HomeMy WebLinkAboutMinutes - May 29, 2018 - CCCITY OF AZUSA
MINUTES OF THE SPECIAL JOINT MEETING OF
THE CITY COUNCIL AND SUCCESSOR AGENCY
TUESDAY, MAY 29, 2018 – 6:30 P.M.
The City Council/Successor Agency, of the City of Azusa, met in Special Session at the above date and time in the
Azusa Light & Water Conference Room, located at 729 N. Azusa Avenue, Azusa, California.
Mayor Rocha called the meeting to order at 6:51 P.M.
ROLL CALL: Roll call was taken by City Clerk Cornejo.
PRESENT: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
ABSENT: COUNCILMEMBERS: NONE
ALSO PRESENT
Elected Officials: City Clerk/Secretary Cornejo, City Treasurer Vasquez.
Staff Members: City Manager Gonzalez, City Attorney Hull, Director of Finance Johnson, Director of Human Resources
and Risk Management Director Bragg, Director of Public Works/City Engineer Bobadilla, Director of Economic and
Community Services Christiansen, Acting Director of Utilities Lehr, Director of Information Technology and Library
Services Graf, Director of Recreation and Family Services Carpenter, Police Captain Bertelsen, Assistant Director of
Finance Honis, Utilities Administrative and Financial Services Manager Tran, Utilities Communications and
Environmental Program Specialist Sagun, Storekeeper Alvarez, and Chief Deputy City Clerk Garcia.
PUBLIC COMMENT
Mr. Jorge V. Rosales commended City Manager Gonzalez on the transparency of the preliminary operating budget,
inquired about an entry on Table 2 of the Staff Report, and requested information about which items fall into the
“Citywide” category on Table 2.
CLOSED SESSION
The City Council recessed to closed session at 6:54 P.M. to discuss the following:
CONFERENCE WITH LEGAL COUNSEL – EXPOSURE TO LITIGATION – Pursuant to California
Government Code Sections 54956.9(d)(2) & (e)(1)
One potential case
CLOSED SESSION REPORT
The City Council reconvened at 7:04 P.M.; City Attorney Hull announced that there was no reportable action.
SCHEDULED ITEMS
DIRECTION TO STAFF REGARDING TERMINATION OF NEGOTIATIONS WITH CHARLES CO REGARDING
THE PROPOSED DEVELOPMENT OF REAL PROPERTY GENERALLY KNOWN AS 600, 604, 622, AND 624-630
NORTH SAN GABRIEL IN THE CITY (BLOCK 37) (APN 8611-004-902, 903, 904, 905, 906, 907, 912, 913 AND 914)
Director of Economic and Community Development Christiansen presented the Staff Report stating that the Exclusive
Negotiation Agreement expired in January, 2018; and Staff moved forward with the Disposition and Development
Agreement at the May 29, 2018 Council Meeting. Based upon the two years of negotiations and comments made at the
previous Council Meeting regarding the proposed project, Staff recommended that negotiations with the Charles
Company be terminated.
Moved by Councilmember Carrillo, seconded by Councilmember Alvarez and carried by unanimous vote of the Council
to terminate negotiations with the Charles Company and related entities and direct Staff to return to the Council with
recommendations regarding a Request for Proposal process for this site in the future.
AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
NOES: COUNCILMEMBERS: NONE
FISCAL YEAR 2018/19 CITY, AZUSA PUBLIC FINANCING AUTHORITY, AND SUCCESSOR AGENCY
PRELIMINARY OPERATING AND CAPITAL IMPROVEMENT PLAN BUDGET REVIEW
City Manager Gonzalez provided a brief overview of the budget process and also explained the process for the budget
study session. A summary of proposed full-time positions was provided to the Council.
Director of Finance Johnson described the budget strategy of effective budgeting and provided an overview of the
economic development for Fiscal Year (FY) 2018/19.
General Fund highlights for FY 2018/19 included a balanced budget with a projected change in fund balance of $1.8
million which includes one-time revenues of $2.9 million, one-time operating expenditures of $37,100, and an operating
deficiency of $(1.1 million) with removal of one-time revenue items; proposed personnel changes of $33,435; capital
outlay and CIP requests of $697,012; increased CalPERS costs of $673,370 due to re-structuring of unfunded liabilities;
increased Animal Control contract by 90% or $148,015; the uncommitted reserve fund balance is expected to increase to
$11 million by the end of FY 2018/19, inclusive of one-time revenues and expenditures; and no reduction in programs and
services.
