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HomeMy WebLinkAboutCC Min 1982-06-07 6-7-82 Seal Beach, California June 7, 1982 The City Council of the City of Seal Beach met in regular adjourned session at 6:00 o'clock p.m. with Mayor Vanderstaay calling the meeting to order with the Salute to the Flag. I ROLL CALL Present: Mayor Vanderstaay Councilmembers Brownell, Grgas, Laszlo, Risner Absent: None Also present: Mr. Parker, City Manager Mr. Joseph, Assistant City Manager Mr. Johnson, City Engineer/Director of Public Works Chief Picas cia, Police Department Mr. Osteen, Recreation Director Mr. Dorsey, Chief of Lifeguards Mrs. Yeo, City Clerk DISCUSSION - PROPOSED 1982-83 FISCAL YEAR BUDGET The City Manager reported receipt of a telegram from League of California Cities, confirmed by telephone, of the loss of motor vehicle in-lieu fees and cigarette taxes to cities, therefore reducing revenues loss of revenue could be compensated for in two ways, by increasing I to Seal Beach from the State by $243,000. The City Manager stated the revenues and reducing budget expenditures, and stated he would present several possible revenue sources for consideration and requested Council direction if they wished additional information. An increase of the oil barrel tax from twelve cents to eighteen cents would require voter approval, estimated annual increase in revenue of $100,000, $50,000 during fiscal year 1982-83. Councilmember Risner asked if the tax increase would subject the City to potential litiga- tion; the City Manager stated that would be doubtful in that the increase would require voter approval, however he would anticipate the oil companies instituting an opposing campaign. The City Manager reported that the Animal Control Department is approximately thirty I percent below operating on a self-sufficient basis, suggesting that this budget be cut by thirty percent or revenues be raised through an increase in animal license fees, possibly doubling the present fees. With regard to on-street parking stickers, the cost of which has been $1.50 since the program was initiated and noting the cost 6-7-82 I of one parking citation is $15, an increase of the parking sticker to $15 or $20 could be justifiable. A survey showing the cost of resi- dential stickers in other communities was discussed. Council inquired if it would be possible to provide a temporary sticker at a reduced rate for persons visiting the City for a short period of time, possibly on a quarterly basis, or on a daily basis for beachgoers; the Police Chief indicated enforcement would be difficult. The Chief reported that in order to have better control of the parking sticker program the stickers will only be sold at the Police Department in the future. The City Manager continued, reporting that the sale price of the old Police Department building has been set at $510,000, those monies to be placed in the Plant and Equipment Fund and that the interest on those funds would generate approximately $60,000 per year, $30,000 in fiscal 1982-83, that can be used for any purpose. Mr. Parker explained that the land had been appraised at approximately $330,000 and the building at $180,000 in its present condition, that negotiation of the sale would most likely not be complete until January. The City Manager stated a one year savings to the General Fund of $45,000 would be realized if the fire equipment is purchased by the County. Mr. Parker suggested that the Transient Occupancy Tax be increased from five percent to six percent in anticipation of the proposed hotel development, increasing the current bed tax revenue approximately $10,000. Implementing the Street Lighting Assessment District was also suggested for consideration, providing an annual estimated saving of $80,000. With regard to the barrel tax, Council asked if the oil companies were likely to reduce production if the tax is increased. The Finance Director stated that the barrel tax usually runs between $200,000 and $210,000 annually regardless of the tax rate imposed by the City. Installation of flow meters was mentioned, with the City Engineer stating that the State Division of Oil and Gas are charged with the responsibility of metering production, however usually accept the production figures of the oil companies except for periodic spot checks. Mr. Johnson referred to recent expenditures of funds by the I I 6-7-82 off-shore drilling companies to improve their productivity and pipe- lines which would indicate increased and on-going production for years to come. The City Manager stated that the price of crude oil has more than doubled since the City's twelve cent barrel tax was imposed, therefore justifying an increase at this time. It was the consensus of the Council that the City Manager investigate and report back to Council on this item. Again, with regard to flow metering, the City Engineer reported that two of the franchise agreements are to be con- sidered for renewal next year and that flow metering could be a matter for negotiation at that time. Councilmember Grgas asked that the record reflect that he would be in support of increasing the oil barrel tax to twenty-four