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Home My WebLink AboutAgenda Packet - February 24, 2014 - CC or G v _ _ ' 'W j . ��* ea.:i ^- .* idp ,d�, `ih�� * "` * a�4 ,x� ��: � r��:�s :.� a` `na fi� „` .4 �� ;tIFC)RTer NOTICE AND CALL OF A SPECIAL/JOINT MEETING OF THE CITY COUNCIL OF THE CITY OF AZUSA TO THE MEMBERS OF THE CITY COUNCIL AND THE UTILITY BOARD OF THE CITY OF AZUSA: NOTICE IS HEREBY GIVEN that a Special Meeting of the City Council, and Special Joint Meeting of the City Council and the Utility Board, of the City of Azusa are hereby called to be held MONDAY, FEBRUARY 24, 2014, immediately following the Regular Utility Board Meeting which begins at 6:30 p.m. at the Azusa Light and Water Conference Room located at 729 N. Azusa Avenue,Azusa, California. Said Special Meetings shall be for discussing,hearing and taking action on the items listed below: AGENDA A. PRELIMINARY BUSINESS • Call to Order • Roll Call B. PUBLIC COMMENT—Limited to items listed on this Special Meeting Notice. Each person or representative of a group shall be allowed to speak without interruption for up to five (5) continuous minutes, subject to compliance with applicable meeting rules, on items listed on this agenda only. Questions to the speaker or responses to the speaker's questions or comments shall be handled after the speaker has completed his/her comments. C. CONSENT CALENDAR The Consent Calendar adopting the printed recommended actions will be enacted with one vote. If Councilmembers or Staff wish to address any item on the Consent Calendar individually, it will be considered under SPECIAL CALL ITEMS. 02/24/2014 1 • 1. RESOLUTION APPOINTING SPECIFIC REPRESENTATIVES TO THE INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY (ICRMA) GOVERNING BOARD. RECOMMENDED ACTION: Adopt Resolution No. 14-C 11 that designates its representatives to the ICRMA Governing Board and the separate Risk Management Programs in which the City participates; and give direction that a certified copy of the Resolution be forwarded to ICRMA's General Manager. 2. SIDE LETTER AGREEMENT WITH THE AZUSA CITY EMPLOYEES ASSOCIATION PERSONNEL THAT CONTINUES THEIR MEMORANDUM OF UNDERSTANDING UNTIL JUNE 30,2014 RECOMMENDED ACTION: Adopt Resolution No. 14-C 12 approving the February 24, 2014, Side Letter of Agreement to the Memorandum Understanding (MOU) between the City of Azusa and the Azusa City Employees Association(ACEA) effective July 1, 2010 through June 30, 2014. 3. INTERIM APPOINTMENT OF A CALPERS RETIREE TO FILL THE DIRECTOR OF HUMAN RESOURCES POSITION WHILE AN OPEN RECRUITMENT IS CONDUCTED. RECOMMENDED ACTION: Appoint Theresa St. Peters as the Interim Director of Human Resources while the City conducts an open recruitment to fill the soon to be vacant position. This is in accordance with Government Code Section 21221 (h). This appointment would be for a period not to exceed one year and would be in conformance with Ca1PERS Circular letter 200-002-14 regarding post service retirement employment requirements. D. AGENDA ITEM 1. FISCAL YEAR 2013-14 GENERAL FUND MID-YEAR BUDGET REVIEW AND ADJUSTMENTS. RECOMMENDED ACTION: Hear staffs presentation to inform Council with an update of the City's mid-year FY 2013-14 General Fund fiscal condition in preparation for the upcoming budget process; adopt Resolution No. 14-C 13 approving and adopting the FY 2013-14 mid-year adjustments of the operating budget to better reflect its projected fiscal position. THE CITY COUNCIL AND THE UTILITY BOARD WILL MEET JOINTLY IN CLOSED SESSION TO DISCUSS THE FOLLOWING: 02/24/2014 2 • E. CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATOR-Gov. Code Sec. 54957.6. City Negotiator: City Manager James Makshanoff Organizations: AMMA (Azusa Middle Management Association) 2. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION- Government Code, Section 54956.9(d)(2). 1 potential case: Verizon v. City of Azusa/Azusa Utility F. ADJOURNMENT 1. Adjourn In compliance with Government Code Section 54957.5, agenda materials are available for inspection by members of the public at the following locations: Azusa City Clerk's Office - 213 E. Foothill Boulevard, Azusa City Library - 729 N. Dalton Avenue, and Azusa Police Department Lobby - 725 N. Alameda, Azusa, California. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city meeting,please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the meeting when special services are needed will assist staff in assuring that reasonable arrangements can be made to provide access to the meeting. 02/24/2014 3 di aor4 V4 , e ' ' "' 4- ':' � ..� 11/F004 . zus DECLARATION OF POSTING CITY COUNCIL, REDEVELOPMENT AGENCY, PUBLIC FINANCING AUTHORITY AND INDUSTRIAL DEVELOPMENT AUTHORITY AGENDA I, �Q, ()Imo., Cvivi -- N(, declare that: I am an em loyee of the City of Azusa. On 'Y)I 'I"9-6\+- I posted copies of the Agenda, as stated above for the meeting of fi b1y 4 2_O\4— , in the City Clerk's Office, 213 E. Foothill Blvd.; the lobby of the Police Department, 725 N. Alameda Ave.; the Civic Auditorium, 213 E. Foothill Blvd.; the City Library, 729 N. Dalton Ave.; and the City's Web Page www.ci.azusa.ca.us. A true, correct and complete copy of the agenda which I posted is attached hereto. I completed posting of the agendas as described in Paragraph two, at 6.t5]) 1 on the date of posting. The lobby of the Police Department and access to the agenda posted therein is available to members of the public 24 hours per day and 7 days per week, including all weekends and holidays, and at the Azusa City Library reference desk during their normal business ours. The foregoing is within my personal knowledge and if called as a witness in a court of law, I could testify competently thereto. I declare under penalty of perjury that the foregoing is true and correct. EXECUTED f da M �b i Il ' , at Azusa, California. / i ' ict T 0'iM BER CITY LERK'S OFFICE CITY OF AZUSA I HEREBY CERTIFY that I received a copy of the attached "NOTICE OF A SPECIAL MEETING" of the Azusa City Council to be held on MONDAY, FEBRUARY 24, 2014, following the Utility Board Meeting which begins at 6:30 P.M. in the Azusa Light and Water Conference Room located at 729 North Azusa Avenue, Azusa, California. NAME DATE & TIME DELIVERED BY 411-h4 6 . -- OSEPH R. ROCHA, MAYOR EDWARD J. AL AREZ, COUN MEMBER dir ANGEL CARRILLO, COUNCIL MEMBER URIEL MACIAS, MAYOR PRO-TEM ROBE T GONZAL OUNCILMEMBER /s/JUANA HERNANDEZ ASSISTANT/DEPUTY CLERK APPROVED COUNCIL MEETING Date,e, 2_12A-114- C4,1 1WAifiVi 44);^' . 'DC77trop0\ 6 L us AGENDA ITEM D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: SUSAN PARAGAS, DIRECTOR OF FINANCE VIA: JAMES W. MAKSHANOFF, CITY MANAGER DATE: FEBRUARY 24, 2014 SUBJECT: FISCAL YEAR 2013-14 GENERAL FUND MID-YEAR BUDGET REVIEW AND ADJUSTMENTS RECOMMENDATION Staff will be providing a presentation to inform Council with an update of the City's mid-year FY 2013-14 General Fund fiscal condition in preparation for the upcoming budget process. It is recommended that Council approve the attached resolution of the amendments to the General Fund FY 2013-14 operating budget to better reflect its projected fiscal position. BACKGROUND The FY 2013-14 Budget was adopted on June 17, 2013 with an operating surplus of $93,945. Since this time, however, events have occurred which impact the adopted surplus. A budget amendment in the amount of$73,800 was processed to account for the payouts of over-the-limit vacation accruals that were deferred in side letter agreements with bargaining units that has since expired. This resulted in a reduction to the surplus to $20,145. The proposed mid-year adjustments in the attached resolution will increase the General Fund's FY 2013-14 surplus to $119,965. The presentation of the mid-year review is to identify and explain these impacts to the Council and to seek direction with respect to both the remainder of the current fiscal year and the preparation of the budget for the upcoming year. Based upon the direction received from Council at the review, staff will prepare necessary actions to implement any changes and provide them to Council for approval. Honorable Mayor and Members of the Council Page 2 FISCAL IMPACT The recommended FY 2013-14 mid-year actions result in an estimated increase of$99,820 to the General Fund's current surplus projection of$20,145 and are summarized by a revenue budget increase of$423,420 and an increase in appropriations/expenditures of$323,600. Therefore, the requested mid-year budget adjustments result in a projected surplus of$119,965 to the FY 2013- 14 General Fund budget. Attachment: Resolution-"Approve and Adopt FY 2013-14 Mid-Year General Fund Budget Adjustments" Mid-Year General Fund . ;; .THE CANYON CITY• AZUSA • , February 