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CC MINS 20100522 ADJ MINUTES RANCHO PALOS VERDES CITY COUNCIL ADJOURNED REGULAR MEETING/BUDGET WORKSHOP MAY 22, 2010 The meeting was called to order at 7:09 A.M. by Mayor Wolowicz at Fred Hesse Community Park, 29301 Hawthorne Boulevard. City Council roll call was answered as follows: PRESENT: Campbell, Long, Misetich, Stern, and Mayor Wolowicz ABSENT: None Also present were Carolyn Lehr, City Manager; Carolynn Petru, Deputy City Manager; Carol Lynch, City Attorney; Dennis McLean, Director of Finance/Information Technology; Joel Rojas, Community Development Director; Ray Holland, Director of Public Works; Tom Odom, Interim Director of Recreation and Parks; Eric Mausser, Human Resources Manager; Kathryn Downs, Deputy Director of Finance/Information Technology; Ron Dragoo, Senior Engineer; Sara Singer, Senior Administrative Analyst; and Teri Takaoka, Deputy City Clerk. FLAG SALUTE: The Flag Salute was led by Director of Finance/Information Technology McLean. APPROVAL OF THE AGENDA: Councilman Stern moved, seconded by Councilman Misetich, to approve the agenda, as presented. Without objection, Mayor Wolowicz so ordered. PUBLIC COMMENTS: None. REGULAR NEW BUSINESS: Review of Draft 2010 Five-Year Capital Improvement Plan Senior Administrative Analyst Singer provided a brief overview of the Draft 2010 Five- Year Capital Improvement Plan, noting that two new items have been added since the Council last reviewed the plan including the following: 1) Two new median projects scheduled along Hawthorne for FY12-13 and FY14-15 using Beautification Funds; and City Council Minutes May 22, 2010 Page 1 of 11 2) Continuation of the residential overlay and slurry seal program for FY14-15. She stated that additional projects have been identified by staff and added to the Unfunded Projects List. Council and staff discussion ensued. Councilman Misetich moved, seconded by Councilman Stern, to receive and file the Draft 2010 Five-Year Capital Improvement Plan (CIP). The motion passed on the following roll call vote: AYES: Campbell, Long, Misetich, Stern, and Mayor Wolowicz NOES: None ABSENT: None Draft 2010 Five-Year Financial Model Deputy Director of Finance/Information Technology Downs provided a staff report for the Draft 2010 Five-Year Financial Model which included staff's proposed balanced budget with an estimated $1.7 million of excess General Fund Reserves at the end of FY10-11. She noted that the 2010 Five-Year Model (Model) included the Funded CIP projects; the Finance Advisory Committee reviewed the Model on April 7 and April 28, 2010; the Model indicated the General Fund Reserves will continue to grow over the next five years due largely to the receipt of the Terranea Resort Transient Occupancy Tax (TOT); staff continues to recommend that Council set aside the TOT for Capital Projects; and includes the used of$2 million of TOT funds for the proposed improvements to Lower Hesse and Grandview Parks and $1 million of Planning and improvements to the Civic Center. Council and staff discussion ensued. Finance Advisory Committee Chair James commended staff and the City Council for establishing a good Reserve Policy a number of years ago which has resulted in the City's current strong financial position. Councilman Stern moved, seconded by Councilman Misetich, to accept and file the Draft 2010 Five-Year Financial Model (2010 Model) and provide direction regarding the assumptions and content. The motion passed on the following roll call vote: AYES: Campbell, Long, Misetich, Stern, and Mayor Wolowicz NOES: None ABSENT: None City Council Minutes May 22, 2010 Page 2 of 11 Tactical Goals Report on 1) Planned Storm Drain Work, and 2) Infrastructure and Recreational Improvements in Palos Verdes Nature Preserve during FY10-11 Senior Engineer Dragoo provided a summary staff report regarding the Tactical Goals on planned storm drain work for the coming year, including funding the preparation of a Master Drainage Plan. Interim Director of Recreation and Parks Odom provided a summary staff report regarding the Tactical Goals on infrastructure and recreational improvements in the Palos Verdes Nature Preserve, including the inception of the Park Ranger Program and Administrative Citation process. Councilman Misetich moved, seconded by Councilman Stern, to receive and file the information presented in this report. Without objection, Mayor Wolowicz so ordered. RECESS AND RECONVENE: Mayor Wolowicz called a brief recess from 8:13 