revenue from certain pier/oil production related functions are unknown at this time, however could be Up to $300,000 next fiscal year. The Director of Public Works stated he had talked to an attorney for Chevron who had indicated their company is working closely with the Department of Oil and Gas and the Coast Guard to guard against any oil spillage, that Chevron is being encouraged by the State to rebuild their drilling facility and take advantage of the existing oil field and explained that Chevron will assess the damages, the potential of the field, and make a determination on that basis. The City Manager continued with a review of Table F, Maintenance and Operations - Allocation of Revenues by Cost Centers, detailing which revenue pays for which. expense. Mr. Parker pointed out specifically that police, fire and paramedic services are funded by taxes; that sufficient revenues should exist to cover current lifeguard services even with the loss of revenues from the pier; that the cost of providing city animal control exceeds revenue derived from animal licenses by three and one-half times; that although an annual deficit appears in the Planning/Building and Safety' category,' the outlook for an improved economy could reverse the current deficit and postpone the need to increase permit and I I I 3-12-83 I license fees; that sufficient revenues exist to maintain the current maintenance and operations level for Public Works; that consideration should be given to increasing the fees for recreation programs to eliminate the sizeable annual deficit for those services; pointed out that water and sewer services are now on a pay-as-you-go basis pursuant to recent Council action; and reported that Redevelopment Agency revenues now exceed costs therefore the Agency should be able to begin repayment of its General Fund loans in the near future. Council- member Risner stated it was her understanding most of the recreation programs were self-paid and asked that Council be informed of those programs that are General Fund subsidized so that a determination can be made whether or not to continue recreation program subsidies. Mr. Parker summarized Table F, explaining the difference between revenues and costs of $523,210, less capital outlay and unusable revenues, leaving a deficit of $17,120. Concluding his report with the summary shown as Table G, Capital Outlay - Allocation of Revenue by Cost Centers, the City Manager explained that revenues, as established by cost centers, with the recommended vehicle/fixed asset depreciation costs, result in an annual deficit of $701,370, therefore no funds are available for repair of streets or other infrastructure or replacement of city vehicles. The City Manager referred to street lighting and landscape maintenance districts as a potential revenue source to cover the cost of same based upon direct benefit (approxi- mately $537,000) and presented a list of Orange County cities utilizing benefit assessment districts. Mr. Parker provided a letter from Willdan Associates setting forth estimated assessments for specific maintenance functions and based upon certain types of residential dwellings within the city. Mr. Parker clarified that the proposed districts are based upon a benefit assessment, not the 1911 Improvement Act, also that beach related costs were not included. Councilmember Grgas requested a cost comparison of street lighting and landscape maintenance assessments under the benefit assessment versus the 1913 Act. A street maintenance assessment district was \ mentioned as well as contracting for street tree trimming. Concern was expressed regarding the amount of assessment on multi-family I I 3-12-83 residences, and it was explained that upon consideration of the engineers report for establishing the assessment districts, the City Council will have the opportunity to review and modify specific assessments if necessary. The City Manager noted the time constraints to implement the assessment districts in order to place them on the tax roll for the next fiscal year and suggested that this matter be placed on the agenda for Council consideration at the last meeting in March. ORAL COMMUNICATIONS Oral communications were declared open by Mayor Vanderstaay. Councilmember Risner requested that the City Manager submit a letter to Supervisor Wieder requesting an allocation of the County's allotted General Revenue Sharing/Public Works (Jobs bill) funds for the City of Seal Beach. Councilmember Risner also asked that careful considera- tion be given to any increase in recreation fees. The City Manager acknowledged that the swim team coach position would remain in the proposed budget; the Assistant City Manager reported there would be two vacancies in the Police Department through attrition for a contingent of thirty-eight sworn officers. There were no other oral communications;Mayor Vanderstaay declared oral communications closed. CLOSED SESSION - PERSONNEL It was the order of the Chair with consent of the Council to adjourn to Closed Session at 4:07 p.m. The meeting reconvened at 4:33 p.m. with the Mayor calling the meeting to order with four members present and reported the Council had discussed personnel matters and geven to the staff. ADJOURNMENT Laszlo moved, second by Risner, to adjourn the meeting at 4:34 p.m. AYES: Brownell, Laszlo, Risner, Vanderstaay NOES: None ABSENT: Grgas Motion carried I I I 3-12-83 / 3-14-83 APproved:-Nt~ p~1~......, Mayor <r Attest (}--.., IJ);( r:: City Clerk -,- I Seal Beach, California March 14, 1983 The City Council of the City of Seal Beach met in regular session at 7:00 p.m. with Mayor Vanderstaay calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Vanderstaay Councilmembers Brownell, Grgas, Laszlo, Risner Absent: None Also present: Mr. Parker, City Manager Mr. Stepanicich, City Attorney Mr. Joseph, Assistant City Manager Mr. Johnson, Director of Public Works/City Engineer Chief Picas cia, Police Department Mrs. Yeo, City Clerk I WAIVER OF FULL READING Risner moved, second by Grgas, 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: Brownell, Grgas, Laszlo, Risner, Vanderstaay NOES: None Motion carried PRESENTATION - RESOLUTION NUMBER 3253 - 1983 CITY EMPLOYEE OF THE YEAR Resolution Number 3253 was presented to Council and read in full by Mayor Vanderstaay entitled "A RESOLUTION OF THE CITY COUNCIL OF THE I CITY OF SEAL BEACH, CALIFORNIA, HONORING JAMES A. CORNWELL AS THE "1983 CITY EMPLOYEE OF THE YEAR." Risner moved, second by Brownell, to adopt Resolution Number 3253 as presented. AYES: Brownell, Grgas, Laszlo, Risner, Vanderstaay NOES: None Motion carried