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Home My WebLink AboutCC Min 1982-09-20 9-13-82 / 9-20-82 AYES: Brownell, Grgas, Laszlo, Risner, Vanderstaay NOES: None Motion carried The meeting adjourned at 9:34 p.m. I Ci Se APproved:lJ.U A1fl-"'~ rJIJAA:k4v.j. Mayor ~ ."",r;;t,,,)Jh(4 City llf'tk Seal Beach, California September 20, 1982 The City Council of the City of Seal Beach met in regular adjourned I session at 6:30 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. Joseph, Assistant City Manager Mr. Thomas, Finance Director Chief Picas cia, Police Department Mr. Osteen, Recreation Director Chief Dorsey, Lifeguard Department Mrs. Yeo, City Clerk PROCLAMATION Mayor Vanderstaay proclaimed the month of October 1982 as "United Way Month." I WORKSHOP - PRESENTATION - REVENUE AND COST STUDY City Manager, Mr. Parker, introduced Mr. Doug Ayres, President of Management Services Institute, the consulting firm retained by the Council to study the City's service fees and revenues. Mr. Ayres commenced his presentation by explaining the intent and ultimate 9-20-82 effect of Proposition 13 and the Gann Initiative, Proposition 4, on local government, the taxation and expenditure limitations and a citys ability, pursuant to Proposition 4, to continue to provide services to the community on a "cost reasonably borne" basis. Mr. Ayres stated that the revenue and cost study utilizes a business method of accounting applied to government and is broken into five basic cost categories: I) direct costs; 2) indirect costs; 3) departmental over- head; 4) general overhead; and 5) fixed asset costs. Mr. Ayres reviewed the procedures followed to compile the data set forth in the study and presented a lengthy overview of the final report, revenue and cost comparison schedules and recommendations. The report set forth recom- mendations for fee adjustments in the following areas: 1) water service - an increase of thirty-three percent in rates to recover full costs and generate funds to replace, rebuild and refurbish the water system; 2) lifeguard services - averaging an annual loss of more than a quarter of a million dollars, that amount being offset by other beach and pier related revenues therefore reducing the annual loss to approxi- mately $300,000. The report recommended increasing the tram fee to fifty cents, adjustment of the tideland rental rates, and adjustment of the pier and pier landing rentals as leases expire or are renegotiated to provide for a contribution to a replacement reserve fund; 3) Enforcement of Motor Vehicle Code - annual tax subsidized approximately $220,000, recommendation that City Attorney and Police Chief submit cost data to the court for revision of bail schedules and fines which could increase annual revenue by some $50,000; 4) Sewer Maintenance and Operation - noting lack of capital replacement monies and annual depreciation rate, study recommended an eighty-five percent adjustment of sewer service charges; 5) Street Lighting - totally subsidized from General Fund monies, an assessment district was recommended to recover more than $170,000 annually; 6) Parkway Maintenance - assessment district recommended, assessment per parcel of approximately $20.46 annually; 7) Utility Regulation/Right of Way Inspection and Repair - franchises should be reviewed upon expiration or sooner to adjust gross revenue and that a two percent franchise I I I 9-20-82 I fee be applied to each of the water, sewer and sanitation utilities; 8) Street Cleaning - recommend two dollar per month charge per refuse customer to recoup some $117,000 per year; 9) Storm Drain Maintenance and Operation - special assessment district suggested, estimated $1.15 per month cost per parcel of property, producing $104,000 annually; 10) Animal Regulation - tax subsidized $70,898 during fiscal year 1981-82 or a cost of $53.03 per animal. Recommended increase in fees to increase revenue by $30,000 per ,year; 11) Community Center Maintenance and Operation - rental rates should be increased to recover a portion of this tax subsidized activity; 12) Water Meter Connections - suggested that connection charges be tripled; 13) Miscellaneous Water Service Charges - More clearly definable records should be kept and miscellaneous charges should be increased to produce $10,000 per year for the water system; 14) Swimming Pool Maintenance and Operation - all rates should be increased by fifty percent; IS) Recreation Classes and Special Events - accounting method should be completely revised, an analysis should be made to determine the activities that can be fully self- supporting and fees increased to produce an