The three year forecast through FY 2020/21 projected steep budget deficiencies due to a decrease in one-time revenues
and a $1 million increase in PERS costs each year; a 3.5% increase in property taxes and 1.5% increase in sales taxes.
Staff is looking for solutions to increase revenue to keep up with growing costs.
An overview of the FY 2018/19 operating forecast includes $44.3 million in total revenue, $42.6 million in total
expenditures with a projected operating deficiency of $(1.1 million). The reserves analysis included a projected a 25.8%
reserve level with a reserve balance of $11,003,059.
The proposed General Fund internally restricted reserves include $6.4 million in operating costs, $802,998 in equipment
& CIP, $1 million in insurance, and $1.5 million in retiree benefits for a total of $9.7 in internally restricted reserves.
Staff will be recommending a revised reserve policy to establish designated reserves to address the City’s long-term
financial liabilities in addition to the existent 15% reserve policy.
The FY 2018/19 General Fund Proposed Revenues are $44.4 million which include a 7.4% increase in property taxes,
13.4% increase in utility user taxes, and 11.8% in miscellaneous revenues which includes one-time revenues.
In response to a question posed by the Council, Finance Director Johnson stated that the projected increase in utility user
taxes was based off of usage projections received from the Light & Water Department.
The FY 2018/19 General Fund Proposed Expenditures are $42.6 million which is a ($1.8 million) decrease from the
current fiscal year.
In response to the inquiries made during Public Comment, Finance Director Johnson stated that the line item with the typo
in Table 2 should read “Accounting”; and the Citywide category includes the one-time ICRMA payment that was made,
and also included retiree medical payments.
The proposed FY 2018/19 Citywide Budget was $159,565,697 and summarized as follows:
General Fund - $42,603,665; Internal Services Fund - $13,552,680; Special Revenue Fund - $17,038,306; Debt Service
Fund - $3,512,242; Enterprise Fund - $75,956,974; Capital Projects Fund - $703,688; and Successor Agency Fund
$6,198,142.
Citywide budgets personnel requests have a General Fund total estimated impact of $33,435 and $157,810 in non-general
fund sources of revenue. The total number of full-time equivalent (FTE) employees for proposed FY 2018/19 is 329.75.
In response to questions posed by the Council, Finance Director Johnson stated that the Light & Water and Police
Departments have the largest number of FTEs; and the number of proposed authorized FTE positions for FY 2018/19 will
not change from FY 2017/18. Staff will provide a chart of full-time employee allocations to the Council at a later time.
An overview of the Citywide Capital Improvement Program (“CIP”) was provided; the proposed Five-Year Capital
Improvement Program budget is $63,732,226 with $14,351,695 funded from non-general fund sources and an additional
$2,512,102 remained unfunded; $13,212,709 was carried over from FY 2017/18.
Director of Human Resources and Risk Management Bragg presented the Human Resources/Risk Management Budget
which included an overall general liability budget decrease of $(1,576,684) and an overall operating budget increase of
$22,260 for an increase in pre-employment, advertisement, and oral panel costs.
Director of Information Technology and Library Services Graf presented the Library Budget which included $12,280 to
address a salary compaction issue for two Librarians; expansion of adult programming; public restroom remodel; and
renovation of the community room. The Information Technology Budget included a phone system replacement,
recreation management and registration software, on-going equipment replacement, and the update of digital imagery for
GIS system.
In response to a question posed by the Council, Staff provided the status of the public restroom remodel and community
room renovation projects.
PAGE TWO - 05/29/2018
City Manager Gonzalez presented the Administration Budget which included $7,700 for a salary increase for the Chief
Deputy City Clerk position and a freeze of the Deputy City Clerk II position.
In response to a question posed by the Council, City Manager Gonzalez stated that the City Clerk’s Office would be
operating with two full-time employees and two part-time employees as well as two part-time receptionists.
Police Captain Bertelsen presented the Public Safety budget which included $176,650 for the replacement of the HVAC
system; and $161,000 for the outsourcing of the Parking Enforcement Program.
Director of Economic and Community Development Christiansen presented the Economic and Community Development
Budget which included $10,115 for the reclassification of an Associate Planner to a Senior Planner, $124,350 for the
addition of a New Economic & Community Development Manager position, $7,350 for the increase of salary for the
Building Inspector II salary due to compaction, and a ($94,965) salary savings from freezing the full-time Revenue
Supervisor position; Operating/Capital Outlay highlights included: $50,000 for the Historic Preservation Citywide Survey
Study; and CIP highlights included tenant improvements for The Promenade (890 The Promenade).