cents rather than eighteen. Council inquired if a saving would be realized if the City contracted with the County for animal control services or if City personnel could be cut to one full time and one part time person. It was pointed out that there would be a lower service level on an on-call basis, that all fines, forfeitures and impounding fees would remain with the County rather than coming to the City, that the Animal Control Depart- ment is presently $20,000 below being totally self-sufficient and that one and one-half personnel would cause extensive recruiting, training and deplayment problems. Annual canvassing for animal licensing was discussed, also that raising license fees would only penalize those who do comply with the animal license requirements. Present license fees and citation schedules were discussed. The City Manager stated a report would be provided for the next budget workshop relating to animal control activity. The Police Chief stated that the present charge for a residential parking sticker does not reflect the cost of administering the program, noting that if the program did not exist, parking control personnel could be reduced as well as the cost of equipment and its operation, and administration costs, and recommended the annual cost of a parking sticker be adjusted to accurately reflect the cost borne by the City. The City Manager stated a report would be provided to Council for consideration at next meeting to establish a parking sticker price as I I I 6-7-82 I they are due to go on sale for the upcoming year by June 15th or 16th. Council suggested staff look into a $15 - $20 fee for the first vehicle, less for a second and consider a guest or short time visitor sticker issued on a quarterly basis. It was also suggested that staff investi- gate utilizing private business or church parking areas for weekends on an as available basis. The City Manager stated a report would be forthcoming. Mr. Parker reported that he had been contacted by the City of Huntington Beach expressing an interest in contracting with Seal Beach to provide fire services. He reviewed a comparison of costs, savings, advantages and disadvantages of the Huntington Beach and Orange County proposals as set forth in his memorandum dated June 7, 1982. More specifically, under the Huntington Beach proposal, first year savings would be less, the City would retain its own equipment and be responsible for repair and replacement, possibility of elimination of one engine company, staffing by Station 1 by volunteers, potential of relocating the Fire Department at the Police Facility thereby vacating Fire Station 3, and a contractual arrangement between Huntington Beach and Garden Grove to provide fire coverage of College Park East. Under the County proposal, the City would be responsible for start up costs and buy- out of personnel sick and vacation time, larger service area with County fire, however the County would purchase City fire equipment , absorb all City personnel, and the first year savings would be approxi- mately $150,000. It was noted the Beverly Manor site may carry a deed restriction only allowing a fire station or public use on that land, however it was suggested by Council that the site could be leased if it were vacated. The Police Chief indicated it may be possible to utilize a portion of the Police facility to house fire personnel, also reported that discussions are presently taking place regarding the feasibility of housing, booking and transporting of Seal Beach prisoners by Huntington Beach, noting that it would not be cost effective to implement a full operationaljail facility in Seal Beach. It was clarified that the possibility of eliminating one engine company and centralizing the Fire Department would not I I 6-7-82 take place in the immediate future. Some concern was expressed by Council with the proposal as presented by the City of Huntington Beach. Discussion continued. The City Manager stated negotiations will continue with the County of Orange to provide fire services to Seal Beach. With reference to adjustment of the Transient Occupancy Tax, an increase to seven or eight percent was suggested by Council and staff was requested to survey other communities to determine a trend in this type of taxation. The City Manager stated the present requirement that the first $3,000 of said tax be retained for advertising and pro- motional activities should also be changed and that if voter approval is obtained to increase the percentage of bed tax, the effective date of the increase could be postponed to a time certain in anticipation of the hotel development. Council inquired about imposing an apart- ment tax. Concern was expressed as to whether or not the Leisure World apartment units would fall within such taxing area. It was suggested an apartment tax could be imposed on more than three or four units or approached through a business license tax, paid by the apartment owner. The City Manager reported the Street Lighting Assessment District does not require a vote of the people and could be placed on the tax rolls by the August deadline since the initial work to implement the