2009 MAR 19 CC MIN SPCSPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL
THURSDAY, MARCH 19, 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
Mayor Pro Tern Busch
Council Member Brann arrived at 8:02 a.m.
Council Member Fisher
Council Member Jacobson
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. - NONE
This planning session will guide staff in the preparation of the FY 2009 -10 Preliminary Budget,
which will be presented at the next Strategic Planning Session. Council may raise other
development, policy, capital project and potential budget reduction items for consideration as part
of staffs preparation of the FY 2009 -10 Preliminary Budget.
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. Staff will present a
brief overview of the challenges /limitations, goals and strategies with associated projects
and program.
Jack Wayt, City Manager gave a brief overview.
Staff gave a brief report on the following items:
Accomplishments:
• Douglas Street
• Athletic Fields
• Plaza El Segundo
• Fire Station #2
• Use of Reclaimed Water
• Implementation of Environmental Workplan
• RSI Homes Completed and Additional funding
• Crime Reduction
Development Project Update:
• Data Centers
• Hotels
• Campus El Segundo
• Plaza El Segundo
• Segundo Business Park
• Gehry Partners
• Aviation /Aerospace
Bill Crowe, Assistant City Manager, gave an update on AQMD Lawsuit. Noted that AQMD was not
issuing any credits for the excess energy used by the data center. Data Center /City need to
purchase up to $1 million in credits.
Council discussed sending a letter in support of a bill from Congressman Wright to try and resolve
the issue with credits.
Council asked if there was possibility of fee increases for new development.
Update on Pedestrian Bridge Completion — should be completed by June /July 2009.
Strategic Planning 2009 -10 Challenges /Limitations:
• Current economic crisis
• Reduced revenues
• Escalating PERS rates driven by higher salaries and portfolio losses
• Unemployment rate continues to increase
• Other Post Employment Benefits (OPEB) Funding
Strategic Planning 2009 -10 Budget Parameters:
• In preparation of the FY 09 -10 budget, staff is considering the following:
• Non - personnel costs — no increases over the prior year budget or a 2% or $250,000
reduction
• Reduction of consulting contracts — to be determined
• Benefit costs — estimated at 5% increase over prior year — approximately $782,000
• Salary costs — salary increases per MOUs — average for all groups — 4% increase —
approximately $1.2 million increase
Strategic Planning FY 2009 -2010 Agenda:
• To identify priorities for City Operations and annual budget
• To guide the City's capital improvement programs
• Discuss Policy Issues
• Identify Projects for Funding Consideration
• Identify Potential Revenue Generators /Cost Savings
• Identify Budget Reduction Options
Jack Wayt, City Manager, presented the proposed City goals:
• Provide quality public safety
2
• Provide quality service to our resident and business community
• Improve public facilities and infrastructure
• Promote community health and environment
• Strive to operate debt -free ( "pay -as- you -go ")
Deborah Cullen, Finance Director presented supporting strategies:
• Maintain a balanced budget
• Manage salary/benefit costs
• Identify potential cost - saving areas
• Continuously evaluate staffing needs
• Continue to invest in technology to maintain and improve efficiencies
Mayor McDowell requested a faster speed on City internet, which currently runs on a T -1 line.
Norm Thorn, Information Services Manager, stated that the current line will be supplemented by a
faster line once Fire Station #2 was completed.
Finance to update Economic Uncertainty Fund Analysis.
Policy issues - Land Use and Development were discussed:
• Douglas Street Corridor
• Capital Project Funding
• LAX Projects
• Richmond /Franklin Parking Lot
• Smoky Hollow, Power Plant, Circulation Element
• Zone Ordinance Amendment — Assisted Living, Parking /Loading Issues — cleanup to be
done in house
• In -Lieu Parking
Douglas Street Corridor — Current landscaping and traffic congestion discussed. Suggested
business owners upgrade landscape when renovating property. Council discussed having staff
look for grant opportunities. Also wanted to look at allowing more "creative" uses and amending
the zoning or coming up with a Specific Plan. No funding was identified for a specific plan and
staff may do some work. Staff may want to talk to the property owners in the area to see what they
are interested in.
Mayor McDowell asked if there were state grants available for beautifying Douglas Street.
Mayor Pro -Tem Busch inquired if businesses would be interested in subsidizing the
beautification /landscaping project.
Capital Project Funding — Dana Greenwood, Public Works Director, suggested prioritizing projects
might be a task for Public Works rather than the Capital Improvements Program Advisory
Committee ( CIPAC). Council consensus to have the Public Works Director rank critical
infrastructure projects and add to the CIPAC Project list.
Richmond /Franklin Parking Lot — Greg Carpenter, Planning and Building Safety Director, stated
that the study on the parking lot concluded that the City would have to subsidize some of the cost
of the parking lot lease, as the parking fees would not be enough to fund operations.
