1991 JUN 20 CC MINREGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL MINUTES - JUNE 20, 1991
CALLED TO ORDER at 6:30 p.m. by Mayor Jacobson.
PLEDGE OF ALLEGIANCE given by Councilman West.
ROLL CALL
Councilman West - Present
Councilman Wise - Present - Arrived at 6:53 P.M.
Mayor ProTem Dannen - Present
Mayor Jacobson - Present
PUBLIC COMMUNICATIONS - NONE
A. SPECIAL ORDER OF BUSINESS
1. Review and discussion of 1991/92 Annual Budget.
City Manager Cano stated the budget was done in a new format including program divisions;
more detailed organizational charts; descriptions of programs within the departments; identified
accomplishments /constraints experienced on these individual projects throughout FY 90 -91, and
more clearly identified goals and objectives for FY 91 -92. Additionally, staff would like to cover
the following five basic objectives: 1) Provide an overview of the entire operating budget,
including the Capital Improvement Program; the dollar amounts that are not prioritized and do
not have his recommendation as City Manager, 2) Provide Council with a listing of all the
projects the Department Heads are recommending, 3) Provide an analysis of the General Fund,
4) Review the budget by departments, and 5) Set public hearing date for budget, and workshop
dates on the Capital Improvement Program. He presented a brief summary overview of the
revised revenue estimates - budget year 1990 -91, and summary by departments.
RECESS at 7:25 p.m. to 7:42 p.m.
ROLL CALL All Councilmembers present.
City Manager Cano stated that this preliminary budget has areas where there are minor errors,
and then distributed an errata sheet for their information. City Manager Cano began
presentation on the following:
CITY COUNCIL PROPOSED BUDGET
PROPOSED BUDGET - PAGE 13:
1) Increase of $7,531 is proposed in FY 91 -92 budget compared to FY 90 -91, the projected year-
end is $8,432 or 6.7% increase. Major reason for increase is the Equipment Depreciation Account
No. 6207, and last year Council requested lap -top computers - therefore, staff is adding an
ameritized useful life, and depreciating the value of that - which makes up that $3,144 difference.
FRINGE BENEFITS - PAGE 14 - ACCOUNT NO. 4101:
2) In recognition of the number of meetings Council has and will be attending, staff has
recommended a $75.00 per month car allowance, stating this was discussed with the City
Attorney who in turn assured him this does not fall under compensatory monies to Council that
would go against their revenue.
City Manager Cano stated these were the only two significant changes.
Mayor ProTem Dannen asked if this car allowance was going to be placed under Meetings and
Travel or Vehicle Operating Charge, because he could not find it.
City Manager Cano replied it was located under Fringe Benefits.
Mayor Jacobson stated concerns about this being placed incorrectly under fringe benefits, and
asked City Manager Cano if there were any other items like that which were under any of the
other departmental fringe benefits sections. If so, could he please point those out to the Council
at this time.
City Manager Cano responded, no. The City Manager was the only other one which gets a car
allowance.
Councilman Wise stated he was concerned with this being located under fringe benefits, and
Councilmembers are required to report their mileage. He recommended it be removed; Council
concurred.
COUNCIL CONSENSUS FOR STAFF TO REMOVE THE $76.00 CAR ALLOWANCE FROM
FRINGE BENEFITS.
PAGE 16- TRAINING AND EDUCATION - ACCOUNT NO. 6223:
City Manager Cano continued:
1) Includes monies for training and education for $1,000 of the new councilperson, and
2) Includes monies for education on Redevelopment for $1,000 - per Council's request.
PAGE 16- MEETINGS AND TRAVEL - ACCOUNT NO. 6213:
Mayor Jacobson questioned the $3,800 for LOCC Annual Conference stating this may not be
used if the conference is in San Francisco. His decision is based on a matter of principle, and
would be the first LOCC conference he has missed.
