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1993 JUN 22 CC MINMINUTES OF THE ADJOURNED REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL JUNE 22, 1993 - 5:30 P. Ni CALLED TO ORDER Mayor Jacobson at 5:35 P.M. PUBLIC COMMUNICATIONS - (City Business Only - 5 minute limit) - NONE CLOSED SESSION The City Council moved into a closed session pursuant to applicable law, including the Brown Act (Government Code Sec. et seq.) as announced by the City Attorney, for the purposes of conferring with the City Attorney on potential and /or existing litigation and /or discussing personnel matters as follows: §54956.9 (B): City plight have significant exposure to litigation. 3 Matters Meet and Confer 1 Matter ROLL CALL Mayor Jacobson Mayor ProTem Wise Councilman West Councilman Switz Councilman Robbins RECONVENED at 7:20 p.m. - Present - Present - Present - Present - Present PUBLIC COMMUNICATIONS - (City Business Only - 5 minute limit) Six individuals addressed the City Council. A. SPECIAL ORDERS OF BUSINESS Solid Waste Program Ken Putnam, Director of Public Works stated staff provided Council with an updated report which identify changes by underline and strike outs. Chip Scholz, Director of Community Affairs - BFI stated disappointment with recommendation; pointed out differences in the services and options offered by the proposers, and stated what BFI had offered during the last seven years. Councilman West clarified that BFI does not charge for their present drop -off center of which the profits go to the schools, and questioned whether this service would continue; Mr. Scholz responded it would. Mr. Putnam stated under Option 1 there was not a drop- off /buy -back center for both proposers, and under Option 2 there was a buy - back /drop -off center. Thus, the dollar amount for Zakaroff Services' Option 2 should be corrected. Scot Dannen, 1127 E. Acacia questioned Council whether the City required the vendors submit indemnification requirements or whether it was just under AB939, and whether the vendor awarded the contract would pay between $50,000- $75,000 to have the request for proposal drawn up; Mayor Jacobson responded the City Attorney reviewed this and it was definitely part of the proposals, and the vendor awarded the contract would pay for the request for proposal negotiation cost. lim Dodenhoff, Director Recycling Services - Western Waste complemented staff and Council on excellent job done on the process and contract negotiations. Asked if Option 2 Fixed meant fixed service rate would be charged to the residents over the entire term of the contract regardless of what happens - Mayor Jacobson responded it was correct but it would be a fixed service rate charged to the city not the residents - he then asked if contractor would be subject to AB939 indemnification regarding information reporting requirements, but not to AB939 indemnification with com- pliance; if there were a recycling program other than that provided at the buyback center, how would it be done; did Zakaroff's contract have a proposed implementa- tion date for startup of buy -back center, and asked for a copy of revised staff report. Jerry Neuman, Attorney, Zakaroff presented brief history/ overview of company. Frank Wong, resident addressed council stating opposition to refuse fees. City Council Mlnute5 Iuiie22,19)3- 5A)PM. Jeannie Yaegley, 824 Maryland Street appreciated BFI's consistent excellent service, trucks always on time, and employees always being nice to the children.. Gert Vaegtti, resident stated she was very satisfied with BFI's service. MOVED by Councilman Switz; SECONDED by Mayor ProTem Wise to close public communications. MOTION PASSED BY UNANIMOUS VOICE VOTE. Ruben Kandilian, Owner /President Zakaroff Recycling Services introduced himself and stated that the buy -back center would be established no later that October 1, 1993. MOVED by Mayor ProTem Wise; SECONDED by Councilman West to accept Zakaroff Services Option 2, subject to inspection/ approval of all finance documents to satisfaction of Finance Director; City Manager Morrison requested staff be authorized to have a CPA review this on support of and satisfaction of the Finance Director; Council concurred. Councilman Switz called discussion on Option 1 cost differences, and whether a buy -back center was worth $57,000. Mayor ProTem Wise felt residents would not recycle if there was no buy -back center. Councilman Robbins questioned whether the motion on the floor included a cap on indemnification or no cap; Mayor Jacobson responded the contract did not include a cap although the request for proposal included it, but that he would prefer that it did not include it. Councilman Robbins concurred with Mayor Jacobson.. Councilman West stated assuming the City was satisfied with the financial report, whether the City Attorney felt comfortable with no cap mdennification and if it would be worthwhile, and whether the City would have any liability; City Attorney Rufus