CITY OF LA HABRA HEIGHTS
MINUTES OF A REGULAR MEETING OF
THE LA HABRA HEIGHTS CITY COUNCIL
JUNE 9, 2005
The City Council finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the local agency in the litigation.
á EXISTING LITIGATION
Snell v. Sinjem, et al.
á PERSONNEL
PUBLIC EMPLOYEE PERFORMANCE EVALUATION
City Manager
1. CALL MEETING TO ORDER
Mayor Douglas called to order the Regular Meeting of the La Habra Heights City Council at 7:35 P.M. June 9, 2005 in the Multi Purpose Room at 1245 Hacienda Road.
Mayor Douglas asked City Attorney Levin if she had anything to report.
City Attorney Levin answered that there was nothing to report from the Closed Session.
2. ROLL CALL
Members present: Mayor Douglas, Mayor Pro Tem Millsap, Councilmembers Bergman, Carroll and Klein. Also present: City Manager Hendrickson, City Attorney Levin, Administrative Accountant Vernon, Fire Chief Nielsen, and Sheriff Lieutenant Mike Claus.
3. FLAG SALUTE
The flag salute was led by Kathy Sauble.
City Attorney Levin commented that the Closed Session was not completed before the meeting started and will continue at the end of the meeting.
4. PRESENTATIONS
á Appreciation Presentation to Les Williams, Public Works Committee.
Mayor Douglas presented a commendation from the City and noted that Les Williams was head of the Public Works Committee which mapped our 42 miles of roads and inspected them to see what was needed and planned repairs in the most economical way that was practical. Mayor Douglas read the commendation for Les Williams service to the City from 2001-2005. He has served with his time, dedication and commitment to La Habra Heights, showing the spirit of volunteerism that makes this City unique.
Les Williams thanked the present City Council and past ones that he has worked with for supporting the Committee. He stated that the infrastructure of the City is very important. He also thanked the members of the Committee that worked with him. He stated that they worked very hard.
á Appreciation Presentation to Parks & Recreation Commissioners Kenn Hughes, Laura McAdams, Kathy Sauble, Teena Uyeno and Adrian Vecchione.
Laura McAdams was not present.
Mayor Douglas stated that this group along with Laura McAdams put together the Avocado Festival. They planned events to foster Community Spirit and make this City unique. He read the commendation from the City that applied to all of the members. It commended their conscientious dedication in dealing with complex issues involved in the Park programs and events. They have donated numerous hours and enormous effort to serve the Community and are much appreciated.
á Kathy Sauble, Emergency Preparedness Chairperson, will report on matters pertaining to the Committee efforts in Emergency Preparedness.
Kathy Sauble, Emergency Preparedness Chairperson reported the CountyÕs theme for June is ÒHave a Safe TripÓ. Ms. Sauble stated that there are tips on how to Plan a Safe Trip, How to Pack, Ideas for the Airport, Train Station, Bus Station or Seaport. There are also ideas on How to Protect the Home while away. They also suggest if taking gifts, do not wrap them until arrival at your destination.
Ms. Sauble also reminded everyone that if it looks like someone is not at home you might check on their welfare. She noted that all of this information will be available at City Hall. Ms. Sauble thanked those working in her Committee.
Alan Clyde, Sierra Vista Drive, representing the La Habra Vital Community Task Force. thanked Mayor Douglas for attending their meeting concerning trails and for contributing what he did at the meeting. He read a letter to the editor from the Thursday May 26, 2005 Star Progress. This gives information of what the meeting was about. The letter noted who was at the meeting and what they spoke about.
Laura Orchanian, Senior Management Analyst, reminded everyone of the Household Hazardous Waste Roundup at The Park on Saturday July 9, 2005 from 9:00 A.M. to 2:00 P.M. She stated that it will be for household hazardous waste and e-waste.
Ms. Orchanian also noted the Clean Up Day on Saturday June 16, 2005 from 8:00 A.M. to 12:00 Noon. This is sponsored by Haul-Away-Rubbish. They will accept bulky items and this time they will take e-waste.
Janice Slattery, Sharpless Drive, explained that they are reviving Garden Harvest where residents may sell their produce, flowers, fruit, eggs, nuts, plants or honey. She noted that they must be residents of La Habra Heights and they cannot sell anything that has been processed. The Garden Harvest will be on each date of Music in the Park from 4:00 P.M. to 6:00 P.M. She noted that anything needed to take part in this Garden Harvest will be provided even bags to put the produce into for people who buy. The only thing we ask of those selling is that they donate $2 at the end of the session to help pay for what has been provided. Janice stated that they will also provide ÒgleaningÓ which means that we will send some people out to harvest the items that you want help with, and they will either get half of the money or they will give you half of the produce and will sell the other half for you. Anything left over will go to some charity. She stated that it would continue through this summer preceding Music in the Park.
Norm Zezula mentioned a Special City Council Meeting that was held with LA County Supervisor Knabe to discuss several important issues at MimiÕs CafŽ on May 16, 2005. There was nobody from the Public at the meeting. Mr. Zezula noted that the City Manager reported that the Meeting was noticed, but it was flawed and did not show the date. The Meeting also was not video taped as is City Policy and was not in a place where it could be taped. Mr. Zezula noted that the City Manager now recommends that this apparent Brown Act violation be cured by allowing time tonight for Public Comment on the matters discussed at the original meeting. How can people make public comment on a two-page summary of a 1-1/2 hour meeting. Mr. Zezula noted that minutes often contain mistakes and do not consider as important the same things he considers important. That is why he depends on the videotape of meetings. He also stated that the main reason for the meeting was to discuss these issues with Supervisor Knabe. The meeting cannot be redone without him being there to hear their comments. Not having the Public with their comments would affect the comments from the Council and Supervisor Knabe. Placing the Item near the end of a long meeting will also discourage Public input. Mr. Zezula stated that there was no conspiracy. The Council was also upset about this matter. They depended on the City Manager.