City Manager Cano replied that Council may wish to attend the conference and stay in Oakland
which will prevent San Francisco benefiting from the bed tax.
PAGE 16- POSTAGE - ACCOUNT NO. 6253:
Mayor ProTem Dannen recommended this account be increased due to the upcoming Diamond
Jubilee, the creation of a Comprehensive Program to attract business, and other special meetings
during the year; Council concurred.
City Manager Cano informed Council $48,000 has been placed under Non - Departmental Budget
for these reasons, which the Council previously approved $10,000 - Diamond Jubilee, and $38,000
- Historical Book.
Mayor Jacobson responded these monies were to be reimbursed from the sales of those items,
and Mayor ProTem Dannen was speaking of other items where direct costs were not expecting
to be reimbursed.
Councilman Wise recommended $2,600 of the LOCC Annual Conference money from Account
6213 be moved under Postage Account 6253; Council concurred.
CONSENSUS OF COUNCIL TO MOVE $2,600 FROM ACCOUNT NO. 6213 AND PLACE
UNDER ACCOUNT NO. 6263.
CITY TREASURER PROPOSED BUDGET :1
PROPOSED BUDGET - PAGE 18:
City Manager Cano stated the budget amount has an increase of $10,447 or 9.7 %. The only
other major increase is Fringe Benefits - which is the cost the City is providing under the current
level of fringe benefits.
Councilman Wise questioned why current fringe benefits are so high.
City Manager Cano responded one of the major reasons is due to the increase costs in medical
benefits. Steve Klotzsche, Finance Director added other items under the fringe benefits were the
Deferred and Compensation item - where under the PERS Program the City picks up the
employees share - plus, they contribute matching contributions for PERS and Social Security
System for each employee.
Mayor Jacobson questioned if this was a new addition this year; Mr. Klotzsche responded - no.
It has always been this way.
Mayor ProTem Dannen questioned if there was a State Federal Mandated Program included this
year; City Manager Cano and Mr. Klotzsche both responded it was.
City Manager Cano stated the Fringe Benefits are based on a percentage, and a base increase,
and fringe benefits are only reflective of that which is authorized by the Council and in the
Memorandums Of Understanding (MOU).
Mayor ProTem Dannen asked if 36% of the total was fringe benefits; City Manager Cano
responded, yes - and was much higher under Public Safety.
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Mayor ProTem Dannen stated concerns regarding the request for increases in fringe benefits and
also in salaries, saying that it was difficult to justify increases under both categories - and it
should be one or the other.
City Manager Cano responded the PER'S is based upon the percentage of a persons base salary,
which the employee only gets it once they retire.
Councilman Wise stated it has a dollar value, and when looking at the cost of an employee you
must also look at what it is costing the City in total.
CITY CLERK BUDGET
City Manager Cano informed Council as of this date staff has not received any budget
information from the City Clerk's Office.
Mayor Jacobson stated it would be held over until the City Clerk was present to discuss.
COUNCIL CONSENSUS TO HOLD OVER TO ANOTHER MEETING.
CITY MANAGER BUDGET
FULL TIME PERSONNEL - PAGE 40:
City Manager Cano stated he was recommending reclassifying the Assistant To The City
Manager to Assistant City Manager without any line authority over Department Heads or
supervisory responsibilities. This recommendation was in recognition to the high level of
professionalism and accountability expected in dealing with the community issues handled out
of the City Manager's office and assigned to the City Manager's assistant, and this position will
assist the City Manager in managing, representing the City on sensitive community issues, and
serving as staff representative to committees.
Don Harrison, Assistant To The City Manager, addressed Council introducing the budget. Note:
No microphone used - did not pick up conversation on tape.
Mayor Jacobson stated in the past, the Hyperion legal fees have always been charged to this
account; City Manager Cano responded that these are different ones.