District has been completed. As requested by Council, the City Manager stated previous reports and information relating to the Street Lighting Assessment District would be provided to the Council for study. The City Manager invited any questions that the Council may have regarding the proposed budget, stating that written responses would then be provided Council for future discussion. Mr. Parker reported that Councilmember Risner had submitted several questions/proposals relating to the budget and provided copies of same to the other councilmembers . The City Manager presented an overview of budget revenues and expendi- tures and responded to several questions relating to building permits, fines and forfeitures under the new bail schedule adopted by the courts, I I I 6-7- 82 I projected loss of cigarette tax and motor vehicle in-lieu fees and liquor licenses, state bailout funds, noting total loss of State funds to be approximately five percent of the City's budget. Discus- sion followed regarding revenue generated from the sale of the Sunset Beach Water Tower, loan repayment to the Plant Reserve Fund not reflected on the fund balance sheet, portions of employee salaries charged to the Community Redevelopment account, sewer services, now separately stated and self-funded, the addition of revenue from wastewater services pursuant to agreement with Exxon, and landing fees established pursuant to the contract with C & C Boats; the City Manager stated he would review the C & C agreement relating to landing fees. With regard to revenue sharing, the City Manager reported continuation of revenue sharing is a matter being discussed in the Congress and it is anticipated this revenue may be nonrecurring, however this years revenue sharing funds are allocated to the Police Department. Mr. Parker reported the County is considering discon- tinuing the reimbursement to cities for lifeguard services; Councilmember Laszlo suggested that a resolution be introduced at the Orange County League meeting requesting the County continue this funding. The City Manager stated his office would contact the City of Huntington Beach and request a resolution to that effect be drafted for the next League meeting. It was clarified that the Traffic Safety Fund is 4erived from Vehicle Code violations and the City Manager explained $163,000 in lieu tax payment will be forthcoming in 1983 in accordance with the SB 99 bond sale. The City Manager briefly reviewed the three year expenditure comparison, setting forth personnel and operational costs, capital outlay, fund balances, with specific reference to the cash balance sheet, noting an inadequate General Fund Balance however I expressed optimism that the liability and reserve funds would be I replenished over the next few years. With regard to personnel, the City Manager reported 159 employees during fiscal year 1981-82, 117 proposed employees for 1982-83, thirteen positions being abolished besides the Fire Department personnel if Council determines to contract for County fire services. The City Manager proceeded with individual 6-7-82 departmental reviews, explaining the breakdown of appropriations and newly instituted accounts. City Council With reference to the General Office Expense appropriation of $6500, the Finance Director explained a percentage of that amount would be for paper, agenda printing and miscellaneous Council office expenses. The City Manager acknowledged that memberships and dues are now broken into a separate account, noting that this account could be overstated and that it would be reviewed. In response to Council, it was reported the appropriation to the Santa Ana River Flood Protection Agency is approximately $1300 annually. City Manager Mr. Parker stated one secretarial position had been eliminated from the City Manager's Department, transferred to the Police Department, also that the ten dollar per meeting compensation for the Civil Service Board was included in this departmental budget. The City Manager revised the appropriation for Professional Services to $35,550, reported Council had authorized retention of M.S.I. to conduct a study of fees and charges for services for a fee of $27,500, that a report of the findings of this study is anticipated by July and stated that an evaluation of the fees for this service should be reviewed at that time. It was noted the cost of pre-employment physicals is also included in account 51 and substantially reduced due to the hiring freeze and transfer of fire personnel to the County. City Clerk The City Manager reported that the budget for the City Clerk's Department is basically unchanged from fiscal year 1981-82. With reference to the Election Account, the City Clerk stated an estimate of costs to place a ballot measure(s) on the November 2nd ballot would be provided, as requested by Council. City Attorney The City Manager reported that the City Attorney receives a $1500 per month retainer covering thirty hours of service, that time expended over the thirty hours is charged hourly. Mr. Parker reviewed specific I I I 6-7-82 I items requiring legal expertise during the past fiscal year, and offered that in many