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1991 JUN 24 CC MINREGULAR ADJOURNED MEETING OF THE EL SEGUNDO CITY COUNCIL AEN UTES JUNE 24, 1991 CALLED TO ORDER at 7:00 p.m. by Mayor Jacobson. PLEDGE OF ALLEGIANCE given by Councilman West. ROLL CALL Councilman West - Present Councilman Wise - Present Mayor ProTem Dannen - Present Mayor Jacobson - Present PUBLIC COMMUNICATIONS - NONE A. SPECIAL ORDER OF BUSINESS Continued Review and discuasion of 1991/92 Annual Budget. City Manager Cano presented a report stating at the last meeting of June 20, Council discussion the City Council, City Attorney, City Treasurer, Planning Department, and the Community Block Grant. He stated he would like to continue with the departments as follows: FIRE DEPARTMENT PROPOSED BUDGET PROPOSED BUDGET - PAGE 126: City Manager Cano stated the proposed FY 91 -92 budget increases $7,452 from the total budget of $6,439,994 or .12% from FY 90 -91 budget. In addition, staff projects they will end the year with approximately $170,000 less than Council authorized for FY 90 -91 budget. This is primarily due to the salary savings on vacancies which existed during the year. No changes in staffing is expected at this time, and there's an agreement not to discuss salaries and benefits at this time. COUNCIL CONSENSUS TO NOT DISCUSS ANY SALARIES, OR BENEFITS UNTIL REPORT IS RECEIVED AND REVIEWED. FIRE SUPPRESSION - PERSONNEL - PAGE 137: City Manager Cano stated these positions were represented by the Teamsters Union, and the amounts allocated for Fire Captain, Engineer, and Fire Fighters - the amount discussed in preliminary budgets and printed - are almost dollar - for -dollar, because at that time staff knew what the cost of living and the merit increases were - due to the City being in a two -year contract agreement. During the budget hearings and study sessions last year, staff recommended that the overtime budget of $945,277, in recognition it would be difficult to meet a reduction of the existing Memorandums Of Understanding - and policies regarding staffing levels, the Council reduced the budget by $300,000 - and then challenged staff to come in below that amount. Staff was partially successful coming back to Council once to request an adjustment of $192,000, which in essence from what staff originally proposed - was reduced by $108,000. In this FY 91 -92 proposed budget, staff is proposing $668,326 for the overtime budget, which is $276,000 less than what was originally discussed during the public hearing last year - FY 90 -91. Also, there is a vehicle request in the budget for Fire Station No. 1 based on cost effectiveness. Mayor ProTem Dannen and Councilman Wise questioned justifications for cost effectiveness for the purchase of a sedan at $17,500 on page 154. Fire Chief Sloan responded that several individuals are sharing a vehicle and after researching the issue, staff determined it would be cost effective for them to purchase a vehicle. Mayor Jacobson recommended the purchase of the vehicle come out of a rental fleet; Council concurred. Mayor ProTem Dannen left dias at 7:30 p.m. and returned at 7:31 p.m. COUNCIL CONSENSUS FOR STAFF TO PURCHASE VEHICLE OUT OF A RENTAL FLEET. Mayor ProTem Dannen asked why the fringe benefits were so high; City Manager Cano responded staff will transmit a full report to Council at next meeting. Mayor ProTem Dannen recommended that they cut back $250,000 off the overtime budget because it is still too high; Councilman Wise concurred, adding overtime should be set at $400,000 total for the overtime budget; Council Concurred. Councilman West questioned if they could discuss overtime and other things under their current contract based on the fact they are in a Meet and Confer; City Manager Cano responded he believed they could discuss it as it pertains to the overtime issue. CONSENSUS FOR STAFF TO CHANGE THE OVERTIME BUDGET TO READ $400,000 TOTAL. Mayor Jacobson questioned the fax machines on page 133 and if the van will be getting one also; Fire Chief Sloan responded at this time staff would prefer to wait, however there is an on -board lap -top computer for the Cameo Program in the van. Councilman West questioned page 142 on the portable generator sizes and whether they would be large enough to meet their needs; Chief Nessel responded they are adequate for their