Councilman Wise questioned if the City Attorney fees are charged under the projects he works
on; City Manager Cano responded, yes. As staff has managed programs out of the Office of the
City Manager they require special skills. Adding that the City Attorney's Office submits a
monthly bill which indicates specifically where the money is spent, and are fully accounted for
and audited.
Councilman Wise recommended that an asterisk be placed to cross reference these projects, which
will allow a clearer picture of what monies are spent; Council concurred.
COUNCIL CONSENSUS FOR STAFF TO PLACE ASTERISKS FOR CROSS REFERENCE
PURPOSES.
FRINGE BENEFITS - PAGE 40:
Councilman Wise questioned the 81.5% increase - asking for explanation.
Mr. Harrison responded this is due to the fact the Executive Assistant joined staff in December,
1990, and there was an excess of funds in the fringe benefits which were transferred to other
areas where they were needed.
City Manager Cano added that last year there was more money under fringe benefits. Mid -year,
when staff recognized there was going to be salary savings because those positions were not
filled, they recommended to transfer money to cover the over expense of Council's lap -top
computers. Therefore in actuality, the $54,000 was a reduced amount to what was actually
budgeted.
Mayor ProTem asked why is the fringe benefit amount so high; City Manager Cano responded
it is the cost for fringe benefits - and nothing new has been added.
Mayor Jacobson recommended staff have a comparison of budgets for the last three years (i.e.
FY 89 -90, FY 90 -91 and FY 91 -92) which would enable the Council to compare the differences
between the last three years. Adding that he recommended this during the FY 90 -91 budget
reviews; Council concurred.
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City Manager Cano responded staff could transmit spreadsheets should Council require them,
and if Council would have informed staff of this need - staff would have supplied them.
Mayor Jacobson responded that he did recommend this be done during FY 90 -91 budget reviews;
City Manager Cano responded he did not recall this recommendation.
COUNCIL CONSENSUS FOR STAFF TO PREPARE AND TRANSMIT SPREADSHEETS
WITH BUDGET INFORMATION FOR FY 89-90, FY 90-91 AND FY 91 -92 CONTAINING A
BREAEDOWN ON EACH ONE OF THE POSITIONS; INCLUDE ACTUALS FOR FY 90-91
BUDGETED AND ACTUALS; INCLUDE POSITIONS WHICH HAVE SHIFTED AND NEW
POSITIONS.
Councilman Wise stated concerns with the variations in raises which range from 5% to 19.2 %.
Last year, on the Assistant To The City Manager is was about 7.6% raise from $45,840 to
$49,351. Looking at the $49,351 adjusted approved salary for FY 90 -91 and Page 40 of FY 91 -92
proposed budget which states $54,176 as the FY 90 -91 salary - it is not correct.
Mr. Harrison responded that he believed it was in recognition of pay raises granted by the
Council which were not accounted for in the initial budget, but were accounted for in the salary
reserve under the Non - Departmental Fund.
Councilman Wise asked why there was a 10% difference; City Manager Cano responded for two
reasons: 1) Cost of Living approved by Council, and 2) Merit Increase based upon Performance
Above The Satisfactory Level.
Councilman Wise stated he had a problem with giving variable pay raises - but more of a problem
looking at the financial situation of the City, and then approving four employees to receive a 5 %,
7 %, 10% and 19.2% respectively.
Mayor Jacobson questioned whether those numbers reflect what the City may or may not be
giving as raises this year; City Manager Cano responded, absolutely not. The only thing these
numbers represent are anticipated merit increases associated within their salary range. If the
employee is at the top of their salary range - then there is no adjustments made, only if Council
approves a cost of living.
Mayor ProTem Dannen stated last year Council asked what does this budgeted salary proposal
say, and the City Manager informed them it was the maximum that we would budget for them -
in the event they get there. Therefore, if FY 90 -91 salary was adjusted - budgeted for $49,351 and
this budget was for $54,176, then there is a large discrepancy, and he was concerned with how
many other positions also have discrepancies like this.