instances City staff can do initial studies and preparation of documents subject to review and alteration by the City A.ttorney, thereby keeping the cost of legal services down. Finance Department The Assistant City Manager explained the major change in the Finance Department budget occurs in its personnel, eliminating the Executive Secretary position and increasing the number of Account Clerks to three, also reported that the request for an appraisal of underground water lines had been eliminated. Mr. Joseph revised the total depart- mental budget figure to $157,010. It was explained that the under- ground water line appraisal had been requested to establish an evaluation of the City's fixed assets, water lines being one of those assets. The Finance Director reviewed the overall Finance budget and explained the $5780 proposed capital outlay is to allow for the purchase of two computers leased at $490 per month, seventy five percent of the rental applying to the-purchase price. Council suggested staff look into using interns from Long Beach State University; the City Manager reported the use of volunteers from the Leisure World community is also being investigated. Community Promotion and Non-Departmental The Assistant City Manager reviewed the Community Promotion and Non- Departmental budget, specifically the Workers Compensation allocation, reducing the total budgeted cost to $117,310 due to the transfer of Fire Department personnel to the County. With regard to the $5010 budgeted for the Band Review Parade, staff explained this figure reflected materials and supplies including the purchase of trophies, labor costs included in the Public Works Department budget. Again, with the anticipated transfer of Fire personnel and the self-insurance program, the liability insurance budgeted amount was reduced to $124,380. Mr. Joseph stated the purchase of a new copy machine is proposed within this budget to replace the present twelve year old machine. He reported that the new machine would have the capability of producing agenda packets in approximately eleven minutes versus I I 6-7-82 the three to four hours currently spent on that activity, the capabilities of a new machine intended to offset the further reduced clerical staff. In addition, it was pointed out that the lease of a word processing unit would also allow for more efficient use of personnel time and clerical functions and will be utilized by all departments. Police Department The Police Chief presented an overview of the Police Department budget, noting the overall decrease of three percent, the further reduction of personnel, transfer of various repair and maintenance costs to the Public Works Department, and referred to the anticipated increase in the cost of utilities, specifically the costs related to the 911 Emergency System. The City Manager referred to the 911 System whereby the State mandated program was to be ninety-five percent paid by the State and reported the costs for the system have quadrupled from the original cost estimates. Mr. Parker stated ne is not willing to sign a contract with General Telephone Enterprises until assurances are made that the cost of the system will be reimbursed, suggested all costs for 911 should be reevaluated based upon what the State and GTE are willing to pay for, and explained the proposed budget does not reflect the 911 cost. Mr. Parker offered that the 911 tax that has been accumulating for several years and collected through telephone billing, has been spent by the State for general fund purposes as well as the interest thereon and is not expected to be replenished. The Police Investigation budget was amended substituting an Executive Secretary for the Secretary position, increasing that budget by $1680. With reference to account 33, memberships and dues for Police Patrol in the amount of $450, the Chief stated he would review that account and report back. It was clarified memberships and dues for Police Administration should correctly be included in account 34, training and meeting expenses. It was the consensus of the Council that the next Budget study session be held Wednesday, June 16th at 6:00 p.m. ORAL COMMUNICATIONS I I I There were no oral communications. 6-7-82 / 6-14-82 ADJOURNMENT Brownell moved, second by Risner, to adjourn the meeting at 9:22 p.m. AYES: Brownell, Grgas, Laszlo, Risner, Vanderstaay NOES: None Motion carried I City Seal and ex-offic1o c Ci ty Council APproved:!J,~l._~t. ~J.L1' Jo..~ 0.-., Mayor cr Seal Beach, California June 14, 1982 The City Council of the City of Seal Beach met in regular session at I 7:00 o'clock 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, Assistant City Attorney Mr. Joseph, Assistant City Manager Mr. Johnson, City Engineer/Director of Public Works Chief Picascia, Police Department Mr. Osteen, Recreation Department Mr. Antos, Associate Planner Mrs. Yeo, City Clerk WAIVER OF FULL READING Laszlo moved, second by Grgas, to waive the reading in full of all ordinances and resolutions and that consent to the waiver of I reading shall be deemed to be given by all Council members 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