CITY OF LA HABRA HEIGHTS
MINUTES OF A SPECIAL MEETING OF
THE LA HABRA HEIGHTS CITY COUNCIL
JUNE 29, 2006
1. CALL MEETING TO ORDER
Mayor Millsap called the Special Council Meeting to order at 7:03 P.M.
2. ROLL CALL
STAFF PRESENT: City Attorney Sandra Levin, City Manager Ronald Bates, Consultant Marc Blodgett, Budget and Accounting Officer Freddie Vega.
3. FLAG SALUTE
Mayor Millsap led the flag salute.
4. CITY COUNCIL MINUTES – Special Meeting of February 27, 2006
Councilmember Carroll moved to approve the Minutes of Special City Council Meeting of February 27, 2006 as presented. Seconded by Mayor Millsap and approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
0:01:40
5. LHH MUNICIPAL CODE ARTICLES 1, 2, 3
RECOMMENDATION: That Council hold a public hearing, read the title of the proposed adopting ordinance, waive further reading and subject to any changes, adopt a first reading of the proposed adopting ordinance for Articles 1, 2, and 3 of the LHH Municipal Code, including the approval of a categorical exemption under CEQA. That Council also instruct staff to provide notice of a second hearing regarding Articles 1, 2 and 3 to be held at the regular meeting of July 13, 2006.
Mayor Millsap asked the City Manager if the appropriate notices of this meeting have been posted and if there has been any written communication regarding this Item.
City Manager Bates answered that the proper notices have been posted and there were no written communications received.
City Manager Bates reported that they have tried to clarify the current Code on Articles I, II, and III. We have three issues that the Council has directed us to bring back or a change of policy is involved.
1. Issue one has to do with the Parks and Recreation Commission. In the proposed Articles of the Code, the Parks and Recreation Commission is handled under an Advisory Committee and would return to Committee status.
2. Issue two would have to do with the oil and gas extraction fees. There would be an increase from $.20 to $.25 per barrel for oil and $.04 to $.05 per thousand cubic feet for the natural gas extraction fee.
The City Attorney has prepared an adopting ordinance which repeals the sections that are superceded by the new Articles 1, 2 and 3 of the Municipal Code, leaves in place the portions of 1, 2 and 3 that have not yet been superceded. Accordingly, the remaining provisions of the current Articles will be either repealed or recodified as the balance of the new code is adopted.
City Attorney Levin noted that the check list for Environmental Impact for CEQA remains about the same as Articles 1, 2 and 3 being administrative, have no environmental impact. The only thing we added on page 1, the specifics of the code sections defining the particular exemptions under CEQA law.
There were no public comments and Mayor Millsap closed the Public Hearing.
Mayor Millsap suggested any typos or grammatical errors be given to the City Attorney and in the future such errors be given to staff prior to the meeting.
Article 1
There was no discussion on Article 1.
Article 2
Mayor Pro Tem Bergman stated that he would prefer to leave the Parks and Recreation as a Commission and not a Committee.
City Manager Bates noted that under Article 2 the Parks and Recreation would be recognized as a Committee, organized as Special Advisory Committee under 2.4.30. City Manager Bates noted that he also put together a revision to that section that would restore it as it was previously and would make this new section 2.4.30, a Parks and Recreation Commission Section. Special Advisory Committees would be moved to 2.4.40.
Commissioner Carroll stated that he would like the Parks and Recreation to be a Committee so they would not have to be subject to the Brown Act and filing the 700 Form.
Mayor Millsap stated that she would be in favor of it staying as a Commission. The problems seem to have worked themselves out.
City Manager Bates explained that technically there is no difference between a Commission and a Committee. Historically a Commission has had a little more status in the minds of the community and elected officials, but they are both advisory to the Council and the City Manager.
Councilmember Douglas asked how the Planning Commission was different from the Parks and Recreation Commission.
City Attorney Levin explained that the Planning Commission has a different status due to the Municipal Code and State Law that delegates certain activities of decision making authority outside of an appeal to the Council, whereas the Parks and Recreation Commission is advisory only.
Councilmember Douglas asked if there was any cost difference in the CouncilÕs decision.
City Manager Bates answered that the impact on staff would be about the same. It might be a little easier to get volunteers for a Commission due to the status but some may hesitate to volunteer due to the 700 Form and the Brown Act.
Mayor Pro Tem Bergman moved that the new Article 2 be changed back to Parks and Recreation Commission from the new status of Committee. Mayor Millsap seconded the motion. The motion failed as follows:
AYES: Bergman and Millsap
NOES: Carroll, Douglas and Klein
ABSENT: None
Mayor Millsap commented that this motion will leave it in as Parks and Recreation Committee.
