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CC MINS 19901215 ADJMINUTES RANCHO PALOS VERDES CITY COUNCIL ADJOURNED REGULAR MEETING DECEMBER 15, 1990 The meeting was called to order at 8:00 A.M. in the Community Room, 30940 Hawthorne Boulevard, notice having been given with affidavit thereto on file. Roll call was answered as follows: PRESENT: HINCHLIFFE, BACHARACH, RYAN & MAYOR HUGHES LATE ARRIVAL: McTAGGART @ 8:09 a.m. Also present were City Manager Paul D. Bussey, City Clerk Jo Purcell, Deputy City Manager Mark Rohloff, Recreation & Parks Director Mary Thomas, Environmental Services Director Robert Benard and Public Works Director George Wentz. REVISED 1990-91 City Manager Paul Bussey FISCAL YEAR BUDGET (602) presented the staff report of December 12, 1990 which contained background information on the budget submitted to the City Council in June 1990 and on the assumptions • contained therein which required major modifications in order to avoid ending the year with a General Fund deficit. He explained that this projected deficit resulted from several factors: assumption that the City as of July 1, 1990 had a beginning General Fund balance of $1,077,481 instead of a minus $854,218; projection of the general fund revenue would actually be $728,500 less than originally anticipated; revised Redevelopment Agency needs for the 1990-91 fiscal year of $373,900; and, requirement of a budget adjustment of $2,879,073 to bring the estimated year-end balance to zero on June 30, 1991. Continuing with the staff report, Mr. Bussey said that the budget subcommittee (Ryan/Bacharach) recommended a total general fund budget adjustment of $3,514,000 which would leave an estimated year-end balance of $634,927. In reviewing some of the reasons for this fiscal deficit and the measures taken to prevent a recurrence, Mr. Bussey said that a $130,964 deficit actually existed as far back as June 30, 1989 and that this grew out of an error beginning in 1987 to accurately reflect general fund monies loaned to the Redevelopment Agency. Also contributing to this fiscal year's beginning negative balance were overexpenditures and under-realized revenues during the 1989-90 fiscal year. The situation was exacerbated by depending on the original 1989- 90 revenue estimates in the preparation of the 1990-91 fiscal year budget. Continuing with his report, Mr. Bussey said that having gone through this analysis, that both staff and the city auditors were now comfortable that fund balances accurately reflect appropriate amounts and that all monies are accounted for. To prevent such problems from occurring in the future, Mr. Bussey reported that loan agreements between the City and the Redevelopment Agency were being prepared for all past City funds expended for. RDA purposes and will be prepared annually in future years. In order to minimize overexpenditures, purchase orders are now routinely written for all goods and services at the time a commitment is made. • Funds are then encumbered so that monthly reports accurately reflect the level of expenditures and outstanding obligations. Any significant mid-year additions to the budget authorized by the City Council will now be accompanied by or followed-up with a formal City Council resolution adjusting the budget. Deputy City Manager Rohloff then proceeded to review the four areas of the budget for deficit reduction: Operating Expenses; Operating Transfers to General Fund; Transfer of Staff Costs; and, Capital Improvement Projects. Some of these reductions would be accomplished by a reduction in the number of personnel through both attrition and by terminations. Also reduced would be the number of NEWSLETTER publications; and, ways for reducing the City Attorney's fees are presently being examined. The City Clerk's office had already eliminated the Work Experience position; and the mail clerk position had been eliminated. In the area of Park Maintenance, Council requested that staff investigate the cost of installing moisture sensors so there is no excessive watering. Trails was the next item of discussion and concern was expressed about the affordable level of maintenance and if they could be adequately maintained to contain liability. Council inquired about the scope of implementation of trails in the near future and requested that staff prepare a list of goals for the trails program. The suggestion was made that the trails implementation plan be made a part of the budget process. With regard to the City Attorney's budget, Council recommended that weekly totals be provided and that staff should determine if it was possible to have a breakdown of this expense by department. Recreation & Parks Department was the next area of consideration and in particular whether the three positions presently vacant should be kept vacant or if one of those positions should be filled. A suggestion was proffered to place the Public Art program in the Environmental Services Department. -2- DECEMBER 15, 1990 A good deal of discussion then centered on Recreation & Parks programs and whether they are run on a no cost basis to the city or if there is indeed a cost. Apropos of costs and fees, Mr. Bussey reported that he was planning on having a presentation