use. Mayor ProTem Dannen questioned the fire/life safety attach equipment for $1,330 if it should read "will" instead of "could "; Chief Nessel responded it was a clerical error and will be corrected. COUNCIL CONSENSUS STAFF WILL CORRECT 'COULD' TO READ 'WILL'. BUILDING SAFETY PROPOSED BUDGET FULL TIME PERSONNEL - PAGE 306: City Manager Cano stated he was recommending a change from Building Official to Building Safety Director and change the range; Council concurred. City Manager Cano stated in recognition of some of the downturn in the department, a Building Inspector II position has not been filled, and it is recommended they abolish one of the Building Inspector II positions. COUNCIL CONSENSUS TO APPROVE TITLE AND RANGE CHANGE FOR BUILDING OFFICIAL TO BUILDING SAFETY DIRECTOR Councilman West questioned the City Revenue Summary/Plan Check Fees on page 7 and if there was a low revenue amount projected; Hyrum Fedje, Building Official responded that even if revenues go down it does not mean there are less plan checks being submitted, and that it depends upon the type of plan check. Large ones bring in more revenue than the smaller ones. The number of permits coming in is not down, it is the dollar value of the permit which is down. OPERATING SUPPLIES - PAGE 307 - ACCOUNT NO. 5204: Mayor Jacobson questioned if new 1991 Codes were in this account; Mr. Fedje responded they were. Councilman West questioned if the El Segundo Municipal Code was current and up -to -date; Mr. Fedje responded that the Building Safety Department does not handle this, but the City Manager had requested departments to review the Code for problems, changes, corrections, or lack of new ordinances, and forward a memo. Staff forwarded a memo to the City Manager, City Attorney, and City Clerk in response to the request. LIBRARY DEPARTMENT PROPOSED BUDGET City Manager Cano stated this budget would be presented in six sections: 1) Administration, 2) California Library Services Act Fund, 3) Technical Support Services, 4) Public Services, 5) Administrative Automation and Literacy Division, and 6) Public Library Fund. The proposed FY 91 -92 budget represents a $213,000 or 24.3% increase to FY 90 -91 budget. The primary reason for the increase is due to the physical expansion and the desire to expand services to meet the demands of the public. Barbara Pearson, Library Director, presented a brief overall summary of the organization and staffing for the upcoming year - in addition to distributing four charts in response to Council's request on June 20: 1) Adult Literacy Report /Tutors and Students 3/90 -6/91, 2) Adult Literacy Report/Non- Resident Students 2/91 and 6/91, and 3-4) Organizational Chart, and 4) Comparison - Current vs. Proposed Organizational Structure. ELECTRICITY - PAGE 243 - ACCOUNT NO. 6102: Councilman Wise questioned why the cost had doubled since FY 90 -91; Ms. Pearson responded that she felt it would be less than proposed but after calling the utility companies (i.e. Gas and Electric), she was informed that they had no way of estimating future use on a new structures. 2 City Manager Cano informed Council staff would research this item and return with a report; Council concurred. COUNCIL CONSENSUS FOR STAFF TO RESEARCH AND REPORT BACK PROFESSIONAL AND TECHNICAL - PAGE 244 - ACCOUNT NO. 6214: Councilman Wise questioned why the janitorial services was increased; Mayor Jacobson added whether there had been any deductions in present staffing. City Manager Cano responded there had not been any reduction is staffing; Ms. Pearson added that someone is scheduled, but it is minimum - does not include cleaning carpets, floors, etc.) - and felt Council would want this to preserve the new facility. Mayor ProTem Dannen stated in the beginning of the expansion project, Council did not take into account those janitors which would be needed due to the expansion. City Manager Cano informed Council staff would research this item and return with a report; Council concurred. COUNCIL CONSENSUS FOR STAFF TO RESEARCH AND REPORT BACK Councilman Wise questioned the book return item on page 246 and whether it should have been designed into the new facility plans, and could staff speak with the consultant about it. Ms. Pearson responded that this is an outside curb -side stack return, and staff recommended it be outside