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1987 JUN 02 CC MINCEL SEGUNDO CITY COUNCIL MINUTES - REGULAR MEETING June 16, 1987 CALL TO ORDER by Mayor Pro Tom Schuldt at 7:00 P.M. INVOCATION given by City Clerk, Ron Hart. PLEDGE OF ALLEGIANCE led by Councilman Anderson. PRESENTATIONS NONE ROLL CALL Councilman Anderson - present Councilman Jacobson - present Mayor Pro Tem Schuldt - present Councilman West - present Mayor Siadek - absent PUBLIC COMMUNICATIONS 1. Letter from John A. Dyer, General Manager RID giving notification of cancellation of Line 685 (Rancho Palos Verdes - Torrance- Redonda Beach -E1 Segundo) Effective June 21, 1987. Received and filed SPECIAL ORDER OF BUSINESS 1. Approve the Award of Tax Bid for the Sale of Tax and Revenue Anticipation Notes in the Amount of 4.5 Million Dollars. G. Joseph Nocella, 515 South Figuero St. Los Angeles advised and recommended to Council that the City award the bid to Security Pacific Merchant Banking Group. City Attorney Dolley read the title of the following: RESOLUTION NO. 3471 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA, PROVIDING FOR THE ISSSUANCE AND SALE OF ITS 1987 TAX AND REVENUE ANTICIPATION NOTES IN THE AMOUNT OF $4,500,000, PLEDGING REVENUES AND ENTERING INTO CERTAIN TAX COVENANTS IN CONNECTION WITH SUCH NOTES. Councilman Jacobson MOVED, Councilman Anderson SECONDED to waive further reading and adopt. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, Jacobson West and Schuldt ABSENT: Mayor Siadek City Manager Art Jones informed Council that on July 1, 1987 there would be a formal closing upon which the notes will be signed and delivered to the purchaser. They will then deliver to the City a check for $4.5 million dollars. The City Treasurer is aware of this date and is searching for the best possible investment opportunity. Council Minutes June 16, 1987 SPECIAL ORDERS OF BUSINESS (continued) ` 2. Public Hearing - Proposed Annual Operating Budget for Fiscal Year 1987 -1988, and any Relationship of Revenue Sharing Funds to the Budget. Mayor Pro Tem Schuldt announced that this was the time and place heretofore fixed for a public hearing on the Proposed Annual Operating Budget for Fiscal Year 1987 -1988, and any Relationship of Revenue Sharing Funds to the Budget. Mayor Pro Tem Schuldt asked if proper notice had been given. City Clerk Ron Hart stated that notice of the hearing had been administered and published by the Legal and Finance Departments. Mayor Pro Tem Schuldt asked if any written communication had been received. City Clerk Ron Hart stated that none had been received. City Manager Arthur Jones and Finance Director Jose Sanchez presented an overview of the 1987 -88 Operating Budget, the revised Capital Improvement Program, and the Proposed Operating Budget for 1988 -89; the second part of the two -year budget program. Mr. Jones informed Council that revisions had been made to incorporate the changes discussed at the Budget Study Sessions. The most significant change under Capital Improvements was the updating of an estimated share of Capital costs at the Hyperion Treatment Plant needed to provide full secondary treatment of effluent entering Santa Monica Bay. Under Revenue Sharing, $40,000 was added for the Main Street Program and $500,000 total was transferred from the General, Water, Revenue Sharing and Proposition "A" funds to finance the self- insured liability program. Mr. Jones further noted changes made in the Sewer Service Fund and the revised total General Fund Appropriations. Mr. Jones concluded that the second year of the two -year budget cycle had been developed to include $105,000 of the new recreation changes but no other new revenues. The second year budget confirms the trend of budget deficits, and without any new revenues and without deferring tnterfund charges for worker compensation and equipment replacement, it reflects a $2,319,958 deficit in the General Fund. Mr. Jones advised Council not to adopt the second year budget, but to use it as a guide for future budget development. Council discussion ensued. At the hour of 9:43 Council recessed. At the hour of 9:55 Council reconvened in the Council Chambers with all members answering roll call with the exception of Mayor Siadek who was absent. Council opened the public hearing to public input 1. Dennis Martin, 723 Indiana Court, commented on the budget and urged Council to be resourceful. 2. Patti Pierrou- Paynter, 920 Dune St. stated she would gladly pay refuse and sewer fees if it meant expanding the library. 