A.M. to 8:20 A.M. 2010 Salary Survey Human Resources Manager Mausser provided a summary staff report regarding the 2010 Salary Survey. He reported that in 2009 the Council directed staff to conduct a salary survey Council and staff discussion ensued. Councilman Stern moved, seconded by Mayor Pro Tern Long, to adjust the salary ranges to the 75th percentile as recommended in the staff report. Mayor Wolowicz moved a substitute motion, seconded by Councilman Campbell, to defer the discussion of the 2010 Salary Survey to be in context with the entire budget. The substitute motion passed on the following roll call vote: AYES: Campbell, Misetich, and Mayor Wolowicz NOES: Long and Stern ABSENT: None Draft FY10-11 Budget Mayor Pro Tern Long moved, seconded by Councilman Campbell, to waive staff report, hear the public speakers immediately, and then have questions/deliberations by the City Council. City Council Minutes May 22, 2010 Page 3 of 11 Mayor Wolowicz stated that he would recuse himself from voting on the grant to the South Bay Children's Health Center, since his wife works with that organization. John Merryman, South Bay Family Health Care, stated that their organization provides primary medical care for uninsured or underinsured South Bay residents, expressed gratitude for past grant support, and requested continuance of the grant. Leo and Kathy Rippo, REACH, Rancho Palos Verdes, stated that their daughter has special needs and has participated in the REACH program for eighteen years. She stated the program has been an appropriate and positive program for her, providing the only social activity she has independent of her family. She asked that the Council remain flexible and creative in the continued funding of the REACH program. Christine Mei, REACH Parents, Rancho Palos Verdes, stated that she received a letter regarding the need to restructure the REACH program to keep the program cost neutral; requested that the program be kept in its entirety due to the tremendous impact on the participants; and noted that there will be parent participation to commit to continue the program. Council and staff discussion ensued. Yong-Jin Ting, REACH, Rancho Palos Verdes, stated that he is a member of the REACH program and gained invaluable experience, independence, and friendships through the program, and asked that the program be continued. Susan Warhol, REACH, Rancho Palos Verdes, stated that she has been a REACH participant for 20 years, stressed the importance of the program, noted that the program is an important part of their social life, and encouraged the continuance of the program. Ann Stahl, REACH Parents, Lawndale, stated that her daughter has been a longtime participant in the REACH program and noted that if the program were eliminated the impact on the lives of the participants would be dramatic. She reported that her daughter has gained many social, intellectual, and life skills from the program, noting that she would be willing to pay a higher fee as a non-resident. Jim Artiano, REACH Parents, stated that he has friends whose child participates in the REACH program which allows the participants to become better skilled in interactions with each other as well as the general public. He reported that he serves on the Board of HOPE, an organization affiliated with the Harbor Occupational Center (HOC), which provides discounted housing for participants in the HOC program and noted that some REACH members eventually participate in that outreach program. He encouraged the continuance of the program. City Council Minutes May 22, 2010 Page 4 of 11 Kathy Edgerton, First Vice-President, Peninsula Seniors, Rancho Palos Verdes, expressed appreciation for the City's support of the Peninsula Seniors organization which focuses its services on those not provided by the City, including legal, financial and social service referrals; group counseling for caregivers and grief counseling; driving classes; tax preparation services; informational videos; exercise and language classes; and theater and museum trips. She encouraged the continuance of the City's support of the Peninsula Senior program. Sandra London, REACH parent, stated that Canyon Verde Day Program, which was started years ago at Ladera Linda Park, provides community immersion for developmentally disabled and challenged clients. She noted that many of the REACH participants also participate in that program and read a letter of support for the continuance of the REACH program from Canyon Verde Day Program. Kathy