5. APPROVAL OF WARRANTS
City Manager Hendrickson commented that there is one more warrant that isnÕt on the list as the check was not ready, but it has been cut for the City Attorney for work done in April, not May. The check is for $11,781.76, bringing the total to $198,129.44. If you wish to add it, you need to make the motion along with approval of the Warrants. The check number is 043019.
Mayor Douglas asked if there was any objection to adding this check to the Warrants.
There was no objection.
Mayor Douglas asked what Persico Planning Partnership is.
The City Manager stated that we needed a report in a very short time on the Martin case on Reposado. Since our Community Development Director was ill we called in Mark Persico. He had some idea of our procedures as he had done some work on 707 Dorothea.
Mayor Douglas offered a motion to approve the Warrants for May 2005 with the addition of check number 043019 to the City Attorney in the amount of $11,781.76 for a total amount of $563,029.78. The motion was seconded by Councilmember Bergman and approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
5. TREASURERÕS REPORT – APRIL 30, 2005
Bank of America Business Checking Account
Petty Cash Operations
Councilmember Klein offered a motion to receive and file the April 30, 2005 TreasurerÕs Report as presented. The motion was seconded by Mayor Douglas and approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
7. APPROVAL OF MINUTES Minutes of a Regular Meeting of the City Council of May 12, 2005.
Councilmember Carroll noted that there is a correction on the last page under COUNCIL DELEGATE REPORTS, second line, change ÒKinleyÓ to ÒFinleyÓ.
Mayor Douglas noted that on page 10, fourth paragraph from the bottom, change ÒCommissionerÓ to ÒCouncilmemberÓ.
Councilmember Carroll offered a motion to approve the May 12, 2005 City Council Minutes as amended. The motion was seconded by Mayor Pro Tem Millsap and approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
Mayor Douglas offered a motion to move Item twelve, (12) to the CONSENT CALENDAR. The motion was seconded by Councilmember Carroll and approved as follows:
NOES: None
ABSENT: None
8. It is recommended that the Consent Calendar be acted upon by motion of the City Council unless separate discussion and /or action is requested by a Council Member or a member of the audience.
8.a. HEIGHTS CHRISTIAN SCHOOL MONTHLY REPORT
May 2005 Status Report for Heights Christian School.
12. AGREEMENT FOR EXCHANGE OF PROPOSITION A FUNDS
Resolution 05-13 to approve agreement with the City of Whittier for exchange of Proposition A funds for General funds at a $.70 per dollar exchange rate.
City Attorney Levin stated that this approval would be an approval of the Consent Calendar.
Mayor Douglas offered a motion to approve the Consent Calendar. The motion was seconded by Councilmember Carroll and approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
NEW BUSINESS
City Manager Hendrickson suggested that Item 14.a. be moved up into the Item 9 space as there are several residents waiting to speak on this.
The Council agreed to this move.
14.a. APPOINTMENT OF VOTING AND ALTERNATE MEMBERS TO THE PARKS AND RECREATION COMMISSION; AND THE APPOINTMENT OF A CHAIRPERSON.
City Council shall select voting members and alternates and appoint a Chairperson for the Parks and Recreation Commission. Appointments to be made from those interviewed at a Special Council Meeting of June 2, 2005.
City Manager Hendrickson reported that at the Special Meeting on June 2, 2005 the Council interviewed the applicants for the Parks and Recreation Commission. They interviewed five applicants. Two applicants could not make the interviews. He stated that in the meeting the Council suggested that we defer to this meeting to name those five as voting members and the other two as alternates. The Council will also name the Chairperson of the Commission. We also discussed that the Commission would name the Vice-Chairperson.
Mayor Douglas noted that they had a consensus that the five at the interviews would be the voting members and the other two would be the alternates. We also agreed that we would accept Carol Engelhardt as the Chairperson for one year and that the City Manager would discuss with the other appointees staggered terms of one and two years so the terms would overlap.
Mayor Douglas offered a motion to appoint Carol Engelhardt, Crystal Myers, Sandy Dykier, Mariellen Ross and Alan Boval as the five voting members of the Parks and Recreation Commission with Carol Engelhardt as Chairperson and Davida Pearson and Roland Vom Dorp as the two alternates. The motion was seconded by Councilmember Carroll and approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
14.b. APPROVE VIDEOTAPING AND AIRING OF PARKS AND RECREATION MEETINGS
Discuss and decide whether to not only videotape the Parks and Recreation meetings, but to also show them on cable as is now done with City Council and Planning Commission meetings.
City Manager Hendrickson commented that it is up to the Council to decide policy and whether they should broadcast the Parks and Recreation Commission Meetings for the public to see. He stated that from the comments of the appointees, they thought it would be good. At present we videotape those meetings but do not broadcast them. He stated that he had talked to Joe Geissinger and he said it would be possible to broadcast them like the rest of the meetings and make an archive copy for the public.
Councilmember Klein asked if there is a law as to how long the City is required to keep the archive tapes.