Council directed the Planning and Building Safety Director to come back with cost estimate and
present Information to the parking sub - committee.
Smoky Hollow /Power Plant/Circulation — Council consensus to hold off on future funding for these
projects and undesignate funds at this time. Council supported the concept of combining this
funding into a general plan update and requested a cost/time estimate. Staff to follow up with a
memo or discuss at a future Council meeting. Staff to find out how much Manhattan Beach spent
on their general plan update.
In -Lieu Parking — Information sent by City Attorney on March 20, 2009. Staff to meet with Attorney
to resolve any questions. Item to be agendized for the earliest possible Planning Commission
meeting.
Policy Issues:
• School District Funding
• Park Place
School District Funding — Council consensus to fund at least to traditional level of $250,000.
Council consensus not to increase funding unless the School District reduces staffing and tap their
own budget reserves.
Current year funding to the School District is $400,000 cash contribution, $100,000 in direct
funding of crossing guards and $664,000 in in -kind contributions. It was noted that the District may
issue more layoff notices in the next year.
City Attorney to research the Naylor Act regarding possible purchase or lease of Imperial School
property.
Council recessed at 9:40 a.m.
Council reconvened at 9:50 a.m. with all Council Members present.
Projects for Funding Consideration — Capital Projects:
• Beach Restroom
• Aquatics Center
• Richmond Street Tree Removal /Replanting
• Aerial Ladder Truck for Fire Department
• Golf Course Restaurant
• Web Page
Beach Restroom — Pending funding clarification from County.
Aquatics Center — Preliminary cost estimates - $4.5 to $14 million. Council consensus to complete
feasibility study and report back.
Richmond Street Tree Removal /Replanting — preliminary cost estimate was $30,000 for tree
removal and $220,000 for hardscape replacement. Council consensus to budget for tree removal
only and do hardscape on an as- needed basis.
4
Aerial Ladder Truck — It was noted that remaining useful life was projected to be five years. Staff
to research purchasing a used truck from a financially distressed City and /or funding for a new
truck using Fire Station #2 contingency designation of $1.5 million.
Golf Course Restaurant — Council discussed the possibility of leasing restaurant property to
restaurateurs. Golf Course Subcommittee to research cost/benefit and report results to the
Recreation and Parks Commission before doing a possible feasibility study.
Web Page — Executive Technology Review Committee to research high speed network
connection. Council requested cost estimates for upgrading the Web site be returned to the
Technology Subcommittee.
Possible Revenue Generators:
• New Telecom Ordinance
• TOT Class Action
• Fee Study
• Continuous implementation of fee study
• Fee study for police fees and fines
• County /Court fee increase
• Economic Stimulus Plan
• Disposition of Fire Station #2 Land
• Developer Fees — PLF
• Water /Sewer Rate Study
Telecom Ordinance — Council directed staff to draft new ordinance for council review. The target
timeframe for making a decision is October 2009. If ordinance is accepted by Council, to be
placed on the April 2010 Election Ballot.
TOT Class Action — to be agendized for City Council Closed Session.
Fee Study — Council consensus to proceed with the Police Department fee study and pass- through
county /court charges for fines and fees.
Council directed staff to research the possibility of adding a COLA for the Business License Tax.
Council consensus to eliminate the $40 business license processing fee from home based
business and small business.
Disposition of Fire Station #2 Land — Staff to research sale price.
Developer Fees — PLF — City Council requested information on the 2006 study before a decision is
made.
Water /Sewer Rate Study - Council consensus to bring back proposal for pass- through water rate
increase.
Budget Reduction Options
• Safety Communication Center
• Equipment Replacement Funding
• Trash Collection Fees — Taken out of consideration
• Other Post Employment Benefits (OPEB) Funding
• Capital Project Funding
• Water Conservation Ordinance
• Consulting Contracts
• Personnel Costs
• Bonus incentives for early retirement or contracts
• Selective hiring freeze
• Overtime
• Reorganization
• Sewer Laterals — Taken out of consideration.
Safety Communication Center — Police Department to obtain estimate of cost of outsourcing and
possibility of renting out existing space to other agencies.
Equipment Replacement Funding — Council consensus to consider reducing funding levels as a
last resort.
Water Conservation Ordinance — Staff to draft ordinance.
Consulting Contracts — Individual departments to identify contracts that could be eliminated.
Bonus Incentives for early retirement — Bob Hyland, Human Resources Director, to research
options.
Selective Flexible Hiring Freeze — Jack Wayt, City Manager, to provide listing of unfilled positions.
Overtime reduction — Finance to summarize City -wide overtime by department.
Council Member Brann left the meeting at 11:42 a.m.
ADJOURNMENT at 11:47 a.m.
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Cathy Dom n , Deputy City Clerk
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