Young responded he could not assure them there would never be any liability against the City, but his comfort level increased substantially with respect to the Zakaroff proposal by the fact their proposal included the agreement to acquire environmental impairment insurance and to make the City insured on that policy for claims that arise and relate to the period during which Zakaroff provides the services. The two policies are a CJL Policy for $10 million and an Environmental impairment Policv for $10 million. Jerold Neuman asked council to adjudicate whether the request from Zakaroff to remove the indemnification cap was received in a timely manner; Mayor Jacobson stated that staff did not reopen indemnification caps and asked if the city wanted no cap, did Zakaroff wish to withdraw their proposal. Mr. Kandilian responded no. MOTION WITHDRAWN BY MAYOR PROTEM WISE. Mayor ProTem Wise asked if buyback center could be implemented in three years at $57,000; Mr. Neuman stated he couldn't guarantee the economy would allow same price. Mayor ProTem Wise then asked if they could provide a 4,3,2,1 year cost for buy -back center; Mr. Kandilian responded buy -back centers could be discontinued after three years, and it could go into residential recycling. MOVED by Councilman Switz; SECONDED by Councilman Robbins to approve Zakaroff Services Option 1 annual fixed price of $379, 442 with Zakaroff Services with the expectation that an amendment would be brought back before the Council on July 6 or 20, 1993 which would identify the step rate of a buy -back center - contingent upon a successful exannination and approval by the Finance Director and CPA review in support of the Finance Director of all financial data supplied by Zakaroff Recycling Services. Chip Scholz, BFI thanked Council for their cooperation, and that BFI had enjoyed working with the City. City Council complimented BFI on their past service. Mayor Jacobson called the question: MOTION PASSED BY UNANIMOUS VOICE VOTE 5/ 0. RECESS at 8:58 p.m. RECONVENED at 9:13 p.m. ROLL CALL all Councilmembers present. 2. Continued Public Hearing - Consideration of FY 1993/94 Annual Operating Budget. City Council Minutes 2 June 2, 1991 - 5.30 P M. Mayor Jacobson stated this was a continued public hearing on consideration of FY 1993/94 Annual Operating Budget, and asked whether proper public hearing notice was done in a proper and timely manner, and whether any written communications had been received; Clerk Mortesen responded public hearing notice was published by Finance Department, and no written communications had been received. Jim Morrison, City Manager, stated the State had taken further action on the budget but staff did not have the details on the trailer bills yet, so it was unclear as to what the fiscal impacts would have on the City. The submitted budget envisioned a further reduction in State revenues of $500,000, and staff was comfortable it would be substantially less that than, but hopefully by July 12 staff would have this information available. Staff recommended adoption of the resolution allowing them to continue operation between July 1 -31, 1993. Mayor Jacobson agreed with a caveat that staff hold off on any spending; City Manager Morrison responded that expenses would only include salary, and any other necessary items in order to keep the operation going. MOVED by Councilman West; SECONDED by Councilman Robbins to read by title only. MOTION PASSED BY UNANIMOUS VOICE VOTE - 5/ 0. City Attorney read by Title Only: RESOLUTION NO. 3821 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA, GIVING THE DIRECTOR OF FINANCE LIMITED AND TEMPORARY AUTHORITY TO EXPEND FUNDS OF THE CiTY PENDING ADOPTION OF THE FY 1993/94 ANNUAL OPERATING BUDGET. MOVED by Councilman Robbins; SECONDED by Councilman Switz to adopt Resolution No. 3821. MOTION PASSED BY UNANIMOUS VOICE VOTE - 5/ 0. Brandon Estan, 413 Richmond Street urged the Council not to cut Police Service budget. Joe Vitori, resident requested in return for fees that: 1) School District discontinue allowing non - resident pupils across district lines to attend City schools, 2) initiate firmer check against Recreation and Park facilities by outsiders, and relatives from local community be restricted to immediate famtly members they be required to file some sort of registry which could be checked, and 3) Reassure residents the community assets which would now cost theirs more, would be available for their use. Jeannie Yeagley, 824 Maryland Street suggested future City budgets and updates be published in the El Segundo Herald as is in the Long Beach Journal; felt street sweeping was City's responsibility to matntain, and if the street sweeping budget was canceled the City could eliminate costs. Council could consider on an individual employee basis whose services are no longer required, giving long notices, severance pay, and /or early retirement. Frank Wong 435 Valley stated fees discussed total $749,000; felt monies in