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1978 JUN 12 CC MINx r AJ MINUTES OF ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO June 12, 1978 1. CALL TO ORDER The E1 Segundo City Council convened in an adjourned regular session on the above date at 7 :00 o'clock p. m. , in the Council Chamber of the E1 Segundo City Hall. The City Clerk reported that allotice of Adjournment had been posted as required by law and that an affidavit of said posting was in her file. 2. PLEDGE OF ALLEGIANCE The pledge to the Flag was led by Councilman Van Vranken. 3. INVOCATION Rev. Father Aaron Ekwu of St. Anthony's Catholic Church gave the invocation. 4. ROLL CALL Present: Councilmen Benson, Bue, Nagel, Van Vranken and Mayor Balmer Absent: Councilmen None 5. SPECIAL ORDER OF BUSINESS a.. Hearing on proposed annual budget for fiscal year 1978 -79 and use of revenue sharing funds The Mayor announced that this was the time and place heretofore fixed for the hearing on the City's annual budget and inquired of the Clerk if proper notice of the hearing had been given. The City Clerk replied that affidavits of publication were in her file. The Mayor stated these files would become a part of this hearing. The Mayor then inquired if any written communications had been received, to which the City Clerk replied that none had been received. The Mayor proposed that the budget be gone through department by department, making cuts where possible, keeping in mind of what the people have asked for by passage of Proposition #13 at the June 6th election and asked the City Manager to present the budget for discussion. Councilman Nagel reported that as a Board member of the League of California Cities, he met with the government staff and the legisla- tors in Sacramento, that the Democratic Caucus voted to provide no tax allocation for the cities. Stated that E1 Segundo's major tax income is sales tax and if this is distributed on a per capita basis, the city will be in trouble. 11hat if the 110 property tax is divided on a ratio based on the last taxable year, it would be penalizing those cities that have tried to reduce taxes through the years. Stated the League will suggest that property tax be divided on an average of the last four years. Further stated that nobody really knows what is going to happen and that it would be difficult to adopt a budget under these circumstances. City Manager Jones explained the compiling of the Preliminary Budget; that it was based on normal level of operations keeping four factors in mind: Decline in sales tax because of decrease in sales of fuel oil; continued spiraling inflation; rate increase in cost of retire- ment program; and the unknown impact the tax proposals Proposition No. 8 or No. 13 would have on the City. Stated that taking these factors into consideration, staff recommended to the Council a budget of $12, 195, 362 which is over one - million decrease from last year. Recommended the Council balance this year's budget by adopting a property tax increase of 14� per hundred assessed valuation. Stated there was also the possibility that no property tax revenue would be available this year and that tax information would not be available until possibly August. Stated that the Council could assume that no revenue would be received and adopt the budget prior to July 1, 1978 or assume some tax revenue would be received and balance the budget on what seemed to be a reasonable amount, but it would be his recom- mendation to hold off adopting the budget until the deadline of August 15, to determine what allocation of the tax rate would be approved by the legislature. Advised the City could operate until that time on the 1977- 1978 budget level with some inconvenience. After discussion by the Council, the consensus was to look at the budget department by department, making the necessary cuts without seriously jeopardizing operations of the City and to defer finalization of the budget until information is received regarding sales and property tax. The Mayor invited those present to come forward and speak when an item they were interested in was presented. Dr. John Meschuk, 455 Main Street, stated that the passing of Proposition #13 indicates the people are saying they want less cost in government generally, and that governmental agencies have to respect this, that the taxpayers could no longer support the governmental pension plans which should be reduced. Mr. Walt Eggert, 435 West Sycamore Avenue, handed the Council rough figures of the preliminary budget asking for Council's evaluation and spoke on various items he wished to be considered for cut back. Mr. Patrick Jamele, 852 Virginia Street, spoke of cutting back on fringe