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HomeMy WebLinkAbout1995-08-14MINUTES CITY COUNCIL/REDEVELOPMENT AGENCY CITY OF HUNTINGTON BEACH Adjourned Regular Meeting 5:00 P.M. - Room B-7 and B-8 6:30 P.M. - Council Chamber Civic Center, Huntington Beach Monday, August 14, 1995 Call To Order Mayor Leipzig called the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to order at 5:00 P.M. in Rooms B-7 and B-8. Roll Call Present: Bauer, Sullivan, Leipzig, Dettloff, Green, Garofalo Absent: Harman Closed Sessions Closed Session - City Council pursuant to Government Code Section 54957.6 to meet with its designated representatives William Osness, Personnel Director and Daniel Cassidy, Esquire, Liebert, Cassidy and Frierson regarding labor relations matters - Meet and Confer regarding the following employee organizations: Marine Safety Officers' Association, Police Officers' Association, Police Management Association, Municipal Employees' Association, Management Employees' Organization, Huntington Beach Firemens' Association, and Surf City Lifeguard Employees' Association. (120.80) Closed Session - City Council pursuant to Government Code Section 54956.9(a) to confer with its attorney regarding pending litigation which has been initiated formally and to which the city is a party. The title of the litigation is City v. McDonnell Douglas Corporation U. S. District Court Case No. SACV 94 29 LHM (RWRx). (120.80) Closed Session - City Council pursuant to Government Code Section 54956.9(a) to confer with its attorney regarding pending litigation which has been initiated formally and to which the city is a party. The title of the litigation is City of Huntington Beach v. Merrill Lynch.) (120.80) 419 Page 2 - City Council/Redevelopment Agency Minutes - 08/14/95 Recess - Reconvene Council/Redevelopment Agency Mayor Leipzig called a recess of the City Council/Redevelopment Agency meeting. The Mayor reconvened the regular meeting of the City Council/Redevelopment Agency at 6:25 p.m. in the Council Chamber. A videotape recording of this meeting is on file in the Office of the City Clerk Roll Call Present: Bauer, Sullivan, Leipzig, Dettloff, Green, Garofalo Absent: Harman Announcement Of Late Communications By The City Clerk Pursuant to the Brown Act, the City Clerk announced the following late communications: Communication from the Huntington Beach Fire Department titled Proposed Paramedic Deployment 1995-1996 Budget Reduction. Communication from Jerry Abbott, dated August 14, 1995, requesting that his position of Plan Check Coordinator not be eliminated from the city budget. Document from the Department of Public Works titled "City of Huntington Beach Department of Public Works Water Division", received by the City Clerk on August 11, 1995. Communication from the City Attorney dated August 14, 1995, regarding City Attorney Budget - Redevelopment Agency Legal Counsel. Public Works Expenditure/Personnel Summary - Water Fund Chart. 1995-1996 Budget - Department of Public Works Water Division. City of Huntington Beach Department of Public Works Water Division Pictorial Examples Showing Deteriorated Water System. Budget Study Session - 1995-1996 Budget Slide Report dated August 14, 1995. 429 Page 3 - Council/Agency Minutes - 08/14/95 Studv Session To Review Preliminary 1995-96 Fiscal Year Citv Budget The Preliminary Budget for Fiscal Year 1995/96 - Budget Message and Summaries are available for review in the City Clerk's Office. Communications, as announced earlier in the meeting by the City Clerk are on file in the Office of the City Clerk. Mike Uberuaga, City Administrator, stated that the purpose of this budget study session is to have a work shop and a dialogue between the City Council and Department Heads. The City Administrator, using slides, presented an extensive report on the proposed 1995-1996 City Budget. He reviewed budget realities including multi -year General Fund downsizing, increased deferred maintenance and revenue losses. Mr. Uberuaga stated that he envisions the city coming out of the recession very slowly and that he expects the need for downsizing to continue for several years. Increased budget demands were reported on by the City Administrator. Reasons for increased budget demands include public safety needs, infrastructure needs, population increases and shift of costs from federal, state and county such as the funding for the Literacy Program. The City Administrator reported on uncertainties and threats to the city budget including proposals by the County of Orange to take city revenue including property and sales tax. Uncertainties and threats to the budget include the PERS (Public Employees Retirement Fund) unfunded liability and emergencies. The City Administrator stated that big emergencies are usually dependent on state and federal assistance. City Administrator Uberuaga reviewed the County bankruptcy and reported on League of Califomia Cities' plan to deal with the bankruptcy's effect on the cities. Councilman Sullivan asked if the City Administrator could estimate the effect of Gas Tax loss and the City Administrator reported. The City Administrator reported on city positions from 1985 and Councilman Green referred to the reduction in city positions from 1988 to the present, due mostly to retirements. He stated that the Budget Summary states that one layoff may be required to implement the recommended expense reductions. He referred to the letter distributed to Council earlier in the meeting from the Plan Check Coordinator requesting his position be restored, and asked if this decision had been made. The City Administrator explained that this is the proposal and spoke regarding the procedure used by departments in budgeting. He reported on the matter and explained seniority, bumping rights and looking at other vacant positions to see if the person can fill these positions. He stated that because the city generally has 30 to 50 vacancies that usually accommodation can be made and layoff avoided. Councilman Green stated that he believes the other Councilmembers will join him in appreciating the care and the solicitude for the individual employees; so that this layoff may or may not be required and this individual could possibly be reassigned. The City Administrator replied that this 421 Page 4 - City Council/Redevelopment Agency Minutes - 08/14/95 is what staffs effort would be, if this is enacted, and