to the subcommittee by a firm that conducts cost studies to determine the true costs of various city programs. Such a study would establish standards and procedures for implementing fees. Discussion resumed regarding the three vacant positions in the Recreation and Parks Department: if all three positions should be kept vacant or only the two recommended by staff. Councilman Hinchliffe moved, seconded by Councilwoman Bacharach not to make a change in the staff recommendation. The motion carried on the following roll call vote: AYES: HINCHLIFFE, BACHARACH AND MAYOR HUGHES NOES: RYAN AND McTAGGART Environmental Services budget discussion began with clarification that weekend code enforcement would not be eliminated but rather that person would now be responsible for additional activities otherwise handled by planning personnel. Costs associated with the administration of Proposition M was the next subject to be discussed, particularly the legal fees and if reduction in those costs could be anticipated in the near future. It was the consensus that staff would review the Proposition M fees charged to determine whether adequate City Attorney costs were built into the fees. The Public Works budget was reviewed next and Council suggested that staff review this budget specifically for the "level of effort" cost in the area of administering the department. In discussing the charges that can be made against Proposition "A" funds, it was the consensus that staff should investigate the limit of charges that can be made to that account. RECESS & At 10:40 A.M. the Mayor RECONVENE declared a recess. At 10:55 the meeting reconvened. The Summary of Operating transfers to the General Fund was the next area of discussion and Mr. Rohloff reported that the total amount proposed to be transferred was $1,150,000. In a discussion of CIPs, Council inquired if this would be the time for the City to work with the School District to -3- DECEMBER 15, 1990 improve Silver Spur considering the impact that will result from the anticipated increase in students at Rolling Hills High School. Relevant to that expense, the suggestion was made that perhaps some trade-off could be made in the purchase price of the Portuguese Bend property for the anticipated improvements to Silver Spur. An additional suggestion was made to set up a liaison with the School District to discuss the traffic impact of the increased student population at Rolling Hills High School. The use of Crest Road versus Palos Verdes Drive South for school traffic was also broached with the suggestion being made that this should be strongly pursued. Council next discussed the desirability of having the preliminary designs for Barkentine & Deadman's Canyon "on the shelf" in the event of availability of Federal funding. Staff pointed out that part of the Deadman's Canyon improvement would be funded in part by the Kajima development, however, the inquiry was made whether the Flood Control District could be asked to fund these drainage projects or their design. It was the consensus that staff would explore sources of funding for these projects. A brief discussion followed regarding the street repairs in the Del Cerro area and what level of repair was necessary. It was the consensus that staff would look into this matter. The funds loaned to the Redevelopment Agency were the next area of discussion: if the money loaned to Abalone Cove will be paid back to the City when the $10 million comes in from the County; what the recoverable indebtedness from the agency would be; if funds spent on Abalone Cove are eligible for repayment in the short term. It was the consensus that staff should determine how much the City will recover after issuance of the bonds. With regard to Portuguese Bend, Council discussed if the City should re-evaluate its Federal strategy; if the landslide subcommittee (Hughes/McTaggart) should re-assess such activity to see if the City could meet the matching Federal funds criteria. During discussion of the General Fund Revenues, the issue of the County's booking fees arose and staff was directed to determine how much these fees would be and the annual number of bookings for the City. Staff was also instructed to find out what the California Contract Cities is doing regarding this matter. Councilwoman Bacharach moved, seconded by Councilman Hinchliffe to take action on this budget at this meeting. The motion carried on a three-two vote with Councilmen Ryan and McTaggart voting in opposition. Additional discussion -4- DECEMBER 15, 1990 then ensued on whether this budget resolution should be adopted at this meeting or the regular meeting scheduled for Tuesday, December 18, 1990. RESOLUTION NO. 90-90 OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AMENDING RESOLUTION NO. 90-53, THE BUDGET APPROPRIATION FOR FISCAL YEAR 1990-91 (AMENDMENT D) was presented by title and adopted on motion of Councilwoman Bacharach, seconded by Councilman Hinchliffe. The motion carried on the following roll call vote: AYES: HINCHLIFFE, BACHARACH & MAYOR HUGHES NOES: McTAGGART & RYAN ADJOURNMENT: At 12:11 P.M. the meeting adjourned on motion of Councilmember Hinchliffe and carried. ATTEST: 121590BI MAYO -5- DECEMBER 15, 1990