benefits, including health plans, early retirement, extra vacation days, etc. Mr. Earl Smith, 707 Loma Vista Street, suggested eliminating Dial- -Ride. Mr. Ed Erdely, 209 West Acacia Avenue, spoke regarding the Code requirements for keeping of animals on private property. Mr. Maurice Fisk, 1424 East Sycamore Avenue, questioned the cost of pension plans. The Council proceeded with discussion of the budget department by department. Motion was made by Councilman Nagel, seconded by Councilman Benson that the Travel and Meetings expenses be cut across the board by 5016 - that staff present recommendations for specific cuts for Council review. Motion carried. The Mayor requested that any future job openings be submitted to the Council for review during the period before the budget is adopted. Motion was made by Councilman Nagel, seconded by Councilman Benson, that $2, 000 be deleted from the Training and Education Fund. Motion carried by the following vote: Ayes: Councilmen Benson, Bue, Nagel and Mayor Balmer Noes: Councilman Van Vranken Absent: Councilmen None _ Motion was made by Councilman Benson, seconded by Mayor Balmer, that the $5, 000 allocated for the Newsletter be deleted from the Community Promotion Budget. Motion carried by the following vote: Ayes: Councilmen Benson, and Mayor Balmer Noes: Councilmen Bue and Absent: Councilmen None -2- Nagel, Van Vranken '-- I X4_" x1 Council Minutes June 12, 1978 X4 7 4 Councilman Benson recommended that the allocation for the Cham- ber of Commerce be cut from $ 30, 000 to $10, 000 for community promotion. Mr. Joe Barnett, 30532 Via Rivera, Rancho Palos Verdes, vice - president of the Chamber of Commerce, stated that such a cut in the Chamber's contract would mean reduction in services and promotional coverage presently provided for the City, which would seriously affect the Chamber. Motion was made by Councilman Benson, seconded by Councilman Nagel, that the Chamber of Commerce budget be decreased by $20, 000. Mr. Jack Siadek. 1223 East Acacia Avenue, business manager of the Imperial Bowl, stated he hoped there was no vindictiveness in this action and he would hope the Council would consider leaving at least fifty percent and not make a seventy percent cut in the allocation. Councilman Van Vranken offerred a substitute motion, which was seconded by Councilman Bue, that the Chamber of Commerce budget be decreased from $30, 000 to $15, 000. After further input by members in the audience, the aforesaid substitute motion carried by the following vote: Ayes: Councilmen Bue, Nagel, Van Vranken and Mayor Balmer Noes: Councilman Benson Absent: Councilmen None Motion was made by Councilman Van Vranken, seconded by Coun- cilman Bue, that the $500 allocation for Open House for Civic Center be deleted. Motion carried unanimously. Motion was made by Councilman Benson, seconded by Councilman Nagel, that the allocation of $2, 000 for the annual Employees' Banquet be deleted. Motion unanimously carried. Motion was made by Councilman Benson, that the Sister City bud- get allocation be eliminated. Motion died for lack of second. At this time, the hour being 9:25 o'clock p.m. , the Mayor de- clared a recess. At the hour of 9:35 o'clock p. m. , the Council reconvened, all members being present and answering roll call. Motion was made by Councilman Van Vranken, seconded by Councilman Nagel, that the Contingency Account be reduced from $40, 000 to $20, 000. Motion unanimously carried. Mr. Patrick Jamele asked for explanation of the Salary Reserve Account, and Dr. Meschuk questioned the increase in that account. City Manager Jones responded that when the budget is approved, salary reserves are distributed to individual department accounts. Mr. John Kassales asked about the increase in the Telephone/ Telegraph sub - account of the non - departmental budget. City Manager Jones responded. Motion was made by Councilman Van Vranken, seconded by Coun- cilman Nagel, and unanimously carried, that the City withdraw from membership in the Inter - Cities Transportation Committee. During discussion of the Police Department budget, motion was made by Councilman Benson that the Community Relations and School Resources Program be eliminated, which would eliminate two police officer position. Motion died for lack of second. Motion was made by Councilman Bue, seconded by Councilman Nagel, and unanimously carried to remove the South Bay Burglary Team from the budget. -3- Council Minutes June 12, 1978 X1 -1 1 ,A 6% -12 r7* 0 Motion was made by Councilman Nagel, seconded by Councilman Bue, and unanimously carried, that the Automated Wants and Warrants System contract with the City of Los Angeles be deleted. Motion was made by Councilman