due to fire hazards. City Manager Cano informed Council the Consultant will be attending the July 2 Council meeting and can address any questions or concerns; Council agreed and directed staff to transmit their questions and concerns to the Consultant in advance so he will be prepared to address them. COUNCIL CONSENSUS FOR STAFF TO TRANSMIT THEIR QUESTIONS AND CONCERNS TO THE CONSULTANT FOR HIM TO ADDRESS AT THE JULY 2 COUNCIL MEETING. YOUNG PEOPLES BOOKS - PAGE 256 - ACCOUNT NO. 5505: Mayor ProTem Dannen questioned $16,000 on books, also comparison to Account No. 6103 and No. 6104; Ms. Pearson responded that Account No. 6104 was $1,000 less. Councilman Wise questioned why last year there was money allocated for books but there was a zero on this proposed budget for FY 90 -91. Ms. Pearson responded it is now consolidated into the adult section. COMPUTER SUPPLIES - PAGE 256 - ACCOUNT NO. 5206: Mayor ProTem Dannen questioned what the $2,500 was for; Ms. Pearson responded this was for a new program for the new expansion - micro-computer room for children and adults for their supplies and material. Mayor ProTem Dannen stated he preferred to wait until the expansion is completed; Councilman Wise concurred, adding that the City presently does not have the finances. Councilman West stated he felt the new building requires new programs. Mayor ProTem Dannen recommended staff take the literacy money out and put towards furniture for the new expansion, and for staff to also encourage citizens to volunteer for literacy program instead. RECESS at 8:30 p.m. RECONVENED at 8:45 p.m. ROLL CALL all Councilmembers present. RECREATION AND PARKS PROPOSED BUDGET City Manager Cano stated the budget will be presented in ten sections, and the proposed FY 91- 92 budget represents a $149,086 increase or 6.6'0 over FY 90 -91 budget. The primary cost item dealing with the increase is the fringe benefits, which will be discussed at a later meeting. It is recommended one position be abolished. Page 165 - Maintenance Worker from 11 to 10 changing total staffing from 15 to 14. By abolishing this position, staff is creating a position in the Golf Course Fund. A full -time Maintenance Worker will be placed under this fund, which will not be supported by the General Fund, to support taking over the Driving Range Course Operation. 3 This is being done for two primary reasons: 1) Get the City phased into golf course related issues in a golf course related program, and 2) From a revenue standpoint - an enterprise point of view - staff felt it would be a good venture on part of the City to start phasing in on taking over the driving range, due to $350,000 estimated revenue. Mayor Jacobson questioned if Council would be approving this Program at this time should they approve /adopt the budget. City Manager Cano responded Council would be committing to the Program should they adopt the Budget, but it is a separate fund from the Recreation and Parks Department, and stated it was placed in the budget for two reasons: 1) Consideration and 2) City could not take it seriously. The net affect is that the Recreation and Parks is not loosing any positions. Mayor ProTem Dannen questioned what was the item on page 163 for Personal Computer and Laser Printer at $4,000 going to be used for; Rollie Wright, Recreation & Parks Director, responded that the entire department has been depending upon one computer presently located in his office. Therefore, this new computer will be located at the Clubhouse and used for scheduling facilities, classes, registrations, etc. Also, part of this will be used to purchase specialized programs related to recreation facilities. EQUIPMENT REPLACEMENT CHARGE - PAGE 161 - ACCOUNT NO. 6207: Mayor ProTem Dannen questioned what was the $2,100 equipment replacement expense for, and stated almost every department has a high equipment replacement expense; Mayor Jacobson added how was staff handling depreciation of equipment. City Manager Cano responded a useful life is set and is then replaced when the useful life is over, but should the equipment be in good condition - then it is not replaced. Mr. Klotzsche added that departments are charged repair fees once the useful life is over, but are not charged a depreciation fee any longer. CAPITAL EQUIPMENT - PAGE 168 AND 170 - ACCOUNT NO. 8104: Mayor