that the employee needs to approach the city now in this regard. The City Administrator reported on the need for Economic Development to retain and attract more business; that it is a long term effort. The City Administrator stated a review of charges for services has been done under the MSI report and informed Council that further review is required. He stated the need to continually consider new revenue sources. City Administrator Uberuaga reviewed the funds within the recommended 1995-96 budget, the recommended General Fund Budget by Department and presented a General Fund Budget Summary. The General Fund Reserve figures and General Fund revenue estimates were presented by the City Administrator. He stated one of the advantages of the city's change of fiscal year to match the state fiscal year was that the revenue estimates can be revised when the property tax is received at the end of this month. During the presentation by the City Administrator of the 1995-96 general Fund revenue estimates the City Council was informed that the Seacliff Partners was building infrastructure but that there was not much housing being built to assist in revenue. The City Administrator reviewed the major revenues - Property Tax and Sales Tax and estimates were presented as they would have been if the state had not taken part of it; ($31,000,000) and what it is now ($26,000,000). He reviewed the property tax distribution and stated that many members of the community are not aware that the city receives only 16 percent of the property tax and that the remainder goes to the other agencies (county 11 percent, state 17 percent, other 4 percent and the schools receiving the majority of the tax). The sales tax distribution chart was reviewed by the City Administrator which showed that the city receives 13 percent and the state 65 percent of sales tax revenue. The City Administrator reviewed the recommended net reduction in positions and an amendment to the library program which will result in the elimination of a management position with the employee going into a vacant position. He stated this change would save money, increase supervisory efficiency and save the literacy program. The City Administrator reported on major program changes including paramedic engine companies, police services and library services, Community Development Department, Community Services Department, Department of Public Works and the Office of the City Attorney. Councilman Garofalo asked if alternatives for Department of Public Works equipment utilization, such as privatizing street sweeping or providing street sweeping to other communities for profit or reduced street sweeping services has been considered. The City Administrator stated that he is meeting with the Department of Public Works this week to review the prioritization study and will report to Council. He reported on the areas where alternatives have been found such as the helicopter regionalization program and other agencies contracting with our city for radio maintenance. Page 5 - Council/Agency Minutes - 08114/95 The City Administrator reported on financial issues and other funds including water utility, and Redevelopment. He reported that he had occasion to talk to a police officer regarding what the police believe to be a budget surplus. He stated this belief was due to the M. Rose and Company Study that had identified a surplus but that the identified surplus was actually the Redevelopment Agency debt to the city. Councilman Green stated that he would like to point out areas on which he would like a report. He referred to the Art Center fund where he expected to see $81,000 and instead there was a figure of $551,000. The Community Services Director stated that $81,000 was General Fund Support and proceeded to clarify the issue, stating that a report would be presented on September 5, 1995. The Police Chief reported on the Narcotics Forfeiture Fund stating that the violators were becoming smarter in how to hide their assets causing a reduction in forfeiture funds. Discussion was held regarding the Equipment Replacement Fund in the Administrative Services Budget. Councilman Garofalo asked if the debt services has been matched with the income stream projection of the next 20 years and the Administrative Services Director stated that it has been done for difficult projects in the past and that it could be done. He reported that rating agencies look at cities' ratios and that our city's ratio is low and that is what the rating companies look for. The City's Self -Insurance Fund was commented on by the City Administrator. The City Administrator spoke regarding the Fire Department issues. Fire Chief Dolder clarified Fire Med and reported the effect on the Joint Powers Agency from the loss of the City of Westminster. The City Administrator reported on Capital Improvement Funding including sewer, drainage, South Beach Improvements, neighborhood parks and Redevelopment Agency projects. He ended his budget presentation with a timetable and summary of the difficulties facing the city. Councilman Bauer spoke regarding the telephone companies' efforts to utilize cable TV franchises which may cause less income to the city. He questioned if plans for new revenue were going to be proposed. Discussion was held. Councilman Bauer spoke regarding the needed water infrastructure improvements which have been deferred for a long time. He also asked when a report will be presented on deferred maintenance needs such as street maintenance. The Director of Public Works reported that his department is looking at deferred maintenance, capital improvements and replacement needs and a study is underway. Councilman Bauer spoke regarding the need for implementation of performance based budgeting, that he knows that the bankruptcy stopped this but it is still an important tool. Councilman Bauer stated that he hopes the new Economic Development Director puts together a 423 Page 6 - City Council/Redevelopment Agency Minutes - 08/14/95 marketing plan in connection with the "Red Team" (Economic Development Program). He stated that he would like to see an enhancement project with the Realty Board to bring people to Huntington Beach to purchase homes to help raise property tax. Councilman Sullivan stated that a one per cent raise for employees would be $709,000 and asked the option available to do this, such as raising revenues or