City Attorney Levin explained that as long as you maintain the tapes they are public records and they must be available to the public. The next thing is that you have a record retention policy and the tapes qualify as records and so you keep them on whatever is specified in your schedule and mentioned in your record retention policy. You can amend your policy to destroy any records.
Councilmember Klein offered a motion to try broadcasting the Parks and Recreation Commission Meetings for three months and see what the response is and then decide from the response whether to continue and retain the tapes for the length of time specified in the record retention policy. The motion was seconded by Councilmember Carroll and approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
Mayor Douglas stated that after three months the Council would expect to hear from the City Manager whether the Broadcasting of the Parks and Recreation Commission would continue and let us know what the policy on record retention is.
14. REQUEST TO CO-SPONSOR ÒGARDEN HARVESTÓ EVENTS
City Manager Hendrickson reported that Ms. Slattery approached him to ask if the Garden Harvest program could be co-sponsored by the City. She already made her presentation about the Garden Harvest this evening. It will be between 4:00 P.M. and 6:00 P.M. preceding Music in the Park. There would be no processed food that could possibly create a problem. Since we require event insurance, this would be a hardship for the ones putting together the Garden Harvest project. If the Garden Harvest is co-sponsored by the City it will fall under the City umbrella for insurance. Mr. Hendrickson stated that total fiscal impact is uncertain at this time, although there could always be a financial impact arise from legal actions, he stated that he did not see much chance for liability from this event.
Mr. Hendrickson noted that ordinarily this recommendation would come from the Parks and Recreation Commission, however the lack of a quorum in the Commission has put a rush on the sponsors of the Garden Harvest. The first event would be scheduled for June 22nd. It seems to be a worthwhile endeavor that will involve the whole community. He noted that the Council would still have to approve co-sponsoring any event. He stated that they might have to have eggs refrigerated before the event. He was not sure. He suggested that the Council seriously consider this request.
Mayor Douglas noted that the City Managers report mentions that the City should have the ability to set or approve rules governing the event. He asked if there is a written set of rules that our JPIA insurance approves of.
Mr. Hendrickson answered in the affirmative. He explained that the rules for the Avocado Festival could be adapted to suit the Garden Harvest event.
Councilmember Carroll asked for confirmation from Janice Slattery that the $2.00 donation was just to cover the cost of paying for the items needed to start the event, and then the donation would stop.
Ms. Slattery answered that the sponsors for this event spent their own money for the tables and whatever else was needed to provide for Community participation in the event. If the $2.00 donation were continued it would be to purchase more needed items or replace something.
Councilmember Bergman stated that as long as the JPIA insurance agrees he felt it is a good request to co-sponsor.
Councilmember Klein asked the City Attorney if there is anything about this that we should be aware of. He also stated that the Music in the Park event has to reserve the Park for that event and there would need to be coordination with them. He stated that he was not sure he wanted to get the City involved in unknown responsibilities of this event. He was concerned about any type of liability that could possibly happen. Mr. Klein stated that the La Habra Heights Improvement Association has the Park reserved for the Music in the Park event and he would want to be sure there is not any issue with them to have the Garden Harvest as a Community event. He noted that he would prefer finding some other way to help the project move on without connecting it to the City.
City Attorney Levin explained that the options are:
1, You can provide no assistance.
2. You can pay for the cost of insurance and maintain distance from the event.
3. You can co-sponsor the event, which does not mean you will run the event in any way.
4. You could make an agreement that the City would run the event.
You always have the possibility that the City could be sued. The City should not move forward without confirming with JPIA that the event is covered.
Mr. Hendrickson explained that we insist that people have insurance. We shift a lot of the risk from us to them when they have an event. We could always have the possibility of being included in liability but the event sponsor has the greatest part of the risk. When people come and use the park for general purposes, the risk is on us.
Mayor Pro Tem Millsap asked if the Music in the Park insurance covers certain days and times. She asked if Music in the Park is giving Garden Harvest a slot of their time.
Ms. Slattery explained that she had only thanked them for allowing us to be on the same day. They are not co-sponsoring us in any way.
Mayor Pro Tem Millsap asked that they find out what time frame Music in the Park is covered by their insurance, and if there is any overlap that could cover the Garden Harvest. It is possible they start setting up earlier and are covered for that time period.
Mr. Hendrickson stated that he could check that out. He stated that he thought they were covered for the ÒeventÓ and that would not cover part of another event. He stated that it was his understanding that the LHHIA did not object to the Garden Harvest being just before the Music in the Park.
Councilmember Klein noted that they should have some assurance of that.
Councilmember Carroll asked if there was some difference between co-sponsoring and waiving the insurance.
Mr. Hendrickson stated that it couldnÕt be waived.
City Attorney Levin commented that if you waived the insurance and did not co-sponsor the event she was not sure there would be any insurance at all. She would not recommend that.
Mayor Douglas asked if there was some way to evaluate the risk factor involved in the different options of how the City could handle this.
Councilmember Klein stated that he would like to see this go to the Parks and Recreation Commission and have them take a look at it. He stated that he would like to have the City pick up the cost for two or three months to encourage this type of Community event and allow time for Parks and Recreation to take a look at it and make suggestions. He stated that he would also like to see something in writing from LHHIA saying that they have no problem with this and will not consider it an infringement.
Mayor Douglas stated that he would like to know if we pay the insurance for three or four months would that make us more responsible than having them get their own insurance.