Jacobson questioned justifications for $3,000 for back pack blower and mower, and the City's present contract maintenance. Mr. Wright responded the landscape contractor's agreement is decreased by $15,000, and staff will be assuming the responsibilities of maintaining various turf areas. Presently, two dozen manufacturers are being considered. RECREATION AQUATICS - SALARIES AND BENEFITS - PAGE 175 - ACCOUNT NO. 5202: Mayor ProTem Dannen questioned why the salaries and benefits have increased from $135,000 to $214,000; City Manager Cano responded that staff is currently preparing a spreadsheet on all employee salaries and benefits which will be transmitted to Council for their review. RECREATION AQUATICS - GAS COMPANY - PAGE 178 - ACCOUNT NO. 6201: Councilman Wise questioned why the expense of gas has doubled from FY 90 -91; Mr. Wright responded that it was due to the plunge being closed for 9 months FY 90 -91, adding that staff is currently researching a co-generation system which is run by natural gas which can provide more energy and cut utility costs in half. This is not included on the FY 91 -92 proposed budget, but once the study is completed - staff will prepare and transmit a report to Council for their review and consideration. GOLF COURSE FUND 503 - PAGE 205: Mayor Jacobson stated Council has not decided whether to have one or not, and asked staff to prepare a report for their review - before approving on the FY 91 -92 budget. City Manager Cano recommended Council separate the two sections regarding the golf course, and informed Council a list of supplies and services - and capital outlay was prepared on page 208 for their review. Mayor ProTem Dannen questioned whether staff had prepared a Business Plan. If so, he requested copies be distributed to Council for review; Mr. Wright responded a report has been completed and transmitted to the City Manager, and staff will transmit copies to Council for review and possible approval. Mayor Jacobson stated before approving anything regarding the golf course, he wants the opportunity to review this report and /or business plan. COUNCIL CONSENSUS FOR STAFF TO TRANSMIT THE COMPLETED REPORT/ BUSINESS PLAN TO COUNCIL FOR REVIEW. 4 RANGE EQUIPMENT - PAGE 210 - ACCOUNT NO. 8104: Councilman Wise questioned whether this was for a golf cart or tractor; Mr. Wright responded it was a heavy duty tractor with rollers which will pick up balls, etc. City Manager Cano stated staff would research prices and report back. COUNCIL CONSENSUS FOR STAFF TO RESEARCH PRICING OF GOLF TRACTOR AND REPORT BACK TO COUNCIL. CASH REGISTER - PAGE 213 - ACCOUNT NO. 8104: Mayor Jacobson requested staff to reword justification; Mr. Wright concurred. COUNCIL CONSENSUS FOR STAFF TO REWORD JUSTIFICATION. CHEVY/FORD/DODGE PICK -UP - PAGE 215 - ACCOUNT NO. 8105: Mayor ProTem Dannen questioned the justification for $15,000 to purchase a vehicle; Mr. Wright responded this vehicle was a part of the golf course project and needed to maintain and operation this new program. Mayor ProTem Dannen questioned what the percentages were for tree trimming performed by City employees and by Landscape West; Mr. Wright responded two - thirds performed by staff and one -third performed by Landscape West. Mayor ProTem Dannen questioned what staff did with their green waste; Mr. Wright responded staff performs composting on a small scale which is then distributed to the slopes on Imperial, and /or given to residents for their use. Councilman Wise suggested staff research a possible recycling program; Mr. Wright acknowledged the suggestion. HUMAN RESOURCES AND RISK MANAGEMENT PROPOSED BUDGET PROPOSED BUDGET - PAGE 56: City Manager Cano stated this budget represents a 2% reduction or $13,569. This department has accomplished full implementation of city -wide classification and compensation study project, established an employee health promotion program, transitioned all employees to the public employees medical and hospital program, city -wide computer training program, established a 24- hour employment hotline, achieved and maintained full staffing for police officers, coordinated development of new physical agility examination for firefighters, restructured firefighter recruitment, testing and selection process, developed testing program for police cadet, development ten customized