3. Dave O'Rielly General Manager of Chevron Refinery commented on Chevron's financial status and stated his company supported the Council's decision. It was the consensus of Council to close the public hearing to public input. Councilman West MOVED, Councilman Anderson SECONDED to approve the Revenue Sharing Funds and to approve the Capital Improvement Program for the fiscal year 1987 -88 through 1990 -91. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, Jacobson, West and Schuldt ABSENT: Mayor Siadek (2) Council Minutes June 16, 1987 SPECIAL ORDERS OP BUSINESS (continued) City Attorney Dolley read the title of the following: RESOLUTION NO. 3472 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA, APPROVING AND ADOPTING THE ANNUAL APPROPRIATION LIMIT FOR THE FISCAL YEAR 1987 -88. Mayor Pro Tem Schuldt MOVED, Councilman Anderson SECONDED to waive further reading and adopt. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, Jacobson, West and Schuldt ABSENT: Mayor Siadek Several potential increase sources of revenue were discussed by Council which include the following: 1. Deletion of the 30 -day exemption to the transient occupancy tax Councilman Jacobson would like to see the City clarify this related section of the code to redefine "transient". It was the consensus of Council not to consider this potential at this time but requested the City Manager to investigate this possibility and report to Council at a later date. 2. Impose refuse collection fees. Councilman Jacobson stated he did not want to consider this option at this time. Councilman West wanted to consider the fee for all rentals, apartments and businesses. Councilman Anderson expressed this fee would be appropriate. Mayor Pro Tem Schuldt stated Council would delay consideration on this revenue potential at this time until Mr. Jones returned to Council with additional information. 3. Increase sewer service fees to cover Hyperion cost increases. Councilmen Anderson, West and Mayor Pro Tem Schuldt were in favor of the sewer service fees, Councilman Jacobson dissented. City Manager Jones informed Council he is waiting for confirmation from the State and would have an update and recommendation at the next Council meeting. 4. Develop a comprehensive cost allocation and fee system for City Services. Councilman Jacobson and Mayor Pro Tem Schuldt felt this item was very complex and would be difficult to implement. It was the consensus of Council to consider this option if at all, at a later date. 5. Employee exemption from Business License per- Capita tax. 1) two - employee exemption 2) five - employee exemption Councilmen Anderson and West and Mayor Pro Tem Schuldt expressed this to be a valid option to consider. Councilman Jacobson felt the smaller local marginal businesses bring in a lot of sales tax at the present and was concerned about additional taxes. (3) Council Minutes June 16, 1987 SPECIAL ORDERS OF BUSINESS (continued) 6. Development Impact Fee Ordinance Mr. Jones informed Council that this is an option that cannot be considered until the General Plan is completed in 2 years. 7. Utility User Tax Unanimous consensus of Council to consider this potential revenue source and directed the City Manager to do the necessary background investigation. 8. SB407 Property Tax change. It was the consensus of Council that this option would be advantageous, but lacks necessary legislation at this time. 9. Street Lighting /Landscaping Assessment Districts - It was the consensus of Council not to consider this revenue potential at this time. 10. Transfer Revenue from $20 per - Capital Business License Tax used for Capital Improvements. It was the consensus of Council not to consider this revenue potential at this time. City Attorney Dolley read the title of the following: RESOLUTION NO. 3473 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA, APPROVING AND ADOPTING A BUDGET FOR THE PERIOD BEGINNING JULY 1, 1987 AND ENDING JUNE 30, 1988. Councilman Anderson MOVED, Councilman West SECONDED to waive further reading. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, Jacobson, West and Schuldt ABSENT: Mayor Siadek Councilman West MOVED, Councilman Anderson SECONDED to adopt the resolution with the following considerations: 1. Suspend Workers' Compensation Transfer $421,073 2. Suspend Equipment Replacement Transfer $497,315 3. Transfers to Liability Insurance Fund 500,000 4. Cost Reductions in May 8 Memo 146,000 General Fund: 1. Delete additions additional six months of salary for 3 firefighters ad fire training officer $75,800 2. Cut travel and meeting costs by 50% 25,000 3. Reduce annual tree - trimming contract from 1000 to 500 trees trimmed 15,000 4. Reduce purchase of new trees and shrubs for parks and parkways by 15% 7,000 5. Cut an additional 10% from