Van Vranken, seconded by Coun- cilman Bue, and unanimously carried, to eliminate the South Bay Communications Authority appropriation for three supplemental dis- patchers. Motion was made by Councilman Benson, seconded by Mayor Balmer, to eliminate the Juvenile Diversion Program from the budget. Mrs. Janice Cruikshank, 1509 East Elm Avenue, P. T. A. president, appealed tot the Council to retain this worthwhile program, that if the program is eliminated it may cost the community much more than the amount in the budget. Mrs. Helen Armstrong stated that Mr. Tehan, director of the program had done a yoeman's job and would not like to have the program cut. Councilman Nagel suggested this be left in the budget and if the budget needed to be cut deeper to consider the matter at that time, after which he offerred a substitute motion to earmark the program for later consideration. Motion died for lack of a second. Mr. Tehan, Juvenile Diversion Counselor, stated that the community was in support of this program. On roll call, Councilman Benson's motion failed by a vote of 4 to 1 Motion was made by Councilman Benson to delete the budget amount of $12, 200 proposed for the Planning and Research Unit. Motion died for lack of a second. In the discussion of the Fire Department budget, the City Manager responded to Council that it was the City's intention to fill the position of Fire Marshal, presently held by a uniformed battalion chief who is retiring, with a civilian engineer. Motion was made by Councilman Bue, seconded by Councilman Nagel, that the battalion chief position in the Fire Prevention Bureau, be replaced with a civilian engineer. Motion carried. Motion was made by Councilman Benson, that the Fire Department operate one fire captain and one fire fighter short per shift for a savings of $46, 402. Motion died for lack of a second. Mr. Carl Cason inquired about fire response figures. Chief Baron respon e , Mr. Ed. Erdely suggested the position of Housing and Environ- mental Inspector be eliminated. Motion was made by Councilman Benson to remove the Housing and Environmental Inspector position. City Manager Jones inquired if he was referring to the Environmental Control Officer, whose duties would be to check all new and modified construction plans in compliance with mandated state regulations regarding energy conservation, which would be funded from additional plan check fees. Also that if the City did not perform the work, the State would and charge the City for the work. After further discussion with Council, staff and members of the audience, regarding plan check operations, state mandated programs, etc., no changes were made in the Building Safety Budget. Council suggested that the clearing of weeds from private owners' parkways be included in the weed abatement program. -4- Council Minutes June 12, 1978 X4 7 �t* . Motion was made by Councilman Nagel, seconded by Councilman Benson, that the City Manager prepare a recommendation for Council's consideration regarding the number and location of street lights that could be turned off without jeopardizing safety, excluding residential areas. Motion carried. Hearing no objections, the Mayor ordered that Curbs and Sidewalk Replacement Account, scheduled for this fiscal year, be deleted from the capital improvement program. Motion was made by Councilman Van Vranken, seconded by Coun- cilman Bue, that the supplemental request of the Garage for an auto mechanic not be approved. Motion carried. Motion was made by Councilman Van Vranken, seconded by Councilman Nagel, that the part -time library page position be deleted. Motion carried. Motion was made by Councilman Nagel to reduce the hours the Library would be open to the public from 59 hours per week to 40 hours and later withdrew the motion with a recommendation to earmark this item in case deeper cuts are necessary in the budget. There being no objections, the Mayor ordered this item be earmarked for future study. Motion was made by Councilman Benson, seconded by Councilman Nagel, to reduce the budget for purchase of library books and materials by $10, 000. Motion carried. Motion was made by Councilman Van Vranken, seconded by Coun- cilman Benson, that the part -time recreation leaders' salaries be reduced by five percent for a total savings of $8, 000. Motion carried. Discussion between staff and Council regarding overall reduction in recreation programs for a possible savings of $25, 000 resulted in a motion being made by Councilman Van Vranken, that the programs already scheduled be left in operation, but any new programs be placed on a self- supporting basis. Councilman Nagel suggested this matter be referred to the Recreation and Parks