written examinations in conjunction with Western Region Item Bank, and implemented the computer loan program. Mayor ProTem Dannen stated this was not a reduction. The department proposes to spend $408,188 which is the actual budget for FY 90 -91, and then proposes to spend $423,615 during FY 91 -92 - this is not a decrease. In addition, this is not the only department which shows this, it is throughout the entire budget and how it is presented. City Manager Cano responded he was looking at the wrong sheet - Mayor ProTem Dannen is correct. For the record, it went from FY 90 -91 budget of $437,184 to the proposed FY 91 -92 budget of $423,615, and staff looks at the authorized amount and the projected amount which in many cases is below the actual amount. This is due to some of the direct efficiencies and economics. Adding, there is $15,427 or 3.8% increase over FY 90 -91 budget. Mayor Jacobson informed City Manager Cano it is the expended amount which determines what staff goes to next year. Councilman West stated he felt the budget is an approximate amount which staff feels they need to have, and the Council needs to give staff latitude. Mayor Jacobson stated when the Council approved the original FY 90 -91 budget for $377,000 and since have made increases of $60,000, which presently represents $437,000. Mayor ProTem Dannen stated he was prepared to inform staff the savings of $28,996 is a valid savings - even though there were increases throughout the year - it still indicates they were trying. His only concern is how the budget is presented. 5 THREE WORK STATIONS WITH EROGONMIC CHAIRS - PAGE 64 - ACCOUNT NO. 8104: Councilman Wise questioned justification for three work stations; Don Bott, Director Human Resources and Risk Management, responded these stations were to provide space for computers and other equipment, and to eliminate congestion problems within the department. Two stations were to be located in the outer office and one station in Mr. Hyland's office. City Manager Cano informed Council staff would delete one of the work stations and keep two, and research the possibilities of in -house office furniture for Mr. Hyland; Council concurred. COUNCIL CONSENSUS FOR STAFF TO DELETE ONE OF THE TIUM WORK STATIONS. FIRE DEPARTMENT PROPOSED BUDGET DISASTER PREPAREDNESS BUDGET PAGE 45: City Manager Cano stated an increase of $13,532 or 111.6% from FY 90 -91 to proposed FY 91 -92 budget. Compared to Councils adjusted budget FY 90 -91, there was an increase of $1,663 or 6.9% in what was actually expended. Emphasis this year has been on training and orientation on the Incident Command System, which has been accomplished. For FY 91 -92, staff plans on training key personnel on the Incident Command System. Gary Chandler, Fire Department, informed Council he and Lt. Robert Radford for the last six months have been training city personnel in four different groups on emergency operations on the Incident Command System - one of which is already there - the Operations Group, and the other three are Finance, Logistics, and Planning. COMMUNICATIONS EQUIPMENT TO SUPPLEMENT RACES SYSTEM - PAGE 48 - ACCOUNT NO. 8106: Mayor ProTem Dannen questioned whether the radios need to be compatible with the other radios in the police and fire departments; Mayor Jacobson responded that these radios were supposed to be used by volunteers and amateur groups during emergency situations, and it is worthwhile replacing the old ones in case there is an emergency; Council concurred. POLICE DEPARTMENT PROPOSED BUDGET PROPOSED BUDGET - PAGE 88: City Manager Cano stated from the FY 90 -91 budget to proposed FY 91 -92 budget there is a $1,278,548 increase or 17.1% from the Council's adjusted amount for FY 90 -91 to the proposed FY 91 -92 - it represents a reduction of $752,914 or 7.9% reduction. This is primarily due to staff accounting for expenditures more than in the past. Specifically, the Westnet Project Operations which is supported by the Westnet Fund. He recommended these operations be relieved of the General Fund, and those positions (with the exception of one which will be absorbed through normal attrition, carried the remainder of that fiscal year, and then abolished the following fiscal year) under the Westnet Project would cease to exist should the Westnet Project cease to exist. There are