2009 JULY 08 CC MIN SPCSPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL
Wednesday July 8, 2009
El Segundo Public Library
111 W. Mariposa Avenue, El Segundo, CA 90245
8:00 a.m.
8:00 A.M. SESSION
CALL TO ORDER — Mayor McDowell at 8:00 a.m.
ROLL CALL
Mayor McDowell
- Present
Mayor Pro Tern Busch
- Present
Council Member Brann
- Present
Council Member Fisher
- Present
Council Member Jacobson
- Present
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30
minute limit total) Individuals who have received value of $50 or more to communicate to the City
Council on behalf of another, and employees speaking on behalf of their employer, must so identify
themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and
punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow
Council to take action on any item not on the agenda. The Council will respond to comments after
Public Communications is closed.
Bob Tolich, Lieutenant, West Covina Police Department, spoke regarding the Communication
System and mis- information about their software and lack of support and back up. He stated that
they are still functioning at full speed and have up -to -date software and service.
Michelle Blumenthal, spoke regarding the communication center and the possibility of outsourcing
the 911 dispatch center. She spoke against the proposition.
Liz Garnholz, Resident; presented a letter from a friend. She read a letter from Gifford Rodine, in
which he commented about the city's current budget shortfall.
George Hoops, Resident; spoke regarding the Beach Cities Transit and the poorly constructed
map they published. He also spoke on the recent report on water quality sent to each home.
Robin Funk, Vice - President of the El Segundo School Board, thanked Council for their previous
support and spoke regarding both the city and school budget shortfalls.
A. PROCEDURAL MOTIONS
Consideration of a motion to read all ordinances and resolutions on the Agenda by title only.
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
JULY 8, 2009
PAGE NO. 1
MOTION by Council Member Jacobson, SECONDED by Council Member Brann to read all
ordinances and resolutions on the Agenda by title only. MOTION PASSED BY UNANIMOUS
VOICE VOTE. 5/0
B. SPECIAL ORDERS OF BUSINESS:
Consideration and possible action regarding a strategic planning session which will guide
staff in the preparation of the Fiscal Year 2009 -2010 Preliminary Budget. A brief overview of
the estimated General Fund FY 2008 -2009 year -end projections, projected General Fund
FY 2009 -2010 budget shortfall and options to balance the FY 2009 -2010 General Fund, and
a follow -up on open items from the prior Strategic Planning Session will be provided.
This planning session will guide staff in the preparation of the FY 2009 -10 Preliminary Budget,
which will be presented at the August 18, 2009 City Council Meeting. Council may raise other
development, policy, capital project and potential budget reduction items for consideration as part
of staff's preparation of the FY 2009 -10 Preliminary Budget.
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
JULY 8, 2009
PAGE NO. 2
r.>
ted Year -end Revenues and...
iditures Fiscal Year 2008/09
f 111 M
enues
Expenditures
Surplus/ (Deficit)
Projected Year -
Budget 08/09 End 08/09
$ 60,784,950 58,881,550
6017841950 59,045,800
$ - $ (164,250)
I
es in Year -end Revenue
des in Year -end Expenditure ,,_,:�..
)tes — Midyear v. 3rd Quarter
rease: $761,350 _
r�r
onal Costs:
sous vacant positions filled subsequent to
. lidd ;
7. vertime has not been reduced as much as
" - anticipated;
Additional Savings:
• Allocation of salaries to other funds;
• Equipment Replacement Charges — Savings of
$334,000 by not funding current year's charge
for Communications Center
ping efforts to minimize N,
cted yearend deficit
is reviewing all expenditures for cost
ings
ssible salary savings from vacant
" ositions
Reduction of consultant contracts
• Possible overtime reductions
a,.