City Attorney Levin explained that it is not a Committee in the Municipal Code. Authority is given to the City Manager to establish it as a Committee and how it will be done.
City Manager Bates noted that he will contact the current Parks and Recreation Commissioners.
City Attorney Levin explained that if Articles 1, 2 and 3 are adopted tonight, that will be the first reading and the second reading will be at the Regular Council Meeting on July 13, 2006 and then the Ordinance will become effective 30 days later.
Councilmember Carroll recommended that the alternates be greater than one in number.
Ms. Levin stated that the City Manager would take this into consideration, but it could not be voted on this evening.
City Manager Bates stated that he will come back with details about the structure of the Committee later. He explained that not having these details in the Code, the Brown Act is not activated. It would be activated either by being in the Code or by the City Council.
0:26:51
The Council discussed with the Attorney the time limit on replacing a Council Member under Article 2, Page 2-6, 2.3.40 C.
The next discussion was on Page 2-9 at the top of the page, G. 3 considering the attendance of a secretary to take minutes at Planning Commission meetings and other duties. This would be filled by the Community Development Director.
Consultant Blodgett explained that all words in italics will be handled by definitions in Article 12.
The City Council discussed G. 2 as to who has the authority to excuse someone from a Planning Commission meeting. It was noted that the City Manager decides if excused.
2.4.30 A. Duties of Committees was discussed.
City Attorney Levin explained that if the Committee is appointed by the City Council it would trigger the Brown Act and if appointed by the City Manager it would not trigger the Brown Act. This gives the City Manager authority to establish a Committee.
City Attorney Levin on Page 2-10 – added to the first sentence of D. after ÒAny memberÓ, the words Òof the Legislative bodyÓ.
The Council discussed Item B. City Manager Duties on Page 2-11, Item 2, delete the words Òshall serve as the Finance Director of the City andÓ.
City Attorney Levin explained that ÒCity ClerkÓ is not defined. The City Manager acts in the capacity of the City Clerk.
On Page 2-12 B. Removal of City Manager. Why was the phrase Òby a vote of threeÓ changed to Òa quorumÓ?
It was explained the number of the quorum would change under different circumstances and the number three would not always fit.
The consensus of the Council was to change it back to ÒthreeÓ.
The Council discussed Item C. about the time limit, depending on if there was a new Councilmember elected.
The Council discussed 2.7.50 A. Procedures for Classified Employees on Page 2-14 where the City Treasurer is mentioned as a Classified Employee, whereas the City Treasurer is a volunteer and is listed under 2.7.20 as an Unclassified Service.
City Attorney Levin suggested that they take the whole sentence under A. starting with ÒExcept forÓ and ending with ÒCity ManagerÓ and move it to the preamble before the subheading A.
The Council discussed why A. only mentions the City ManagerÕs power, without mentioning any positive power?
The City Attorney explained that he would not have sole power for such as merit raises without going through the Council.
To avoid confusion on Page 2-15, City Attorney Levin agreed to make the preamble sentence under 2.8.30 Register of Demands, Item A and move the rest of the Items forward one letter, ending in H.
The Council discussed the old Item F. It was decided to leave it in but flag it as something that could be looked at later and might be clarified.
Councilmember Carroll discussed 2.8.90 Disposition of Surplus Supplies and Equipment on Page 2-18. He remarked that ÒProvided further, in no event shall the City Manager or any Department head conducting the sale, regardless of its form, be a purchaser of equipment or supplies.Ó was not carried from the old Code to the new one and he would like to see this reinserted.
City Attorney Levin suggested that they add, Ònor shall the party conducting an auction purchase any supplies or equipment sold at the auction.Ó
1:11:05
The Council next considered Article 3 – Taxes and Licenses
The Council discussed 3.3.20 Imposition of Tax on Page 3-7, questioning who sets the tax rate.
City Attorney Levin explained that it was usually set by the City, but controlled by constraints adopted by the State. You can not increase the rate without a vote of the people. We left the Code as it was.
Consultant Blodgett noted that the amounts are generally consistent with other cities.
City Manager Bates explained that Page 3-9 explains that for the average person the new tax numbers would be an increase of about 10%.
City Attorney Levin noted a correction on 3.4.30 on Page 3-9 stating the heading should read Maximum Tax Amounts. She explained that the adoption of this Code does not increase the amount of the Fire Tax. These are only the new maximum permissible rates. It would take action later to increase the amount.
The Council discussed 3.6.40 Contractors on Page 3-14 as to why licensed architects and registered civil engineers are excepted from the definition of a Contractor but still have to get a business license in our City.
