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1992 JUL 20 CC MINNaNUTES, OF THE ADJOURNED REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL July 20, 1992 - 7:00 P.M. CALLED TO ORDER by Mayor Jacobson at 7:05 p.m. PLEDGE OF ALLEGIANCE led by Councilman Robbins. ROLL CALL Councilman Robbins - Present Councilman Switz - Present Councilman West - Present (Arrived at 7:09 p.m.) Mayor ProTem Wise - Present Mayor Jacobson - Present PUBLIC COMMUNICATIONS -(City Business Only -5 minute limit) - NONE A. SPECIAL ORDERS OF BUSINESS Presentation and discussion of FY 1992 -93 Budget. Ken Putnam, Director of Public Works, presented a presentation of the Capital Improvement Program budget explaining Charts #1 and #2, and informed Council they had $4.4 million to work with. Councilman Switz questioned the override column stating it was confusing, and proposed Council look at only those tasks regarding the General Fund budget this evening. Further stating he did not feel that this was the year to be concerned with landscaping projects and that the City should focus on roofs, mechanical /electrical, etc. this year. Mayor Jacobson requested more information regarding Chart #21LI #25 landscape project. Mayor ProTem Wise stated he felt the Council needed to review the Business Retention and Attraction Program because the City needs to look inviting to new businesses but that they could choose only those which would help this effort. Councilman Robbins addressed Chart #2/LI #41 /Chart #5/LI #40 the Citywide Traffic Model Study stating he felt this is an important item due to the general plan review, and suggested they move up the priority and dollar amount. Discussion followed. Mayor Jacobson questioned the two amounts in the CIP of $145,000 and $350,000 for this study; Mr. Putnam responded that the total amount for this study would be a 50/50 through Prop. C and other grants, and that the total amount is approximately $250,000 to $325,000 for a complete study. Further stating that MRC has already completed a base parcel study while they were reviewing the business license tax issue, but that staff had not had the opportunity to come up with a proposal for the Council. CHART NUMBER 2: Phase 2/Parking_and Lights at Recreation & Parks: Council consensus to approve at lower dollar to show savings from Phase 1. Line Item #41Phase II, #7, #12, #14, #25, and #33: Council consensus on U #41Phase H to change $73,000 to zero; on LI #12 to approve; on LI #14 to approve with smaller trees; on LI #25 to postpone to FY 92-93; on LI #33 to approve and move up priority above the redline. GENERAL FUND: Line Item #44 - Hillcrest Closure/Emergency Ingress/Egress: Council consensus to postpone to FY 93-94, after staffs research is completed. Traffic Study LI #41 - Infrastructure Study: Council consensus to approve. City Council Minutes 1 July 20, 1992 RECESS at 8:20 p.m. RECONVENED at 8 :33 p.m. ROLL CALL All Councilmembers present. Line Item #26 - Pedestrian Walkway - Superblock: Council consensus to approve. Line Item #36: Council consensus to approve. Richard Fern, Vice - Chairman for CIP Committee, questioned if there were any directions from the Council at this time; No new direction given. Water Fund: Councilman Robbins stated since approval of a 15% increase, the Metropolitan Water District decided not to increase. He suggested the Council reconsider their decision and asked for this to be agendized for August 4 under his heading. Mr. Putnam informed Council that flyers regarding this 15% increase were supposed to be sent out in the next water billing, but he would discuss this issue with the City Manager since Council may be reconsidering their decision. No more discussion regarding the CIP budget; leaving the budget at $165,000. ANNUAL BUDGET FY 1992/98: Business Retention and Attraction Program: Mayor ProTem Wise stated he felt $95,000 was not enough, and this program would bring in more business to the City which would spread the tax base and that would lower the individual businesses taxes which would bring more revenue into the City. Councilman West concurred stating that other States are presently trying to take business away from California and the City needs to make sure this does not happen. Councilman Switz stated he felt this may not be the best way, and proposed Council use the budget savings to issue tax rebates to businesses. Councilman Robbins proposed tax cuts be made from five -head exemptions to 10 or 15- head exemptions, and then questioned Steve HIotzsche, Finance Director, whether the two reports regarding this item would be completed for the August 4 meeting. Mr. Klotzsche responded that he was waiting for