City Manager Cano responded that FY 89 -90 $45,184 was budgeted salary which was increased
by an approved cost of living. FY 90 -91 the salary amount should be minus this cost of living
because staff did not go back and adjust those numbers.
Mayor ProTem Dannen left dial at 8:21 p.m. returned 8:22 p.m.
Councilman Wise stated comparing FY 89 -90 to FY 90 -91 there was a 30% increase to the
$54,549; City Manager Cano responded he would prepare an example of the benefit costs and
how they were broken down; Council concurred.
COUNCIL CONSENSUS FOR STAFF TO PREPARE SPREADSHEET OF BENEFIT COSTS
AND HOW THEY WERE BROHEN DOWN.
Mayor ProTem Dannen stated there is a pool of money in Non - Departmental Budget used for
negotiations, etc., and the City budgets a certain amount for a position - which he was informed
by the City Manager - included that percentage of increases (i.e. cost of living, merit, merit above
satisfactory level, etc.). These increases were taken out of that Non - Departmental Budget and
placed back into this line item - but was not to exceed approved budgeted amount.
City Manager Cano responded he did not state that it was the maximum. Furthermore, he
believed he had worksheets where he stated it would be $1.2 million for compensation, and
everything would come out of there - would not exceed that - in fact, after Meet and Confer, it
was below that amount. It was not the individual line items for this position, it was that pool
of money he asked for authorization to close up negotiations with Police, General Employees, and
Management - and Council gave him authorization to that limit.
City Manager Cano stated the salaries proposed for FY 91 -92 reflect what the individual is
receiving presently or, if not at the top step, an anticipated merit increase - and doesn't include
reclassifications. Per Council's recommendation, staff did not put money under Non -
Departmental Budget - instead it was placed under General Fund Appropriated Balance. He
added, should there have been any misunderstanding, it was an honest one.
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Mayor ProTem Dannen questioned how much total dollars and salaries were taken from the
Non - Department Budget last year - over and above what was budgeted, and how much total
dollars were spent on Management salary increases.
City Manager Cano responded $972,000 - which was less than Council authorized him to resolve
negotiations.
Mayor ProTem Dannen responded that he understood that, but it was his understanding this
$972,000 was already in the budget. Therefore, he feels $1 million of the taxpayers money has
been misspent.
City Manager Cano stated three factors which increased the salaries substantially: 1) Comp Plus
Study, 2) Merit Increase Component, and 3) Cost of Living Component. The salaries reflected
in FY 91 -92 proposed budget for General Employees and Police are at the maximum and
Management is at its maximum - if they are at their top step, with the exception of an approved
Cost of Living increase, which will be added later on.
Mayor ProTem Dannen requested the City Clerk's Office make copies of all audio tapes on last
years budget meetings and transmit to him as soon as possible.
COUNCIL CONSENSUS WAS TO HOLD OFF DISCUSSIONS ON SALARIES AND FRINGE
BENEFITS UNTIL AFTER RECEIVING, AND REVIEWING THE EARLIER REQUESTED
SPREADSHEETS, AND FOR CITY CLERK'S OFFICE TO TRANSMIT COPIES OF ALL
AUDIBLE TAPES ON LAST YEAR'S BUDGET MEETINGS.
RECESS at 9:00 p.m.
RECONVENED at 9:20 p.m.
ROLL CALL all councilmembers present.
PROFESSIONAL AND TECHNICAL - PAGE 42 - ACCOUNT NO. 6214:
Mayor ProTem Dannen questioned what was the LOCC City Manager Department Meeting for.
City Manager Cano responded it was an annual City Manager meeting to discuss issues facing
City Manager's, and it is not being held in San Francisco.
Mayor ProTem Dannen recommended removal of the LOCC City Manager Department Meeting
of $1,000 - if it is in San Francisco; City Manager Cano concurred, stating this would also include
all management and staff; Council concurred.
