1989 MAR 14 CC MINCALL TO X32 at 7:00 p.m. by Mayor Jacobson
M�i)f KawkiIP �1
Councilman Anderson
- present
Councilman Clutter
- present
Councilman West
- present
Mayor Prodr'em Dannen
- present
Mayor Jacobson
- present
PUBLIC COMMUNICATIONS (City Business Only -5 min.limit)
1. Jim Corones, 519 D. Center was against unnecessary Library Expansion.
2. Jerry Saunders. Chamber of Counerce President Introduced a letter
submitted just prior to the meeting offering support and services in
Council's fiscal endeavors.
3. Dennis Martin, 722 Indiana Ct. urged Council to be prudent but efficient
in budget cuts.
It was the Consensus of Council to take the following Agenda Item out of
order:
CONSENT AGENDA
1. Canvass of the March 7. 1989 Suecial Municival Election
Adopt resolution affirming defeat of Ballot Measure E and F.
Councilman West MMED, Councilman Clutter SECONDED to approve the item as
listed under the Consent Agenda. MMCK CAIatIED BY UNA DCUS VOICE VOTE.
SPECIAL CPXM OF BUSINESS
Mayor Jacobson announced the resignation of City Manager Fred Sorsabal,
effective April 20, 1989. Mr. Sorsabal will be the new City Manager at
Mission Viejo.
City Manager Fred Sorsabal stated it has been a pleasure to serve the City
of E1 Segundo, however, the City of Mission Viejo offered him advantages
that were not possible for him to decline.
1. REVIEW OF THE CITY'S FISCAL CONDITION
1988 -1989 Revenue and Expenditures
Reduction Policies
New Revenue Policies
Finance Director, Jose Sanchez presented Council with a visual report on
Revenue and Expenditure Projects General Ftimd Balance a as of February 28,
1989.
Director Sanchez's presentation surveyed the following:
- Estimated Revenue for all funds.
- Estimated Expenditures for all funds.
- Summary of all City Funds.
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Council Minutes
March 14, 1989
Review of the City's Fiscal C]oc�dition (cm*i r aed)
- Summary by Finds
1. Self- Insurance & Equipment Replacement Funds.
- Three Revenue Summary Charts.
- Revised Revenue Estimates as of 2/28/89.
- General Fund Expenditure summary Report, July 1988 - February 1989.
- General Fund Balance Analysis
1. Projections for 1989 -90 Fiscal Year.
- General Fund Balances 1984 -1989.
City Manager Fred Sorsabal omplimented Mr. Sanchez and his staff for an
outstanding summary.
Mr. Sorsabal presented to Council a review and listing of possible actions
he deemed necessary for Council's fiscal concerns:
1. Council will have to make significant policy statements.
2. Must take a careful look at revenues in Parks and Recreation.
3. Reevaluate the Swim Stadium.
4. Reevaluate subsidizing of the School District.
5. Street lights
6. Reevaluate Refuse subsidizing for businesses and residents.
7. Reevaluate sidewalk repairs.
8. Reevaluate street sweeping costs.
City Manager Sorsabal suggested cancellation clauses in all future
contracts.
9. Reevaluate traffic median costs.
lo. Consider corm unity facilities acts. Can direct staff to provide an
RFP for the pool and tennis courts.
11. Decisions regarding the library building; might have to reduce
hours, or contract with Los Angeles County.
12. Employee Insurance payments.
13. 1991 - Sunset on Business Registration expires.
14. Reduce services from Police Department and Fire or contract with
Los Angeles County.
15. Cut back on level of City maintenance.
16. Exemption in telephone.
17. Chevron's exemption on the Co- generation plant.
18. Upgrading of air conditioning unit in City Hall will be postponed.
19. Parking Meters for damtown.
20. Gross business license.
21. Franchise Fees.
22. Possible Barrel Tax.
23. Gutting all service levels.
Mayor Prdl'em Dannen questioned if the Recreation and Park Commission
reviewed the Griffith Report for possible fee increases.
Bob Wynn, Director of Parks and Recreation affirmed the Commission had
previously reviewed the subject report but at that time felt the subsidy to
be impractical and too costly to residents.
Mayor Jacobson requested Mr. Wynn to now impress upon the Commission the
importance of reviewing the Griffith Report as a possible fiscal solution
for revenue increases. Council further advised the Recreation and Parks
Commissioners to consider other creative fiscal solutions.
Mayor ProTem Dannen also questioned the costs of "loaning" out equipment to
those park users who do not supply their own.
Councilman Clutter MOVED, Mayor ProTem Dannen SECONDED to remove the
Southern California Edison exemption and have staff return on March 21, 1989
with an ordinance for Council's consideration.