three positions recommended to be authorized: Chief of Police, and two with the Westnet Project - one Lieutenant and Sergeant. Mayor Jacobson questioned if Westnet was under Account No. 3105, and if Westnet was included in the recap of the total expenditures; City Manager Cano responded yes to both questions. Police Chief Frank Meehan informed Council that under Account No. 3105 - Book Detector for the Library has been denied by the Federal Government. He recommended under the General Fund Capital outlay Project Program there was $12,247 which could be moved over to the Library, and then assume these costs through asset forfeiture. Mayor Jacobson questioned whether the old SWAT van could be used by administrative services, because the City could then hold onto the asset forfeiture money and not spend it unless needed; Police Chief Meehan responded it could be, and informed Council the department has $3.5 million in line now from the Westnet Project. Mayor Jacobson questioned if the new in -house computer systems on Page 124 includes a maintenance program on software and hardware; Police Chief Meehan responded it is their understanding that it does. Councilman West questioned Page 124 on whether the City could purchase parts one at a time, as the Westnet funds are received; Police Chief Meehan responded that the City is expecting to receive $1.5 million before the Fall under the Westnet Project. Mayor Jacobson asked City Manager Cano when Council would be receiving the prioritized Capital Improvement Fund list; City Manager Cano responded within two weeks. L Mayor ProTem Dannen requested an item be placed on the next agenda regarding volunteers to look through the proposed Capital Improvement Program Budget for outside input. STAFF TO AGENDIZE FOR NEXT MEETING AN ITEM REGARDING THE REQUEST FOR VOLUNTEERS TO REVIEW AND SUBMIT COMMENTS ON THE PROPOSED CAPITAL IMPROVEMENT PROGRAM BUDGET. 2. Continued review and discussion of the revised estimates for FY 90-91 and adopt resolution. City Manager Cano stated staff was recommending Council reconcile their revenue accounts. After going through ten months of the budget, staff has a more realistic estimate as to our revenues for the remainder of the year, and it is important that Council address this because it is the last regular scheduled meeting - and also for auditing purposes as well. Mayor ProTem Dannen stated he understood staff was requesting to adjust the revenue projections for FY 90 -91; City Manager Cano responded, yes. MOVED by Mayor ProTem Dannen; SECONDED by Mayor Jacobson with discussion - to deny recommendations, live with current revenue projections, and wait until totals come in - then compare that against projections, as opposed to attempting to review last years proposals and the various changes which have occurred. In the future, Council would like to review what is proposed and what was the end result. Mayor Jacobson questioned how this will affect City's auditors; Mr. Klotzsche responded should there be a large variance, it will show up on the annual report as a budget estimate, and they would come back to staff or Council with a recommendation that the City do a mid -year review for revenues and adjust them accordingly. City Manager Cano recommended next year to add extra columns to have those authorized monies, revised monies, and actual amount expended; Council concurred. Mayor ProTem Dannen stated that making constant adjustments only aids in loosing sight of where the budget actually is, and Council needs to know what the problems are, where they came from, and then try to find a solution to them. City Manager Cano stated staff could come back with three years trend to show where the problems were/are, but would rather explain verbally; Mayor ProTem Dannen asked him to explain. City Manager Cano responded the problems resulted from 1) Iraq War, 2) Aerospace Decline, and 3) Hotel Overload /Saturation. These are what cost a $320,000 loss in projected revenues for the City. MAYOR PROTEM DANNEN CALLED A QUESTION: MOTION PASSED BY THE FOLLOWING VOICE VOTE AT 9/1: AYES: Mayor Jaaobeon, Mayor ProTem Dannen, and Councilman Wise. NOES: Councilman Week PUBLIC COMMUNICATIONS - NONE CLOSED SESSION - NONE ADJOURNED at 10:00 P.M. to June 27 at 4:00 P.M. at City Hall Council Chamber. Ronald L. Hart, CMC /AAE City Clerk