COUNCIL CONSENSUS FOR STAFF TO REMOVE LOCC CITY MANAGER DEPARTMENT
MEETING FOR $1,000 AND ALL OTHER MANAGEMENT AND STAFF BUDGETED FOR
THE SAME - SHOULD IT BE HELD IN SAN FRANCISCO.
HYPERION ISSUES - PAGE 42 - ACCOUNT NO. 6292:
City Manager Cano stated next year it will be shifted out of the City Manager's Department to
the City Attorney's Office from Hyperion to LAX matters.
AIRPORT ISSUES - PAGE 43 - ACCOUNT NO. 6293:
Mayor ProTem Dannen recommended an increase from $35,000 to $55,000 due to considerable
activity within the coming year; Council concurred.
COUNCIL CONSENSUS TO INCREASE ACCOUNT NO. 6293 FROM $35,000 TO $55,000.
DISASTER PREPAREDNESS BUDGET
City Manager Cano requested to hold this item over and discuss issues with more priority;
Council concurred.
COUNCIL CONSENSUS TO HOLD ITEM OVER TO ANOTHER MEETING.
CITY ATTORNEY BUDGET
PROPOSED BUDGET - PAGE 50:
City Manager Cano stated staff anticipates end of year expenditures for FY 90 -91 will exceed
budgeted amounts (i.e. litigation of Hyperion, lawsuits related to individuals, misuse of process
lawsuits, etc.), which are major reasons for exceeding the approved budget.
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Mayor ProTem Dannen requested staff prepare and transmit a list of all departments coming in under
their approved budget; City Manager Cano stated they would prepare a list and transmit to
Councilmembers.
COUNCIL CONSENSUS FOR STAFF TO PREPARE AND TRANSMIT LIST OF ALL DEPARTMENTS
WHICH HAVE COME UNDER THEIR APPROVED BUDGETS THIS YEAR
PLANNING DEPARTMENT BUDGET
City Manager Cano requested to take this department out of order; Council concu .
PROPOSED BUDGET - PAGE 270:
City Manager Cano presented an overview report stating the budget amount for FY 90 -91 was
$727,802, and staff proposes FY 91 -92 budget of $596,585 - which represents a $131,217 decrease
or 18 %. Primary reason for decrease is $250,000 was spent for the General Plan Update. Also,
Council approved programs have been incorporated into the budget.
PROFESSIONAL AND TECHNICAL - PAGE 274 - ACCOUNT NO. 6214:
Councilman Wise questioned $10,000 increase from projected expenditures for FY 90 -91 to total
$30,000 for FY 91 -92.
Ms. Morries responded this was due to technical assistance to develop a new Sign Ordinance;
interns doing Record Management, and some of these expenditures were due to the General Plan
Update which required some specialized maps and graphics to be created by outside resources.
Councilman Wise recommended this $30,000 be relocated to General Plan Update Account 6268
on Page 275 for a more clear picture of the expenses related to the General Plan itself; Council
concurred.
COUNCIL CONSENSUS FOR STAFF TO RELOCATE THESE MONIES TO THE GENERAL
PLAN UPDATE ACCOUNT NO. 6268.
MEETINGS AND TRAVEL - PAGE 274 - ACCOUNT NO. 6213:
Mayor ProTem Dannen questioned whether the $600.00 was enough for the Planning
Commission; Mayor Jacobson questioned Commissioners Expense Account No. 6263 for $5,000.
Ms. Morries responded this year a number of items directly related to the Planning Commission
were taken out of Account No. 6263 - therefore, it has been increased to $5,000 to offset those
proposed expenses, and Account No. 6213 is for the one staff member attendance for the
Commission.
Councilman West questioned percentage of staff which corresponds with ongoing projects; Ms.
Morries responded three staff members are primarily dedicated to current planning, and a lot
of their resources are presently towards the General Plan Update.