City Attorney Levin stated that she did not think funding them the money for the insurance creates any additional liability for the City. The closer the City comes to running the event the greater the chances that the City would be held liable for the results. She stated that the two ends of the spectrum are the City issuing a permit for someone else to hold an event and the City holding an event planned and run by the City Staff. In between there is a sort of unknown continuum.
Councilmember Carroll asked how much the cost for the three months of insurance would be.
City Manager Hendrickson estimated that it would be about $1,000. That would be their year. It comes out to about $98 per event and there are about 10 events.
Councilmember Klein stated that he did not mean to go for ten events. He really meant three or four events and find out what the Parks and Recreation Commission recommends.
City Attorney Levin asked if anyone had investigated the possibility of a combined insurance policy with the Music in the Park program where each of the groups pays their share of it. It might be less expensive.
Mr. Hendrickson stated that the City made a donation of $1,000 to LHHIA for Music in the Park.
Councilmember Klein suggested that they might want to cover the Garden Harvest with their insurance.
City Manager Hendrickson explained that he had not looked into all of the possibilities because of the shortage of time when this came up. He stated that donating some money to the Garden Harvest to get it started is not a bad idea.
City Attorney Levin clarified that she had not meant that they should put the whole burden of the insurance on LHHIA, but that if we could add the Garden Harvest event insurance to the Music in the Park insurance it might not cost $1,000.
Councilmember Bergman asked if we are not paying double when we are already paying for insurance and then we donate money to Garden Harvest so they can buy insurance.
City Manager Hendrickson stated that is correct.
Councilmember Bergman stated that he would be more concerned if we were racing dirt bikes. He suggested that we talk to JPIA and see what they have to say about this.
Councilmember Klein stated that he was not sure he would like the City to co-sponsor this event and would like it to go through the Parks and Recreation Commission.
Mayor Pro Tem Millsap asked that Ms. Slattery confirm that they are not having any processed food and do not need Health Department permits.
Ms. Slattery stated that they are not having any processed food because they did not want any problems that might come with that and also they do not want to compete with what Music in the Park will be selling. She commented that they have already sent in the Health Department paperwork needed.
Mayor Pro Tem Millsap noted that when processed food is sold it is quite costly to get the Health Department Permit and is a big responsibility.
Councilmember Klein offered a motion to cover the insurance cost for Garden Harvest until the July 14 Council Meeting and come back in July with some kind of a recommendation from the Parks and Recreation Commission and the cost (less than $500). The motion was seconded by Councilmember Carroll and approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
Mayor Douglas noted that it should be on the July Parks and Recreation Commission Agenda, but as they may not have time to investigate the options, he asked the City Manager to give them the information so they can make a recommendation to the City Council.
Councilmember Carroll asked that Ms. Slattery check with the LHHIA as suggested.
Mayor Douglas stated that they would now consider Item Nine.
PUBLIC HEARINGS
9. APPROPRIATION ADJUSTMENT FOR FISCAL YEAR 2004-05 BUDGET
City Manager Hendrickson reported that amendments were necessary in the FY 2004-05 Budget due to unexpected expenditures basically in storm damage. He stated that we have increased the General Fund expenditures from $2,017,422 to $2,137,264. Our General Fund surplus is increased from approximately $23,000 to a surplus of $434,000. The amounts of the amended expenditures do not exceed the expected revenues. We are also within the Gann limit. The total Gann limit is $2,428,543 in the General Fund.
Budget Officer Vernon explained that for FY 2004-05 there will be a change in Revenues and the Expenditures. The Revenues have increased more than the Expenditures. Instead of having a surplus of $23,000 the surplus will be around $434,000. Mr. Vernon explained that the reasons the Revenues in the General Fund increased are that we received our full VLF plus a cost of living increase for the last three years. We budgeted conservatively, $235,000 and received $392,000. Second, we received additional revenues from increased building activity. We had budgeted conservatively in this category also.
Mr. Hendrickson commented that this is the other category where the expenses grew due to the increased activity and the revenue also increased.
Budget Officer Vernon commented that the total Revenues exceeded our Budget by around $500,000. Our Expenditures increased by around $120,000.
Councilmember Carroll noted that during the last election the issue came up several times that we might be charging too much for our building permits and fees. He requested that Staff come back soon with a detailed analysis examining FY 2004-05 in terms of Building and Planning fees paid in comparison with the actual costs.
Mr. Hendrickson stated that they are beginning to keep closer track of our cost.
Councilmember Carroll stated that he would like a report with some detail for the 2004-05 year.
Mayor Pro Tem Millsap noted that the Memo states that we adopted the Budget on June 24 and the Resolution says June 26. This needs to be corrected. The cover Memo states the overall Fund Balance as of June 30, 2004 and it should be 2005. The Resolution is correct.
RESOLUTION NO. 05-16 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA HEIGHTS TO AMEND THE OPERATING AND CAPITAL BUDGET FOR SAID CITY FOR THE FISCAL YEAR COMMENCING JULY 1, 2004, AND ENDING JUNE 30, 2005, AND APPROPRIATING FUNDS FOR PURPOSES THEREIN SET FORTH.
Councilmember Carroll offered a motion to approve the amendments to the FY 2004-05 Budget including the General Fund and adopt Resolution 05-16. The motion was seconded by Councilmember Bergman and was approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
10. CONSIDER AND APPROVE FISCAL YEAR 2005/06 BUDGET
Mayor Douglas asked someone from Staff to look over the Resolution numbers for the next two Items as in his packet they seemed to be the same.