Gould, President, Palos Verdes Library District (PVLD) and Chair, Palos Verdes Chamber of Commerce, thanked the Council for its support of the PVLD; commented on the steps the PVLD has taken to reduce its budget; and expressed a continued need for funding of the Annex, for which there has been increased use during the most recent difficult economic times. As the new incoming Chair of the Palos Verdes Chamber of Commerce, she expressed appreciation for the continuance of funding for this organization which encourages the development of businesses on the Peninsula. Mayor Pro Tem Long moved, seconded by Councilman Stern, to retain the REACH program in the budget with direction to staff to explore and bring back to Council for approval the resetting of the fees for non-residents at the $700 level, which is the level that staff reports will eliminate the hard dollar subsidy; explore resetting other general fees to try to close the gap; and examine other ways of raising funds to further reduce the cost of the program, with an overall goal of reducing the hard dollar subsidy to the program and gain greater fiscal efficiency within the program. Councilman Stern suggested an amendment to the motion to provide a scholarship program for participants that have a demonstrated financial need. Mayor Pro Tern Long agreed to incorporate the amendment in the motion. Mayor Wolowicz offered an amendment to the motion, seconded by Councilman Stern, that staff be directed to write a letter for the Mayor to sign requesting financial support for the REACH program to be sent to other cities with participants in the program. Mayor Pro Tern Long agreed to incorporate the amendment in the motion. The motion passed on the following roll call vote: AYES: Campbell, Long, Misetich, Stern, and Mayor Wolowicz NOES: None ABSENT: None City Council Minutes May 22, 2010 Page 5 of 11 RECESS AND RECONVENE: Mayor Wolowicz called a brief recess from 10:32 A.M. to 10:41 A.M. Council discussion ensued regarding the way to proceed with the remainder of the Draft FY10-11 Budget. City Manager Lehr provided a brief staff report stating that staff has provided for Council's consideration a balanced budget. Director of Finance/IT McLean thanked the Council Members for their questions and cooperation, and staff members for their work in providing a hybrid of the zero-based budget as suggested by Councilman Misetich. Councilman Misetich thanked staff for its innovation in providing the hybrid of the zero- based budget, noting that staff exceeded his expectations. Council and staff discussion ensued regarding salary ranges, salary increases, employee benefits, and additional part-time staffing. Mayor Pro Tem Long moved, seconded by Councilman Campbell, to: Reduce Item No. 5 (Administrative Interns) to one intern ($41,100); Eliminate Item No. 11 (City Newsletter) ($11,000); Eliminate Item No. 13 (Holiday Reception) ($8,300); Eliminate Item No. 22 (Emergency Preparedness Newsletter) ($10,000); Eliminate Item No. 28 (Speed Radar Trailer Program) ($5,600); Eliminate Item No. 29 (Oversized Vehicle & Neighborhood Parking Permit Programs) ($21,200); Not reduce any park hours as indicated in Item No. 23 (Park Site Hours) at a cost of$15,200; and Increase the Full- time Employee Park Rangers in Item No. 20 (Park Ranger Program) from 1.5 to 2 and institute a Junior Park Ranger Program at an estimated cost of$40,000. Councilman Misetich suggested the following changes to the budget: Eliminate Item No. 5 (Administrative Interns) ($82,200); Eliminate Item No. 10 (Organizational Development) ($20,000); Eliminate Item No. 11 (City Newsletter) ($11,000); Reduce by one half Item No. 12 (Community Leaders' Breakfast) ($2,100); Eliminate Item No. 22 (Emergency Preparedness Newsletter) ($10,000); Eliminate Item No. 27 (Traffic Safety Commission — staff support overtime) ($9,120); Eliminate Item No. 28 (Speed Radar Trailer Program) ($5,600); Eliminate Item No. 29 (Oversized Vehicle & Neighborhood Parking Permit Programs) ($21,200); Add in Item No. 39 (Emergency Supplies for Residents) at a cost of$10,000; and Add in Item No. 40 (Peafowl Trapping Program) at a cost of$15,000. Councilman Stern stated that the only item he disagreed with in the proposed budget was the reduction of park hours in Item No. 23 and wished it to be added back in at a cost of$15,200. City Council Minutes May 22, 2010 Page 6 of 11 Councilman Campbell stated that he was in favor of the direction the Council was moving on this matter. Mayor