City Manager Bates stated that it is assumed that they already have enough licenses, although this is a matter of policy to be decided.
City Attorney Levin stated that if the Council is interested in changing this it should be flagged and we can bring it back at a latter date and see if there is are any State Law requirements on this.
Councilmember Klein noted it would also be good to know what other cities do on this.
Councilmember Douglas asked if the list of exceptions is complete.
The Council discussed O. on Page 3-18 Blanket Bond under Resource Extraction Businesses, concerning the $500,000 for the bond.
City Attorney Levin noted that if the damage cost more that the bond, you could go after them for the full amount needed and going much higher on the bond could cause a problem now when there has not been a violation.
City Manager Bates noted that the amount of the bond should be a deterrent to not following the Codes and the bond will pay for a lot of Attorney fees to pursue litigation for much more expensive remedies.
City Attorney Levin suggested that they leave it like it is for now and come back with more information about costs for violations.
City Manager Bates informed the Council that PXP property is for sale and may have sold today.
The Council considered T. Permit Valid for One Fiscal Year and U. Permit Renewal Required Each Year. The items are different, Fiscal Year and Calendar Year. The Council consensus was that T. and U. should both be by Fiscal Year. They also asked about the different definitions of wells for permits.
City Manager Bates explained that an abandoned well and a plugged well are the same. He also noted that if there is an option he would rather have Item U. permit on a fiscal year schedule.
City Attorney Levin gave the language changes to convert Item U. to a fiscal year. Instead of Jan.1 of the year following, change to Òat the beginning of the fiscal year followingÓ and instead of the second sentence saying ÒOn or before Dec. 15 of each year,Ó change to ÒAt least 15 days prior to the end of each fiscal yearÓ.
City Manager Bates clarified that on Page 3-21 and 3-22 the Special Gas Tax Street Improvement Fund and the Air Quality Improvement Fund have to be separate funds.
City Attorney Levin explained that the Council will receive a redline version at the July 13, Regular City Council meeting of the typos and language changes made tonight. She noted that the information in Article 4 about the Fire Department will be moved to Article 2 at the end of the Code process.
Councilmember Carroll moved to adopt the ordinance for Articles 1, 2 and 3 of the La Habra Heights Municipal Code, including the approval of a categorical exemption under CEQA and read the title of the ordinance and waive further reading. The second hearing will be held at the regular meeting of July 13, 2006. The motion was seconded by Mayor Pro Tem Bergman.
City Manager Bates read the title of the La Habra Heights Municipal Code and waived the reading.
The motion was approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
Mayor Millsap called for an intermission at 8:44 P.M. and returned to the meeting at 8:56 P.M.
1:43:24
6. FY 2006/07 – ANNUAL BUDGET ADOPTION
RECOMMENDATION: That Council approve the attached resolution, read by title only, and waive further reading; implementing the FY 2006-07 Budget:
1. FY 2006-07 Budget Resolution 06-11.
2. FY 2006-07 Gann Limit Resolution 06-12.
3. Special Tax rates to fund Fire Prevention and Protection Services, as well as Life Safety Services (FY 2006-07) Resolution 06-13.
4. Fees for the Rental and Use of the Park and Recreation Facilities Resolution 06-14. (Please see the attached staff report for the May 3rd, 2006 meeting of the Parks and Recreation Commission.)
City Manager Bates noted that the FY 2006/07 has been updated as to financial information and City Council comments. A correction was made on page 2 under Fire Fund revenue. On page 3 we have corrected the overall expenditure to 6.3%. On page 6 the Ending Fund Balance of the General Fund has been corrected to read $802,489. On page 25 of the budget, the expense of Precinct Workers Election Expense has been increased to read $2,480. Page 82 has had the column widened so it shows the full amount. On page 86 it shows Victoria has been replaced as Deputy City Clerk by Grace Andres and the Planning Aide position in the Community Development Department is now vacant.
Sandy Dykier of the Parks and Recreation Commission asked if changed to a Committee, will members be held to the two-year term.
City Attorney Levin explained that the City Manager will set the structure anew and make the decision on this and he will let the Commission know what the process will be.
Sandy Dykier asked if they are a Committee and have a person above us are they going to be paid by the City.
City Manager Bates commented that if the budget is approved as it is there is $15,000 in it for a liaison between the Parks and Recreation Committee and the City Staff. The role and activities of the Committee would not change significantly.
Ms. Dykier asked if the money set aside for a liaison could be used instead to improve the Park.