City Manager Hendrickson reported that the budget for the General Fund expenditures is anticipated at $2,312,772, a slight increase from the prior year budget. He stated that Staff is asking for two positions to be added. If that is not approved, the figure will be reduced. Other funds are in the Budget concerning the storm damage repair. We do expect reimbursement from FEMA and Federal Highway Authority. There is also a transfer of $1,500,000 from the General Fund Reserve to the Capital Improvement Fund toward a new Fire Station/City Hall complex.
Mr. Hendrickson stated that he has provided the Council with information on the amortization schedule for future purchases of fire equipment. We do show a transfer of $100,000 into the equipment fund. You were also provided with a job description for the maintenance person. We have also worked on the cost analysis between the requested maintenance worker and the contractor we presently use for small jobs.
Mr. Hendrickson stated that they added $2,000 in the Budget to buy 40 padded chairs.
Mayor Pro Tem Millsap asked for confirmation that the expenditure items on page three of the Memorandum for Item 9 goes into the new Budget.
Mr. Hendrickson answered in the affirmative that there is $30,000 for the aerial photography, $20,000 for bond election cost and $2,000 for the chairs in the new budget.
Mayor Pro Tem Millsap asked if on the Revenue side, is this an increase.
Budget Officer Vernon answered affirmatively. He stated that the Property Tax figures for 2005-06 are coming in higher than expected at $21,000. We received the full VLF and expect to get the full amount next year, that is $52,000. We did reduce franchise fees by $20,000 because we received it in the 2004-05 year and it is a correction.
Councilmember Carroll commented that Budget Officer Vernon has passed his bar exam.
Mr. Vernon thanked everyone for being behind him in this.
Mayor Pro Tem Millsap asked if the $30,000 for the aerial photography is for the orthographic photography.
Mr. Vernon stated that he did have that understanding.
City Manager Hendrickson explained that Engineering, Public Works, Fire Department and the Mayor who is an Engineer are all strong supporters of the orthographic photography and there should be some real value in this. We can use the information on a disc or a CD and on our GIS system. We will still use the GIS system.
Councilmember Carroll asked how this could help identify a septic tank system.
Mayor Douglas stated that one of the biggest problems now is that you canÕt precisely determine where one parcel ends and another one begins. It will help as far as contour of the land goes and we will be able to overlay with the County Assessors maps.
Mayor Pro Tem Millsap asked if a property owner could get a copy of their property from the orthographic photography and noted that this one time should last for approximately ten years.
Mr. Hendrickson seemed to think it would be possible to make a copy for a charge.
Councilmember Carroll commented that having the charge for the orthographic photography in the budget does not mean that we are going to have it done.
Mr. Hendrickson stated that he would not write a check for it without bringing it back to the Council for further discussion.
Budget Officer Vernon started his presentation on FY 2005-06.
GENERAL FUND
Revenues
á $2,484,000 – A 3% decrease.
á $172,000 surplus is expected.
á Property taxes should increase by 4%.
á The building activity should decrease by 15%, although there is a chance that it will remain stable. It depends on the interest rates.
á We expect to receive the full LVF
GENERAL FUND
Expenditures/Transfers
á Total expenditures expected are $$2,313,000, a 9% increase.
á This includes an increase in two Staff members, a Planning Associate and a Maintenance Worker.
á We propose a $1,500,000 transfer from the General Fund Surplus Fund to the Capital Improvement Fund for Facility Upgrades. This will take further discussion from the Council as to what will be done in this area.
GENERAL FUND BALANCE/RESERVES
á We expect the Balance/Reserves to be $1,658,000 after the transfer of $1.5 million to the Capital Improvement Fund.
á The Reserves are about 72% of the Annual Expenses. This is considered healthy in City Government.
FIRE FUND (INCLUDING THE PARAMEDIC DEPARTMENT)
Revenues
á Our Revenues should total about $1,133,000, a 14% increase.
á This is mostly an increase of Fire Tax due to increase in lot and house sizes.
á We also expect Federal Grant Revenues for Fire Equipment.
á We also expect an increase in Wild Fire Contract Revenues.
FIRE FUND (INCLUDING THE PARAMEDIC DEPARTMENT)
Expenditures/Transfers
á Expenses should total $1,182,000, a 17% increase mainly due to Strike Team wages and Grant Fund and equipment. This is difficult to predict. If we do spend more money here we will have additional revenue.
á Included in this Budget will be $164,000 for Paramedic Department expenses. This is net of our expected Revenues.
á We would like to transfer $100,000 to the Fire Equipment Replacement Fund for when we need to replace Engines.
Fire Fund Balance/Reserves
á Fund Balance or Reserves of $726,000.
á Reserves of 62% of annual expenditures.
OTHER RESTRICTED FUNDS
Revenues/Expenditures
á Gas Tax – receive $139,000 – spend $132,000.
á Prop A – receive $92,500 – spend $86,000.
á Prop C – receive $83,500 – spend $152,000.
á Storm Damage – receive/spend $1 million.
á Supplemental Law – receive $110,000 – spend $110,000.
á Park Grant Project – receive $210,000 – spend $219,000.
CAPITAL PROJECTS FUND – ROADS
Expenditures
á Ongoing Street/Road maintenance for District #2 in the amount of $240,000.
á Ongoing Street/Road maintenance for District #3 in the amount of $240,000.
á These are estimates the City will spend. This does not include FEMA or Federal Highway money.