PLANNING DEPARTMENT - 'COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET'
Kendra Morries, Planning Director, stated the CDBG Programs were approved in February,
1991, and the contracts are with the County and Federal Government for signature - which staff
expects back by next week. These programs will begin July 1, and some of them are new and
others were continued from the previous year.
'LET'S RETIRE FIRE' BUDGET
Mayor ProTem Dannen questioned what the salaries and benefits of $20,000 was proposed to
be used for; Ms. Morries responded it is actually a total dollar of $30,000. Per the Fire
Department $10,000 was for 100 smoke detectors, and $20,000 was for the staff cost for
installation and yearly inspections for the batteries.
Mayor ProTem Dannen stated concerns regarding the expense of $10,000 for only 100 smoke
detectors.
J.W. Gilbert, Fire Department, responded this was a clerical error and it should state 1,000
smoke detectors - which by CDBG requirements - cannot be installed using any overtime
expense.
COUNCIL CONSENSUS FOR STAFF TO CORRECT 100 TO 1,000 SMOKE DETECTORS.
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Ms. Morries stated that the Fire Department will submit personnel costs against the CDBG funds
- which includes installation and inspections.
Councilman Wise and Mayor ProTem Dannen questioned if it is legal to advocate, purchase, and
install battery powered smoke detectors, and will the fact that the life of the batteries - should
they be unreliable - place the City in a position of potential litigation should there be any
problems.
Hyrum Fedje, Building Safety Director, responded that it is legal to install battery powered
smoke detectors only in existing structures, and was unable to answer whether there would be
possible litigation.
Fire Chief Sloan responded that the reason for installing these smoke detectors was primarily
due to it being done in other communities which have been successful, but was unsure to whether
problems could result in litigation problems.
COUNCIL CONSENSUS FOR STAFF TO RESEARCH POTENTIAL LITIGATIONS
RESULTING FROM FAULTY SMOKE DETECTORS AND REPORT BACK
'LITERACY IN THE WORKPLACE'
Mayor Jacobson questioned the operation of this program.
Barbara Pearson, Library Director, stated CDBG proposal states the $40,000 represents one -half
of the Literacy Project Specialist, and currently the General Plan is funding a .5 person or 20
hour per week part-time with benefits position for a Literacy Project Specialist. Currently, the
General Fund is funding .5 position or 20 hour per week part-time with benefits position for a
Literacy Project Specialist. Under the Library Budget there is an abatement from CDBG for the
other half of that position.
Ms. Pearson continued stating that in addition, there was a request approved for a 20 hour per
week Library Clerk I position to assist with this project.
Mayor ProTem Dannen stated he has always been in favor of literacy programs, and was assured
only one part-time position would be requested - there were also volunteers for this project.
Councilman West stated he was in favor of approving this extra part -time individual for a
literacy program.
Councilman Wise recommended salaries and benefits be reviewed and included in Council's
earlier request for spreadsheets; Council concurred.
Mayor ProTem Dannen left dias at 10:07 p.m. and returned at 10:08 p.m.
wHOME DELIVERED MEALS'
SUPPLIES AND SERVICES - PAGE 290:
Mayor Jacobson questioned FY 90 -91 projected expenditures of $16,500 for Supplies and Services
which is up FY 90 -91 Budget of $6,179 - and now staff is proposing FY 91 -92 10,000.
Ms. Morries stated a full explanation is on Page 293 under General Administration funding, and
that the audit findings stated that monies received from contributions were required to be re-
spent.
2. Aparove the revised revenue estimates for FY 90-91 and adopt resolution.
Continued to June 24 at 7:00 p.m.
City Manager Cano requested Council set tentative dates for continuation of the budget review.
Tentative dates scheduled were 7/1 and 7/8 at 7:00 P.M.
PUBLIC COMMUNICATIONS - NONE
CLOSED SESSION - NONE
ADJOURNED at 10:13 P.M. to June 24 at 7:00 P.M. at the Joslyn Center.
Ronald L. Hart, CMC /AAE
City Clerk