additional $10,000 annually; 16) Recreation Sports Programs - recommend twenty-five percent adjust- ment of fees; 17) Police Alarm Services - rate should be increased to approximately $60.00; 18) Fingerprint and Passport Services - charge should be adjusted to $35 for this service; 19) Traffic Accident Reports - if service is to be continued a charge of $18 per report should be imposed; 19) Parking Permit Services - will require periodic review; 20) Bicycle Registration - fee should be doubled to $2 per year or $6 for a three year period if not in conflict with State law; 21) General Ordinance Enforcement - derived from beach related parking citations, bail should be increased by one third; 22) Transportation - $24,625 annual cost for Leisure World bus. Analysis should be made to determine if cost is offset by beach fees and sales tax revenue and is service should be discontinued or a rider fee charged; 23) Senior Citizens Activities - $20,000 tax supported annual expense, recommendation that a $10 annual membership fee be charged possibly prorated on a $3 per quarter basis; 24) Tennis Court Operation - rates should be increased I I 9-20-82 to seventy-five cents for fifteen minutes; 25) Wastewater Services - the service is provided to Esther Island and fees should be increased by seventy percent; 26) Special Trash Service - rates for this City service should be doubled; 27) Refuse Collection - rates should be modestly increased to recover the City's fixed asset costs; 28) Development Processing Inspection (various engineering, planning, public works services) - minimum fee of $10 should be applied; 29) Sweeping and Maintenance of State Highways - a new contract should be negotiated with Cal Trans to eliminate estimated annual loss of $1053; and 30) Lot Cleaning - rates should be adjusted to reflect actual City costs. With regard to electrical, plumbing and building inspections, contractor licensing and regulation and plan checking, Mr. Ayres reported the 1981-82 budget reflects a $171,343 estimated profit and recommended a management/policy review and adjustment in these service areas. Mr. Ayres referred to the extensive cuts in personnel and services already imposed by the City and expressed concern with the City's present overhead rate. Council posed various questions relating to computation of the life expectancy and replace- ment costs for the City's fixed assets, the effect of the transfer of fire personnel and services to the County of Orange, animal license fees, recreation programming and fees, computation of City revenue, possible future revenue sources, current water rates versus the annual rate of inflation, and annual depreciation of capital assets without adequate capital reserve funds for repair and replacement. Councilman Laszlo requested a report estimating the cost for replacement of water system facilities. Council discussion continued regarding the cost of providing lifeguard services, tideland maintenance and beach parking. It was clarified that the City receives eighty-seven percent of local vehicle citation monies and fifty percent for State code violations. The Mayor, with consent of the Council declared a brief recess at 8:00 p.m. The meeting reconvened at 8:14 p.m. with Mayor Vanderstaay calling the meeting to order. Review and discussion continued regarding the recommendations proposed in the study, more specifically lighting and park maintenance assessment districts, building, planning and I I I 9-20-82 public works activities, the Leisure World bus, non-injury traffic accident reports, special trash pickups, and the City's tax subsidized water utility. Mr. Ayres concluded that the data set forth in the study would provide a basis for the Council to determine the level of I service the citizens will receive, who benefits from the service and who is to pay for it. Mr. Ayres stated that should all of the recom- mendations be implemented the City's tax revenue could then be allocated to police protection, street repair, and reserves for capital assets, etc., and that the City's finances would still be short of meeting all needs. Discussion continued regarding the City's cash flow, revenue bonds and tax anticipation notes. It was the consensus of the Council that the City Manager provide his recommendations to the Council prior to the next workshop. The Mayor and Council expressed appreciation to Mr. Ayres for his study and presentation to the Council. ADJOURNMENT Risner moved, second by Brownell, to adjourn the meeting at 8:45 p.m. AYES: Brownell, Grgas, Laszlo, Risner, Vanderstaay I NOES: None Motion carried Approved: tw~hl ~/IAA.L~1;.~ Mayor r Attest: I