City Manager Hendrickson explained that there is money in each of these accounts to cover what is needed. This is shown on Budget pages 11 and 12. We might have to adjust the amounts as we find out the exact numbers for what we have to do this year.
Mayor Pro Tem Millsap noted that there was a difference in the Storm Damage Revenue ($970,000) and the Expenditures ($1,000,000).
Mayor Douglas asked when District #3 runs out.
City Manager Hendrickson answered that we have one more year. We will evaluate the roads to see how well they have held up on the five-year maintenance plan with the Public Works Committee and we will come back to you to make a recommendation when and if we need to go back out again. Any aid we can get we will use to spread out our Roads money. The five-year plan we have also stretches out the money we have.
Mayor Douglas commented that we do not want to let the roads go too long after the five-year plan until they are in disrepair again.
Mayor Pro Tem Millsap stated that she was of the opinion that we would have to consider this no later than August in case we have to allow for some money for some type of vote if needed.
Mr. Hendrickson stated that he did not see it needed this year. He stated that we would receive money this year.
Mayor Douglas stated that he would like Staff to look and see if we need money placed in the Budget for an election to get approval for keeping the five-year plan going, or having Public Works revise the five-year plan.
City Manager Hendrickson explained that our original evaluation was that we would not need to go back to vote this year. We are continuously evaluating that situation. He noted that he hopes to have an evaluation to the Council in July on what they will be doing on the Roads this year. He noted that for a lot of the storm damage repair we would be able to use FEMA or Federal Highway Authority funds rather than our funds. He stated that the Field Staff has signed off on $315,000 worth of repairs on all of the roads that can be identified as having storm damage.
Mayor Pro Tem Millsap asked if there has been any further information on the Hacienda Road funds.
Mr. Hendrickson answered that we have not received further word. He stated that they would have a meeting with them next week.
Ms. Millsap noted that the answer could have a bearing on what her decision would be.
Budget Officer Vernon stated that page 54 of the Budget shows the detail of FEMA funding. He noted that Local Funds would be $52,500 if the other funds we expect come through, and out of the $52,500 local funds, $43,750 should come from Prop C funds.
Mr. Vernon continued with his presentation.
CAPITAL PROJECT FUNDS – FACILITIES
Expenditures/Transfers
á $153,000 budgeted for Technical and Design work for the new or upgraded Fire Facility/City Hall.
á $1,500,000 transfer of funds from the General Fund to the Capital Improvement Fund.
á $100,000 transfer from Fire Fund to the Fire Equipment Replacement Fund.
Mr. Vernon concluded his Budget presentation.
Mayor Douglas asked what the progress was on the Government Accounting Standards Board 34 (GASB 34) tracking of assets and coming up with depreciation schedules.
Mr. Vernon explained that we currently track our fixed assets under GASB 34 and booked depreciation. We update on an ongoing basis.
Mayor Douglas agreed that we do it, but do not use it in any way in the Budget.
Mr. Vernon commented that at this time we do not. Our biggest assets are land and facilities. The Council is going to decide what to do with them. The next biggest asset is the Fire Equipment Vehicles. He stated that he prepared how much they need to set aside. In effect it uses the rate Equipment is depreciating to determine how much they need to set aside. It also accounts for inflation. He stated that he has not done this with the buildings.
Mayor Douglas asked if Cities are looking at Roads as fixed assets as well.
Mr. Vernon explained that when they set up GASB 34, there were a couple of options. They chose the less costly, starting from the last fiscal year to track all of our improvements in streets and roads. The other option was to take an inventory of our streets and roads, decide on a pavement management system, have a detailed maintenance plan of all of streets and roads and give an assessment of our streets and roads and commit a certain amount of money to maintain our roads at a certain quality level.
Mayor Douglas commented that our Engineering and Public Works has been working on that concept for the last ten years.
City Manager Hendrickson commented that there may be grants somewhere that we could tap into to create a pavement management system that would do a more complete job of what you are talking about that would be more detailed like the Fire Equipment Replacement System.
Mayor Douglas asked if on page 8 of the Memo, the summary on 75-75 – Capital Improvement Fund and 76-76 – Fire Facility Fund is correct.
Mr. Vernon answered that it is correct because at this time they are sharing the burden of cost equally. In the future it will depend on the option the Council chooses. When the decision is made, we can appropriately allocate the construction cost.
City Manager Hendrickson agreed that this was proper at this time.
Mayor Douglas noted that you have been trying this year to allocate Staff time to the Department they work on, but there are a lot of small Departments that do not have personnel costs allocated to them. Somebody from Staff is overseeing the expenditure of these funds. Why would it not be worth while to spread some more of your costs over them.
Mr. Hendrickson stated that he could spread the costs and make his look better. He stated that it still is from the General Fund.
Budget Officer Vernon explained that if it is a very small Department it costs money to figure out the cost to allocate staff time on it. If we get too detailed we lose the big picture.
Mayor Douglas stated that with Parks and Recreation Commission there must be considerable time spent on them by Staff.
Mr. Hendrickson explained that Lara Orchanian possibly spends 20% of her time there. Sometimes she is spending time on his behalf and he then does not have to spend his time there. He also explained that Parks and Recreation doesnÕt authorize expenditures, he does.
Mayor Pro Tem Millsap asked if our Budget format is standard for Cities. Do Cities ever use a format that businesses use for the Budget and financial reports.
