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CC MINS 19910528 ADJM I N U T E S RANCHO PALOS VERDES CITY COUNCIL ADJOURNED REGULAR MEETING MAY 28, 1991 The meeting was called to order at 7:00 P. M. by Mayor Hinchliffe at the City Hall Meeting Room, notice having been given with affidavit thereto on file. Roll call was answered as follows: PRESENT: BACHARACH, McTAGGART, HUGHES, RYAN, AND MAYOR HINCHLIFFE Also present were City Manager Bussey, Deputy City Manager Mark Rohloff, City Clerk Jo Purcell, Director of Environmental Services Robert Benard, Public Works Director George Wentz, and Recreation & Parks. Director Mary Thomas. REVIEW OF PRELIMINARY BUDGET - FISCAL YEAR 1991 -92 (602) City Manager Bussey reviewed the mid -year budget preparation and amendment for 1990 -91 and described the changes to that budget to provide for a balanced budget at year -end. He reported an ending balance of approximately $650,000 and that all departments were well within or below budget. With regard to the proposed budget for 1991 -92, he explained the assumptions considered when preparing this budget: the effect of issuance of the bonds by the County of Los Angeles vis -a -vis the Horan Settlement and how that would result in the City being paid back $400,000 by the Redevelopment Agency; the effect of the State not returning the property tax to low property tax cities; and, how the budget was balanced by taking from the various funds and transferring to the General Fund. Detailing the reduction in certain revenue sources because of the downturn in the economy coupled with the reduction resulting from the decreased census figures, Mr. Bussey reported that major impacts on this proposed budget were the increases in the Sheriff's budget and insurance costs. Council then proceeded to discuss and request clarification of the May 28, 1991 staff memorandum, the policy issues inherent in the recommended budget and, where necessary, gave direction to staff for additional information and implementation. Miscellaneous Financial Policies: inclusion of contingency fund; creation of equipment and benefit fund; employee general salary increase at 3 %; and, travel policy. It was the consensus that the Council travel budget would be reduced to $15,000; each Councilmember would have $3,000 which, upon'agreement, could be transferred from one member to another. Revenue: Spreading of the overhead costs to non - general fund accounts; retention of a consultant to undertake comprehensive review of City fees; and, increase in the transient occupancy tax. - Council requested clarification of the overhead calculations and determination of whether an election was required to increase the transient occupancy tax; consider structuring tax to apply to hotels /motels over 100 rooms. General Government: Consideration of eliminating City grants to outside agencies; and, merging the Cable TV fund with the General Fund. - Staff was requested to advise outside agencies that they may be required to show how much of their budget the City's contribution "represents; that staff should prepare an article for the next NEWSLETTER explaining that the City is preempted from regulating the increases in cable rates. Public Safety: Elimination of Student and the Law Program; the Western Avenue Foot Patrol by the Sheriff and reduction of Neighborhood Watch funding. Determine if City's elimination of funding will reduce the number of Student & the Law classes and find out if the City of Palos Verdes Estates will participate in funding this program; send letter to the Chamber and Merchants Association to determine if they feel the Western Ave. Foot Patrol is a worthwhile program and if they are willing to fund. Public Works: Creation of 1972 Act Lighting District for 199293 to rl and $750 000; budgeting for initial with underground utility districts; cost of a full -time coordinator for management. Landscaping & aise between $500,000 work in connection and sharing in the solid waste City Council -2 May 28, 1991 Consider using recycling funds for start -up of district; prepare policy regarding work on special districts after adoption of budget. RECESS AND RECONVENE At 9:14 P.M. the Mayor declared a recess. At 9:20 the meeting reconvened. Council resumed discussion of alternative sources of revenue and requested that staff prepare a timeline on how a parcel tax and a 1972 Act Landscaping tax could be scheduled for the 1992 -93 fiscal year; directed that trash pick -up at parks be conducted so that weekends were included in a five -day pick -up schedule. Recreation and Parks: Elimination of the Public Art Administrative Analyst position; elimination of the administrative analyst position for the trails program; permitting advertising in the recreation brochure as a means to partially offset costs of production; elimination of the Abalone Cove Beach winter lifeguard position; increasing the general recreation class fees by $1 per person per class; increasing the facility use fee by 20a; and, increasing the REACH Program fees by 0 11 %. Keep one of the Administrative Analyst positions; determine if intra- county travel in the REACHProgram can be funded by Proposition "A!' funds. Environmental Services: Elimination of the Planning Administrator position. Fill the Planning Administrator position through attrition. Capital Improvements: Use of the Utility User Tax to support the certain funds: General Fund - $375,000; Gas Tax Fund - $271,000; and Traffic Safety fund - $120,0000 Use of the utility tax for improvements to Granvia Altamira /Hawthorne, Palos Verdes Drive South; use of the Environmental Excise Tax to support General Fund Park maintenance; and; use of the Quimby Act funding for park rehabilitation projects. Consider hiring City staff for Transit Administrator after completion of the Long Range Transit Study. City Council -3- May 28, 1991 It was the consensus that the next budget meeting would be held on Saturday, June 1st at 9:00 A.M. and that discussion would be limited to only those line items that Council had concerns.about. ADJOURNMENT: At 10:55 P.M. the meeting adjourned to 9:00 A.M. on Saturday, June 1. Motion made by Councilwoman Bacharach, Seconded by Councilman McTaggart and carried. ATTEST: CITY CLE City Council -4- May 28, 1991