data from Municipal Resource Consultant's, and felt they could get the reports done in time for the August 4 meeting. Mayor ProTem Wise questioned Councilman Robbins on how many meetings he had with the business in the community; Councilman Robbins responded that his information was based upon the Business Retention Survey which was commissioned by the old Council. Mayor Jacobson stated concerns with changing the tax structure because the sub- committee of Council and Chamber agreed to a specific tax package and that the City would not keep coming back with tax increases if the businesses agreed with this tax package. Councilman Robbins stated at their Council meeting of April 21 the Ex -Mayor ProTem Dannen had made comments regarding a secret or unofficial deal between the Chamber and Council regarding putting through the high growth general plan in return for a business license tax increase. Mayor ProTem Wise responded this was not true, and that there was no secret deal made. Further stating for clarification on the actual agreement made was that there was a meeting between the Council and Chamber of which an agreement was made in regards to a tax package, with the understanding that the businesses would accept this tax package as long as the City did not keep coming back with more increases. Councilman Robbins stated they could not keep changing the tax structure because it would introduce instability, but they needed to make sure they had an appropriate structure. City Council Minutes 2 July 20, 1992 Councilman Switz stated that those agreements were made awhile ago and much had changed since then, and did not understand why they were reluctant to change this. MOVED by Mayor ProTem Wise; SECONDED by Councilman West to appropriate $250,000 for the Business Retention and Attraction Program. MOTION FAILED BY THE FOLLOWING VOICE VOTE 2J3 - AYES: Mayor ProTem Wise and Councilman West. NOES: Mayor Jacobson and Councilmembers Robbins and Switz. Councilman Robbins stated that he would first like to to see the initial results. MOVED by Councilman Switz; SECONDEDby Mayor ProTem Wise to approve $95,000 for Business Retention and Attraction Program with the contingency that no new positions be created in the City. MOTION PASSED BY THE FOLLOWING VOICE VOTE 411 - AYES: Mayor Jacobson, Mayor ProTem Wise and Councilmen West and Switz. NOES: Councilman Robbins. City Manager Meehan requested Council's direction regarding Councilman Robbins request for two reports from Finance Director Motzsche. Council consensus for Mr. Hlotzscbe to complete the reports requested regarding the bead tax on businesses employees. School Fund: Mayor ProTem Wise stated that one of the most important attractions to the City is a strong school system, and asked for clarification regarding budgeting this fund; Mayor Jacobson responded there was no problem since it was a part of the budget. Mayor ProTem Wise continued by stating that $750,000 would keep the schools open at a status quo. Councilman West stated that he had the Imperial School item agendized for tomorrow's meeting. Councilman Switz stated he would like a representative from the School District at tomorrow nights meeting to address what this money would be used for; Councilman West responded that there would be no problem and that he would inform the Superintendent Dr. Manahan of this request. PUBLIC COMMUNICATIONS -(City Business Only -5 minute limit) Scot Dannen.1127 E. Acacia addressed Council requesting: 1) Review of comments made about his conduct, and asked where on the agenda did it show discussion about his prior conduct, and 2) Requested information under the Public Records Act §6250, §6251, §6252, §6253, and §6254 regarding fireable asbestos in the plunge - especially dating back to 1985 when Mayor Jacobson was the only Official left from that time period. Asked them to be delivered to him so he could deliver them to the courts. Mayor Jacobson responded to Mr. Dannen's question regarding the agenda by stating that this was brought up as part of business license which was part of Council's budget discussion of revenues -which was legitimate under the Brown Act, and the quotes were from Mr. Dannen's comments made from the podium not the dais. Mr. Dannen responded the Mayor was correct, and it was no wonder why Public Storage was suing them and sending letters about violations of the Ralph M. Brown Act because they seemed determined to do this. Mayor Jacobson closed the public communications portion of the meeting. CLOSED SESSION - NONE ADJOURNMENT at 9:04 p.m. to July 21, 1992 at 5:00 p.m. for a Closed Session. G "Loja Freeman, Deputy City Clerk City Council Minutes 3 July 20, 1992