Mr. Vernon explained that Cities use Fund Accounting and would use our format. They wouldnÕt use a private entity format. A business wants to make money and avoid taxes. In a Government type of entity our object is to provide a service and to show the cost of providing that service. We do want to have a surplus, but sometimes that does not happen. Our main focus is to provide a service and to show the cost for that service and allocate it to different departments. We do not pay taxes. He noted that GASB 34 was for the purpose of having the City plan for the replacement of large Capital Assets.
Mayor Douglas noted that a bigger City does not have as much detail in their Budget and ours is more user friendly.
Mayor Pro Tem Millsap commented that we have adjusted the FEMA amount and if we do not get that we will come back to adjust it. She stated that she would like to leave the two new positions in the Budget but not fund them. It needs to come back to us before we implement it. She stated that we still need to keep tight control on spending as we have some bigger needs coming up.
Mr. Hendrickson stated that we review an area almost every month to see that we are not being wasteful.
Mayor Douglas stated that everyone seems able to tighten up on their budget when necessary.
Mayor Pro Tem Millsap stated that if we approve the FY2005-06 Budget, the cost of the Orthographic photography, the cost of the bond election and the padded seats are in that budget.
Mayor Douglas asked what Department gets charged for the Aerial photography.
City Manager Hendrickson stated that it would be charged to General Services because it will be shared by several Departments.
Councilmember Carroll stated that he had asked for an analysis of Budget costs in FY 2004-05.
City Manager Hendrickson commented that in order to forecast you need to have knowledge of the past.
Mayor Douglas asked if they have the Resolution numbers corrected.
City Attorney Levin explained that Item 10 should be covered by Resolution No. 05-14. Item 11 will be covered by Resolution No. 05-15. She provided a new copy of 05-15.
RESOLUTION NO. 05-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA HEIGHTS ADOPTING AN OPERATING AND CAPITAL BUDGET FOR SAID CITY FOR THE FISCAL YEAR COMMENCING JULY 1, 2005, AND ENDING JUNE 30, 2006, AND APPROPRIATING FUNDS FOR PURPOSES THEREIN SET FORTH.
Councilmember Carroll offered a motion to adopt Resolution No. 05-14, which adopts the FY 2005-06 Budget. The motion was seconded by Councilmember Bergman.
Councilmember Bergman asked if the City Manager has all of the conditions the Council made clear.
Mr. Hendrickson stated that he did.
The motion was approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
11. GANN APPROPRIATION LIMIT FOR THE FISCAL YEAR 2005-06 BUDGET
City Manager Hendrickson explained that the Gann Limit changes according to the CPI Index and growth. Using those two factors there is an increase of 5.26 % that we could apply towards our Gann Limit. This is the amount that we can spend without an override of the Gann Limit. We have had an override with our Fire Fund and that is why we vote on that every four years. He stated that this year our Gann Limit for the General Fund has been increased to $2,586,449, which is well above the amount appropriated by the City Council in Item 10.
RESOLUTION NO. 05-15 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HAABRA HEIGHTS, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, EXTABLISHING THE APPROPRIATIONS LIMITS FOR FISCAL YEAR F2005-06 FOR THE CITY OF LA HABRA HEIGHTS IN ACCORDANCE WITH PROVISIONS OF DIVISION OF TITLE 1 OF THE CALIFORNIA GOVERNMENT CODE.
Councilmember Carroll offered a motion to adopt Resolution No. 05-15 approving the FY 2005-06 Gann Appropriation Limit. The motion was seconded by Mayor Douglas and approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
OLD BUSINESS
Item 12 was previously taken out of order during the Consent Calendar.
13. MEETING WITH LOS ANGELES COUNTY SUPERVISOR DON KNABE
City Manager Hendrickson stated that this was placed on the Agenda on the advice of City Attorney Levin. He explained that we held a Special Meeting with Los Angeles County Supervisor Don Knabe on Monday, May 16, 2005 at 7:30 A.M. The meeting was noticed, but it was flawed, as the date was inadvertently left off the notice. We kept notes of the meeting but did not keep a recording of the meeting. He stated that minutes of the meeting have been prepared. The public may comment at this meeting if they wish so a record can be made of their comments. Mr. Hendrickson noted that the Minutes are an accurate record of the topics discussed at the Meeting as well as the content of that discussion. No specific decisions were made at that meeting. No motions or actions by the Council were taken. The meeting was more for the exchange of information and discussion of the various items. Where appropriate, Supervisor Knabe requested his field representative, Mr. Simmons, to follow up on various items discussed.
Mr. Hendrickson commented that the meeting lasted a little less than 1-1/2 hours. It was adjourned at 9:00 A.M. The items discussed were:
á Status of the AERA Project
á Harbor Boulevard Maintenance
á CityÕs Condition after the Winter Storms
á Status of CityÕs Efforts to build new Fire Station and City Hall
á State Regulations on NPDES, Storm Water and Septic Tank Regulations
á Items that Supervisor Knabe was involved in, including Homeland Security
Mr. Hendrickson commented that he has provided Minutes for the meeting and he noted that he hopes the Council will allow time for any comments on any of those items and approve the Special City Council Meeting Minutes of May 16, 2005. He also asked that a copy of those minutes and any public comments be forwarded to Supervisor Knabe.
Mayor Douglas opened the Meeting for Public Comment.
Norm Zezula, commented that the Agenda for the Meeting lists ÒLaw Enforcement Contract ServicesÓ and ÒRHNA allocations and low/moderate housingÓ. There is no mention of these in the minutes. Was either item discussed during the Meeting? Mr. Zezula asked if the City is required to accept a quota of low income high density houses, and who pays for their construction.