,nary Revenue an P ,
nditures — fiscal Year 2009/10
Preliminary
Budget 09/10
$ 56,945,900
62,918,200
$ (5,972,300)
.ptions for 09/10 Preliminary,,,,
et Expenditures:
- ing on bargaining units;
r mpensation — 24.4% increase in rates
fits — 3.67% increase in rates
on Contribution — 5.2% increase in rates
Replacement Costs — Funded at 100%
ti"5511000)
• `Ahn'ual OPEB Payment — Funded at 100% ($2,000,000)
ESUSD Funding - $250,000 cash ayment & continue funding
crossing guard contract ($80,000 and in -kind contributions
($1,000,000 estimated for FY 09/10)
• Capital Funding - $500,000
• ETRC — Fund $175,000
• Reclassifications — 3 positions proposed to move from
Supervisory to Management; Fiscal Impact: $30,000
F
10 Revenue Assumptions"
owing are key contributors of the $3.8
bowing
ion in revenue decreases from FY 08/09
1 1 1 0 r
opted Budget to FY 09/10 Preliminary Budget:
opted _r6
jusiness License Tax - $650,000 decrease
Transient Occupancy Tax (TOT) —$550,000
decrease
• Cogenerated Electric Tax - $850,000 decrease
• Interest Income - $950,000 decrease
pt-Balancing Methodology in
Years:
(aiinty
r*4(tV^A210,04w2,01@T-the,,Economic
Fund has been used to balance
the
t through the use of transfers:
t C
calYealr 04/05:
"I
$2,243,200
-fiscal Year 05/06:
$ 2,556,603
'Fiscal Year 06/07:
$2,700,000
Fiscal Year 07/08:
$2,700,000
Fiscal Year 08/09:
$2,571,900
Five-Year Total:
$12,771,703
10
d PoAity — Unreserved,
a gnated Amounts
fiq tates.4baUhe,un reserved/
signated fund balance in the General
d should be 20% of General Fund
enditures;
As of September 30, 2008, unreserved/
undesignated fund balance was at 22% of
General Fund expenditures;
• Appropriate excess of 20% for General
Fund operations - $260,000
12
Dmic Uncertainty Fund
'j,ignat ",- thletia.Field-Naming Rights It
ue from previous years and transfer to
-al Fund to fund current year
tions - $1f341,000
Undesignate Portion of Fire Station #2
Contingency - $500,000
Iq & Overtime
Runs
000 annually.
lic Safety — Total overtime projected
75 million
Police overtime - $750,000
Majority used for court appearances and
investigations
Fire overtime — $2,000,000
14
ng ,Overtime
Department
n
fighter /paramedic positions
un short 1 position -
$400,000
Run short 2 positions -
$661,750
un Short Savings for up to 5
positions -
- Run short 1 position per shift -
$446,300
— Run short 2 positions per shift -
$852,350
— Run short 3 positions per shift -
$1,135,000
— Run short 4 positions per shift -
$1,294,050
— Run short 5 positions per shift -
$1,340,197
15
nnel — Fire
inued)
Department
F inate 1 Firefighter position per shift; 3 total
itions - $371,500
minate 1 3- Person Engine Company per shift;
otal positions $1,421,600
• Contract for Fire Protection Services
— Contract with Los Angeles County Fire
Department for Fire Protection Services —
total savings - $7,000,000
16
r Accumulated Funds for Communication Center
-rent back to the General Fund - $810,130
[Wake the net amount of Accumulated Charges and
°- transfer the excess funding based on a 90%
confidence level - $1,094,620
• Fund FY 09/10 Replacement Charge
at 90% confidence level - $155,000
TOTAL $2,790,350
,:.e City's funding policy requires staff to
fund the Worker's Compensation Fund at
a 70% level. Funds have accumulated
through the recent years due to changes
in estimates of outstanding claims.
18
xal Liability Fund
..� sr.of;funding policy to:
neral Fund - $750,000
pital Improvements Fund - $750,000
e City's funding policy requires staff to fund
the General Liability Fund at a 70% level. Funds
have accumulated through the recent years due
to changes in estimates of outstanding claims.
The transfer to the Capital Improvements Fund
would also save the City it's annual funding of
CIP Water & Sewer projects.
i .Safety Communications
er
Ory /Overview
-outh Bay Regional Communication Center
{
El Segundo Public Safety Communication
M Center
— South Bay Regional Public Communications
Authority "SBRPCA"
Impacts /Considerations
• Proposal /Request for Direction
20
al Cost Saving Possibilities-,"""'
ent Options
Funding
eduled Salary Increases
7`--'-'OPEB Annual Payment
ions for Balancing Budget
!e nue Generators
ale of Fire Station #2
T
O.T. Increase — 8% to 10% - Fiscal Impact
MC,
-i-�-!v50,000 if adopted & ratified by the end of
the calendar year.