Commission for study with the recommendation that more programs be self- sustaining. Councilman Van Vranken withdrew his motion, after which Councilman Benson moved to eliminate the $25, 000 from the budget. No second being heard, the motion died. Motion was made by Councilman Bue, seconded by Councilman Van Vranken, that the contract for landscaping maintenance of the Imperial Strip be cancelled and the work assigned to City forces. Motion carried. Councilman Nagel suggested that the Recreation Department look into making the ball leagues responsible for cleaning the grounds after a game. Thereafter, Council asked Recreation and Parks Director Ruis to make this a policy and if not adhered to, the leagues would be charged for the City cleaning up after the games. Council requested that the Director of Recreation and Parks review the maintenance of the small parks and make a recommenda- tion regarding existing City crews doing this work. Council requested staff review the vehicle inventory and eliminate any vehicles that are not absolutely needed, but not let the fund get deficient. Motion was made by Councilman Van Vranken, seconded by Councilman Nagel, that the storm drain projects on Oregon Street and on Franklin Avenue be delayed at least one year. Motion carried. Councilman Nagel suggested delaying design of the City Mainten- ance Yard. Mayor Balmer stated that due to possible conflict of interest, he would not participate in this action, and turned this portion of the meeting over to Mayor pro tem Van Vranken. -5- Council Minutes June 12, 1978 X4 1 t After discussion, the Mayor pro tem ordered that this item be reviewed again before adopting the budget. Motion was made by Councilman Van Vranken, seconded by Coun- cilman Benson, that the estimated General Fund balance be reduced from $725, 201 to $500, 000. Motion carried by the following vote: Ayes: Councilmen Benson, Bue, Van Vranken and Mayor Balmer Noes: Councilmen Nagel Absent: Councilmen None Councilman Nagel spoke of the inequities in the business registra- tion fees and asked staff if it were possible to restructure the schedules for action by the Council before July 1st. After discussion of the limited time for such action, Councilman Van Vranken stated there was one item that was not discriminatory, that of the bed tax and suggested it be raised from 516 to 6 %. Hearing no objections, the Mayor ordered staff to prepare an ordinance to this affect for presentation to the Council for approval. Mr. Maurice Fisk stated he thought it was time the Council took action to update the business tax rates. Mayor Balmer asked the City Manager if staff could look at the business license structure, to assume that it could be done, and if problems are encountered, it could be put aside. The City Manager advised that this was a very big undertaking, but staff would provide the Council with a measure. Stated he thought it very clear from the Jarvis Amendment that any special tax levied after July 1 would require a 2/3 vote of the people. 6. ORAL COMMUNICATIONS None 7. REPORTS OF COMMITTEES Councilman Nagel stated the League of California Cities was proposing a five -point plan to the Legislature to handle the Jarvis Amendment: 1. Apportion the 110 property tax based on the pre -June 6th property tax roll. After discussion of this point, Council consensus was that it would prefer basing the tax on the 1975 -76 rate or use the average of the last four years. 2. Fair share distribution of surplus to all local governments, including cities. 3. Provide interim action to provide cash flow relief, particu- larly for smaller cities and stabilization of redevelopment financing. 4. Long term commitment to increasing home rule flexibility and reducing costly State mandates and restrictions. 5. Moratorium on all pending legislation imposing cost or time commitments on cities. Upon agreement of the five points, Councilman Nagel stated he would relay this information to the League. 8. UNFINISHED BUSINESS None -6- Council Minutes June 12, 1978 XA7t.� 9. NEW BUSINESS City Manager Jones asked the Council to schedule a date for a study session on the development proposed by Hughes Aircraft Company on E1 Segundo Boulevard. By mutual consent, the Council agreed to hold a study session with the Planning Commission to go over the Hughes Aircraft Company plans on June 27, 1978 at 7 :00 o`clock p.m. 10. ADJOURNMENT No other business appearing to come before the Council, the Mayor declared the meeting adjourned, the hour of adjournment being 12 :30 o'clock a. m. June 8, 1978. APPROVED: — Pie 11,74J44�� _ , E. L. Balmer, Mayor Respectfully submitted, Valerie A. Burrowes, City Clerk 0 -7- Council Minutes June 12, 1978