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Council Minutes
Match 14, 1989
Councilman West questioned how much money was involved in such a removal.
Mayor prdrem Dannen called for a point of order, to focus Council on the
motion presented.
Mayor prrdPem Dannen asked for a Roll Call Vote: QOUNCIL VOICED TM FOI�OWIlaG
iR�NIlrDpS VOTE:
Councilman Anderson - Yes
Councilman Clutter - Yes
Councilman West - Yes
Mayor Prdrem Dannen - Yes
Mayor Jacobson - Yes
Mayor ProTem Dannen asked City Attorney Dolley why the City Could not reduce
the number of department heads and employees.
Mayor Prdresn Dannen MOVED, to direct staff to research how Council can
approach the removal of Department Heads frcan staff. Councilman Clutter
SECONDED. M7I' aN CARRIED BY UNANIMO 7S VOICE VOM.
Mayor ProTem Dannen MOVED, Councilman Clutter SECONDED to direct staff to
prepare an ordinance to remove the intra and interstate telephone exemption
from current utility users tax. MWIC N CARFUED BY UNANDEM VOICE VUIE.
Councilman West read a prepared statement regarding recent past election
issues.
Councilman West advised Council review the status of the Police and Fire
Department for possible service level reductions, since these two
departments are our largest expense.
Mayor ProTem Dannen stated he desired Council to look at all other reduction
avenues before considering life and safety reductions.
Mayor ProTem Dannen stated he had received several ideas from concerned
citizens:
1. Dispense with the Joslyn expansion.
2. Remove from Capital Improvement Program the Fire Station frcan the
East Side.
3. Remove from Capital Improvement Program the Library Expansion.
These persons felt there should be a lot of expenses cut at city hall before
voting in a tax.
Mayor ProTem Dannen MOVED to dispense with the Joslyn Center Expansion and
cease and desist with all staff action; Councilman Clutter SECONDED. NMON
CAR2IM BY TM FOLLOWING VOICE VUM:
AYES: Councilmen Anderson, Clutter, Dannen and Mayor Jacobson
NOES: Councilman West
Council also directed staff to review commitment on Library bonds and their
redemption and report back to Council.
Councilman Clutter MOVED, Mayor ProTem Dannen SEomw to begin procedure
for creating an Assessment District for the Fire Department on the east side
not on basis of employees but on the fact of possible inaccessibility due to
traffic. MJ►i•IC K CNMM BY UNANDUM VOICE VDIE.
At the hour of 9:30 p.m. Council recessed. At the hour of 9:45 p.m. Council
reconvened in the Council Chambers with all members present and answering
roll call.
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Council Minutes
March 14, 1989
It was the Consensus of Council for the City Attorney to present at the next
Council Meeting on March 21, 1989 three possible ordinances for review and
or adoption regarding:
1. Consideration of an ordinance which would amend chapter 3.24 of the E1
Segundo Municipal Code (Utility Users Tax) to remove the exemption for an
electrical corporation using gas for the generation of electricity.
2. Consideration of an ordinance which would amend chapter 3.24 of the el
Segundo Municipal Code (Utility Users Tax) to provide that businesses which
are cogenerators shall pay a Utility Tax regardless of whether or not the
business is an electrical corporation.
3. Consideration of an ordinance which would amend chapter 3.24 of the El
Segundo Municipal Code (Utility User Tax) to provide that both intrastate
and interstate telephone calls are subject to the provisions of chapter
3.24.
EU 31 C COMMUNIC ATIC NS
1. Jim Corones, 519 D. Center St. congratulated Council in their efforts at
eliminating the big ticket item from the Capital Improvement Budget.
2. Jerry Saunders, of Comber of Ccmmelne thanked the City
Manager for his service to the City.
3. Jack Marnold, Imitative of Southern California Edison asked for
Council's intent and clarification regarding elimination of Edison's
Exemption for using Natural Gas.
CICGM 19ESSICNS
Councilman West MOVED, Councilman Clutter SECONDED to hold a Closed Session.
M OR CARF= BY LRUM. MOM VOICE V=.
Pursuant to the California Government Code a Closed Session will be
held on the following matters:
54959 Personnel Matter
At the hour of 10:07 p.m. Council adjourned to the Mayor's Office for a
Closed Session.
At the hour of 11:30 p.m. Council reconvened in the Council Chambers with
all uEnbers present and answering roll call.
Mayor PrdPem Dannen MWED, Councilman Clutter SECONDED to appoint Chief of
Police, Frank Meehan as Interim City Manager upon Mr. Sorsabal's resignation
date. NQHCN CAIN1ID BY U UWIPK OS VOICE VO►I'E
At the hour of 11:45 p.m. Council adjourned.
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Council Minutes
March 14, 1989