Wolowicz presented a revised chart containing the following proposals to: Reduce by 25% the salary line items; Reduce the Peafowl Trapping Program (Item No. 40) by one third; Eliminate the Traffic Safety Commission Comprehensive Minutes (Item No. 41); Increase the Planning Commission Stipend (Item No. 43) at an additional cost of$6,300; and Reduce by half the REACH Recreation Program (Item No. 44). He noted that the changes in these items resulted in a total net change of zero dollars. Mayor Wolowicz spoke in favor of reinstating the Sheriff CORE Deputy position. Mayor Long withdrew his original motion in light of comments made by the other Council Members and restated a new motion to deal with all but Item Nos. 1, 2, 3, 4, 7, 29, and 38. Mayor Pro Tem Long moved, seconded by Councilman Campbell, to: Reduce Item No. 5 (Administrative Interns) to one intern ($41,100); Eliminate Item No. 10 (Organizational Development) ($20,000); Eliminate Item No. 11 (City Newsletter) ($11,000); Reduce by one half Item No. 12 (Community Leaders' Breakfast) ($2,100); Eliminate Item No. 13 (Holiday Reception) ($8,300); Increase the Full-time Employee Park Rangers in Item No. 20 (Park Ranger Program) from 1.5 to 2 and institute a Junior Park Ranger Program at an estimated cost of$40,000; Eliminate Item No. 22 (Emergency Preparedness Newsletter) ($10,000); Not reduce any park hours as indicated in Item No. 23 (Park Site Hours) at a cost of$15,200; Eliminate Item No. 27 (Traffic Safety Commission — staff support overtime) ($9,120); Eliminate Item No. 28 (Speed Radar Trailer Program) ($5,600); Eliminate Item No. 29 (Oversized Vehicle & Neighborhood Parking Permit Programs) ($21,200); Add in Item No. 39 (Emergency Supplies for Residents) at a cost of$10,000; and, Add in Item No. 40 (Peafowl Trapping Program) at a cost of$10,000. Councilman Misetich suggested a friendly amendment to add back in the Holiday Reception at a cost of$4,150, which was accepted by the maker and seconder of the motion. Mayor Wolowicz suggested a friendly amendment to remove the Elimination of Item No. 29 (Oversized Vehicle & Neighborhood Parking Permit Programs) ($21,200) from the motion for additional discussion, which was accepted by the maker and seconder of the motion. City Manager Lehr asked for clarification regarding the decision on the Traffic Safety Commission (staff support overtime). After Council discussion, it was decided to remove the Elimination of Item No. 27 (Traffic Safety Commission —staff support overtime) ($9,120) from the motion. City Council Minutes May 22, 2010 Page 7 of 11 Councilman Stern posed questions regarding the impact of the reduction of Item No. 5 (Administrative Interns) to one intern ($41,100); the elimination of Item No. 10 (Organizational Development) ($20,000); and the elimination of Item No. 28 (Speed Radar Trailer Program) ($5,600). Mayor Pro Tem Long restated the motion as modified, seconded by Councilman Campbell, to: Retain Item No. 5 (Administrative Interns) at a cost of$82,200 and direct staff to return to Council with a report regarding the purpose and advantages of the interns; Eliminate Item No. 10 (Organizational Development) ($20,000); Eliminate Item No. 11 (City Newsletter) ($11,000); Reduce by one half Item No. 12 (Community Leaders' Breakfast) ($2,100); Reduce Item No. 13 (Holiday Reception) by one half ($4,150); Increase the Full-time equivalent Park Rangers in Item No. 20 (Park Ranger Program) from 1.5 to 2 and institute a Junior Park Ranger Program for an estimated total increase of$40,000; Eliminate Item No. 22 (Emergency Preparedness Newsletter) ($10,000); Not reduce any park hours as indicated in Item No. 23 (Park Site Hours) at a cost of$15,200; Add in Item No. 39 (Emergency Supplies for Residents) at a cost of $10,000; and, Add in Item No. 40 (Peafowl Trapping Program) at a cost of$10,000. The motion passed on the following roll call vote: AYES: Campbell, Long, Misetich, Stern, and Mayor Wolowicz NOES: None ABSENT: None Mayor Wolowicz moved to fund at 75% of staff's proposed increases all of the items related to Salary and Payroll, which were Item No. 1 (Lock-in FY09-10 Payments in Lieu of Salary Increase), Item No. 2 (Set Salary Ranges at 75th Percentile of Survey Results), Item No. 3 (Cost of Living Allowance), Item No. 4 (Employee Salaries, Merit Increase), and Item No. 7 (Employee Bonus Pool). The motion died for a lack of a second. Councilman Stern moved, seconded by Mayor Pro Tem Long, to adopt the staff recommendation on Item Nos. 