Mr. Zezula read the paragraph on the miscellaneous items Supervisor Knabe is dealing with. Mr. Zezula noted that he felt due to this subject matter the Fire Chief and the Chairperson of the Emergency Preparedness Committee should have been included in the discussion. There are several Ham Radio Operators living in La Habra Heights that are connected to the Disaster Communications System (DCS). It would have been nice if they had been notified of this meeting. Mr. Zezula stated that he would have been interested in the discussion of the coordinated radio frequencies and unified bands for emergency response. He stated that he was disappointed that he did not know about the meeting.
City Manager Hendrickson stated that the item did come up under the miscellaneous item, but it was not anticipated. He also noted that the Fire Chief has had some initial discussions about bringing the County system and our system closer together.
Mayor Douglas returned the Meeting to the Council for any further discussion.
Councilmember Bergman offered a motion to approve the minutes of the May 16, 2005 Special City Council Meeting with Supervisor Knabe. The motion was seconded by Mayor Douglas and approved as follows:
AYES: Bergman, Douglas, Klein and Millsap
NOES: None
ABSTAIN: Carroll (not present at May 16 Meeting)
ABSENT: None
Item 14 was taken out of order after the Consent Calendar.
ADMINISTRATIVE REPORTS
15. CITY MANAGERÕS REPORT
City Manager Hendrickson stated that they are working on the storm related problems. We are close to taking the next step on the Hacienda Road repair. At that time we will probably close Hacienda to through traffic and allow Òresidents onlyÓ for a day or two. I have asked two weeks notice for the public. That should be within the next 30 days.
Mayor Douglas asked that we move to the Fire Chiefs report for the discussion on Community Emergency Response Team (CERT) training.
19. FIRE CHIEFÕS REPORT
Fire Chief Nielsen reported that they would have the first CERT Session on Saturday, June 18 and the next on Saturday, June 25. It will be two 10-hour days. We have 12 people signed up and the first CERT team will graduate on June 25, 2005.
Councilmember Carroll asked Fire Chief Nielsen what the costs are for the Paramedic Program and the Revenues.
Fire Chief Nielsen answered that we have not received our first payment from AMR.
City Manager Hendrickson stated that there is a delay on the payments. We should start to get payments in FY 05-06. The payments will cover incidents from January 1, 2005. We estimate that it will be between $15,000 and $20,000 and collections on our Paramedic Services approximately $10,000. We bill the medical carrier first and if they donÕt pay we bill the person the service was for. We will recover some of the cost of schooling the Paramedics to become Firefighters. This is in the agreement with Palo Verde College.
Mayor Douglas asked on Chief NielsenÕs Incident Report, what AMA, means.
Chief Nielsen noted that it should be AMR, and they were provided advice.
Mayor Douglas noted there was one fire.
Chief Nielsen explained that this was a minor fire in a tree.
Mayor Douglas asked if they were still having trouble with false fire alarms.
Chief Nielsen stated that it was not as bad as before. Homeowners and contractors are being more careful not to set the alarm off accidentally. If we have the problem again we will start a citation program.
Mayor Douglas asked how the weed abatement is going.
Chief Nielsen stated that the Fire Marshal is very active. The violations are a little higher this year. He confirmed that about half of the violations come from complaints and half from what the firemen find.
16. CITY ATTORNEYÕS REPORT
There was no report from the City Attorney.
17. COMMUNITY DEVELOPMENT DIRECTORÕS REPORT
The Community Development Director was not available.
18. CITY ENGINEERÕS REPORT
There was no representative of the City Engineer.
20. SHERIFFÕS DEPARTMENT REPORT
Lieutenant Mike Claus stated that he had no report.
21. COMMISSION/COMMITTEE REPORTS
There were no reports.
COUNCIL DELEGATE REPORTS
Councilmember Bergman commented that he attended the California Joint Powers Insurance Authority. They covered Fundamentals of local Government, Policy and the Professional Image, Councilmembers Role and Practical Guide to Public Entity Liability and we also discussed effective Council Relations.
Councilmember Carroll gave his time to Budget Officer Freddie Vernon. He noted that Freddie Vernon passed the bar exam.
Freddie Vernon thanked all of the many people who helped and encouraged him.
Mayor Douglas adjourned the Council Meeting at 10:35 P.M. to finish the Closed Session.
Mayor Douglas reconvened the Council Meeting at 11:11 P.M. He asked City Attorney Levin if there is anything to report from the Closed Session.
Ms. Levin answered that no reportable action was taken.
Councilmember Carroll reported that he attended the Contract Cities Conference. He spoke to a Councilmember from La Canada Flintridge. The City is converting from a septic tank system to sewers. There is a tremendous cost involved and he spoke of different ways they were handling this and the different funding mechanisms.
Mayor Pro Tem Millsap thanked the Parks and Recreation Commission for their hard work and the new members who applied and noted that the interviews were helpful.
Mayor Douglas commented that the City of La Habra looked at trails as an issue that people would be interested in. Mayor Anderson got together a North Orange County Trail Summit. Many people were there and much interest was shown in linking pieces of trails together.
ADJOURNMENT
Mayor Douglas adjourned the City Council Meeting at 11:16 P.M. to the next City Council Meeting on July 14, 2005.
ATTEST:
_______________________________________
CITY CLERK, JOHN F. HENDRICKSON