Director of Recreation and Family Services Carpenter presented the Recreation and Family Services Department Budget
which included $59,970 for a new full-time Recreation Coordinator and new full-time Senior Services Manager positions,
a cost savings of ($11,580) for the deletion of part-time Recreation Leader hours, a cost savings of ($4,990) for the
deletion of part-time Senior Recreation Leader hours, and $1.685 for the reclassification of the part-time Recreation
Coordinator (Pool Manager) position; Operating/Capital Outlay highlights included: $61,099 for the pool filter
replacement or recreation equipment and refurbishment, and $6,542 for the updating of the Memorial Park lobby and
meeting rooms; CIP highlights included: $50,000 for the Gladstone Park Netting Project and $80,000 for the Veteran’s
Park restroom remodel.
In response to questions posed by the Council, Director of Recreation and Family Services Carpenter stated that the Parks
and Recreation Commission have requested that the fee schedule for the entire facility rentals be reviewed. Staff will
assess the Woman’s Club rental usage and report the findings back to the Council.
Public Works Director/City Engineer Bobadilla presented the Public Works Budget which included $79,085 for the
addition of a new full-time Administrative Technician, $8,175 for the reclassification of an Engineering Assistant II to an
Engineering Associate position, $4,730 for the reclassification of a Public Works Inspector to Senior Public Works
Inspector, and $65,820 for the reclassification of two part-time Transportation Dispatcher positions to a full-time
Transportation Dispatcher; Operating/Capital Outlay highlights included $90,253 for a street maintenance dump truck and
$53,154 for a facilities maintenance cargo van; CIP highlights included $6,854,310 for a traffic management system,
$2,100,000 for pavement rehabilitation, and $335,760 for the Foothill Boulevard and Palm Drive traffic signal
installation.
In response to questions posed by the Council, Staff will look into possibilities for maintenance of medians and alleyways;
stated that there is a potential to lease Christmas decorations from a vendor to replace the City’s outdated decorations; and
stated that the Public Works Department has increased the number of full-time employees which will allow for better
maintenance of medians and alleyways.
Acting Director of Utilities Lehr presented the Light & Water Department Budget which included the following
Operating/Capital Outlay Highlights: $1.8 million reduction in power supply cost; implementation of the rate design from
Cost of Services Study; 5-year extension of MillerCoors Water Supply Agreement; and Safety/Security enhancements at
all ALW Facilities. CIP highlights included: $6,222,000 for the completion of Phase 1 and commencement of Phase 2 of
the Advance Metering Infrastructure (AMI) Project; $500,000 for the Water Transmission Lining Project; $350,000 for
Reservoir and Well Rehabilitation Programs; $2,000,000 for Kirkwall and Azusa Substation facility improvements; and
$600,000 for electric line replacements and extensions.
Director of Finance Johnson concluded the presentation stating that the proposed budgets were balanced with no proposed
cuts in services; the uncommitted reserve fund balance is expected to increase to $11 million by the end of FY 2018/19,
inclusive of one-time revenues and expenditures.
In response to a question posed by the Council, discussion was held regarding the 90% increase in the cost of services
with Los Angeles County Animal Control and available options for mitigating the cost.
In response to a question posed by the Council regarding legal fees, Finance Director Johnson stated that the City has a
$250,000 annual Retainer Agreement for general legal services; special legal services, such as lawsuits, are in addition to
the Retainer. Discussion ensued regarding the cost of legal services. Staff will provide Council with a summary of legal
fees and services.
City Manager Gonzales discussed the cancellation of the contract with lobbyist Gonzalves and Sons due to the need to
reduce costs; and the need to remain active with the League of California Cities.
Discussion ensued regarding the rate for fire services; Staff will review the agreement to determine if an increase cap is
possible.
Economic and Community Development Director Christiansen provided an update on the Edgewood Shopping Center
stating that there is a possibility of a gym moving into one of the vacant suites.
PAGE THREE - 05/29/2018
Councilmembers commended Staff on their hard work and thanked them for the work that they do; and highlighted the
City’s diverse revenue sources.
In response to a question posed by the Council regarding the increase in PERS costs, City Manager Gonzalez stated the all
cities are seeing the same increase and Staff will be looking into ways to increase revenues in order to help cover those
costs. Discussion ensued regarding PERS rates.
ADJOURNMENT
The meeting was adjourned by consensus of the City Council.
TIME OF ADJOURNMENT: 8:47 P.M.
_________________________________
CITY CLERK
PAGE FOUR - 05/29/2018