purchase of library books and materials 7,000 6. Delete replacement of sump pump at storm water plant $7 7,700 7. Delete new storm drain pump services contract 6,000 8. Delete duplicate budgeting for election costs in City Clerk's Office 3,000 (4) Council Minutes June 16, 1987 SPECIAL ORDERS OF BUSINESS (continued) C MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, West and Schuldt NOES: Councilman Jacobson ABSENT: Mayor Siadek Councilman Jacobson stated he could not vote for an unbalanced budget. UNFINISHED BUSINESS -None REPORTS OF COMMITTEES. COBMISSIONS AND BOARDS 1. Report on Status of Proposition "A" Transit Committee It was the consensus of Council to dissolve the Prop "A" Committee. CONSENT AGENDA All items listed are to be adopted by one motion without discussion and 2. Adjourned Regular City Council Meeting Minutes -May 26, 1987. Approve as written 3. Regular City Council Meeting Minutes-June 2, 1987. Approve as written 4. Establish Equipment 11echanic Leadworker Classification and Reclassify Equipment Mechanic II Senior Incumbent as Leadworker. Adopt resolution and approve the reclassification of the Equipment Mechanic II senior incumbent to Equipment Mechanic Leadworker. 6. Contract Amendment No 1 Providing for a 25 Day Time Extension and Acceptance of the Work for the Construction of Imperial Highway Storm Drain MIT 992 Unit 3- Andrew Papac and Sons Contractor - Project No. PW 85 -2. Approve contract amendment 7. Agreement with Barry Schweiger S Associates for Professional Services in Connection with Design and Construction of Joslyn Center Remodel and rove 8. Issuance of a Purchase Order to Dally Construction For Repair of Sanitary Sewer and Relocation of Manhole Adjacent to Senior Housing Project for $5,700. Waive formal bidding procedures and authorize issuance of a purchase order 9. Application for Alcoholic Beverage License -Type 17 Premise- Premise Transfer, 1O.COntributions for the Police Canine Program: E1 Segundo Optimist Club $200 Anonymous $30 Robert Sherrill,MOdern Metals Industries $600 Allied Chemical $200 Accept donations 12.Resolution Requiring all New Service Stations to Provide Resrrooms for Their Customers. This was a Request from the Board of Supervisors, County of Los Adopt Councilman Jacobson requested item number 5 be pulled for discussion. Councilman Anderson requested item number 11 be pulled for discussion. Councilman West MOVED, Councilman Jacobson SECONDED to approve all other items under the Consent Agenda. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, Jacobson, West and Schuldt ABSENT: Mayor Siadek (5) Council Minutes June 16, 1987 CALL ITEMS FROM CONSENT AGENDA 5. Contract with Jim Hinzdel 6 Associates to Prepare a Subsequent Environmental Impact Report for City Intiated Zone Change M -2 to C -M on 14.7 Acre Parcel Northeast Corner Douglas /ROSecrans. Approve contract and authorize appropriation not to exceed $15,000 Councilman Jacobson expressed concern over spending money on rezoning. City Manager Jones assured Councilman Jacobson that all monies would be recovered when the property was developed. Councilman West MOVED, Councilman Anderson SECONDED to approve the contract and authorize the appropriation not to exceed $15,000. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, West and Schuldt NOES: Councilman Jacobson ABSENT: Mayor Siadek 11. Furniture Bids for Fire Station Number 1. Accept low bid of Professional Business Interiors for complete furnishings with the exception of exclusions (refinishing) for $23,131.92 Councilman Anderson asked Fire Chief Marsh to explain "exception of exclusions" within the recommendation of Item 11. Fire Chief Marsh replied the items were minor. Councilman Anderson MOVED, Councilman Jacobson SECONDED to accept the low bid with the exceptions of the exclusions. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, Jacobson, West and Schuldt NOES: None ABSENT: Mayor Siadek Councilman West asked that the record show that item number 9 under the consent agenda be clarified as a denial. NEW BUSINESS -CITY MANAGER 1. E1 Segundo Employers' Association Request for Pledge of $75,000 to Fund in Part the Local Matching Share of the LAX Tunnel Study for Widening the City Manager Jones stated that review of the funds committed in the draft 1987 -92 Capital Improvement Program indicated that the best source of funding for this project would be from developers contributions. There is an excess of $200,000 of unallocated developer contributions designated for street improvement projects at this time. He recommended that Council approve a committment to this project provided other agencies contribute their proportionate share. Councilman West MOVED, Councilman Jacobson SECONDED to approve the recommendation. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, Jacobson, West and Schuldt ABSENT: Mayor Siadek 2. Request from Sports Connection and the Parks and Recreation Department to Co- SDOnsor 1OK Run on August 30. 1987. City Manager Art Jones reminded Council that the City's policy for the past two years has been to limit the number of special runs to one. This policy was adopted when it appeared that proliferation of special runs would cause substantial deployment of city man -hours and time in participating and monitoring these activities. He recommended that Council deny the request. Duff Harris, Representing Sports Connection stated that net profits after all race expenses would be a goal of $5,000. The City Recreation Division would receive 75Z or $3,750. In addition a certain percentage would go to the E1 Segundo School District. Councilman West MOVED, Councilman Anderson SECONDED to approve the request. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, Jacobson, West NOES: Mayor Pro Tem Schuldt ABSENT: Mayor Stadek (6) Council Minutes June 16, 1987 BEY BUSINESS - CITY MANAGER (continued) r 3. Consideration of Suggestions to Include Vehicle Parking on the Proposed Park /\ Area East of Washington Street Between Maple and Sycamore Avenues. City Manager Jones presented Council with three requests for use of all or a portion of the above described area for parking. It was the consensus of Council that this designated area of the City not be considered for parking 4. Reconsideration of Computer Aided Dispatch System for the Fire and Police Department Through the South Bay Regional Public Communications Authority. City Attorney Dolley read the title of the following: RESOLUTION NO. 3476 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, APPROVING AND AUTHORIZING AND DIRECTING EXECUTION OF SERVICE AGREEMENT WITH SOUTH BAY REGIONAL PUBLIC COMMUNICATIONS AUTHORITY; RESCINDING RESOLUTION NO. 3466 j Councilman Jacobson MOVED, Councilman West SECONDED to waive further reading l and adopt. AYES: Councilmen Anderson, Jacobson, West and Schuldt ABSENT: Mayor Siadek NEW BUSINESS - PUBLIC WORKS 1. Request from BFI Waste Systems for Increase in Compensation for Refuse Collection Due to Increased Dumping Fees. Director of Public Works, Bill Glickman informed Council that the current 5- year contract for refuse collection expires January 31, 1988. Councilman West MOVED, Mayor Pro Tem Schuldt SECONDED to approve the above item. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, Jacobson, West and Schuldt ABSENT: Mayor Siadek 2. Issuance of a Purchase Order to Gen Research for Additional Work in Connection with City Underground Tank Leak Detection and Monitoring Program - $12,028. Councilman Jacobson MOVED, Councilman Anderson SECONDED to appropriate funds and issue additional purchase order. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, Jac Dbson, West and Schuldt ABSENT: ttayor Siadek 3. Contract Amendment No. 1 to Add $4,234.71 of Electrical Repair Work to Project No. PW 86 -2 Electrical Refurbishment of George E. Gordon Clubhouse. Councilman West MOVED, Mayor Pro Tem Schuldt SECONDED to approve the contract amendment No. 1 to PW -86 -2 project. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: AYES: Councilmen Anderson, Jacobson, West and Schuldt ABSENT: Mayor Siadek (7) Council Minutes June 16, 1987 ` NEW BUSINESS —CITY ATTORNEY NONE IL NEW BUSINESS —CITY CLERK NONE FURTHER NEW BUSINESS NONE GOOD OF THE ORDER NONE PUBLIC COMMUNICATIONS NONE MEMORIALS NONE CLOSED SESSION Pursuant to GC 454956.9 a Closed Session will be held on the following matters: Subsection A: Continental vs City of E1 Segundo Lansberg vs City of E1 Segundo Subsection B: 0 matters Subsection C: - 0 matters Pursuant to GC 454957.6 a Closed Session will be held on the following matters: Discussion (Reviewing and instructing) of Salaries, Salary Schedules or Fringe Benefits with City's Designated Representatives. At the hour of 11:13 p.m. Council adjourned to the Mayor's Office for Closed Session. Councilman West left Closed Session at 11:50 p.m. and returned to the Council Chambers. At 11:56 p.m. Councilman West left the Council Chambers. At the hour of 12:00 p.m. Council reconvened in the Council Chambers with all members present and answering roll call with the exception of Mayor Siadek and Councilman West. Mayor Pro Tem Schuldt announced that no actions were taken in Closed Session. ADJOURNMENT At the hour of 12:02 a.m. Council adjourned. (8) RECORDED, RONALD L. HART, CITY CLERK Council Minutes June 16, 1987