City Manager Bates explained that the money can be used in any way the Council directs. He also noted that in his opinion The Parks and Recreation group and the City would both be helped by a liaison.
Mayor Millsap stated if the budget is approved, the money for the liaison could not be used for anything else.
City Manager Bates noted that if this budget is approved we would post a part time flyer for the job opening, looking for someone with experience.
Ms. Dykier expressed her doubt that 10 hours per week from the liaison would be enough.
City Manager Bates explained that staff is continuing to work on organization and job descriptions. They can still improve on them. He clarified that the mid-year budget report would come in late January or early February after all of the figures are in from the end of December.
Budget and Accounting Officer Vega noted that all of the surpluses we expect are the same as we presented previously.
The Council discussed certain details of the budget.
City Manager Bates noted that they did not add any funds to the budget for a copier for the Fire Department, but they have enough in maintenance that he felt they could lease a copier for them.
City Manager Bates assured the Council that the amount listed on page 5 ($385,400) under Capital Improvement Fund will not be expended without the CouncilÕs approval after we have more information on a 5-year financial plan.
The Council next discussed the policy issues under 01 – General Fund on page 2 of the Budget Letter.
Councilmember Carroll moved to adopt policy issues under 01 – General Fund of nine bullets on Page 2.
The motion died for lack of a second.
Councilmember Douglas questioned the last bullet under 01 – General Fund.
Councilmember Douglas moved to remove any change of job descriptions from 01 – General Fund bullets until we have a complete package of job descriptions for all existing staff positions in the City. The motion was seconded by Mayor Pro Tem Bergman.
Budget and Accounting Officer Vega asked if the money for the two new positions would be taken out of the budget.
City Manager Bates suggested that those dollars be held in reserve and if they are later approved, the money will be there to fund them.
City Attorney Levin commented that this is a modification to the Resolution 06-11 approving the budget.
The motion was amended by holding the dollar amount in reserve to be used later and approved as follows:
AYES: Bergman, Douglas, Klein and Millsap
NOES: Carroll
ABSENT: None
Mayor Millsap called an intermission for a tape change at 10:15 P.M. and reconvened at 10:26 P.M.
City Attorney Levin stated the motion before the break does not have any effect, as it does not approve any Resolution.
Councilmember Douglas noted that in Resolution No. 06-11, Section 3 it states ÒSubject to the further provisionsÓ, what are the further provisions?
City Attorney Levin suggested that the word ÒfurtherÓ be changed to read ÒotherÓ.
Councilmember Douglas continued, stating that he had no comments on Resolution No. 06-12.
Councilmember Klein moved to approve Resolution No. 06-12 as presented. The motion was seconded by Councilmember Carroll and approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
City Attorney Levin read the title, and stated that it should show Division Ò9Ó in the title.
Councilmember Douglas asked in Resolution No. 06-13 if we donÕt need life safety services in the description of the Fire Department in Section 2.
City Attorney Levin answered in the affirmative.
City Manager Bates confirmed that the $880,164.67 is the correct amount necessary with respect to the tax basis as there will be revenue from other sources to make up the total amount needed for the Fire Department Budget.
City Attorney Levin stated that Section 2 should read Òto furnish adequate fire protection and prevention services and life safety services to the City.Ó
Councilmember Douglas moved to approve Resolution No. 06-13 as amended. The motion was seconded by Councilmember Carroll and approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
Mayor Millsap read the title of Resolution No. 06-13
Councilmember Carroll read the title of Resolution No. 06-14
Councilmember Carroll offered a motion to approve Resolution No. 06-14 as presented. The motion was seconded by Mayor Millsap and approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
Mayor Pro Tem Bergman offered a motion to approve Resolution No. 06-11 with two changes. 1. in Section 3 change the word ÒfurtherÓ to ÒotherÓ. 2. is in section 2 at the end of that section, after the word Budget place a comma and add Òexcept that appropriations associated with the reclassification of Budget and Accounting Officer and Accounting Technician shall be held in reserve until a complete set of position descriptions has been presented to the Council. The motion was seconded by Councilmember Carroll.
City Attorney Levin read the title of Resolution No. 06-11.
The motion was approved as follows:
AYES: Bergman, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
CITY COUNCIL COMMENTS
Mayor Millsap commented that ÒMeals on WheelsÓ is now available to La Habra Heights residents and anyone wishing to partake of this service, phone 562-905-9747. They have enough volunteers for now, but they will always accept your name if you want to help.
ADJOURNMENT
Councilmember Carroll adjourned to the next Regular City Council Meeting on July 13, 2006.
ATTEST:
_________________________ _______________________
Ronald Bates, City Clerk Date