— Increase in Utility Users' Tax
— Trash Collection Fees - $670,000
— PLF Developer Fee & Park Fee Study
22
CITY OF EL SEGUNDO
SUMMARY OF BUDGET BALANCING OPTIONS
FY 09/10
Shortfall: (5,972,342)$
E 1 3,075,120$ Transfers from ISF
Subtotal: (2,897,222)$
2 500,000$ Portion of Fire Station #2 Contingency Designation
Subtotal: (2,397,222)$
3 1$5,100$ Fund Equipment Replacement @ 90%
Subtotal: (2,242,122)$
5 260,000$ Appropriate excess of 20% - Currently have 22% in Unres., Undesig.
Subtotal: (1,982,122)$
—Run short 1 position
4
Subtotal: (1,582,122)$
6 1,200,000$ Athletic Field Naming Rights Designation
Adjusted Shortfall: (382,122)$
Options:
Transfers in from Internal Service Funds
Approved 1
500,000$ Transfer from Worker's Compensation Fund
Approved 1
750,000$ Transfer from General Liability Fund
Approved 1
730,500$ Transfer Unallocated Funds from Equipment Replacement
810,130$
Transfer Accumulated Funds - Comm Ctr. Equipment Replacement
Approved 1
1,094,620$ Adjust Funding Level to 90% and Transfer to the General Fund
Undesignate Funds in Economic Uncertainty Fund
Approved 6
1,200.000$ Athletic Field Naming Rights Designation
Approved 2
500,000$ Portion of Fire Station #2 Contingency Designation
Increase Charges
787,500$
T.O.T. Increase in Rate (prorated for 9 months)
670,000$
Trash Collection Fees - pass costs on to residents
Reduce Current Non
- Personnel Costs
500,000$
CIP Transfer Savings
Approved 3
155;100$ Fund Equipment Replacement @ 90%
Staffing Impacts -
Fire Department
Run Short Savings
for up to 2 firefighter /paramedic positions
Approved 4
— —Run short 1 position
661,700$
—Run short 2 positions
Run Short Savings
for up to 5 positions —
446,300$
—Run short 1 position per shift
852,300$
—Run short 2 positions per shift
1,135,000$
—Run short 3 positions per shift
1,294,050$
—Run short 4 positions per shift
1,340,200$
—Run short 5 positions per shift
Staff Reductions
371,500$ — Eliminate 1 Firefighter position per shift; 3 total positions -
1,421,600$ — Eliminate 1 3- Person Engine Company per shift; 9 total positions
Contract for Fire Protection Services
7,000,000$ — Contract with Los Angeles County Fire Department for
Fire Protection Services (Total Savings)
General Fund Unreserved, Undesignated
Approved s 260,000$ Appropriate excess of 20% - Currently have 22% in Unres., Undesig.
Personnel Cost Reductions
500,000$ Scheduled Salary Increases - 1% of Salaries & Benefits
? Reduce Staffing Levels through Attrition
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
JULY 8, 2009
PAGE NO. 13
Council consensus to direct staff to prepare a report removing and /or adjusting the Business
License fee from the Business License Tax, at minimum from Home Occupation businesses.
Staff to ask City bargaining units if they would consider meeting and conferring with regard to
potential salary and benefit cost reductions.
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
JULY 8, 2009
PAGE NO. 14
Directed staff to prepare informational reports to update the status of long term projects and open
items from the last Strategic Planning Session.
C. CONSENT AGENDA
2 Consideration and possible action to adopt a Resolution approving specifications for
resurfacing Mariposa Avenue from Sepulveda Boulevard to Nash Street and Main Street
from Mariposa Avenue to Imperial Highway; and Authorizing the City Manager to execute
agreements accepting funds from Federal American Recovery and Reinvestment Act of
2009 (ARRA) Grant funding in the amount of $358,000. (Fiscal Impact: $358,000)
MOTION by Council Member Brann, SECONDED by Mayor Pro Tern Busch to adopt Resolution
No. 4605 approving specifications and authorizing the City Manager to execute agreements, in a
form approved by the City Attorney, he amount of $358,000!cMOTION PASSED BY UNANIMOUS
2009 (ARRA) Grant funding
VOICE VOTE. 5/0
ADJOURNMENT 11:34 a.m.
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
JULY 8, 2009
PAGE NO. 15