laying off some employees. The City Administrator presented the amount of positions that would have to be eliminated to reach corresponding percentage salary increases. Councilwoman Dettloff questioned the overtime costs of the Police Department for special events and the different locations for them in the budget. The City Administrator reported that it had been moved in the budget to set out the costs. The Police Chief reported on the costs and stated that the kinds of dollars such as hiring the California Highway Patrol should be presented to Council. The Community Services Director responded to Councilwoman Dettloff's questions regarding the marine safety staffing, stating that it was seven day staffing and that sometimes a Lieutenant would not be on duty but that he believed the department could live with that. Councilwoman Dettloff stated city infrastructure was very important as commented on by Councilman Bauer. Councilman Garofalo stated he believed in the most literal sense the City should maintain one per cent of the 1.3 billion dollars in infrastructure. He stated that he believed the business development budget in the Economic Development Budget was too small and discussion was held. The Assistant City Administrator reported that the function was smaller than in other cities and he hoped that if the Economic Development Program is adopted by Council that new tools will be available to the city. Councilman Garofalo stated that he believed the Economic Development Program budget needed funds in the operational side of the budget. Councilman Bauer suggested that it may be of value to revisit the MSI Study for capital equipment replacement cost information to gain a starting point in annual replacement costs. He stated that it would be well to remember that MSI assigned a relatively short life to these items so the $40,000,000 figure may be too high. He stated that it may be more than $13,000,000. Councilwoman Dettloff questioned the criteria for determining what the balance of General Fund should be and the City Administrator reported on the different issues on which this criteria is dependent. Mayor Leipzig thanked the City Administrator and department heads for their budget submissions and asked the City Administrator if there were plans to go to a two year budget. The City Administrator reported on the effect of the bankruptcy and the fact that there are so many uncertainties that had delayed such effort including delaying performance based budgeting. The Administrative Services Director reported on the efforts that will be made in this regard. The Director of Public Works reviewed the material that had been distributed at the Council meeting. He corrected the typographical error in the text to reflect that the groundwater cost is $88 rather than $48. He presented a slide report which covered items such as - Typical Water bill; 1995-96 Budget Summary, Water Costs to City; Deferred Maintenance Program; Meter 424 Page 7 - Council/Agency Minutes - 08/14/95 Replacement Program, Water Rate Proposal - Monthly Residential Costs, Multi -Family Unit Costs; Rate Options; Typical Water bill. Les Jones, Director of Public Works and Jeff Renna, Water Operations Manager, responded to several questions from Councilwoman Dettloff regarding problems caused by deferred maintenance including the potential water main problems under the bridges in Huntington Harbour absent maintenance. Councilman Green stated that he found the comparisons of costs between agencies was very informative. He requested information as to the city's ranking on commercial and apartment users. Councilman Bauer commented on the importance of informing the community that good water savings can be made by installing low flush toilets using available kits. At the request of Councilwoman Dettloff, Jeff Renna, Water Operations Manager, reported on the recent repairs made to the Overmeyer Reservoir. Councilman Sullivan stated his concern that the capital improvements and the water rate increase is more than the public can bear at once. Councilman Garofalo presented questions regarding water rate increases and the need to do it in moderation: Mayor Leipzig presented. questions regarding the meter replacement program. Jeff Renna, Water Operations Manager, reported on the issue. Councilman Garofalo recommended that the water capital improvements be brought back in conjunction with the operating budget. The City Administrator reported. Discussion was held and the Council informed staff that they would like both issues returned at one time. Chief Dolder presented a slide report on the Paramedic Engine Company proposal. The Report included the Fire Department Mission; Current Objectives, Fire Department Issues, Fire Department Proposal, Current Paramedic Deployment; Transition; Proposed Paramedic Deployment, Proposal Advantages, proposal Objections, Paramedic Committee Recommendations and a Summary. Fire Chief Dolder responded to Councilman Garofalo's questions regarding patient transport to hospital, issues affecting response time and a worst case scenario example. The Mayor presented questions regarding response times and Chief Dolder reported. Chief Dolder reported on aspects of multiple incident calls at the request of the Mayor. Chief Dolder spoke regarding the difference in configurations of service and tradeoffs. 425 Page 8 - City Council/Redevelopment Agency Minutes - 08114195 (Redevelopment Agency) Redevelopment Agency Legal Counsel Funds - Retumed To Bud et Of The Office Of The City Attorney (320.20) The City Attorney, referring to the communication to Council from her office announced earlier in the meeting, presented her request to Council to return the Redevelopment Agency Legal Counsel Services Funds to the City Attorney's supervision and budgetary cost control by inclusion in the City Attorney's budget. The City Administrator and Director of Administrative Services reported that this can be done and does not require Council action. Adjournment - City Council/Redevelopment Agency The Mayor adjourned the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to Monday, August 21, 1995 at 5:00 p.m. in Room B-8, Civic Center, 2000 Main Street, Huntington Beach, California. ATTEST: 426 City Clerk/Clerk City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, and Clerk of the Redevelopment Agency of the City of Huntington Beach California Mayor/Ch irma