1, 2, 3, 4, and 7. Council and staff discussion ensued. The motion failed on the following roll call vote: AYES: Long and Stern NOES: Campbell, Misetich, and Mayor Wolowicz ABSENT: None Mayor Pro Tem Long moved, seconded by Councilman Stern, to adopt the staff recommendation on Item Nos. 1, 2, and 3; to reduce the Merit Increase pool to 1% City Council Minutes May 22, 2010 Page 8 of 11 instead of 1.6%; and to reduce the Employee Bonus Pool to 1% instead of 1.5%. The motion died for a lack of a second. Mayor Pro Tem Long moved, seconded by Councilman Stern, to adopt the staff recommendation on Item No. 2 (Set Salary Ranges at 75th Percentile of Survey Results). The motion passed on the following roll call vote: AYES: Long, Stern, and Mayor Wolowicz NOES: Campbell and Misetich ABSENT: None Mayor Pro Tem Long moved, seconded by Councilman Stern, to adopt the staff recommendation on Item No. 3 and Item No. 4. Councilman Campbell moved a substitute motion to adopt Item No. 3 as long as the policy is that if the Cost of Living Allowance goes down in the next year, the salaries reflect that change. The motion died for a lack of a second. Mayor Wolowicz moved a substitute motion to fund at 85% of staffs proposed increases Item Nos. 1, 3, 4 and 7. The motion died for a lack of a second. Councilman Misetich moved, seconded by Councilman Campbell, to adopt staff recommendation for Item Nos. 4 and 7 with the following two modifications: Item No. 4 will be eliminated and the 1.6% transferred to the Employee Bonus Pool yielding a 3.1% Employee Bonus Pool; and staff directed to formulate for Council review an objective bonus program based on measureable goals. Mayor Pro Tem Long moved an amendment to the motion, seconded by Councilman Stern, to include adoption of staff recommendation on Item No. 1 (Lock-in FY09-10 Payments in Lieu of Salary Increase) and Item No. 3 (Cost of Living Allowance). The amendment to the motion passed on the following roll call vote: AYES: Campbell, Long, Misetich, and Stern NOES: Mayor Wolowicz ABSENT: None Council and staff discussion ensued. City Manager Lehr requested clarification regarding combining the Employees Salaries Merit Increase with the Employee Bonus Pool into one Employee Bonus Pool. She stated that this combination would be problematic in that employees would never be able to get a merit increase, which would in effect be a permanent Pay in Lieu of Salary City Council Minutes May 22, 2010 Page 9 of 11 Increase (PILSI) and result in penalizing staff. She suggested retaining the items as two separate items, making them both measureable as described by Council. The maker and seconder of the motion agreed to modify the motion for the reasons as indicated by City Manager Lehr. Councilman Misetich moved the amended motion, seconded by Councilman Campbell, to adopt the staff recommendation on Item No. 1 (Lock-in FY09-10 Payments in Lieu of Salary Increase); Item No. 3 (Cost of Living Allowance); Item No. 4 (Employee Salaries, Merit Increase), and Item No. 7 (Employee Bonus Pool) with staff directed to prepare for Council's review an objective bonus program based on measureable goals. The motion, as amended, passed on the following roll call vote: AYES: Campbell, Long, and Misetich NOES: Stern and Mayor Wolowicz ABSENT: None Council discussion ensued regarding the Oversized Vehicle & Neighborhood Parking Permit Programs. Mayor Pro Tem Long moved, seconded by Councilman Stern, to leave the Oversized Vehicle & Neighborhood Parking Permit Programs (Item No. 29) in the budget. The motion passed on the following roll call vote: AYES: Campbell, Long, Misetich, Stern, and Wolowicz NOES: None ABSENT: None Mayor Wolowicz moved, seconded by Councilman Campbell, to include the Sheriff CORE Program—Third Deputy Position (Item No. 38) in the budget. Council discussion ensued. The motion failed on the following roll call vote: AYES: Campbell and Wolowicz NOES: Long, Misetich, and Stern ABSENT: None Mayor Wolowicz moved, seconded by Councilman Campbell, to Increase the Planning Commission Stipend (Item No. 43) by one half of the proposed amount at an additional cost of$6,300. City Council Minutes May 22, 2010 Page 10 of 11 The motion passed on the following roll call vote: AYES: Campbell, Long, Misetich, Stern, and Wolowicz NOES: None ABSENT: None ADJOURNMENT: At 12:54 P.M., Mayor Wolowicz adjourned the meeting. 411016 ayor Attest: City Clerk W:1City Council Minutes\2010\20100522 CC MINS.doc City Council Minutes May 22, 2010 Page 11 of 11