the general fund were being misappropriated; addressed documents regarding the City's purchase of property for $500,000, resale for $439,000, and additional costs for closing and commission costs. Mayor ProTem Wise stated the public wasn't aware the legal fees involved would have cost more than what the agreement as a whole was, and no public funds were misappropriated. All records are public information and alternatives were much worse for the City than what was done. The majority of Council's decision was based on what was best for the City; all parties involved, and cost for second alternative would have been more for the taxpayers. Jerry Saunders, Continental Development Corporation suggested shifting of the fees rather than reduction of fees, and asked Council to consider shifting the vacancy fee to when the building was occupied; Councilman Switz requested Mr. Saunders put request in writing. Terry Cerrito, 210 W. Acacia questioned whether sewer tax, street cleaning and trash fees would be combined m one monthly tax to residents and not businesses; suggested no raises for a year, take back vacation in lieu of employee reduction, and not cut back the $750,000 to schools at this time; Mayor Jacobson and Mayor ProTem Wise responded they would be combined but residents would only being paying their fees not businesses fees. 1. Wilson, resident people should attend Economic Development Strategic Task Force meetings; concerned paying two fees for street sweeping if home located on street and alley, and suggested Council consider only having street sweeping once a month. City Council Minutes 3 June 22, 1993 - 5.'4 P M Ron Swanson, 111 E. Grand Avenue spoke in favor of the proposed fees on residents. Mayor ProTem Wise felt salary savings should be directed to City Manager and Department Heads to accomplish, and implementation of a Business Attraction Program should be done immediately with a funding mechanism developed. Councilman Switz stated cuts this year are just a prelude to next year, and if $857,000 labor costs require a reduced work week staff wasn't expected to produce same volume of work; felt business attraction should be discussed in detail at a future date and a plan was needed before continuing. Request to agendize for July 6 under Committees, the need for Economic Development Task Force Chairman and a strategic development plan. Councilman Robbuis opposed new resident fees and tax and spend policy; no fees or taxes should be considered until spending is reduced six months to a year; City has established track record for wrong spending; felt there was still fat in budget which could be reduced without reducing staff e.g. one department has $24,000 in fat; no increase in any budget line items; and disagreed with Mayor ProTem Wise's concept of business attraction program because funding this would be premature without a strategic plan and before consultant marked analysis and target industry analysis had been completed according to consultant. Council consensus to direct staff to propose how these cuts would happen and bring back to the City Council, and for Council to write up and submit line item saving suggestions. MOVED by Councilman Robbins that residents not be charged $132,128 for street sweeping stating residents pay most of the $120,000 per year in street sweeping parking fines which covers almost all the cost to sweep streets in residential and business areas, and that it would not be fair to tax residents or businesses or for them to pay twice for street cleaning. MOTION FAILED DUE TO LACK OF SECOND. MOVED by Councilman Switz; SECONDED by Mayor ProTem Wise to adopt specifications, and direct staff to advertise for bids for the Solid Waste contract for public buildings and street cans. MOTION PASSED BY UNANIMOUS VOICE VOTE - 5/ 0. Mayor Jacobson stated the public hearing would be continued to July 12, 1993 at 6:30 p.m. PUBLIC COMMUNICATIONS - (City Business Only - 5 minute limit) Parker Herriott, Hermosa Beach spoke on an incident which occurred on June 21, 1993; team building workshop report; and that City Ordinance No. 269 required that the City Council hold its meetings m the City Council chamber. Frank Wong, resident questioned if fees were approved who would collect them, and how would non - collected fees be handled; Mayor Jacobson responded the City would collect fees, and any non - collected fees would be addressed should it become necessary. 1. Wilson, resident suggested people request white papers when attending the Strategic Development Task Force meeting. Mayor Jacobson closed public communications. MEMORIAL Mayor Jacobson adjourned in memory of Clare Dedman, a City employee who passed away June 17, 1993. Councilman Robbins stated Clare and Lyle Dedman were his next door neighbors and were very fine neighbors. ADJOURNED at 10:35 p.m. to June 26, 1993 at 8:00 a.m. at the Red Lion Inn in Bakersfield. _ �_ or Freeman, Deputy City Clerk City Council Minutes 4 Buie 2?, 1993 - 5.V P.M.