24, .2 014 Mid-Year Overview • Influencing Factors • Review of FY 2013-14 General Fund Balance • Economic Indicators • Continuing Conservative Fiscal Practices LUSS? 1 iy 0,0,204021,004.0,00,00000000 4700,000 000,000,0`' Influencing Factors • Slight Recovery from Previous Revenue Decline • Development Activity in Rosedale • Azusa Unemployment Rate - 9.6% Dec 2013) • Personnel Costs • Operating Costs `rtzusl' ✓Y,000%/7216n F1I0/000 040 0000 0 General Fund FY 2013- 14 Review Current Balance Adopted Net Adjusted Budget Revisions Budget FY 13-14 Estimated Revenues 33,176,145 - 33,176,145 Transfers In 1,602,265 - 1,602,265 Total FY 13-14 Sources 34,778,410 - 34,778,410 FY 13-14 Estimated Expenses 30,132,285 73,800 30,206,085 Transfers Out 4,552,180 - 4,552,180 Total FY 13-14 Uses 34,684,465 73,800 34,758,265 FY 13-14 Estimated Surplus/(Deficit) 93,945 (73,800) 20,145 2 d°.f.Y✓.v'P/,✓✓�'b�✓°A'o'"e°'.✓i'?"6'.+$d.+adddJVYNfNA,�',�B J'y' Revenue Issues • Plan Check Fees - -e- •fr1ost Fees (MRF) VL, Late Fees (Utility) _ p \IPermits Fees Reimbursement-Court Costs - • Transient Occupancy Taxes - 'zus' .. ..,..... r 'd°✓,�6✓✓e`F`Ftfbda✓.ORa'✓ d'A✓.✓/'✓�*.N✓edd313d. s,? General Fund Mid-Year Adjustment Proposed Revenue Adjustments: •Fees-Plan Check $201,120 •Host Fees (MRF) ($270,000) •Penalties (Late Fees) $340,000 •Permits-Building $139,200 •Permits-Electric $31,500 •Permits-Plumbing $21,600 •Reimbursement-Court Costs ($20,000) •Taxes-Transient Occupancy ($20,000) Total Proposed Revenue Adjustments $423,420 3 Expenditure Issues , • Personnel Costs friAt5ii.v, Retiree Health Premiums Pay-Outs i . • Operating Costs Utilities U �i j�et j'.A USA, m #..• -, ;�d.P.dFR�� ,r'.✓/JAaCA.,�a°Je'Ad✓aPra,*varrrd®®.P®d .A�`i: General Fund Mid-Year Adjustment (continued) Proposed Expenditure Adjustments: •Retiree Health Premium Reimb $31,300 •Sick Leave Pay-Off $87,000 •Utilities-Other $47,000 'Vacation Pay-Off $158,300 Total Proposed Expenditure Adjustments $323,600 4 General Fund Mid-Year Proporefddients Proposed Adjusted Balance Adjusted Mid-Year Revised Budget Revisions Estimate FY 13-14 Estimated Revenues 33,176,145 423,420 33,599,565 Transfers In 1,602,265 - 1,602,265 Total FY 13-14 Sources 34,778,410 423,420 35,201,830 FY 13-14 Estimated Expenses 30,206,085 323,600 30,529,685 Transfers Out 4,552,180 - 4,552,180 Total FY 13-14 Uses 34,758,265 323,600 35,081,865 FY 13-14 Estimated Surplus/(Deficit) 20,145 99,820 119,965 13jAA-cg, t�✓f✓✓e'FOd.P.is'lP�w'?'f✓d.✓a'.a'.{✓✓^'rsdss isisra'�':f".�`� Preliminary Budget Directives • Match General Fund Costs to Revenues • No New Program Expenditures • Freeze Non-Critical General Fund Positions 5 • Economic Indicators • Annual inflation rate through January 2014 for the LA Area is0.81 • Investment interest rates remain at historic lows (LAIF rate-at 0.244% for January 2014) • Los Angles Regional Unemployment decreased to 8.8% Dec2013 [10.2% at Dec. 2012 as reported by EDD) • 93 Homes Sold in Rosedale - July to December 2013 • Housing Prices Los Af geTes Home Values Up 17.3% (January 2014 Annual Change) :PI it 17(S Budget Philosophy • Easily Understood Working Budget Document • Consistent from Year to Year • Reference Document • Match Operating Revenues with Operating Expenses • Maintenance of Essential Services AZUS4. 6 i FY 2014- 15 GF Budget Issues • Current Employee Contract Obligations • Employee Negotiations • Equipment Replacement Fund • Fire Service Contract Increase 48(i • Waste Management-Materials Recovery Facility • Impacts on the City from State Actions Minimum Wage Increase PERS Rate Increases • Preserving City Services, azus E FY 2014- 15 Budget Schedule • February 10 Budget materials distributed to Departments • March 3 Final date for Personnel Request Submittals • March 17 Departmental Budget requests returned to Finance • April 7 to Budget meetings with Depts Et City Manager May 1 • May 3 Preliminary Budget balanced by City Manager • May 26 City Council Budget Study Session (tentative date) 0, W Tom_ G- � • June 16 Final Budget adopted by City Council -`'1 .z,s,l 7 RESOLUTION NO. 14-C13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING AND ADOPTING THE MID-YEAR BUDGET ADJUSTMENTS FOR THE CITY OF AZUSA WHEREAS,on June 17,2013,City Council of the City of Azusa adopted the General Fund FY 2013-14 Operating and Capital Budget; and WHEREAS, on February 24, 2014, City Council met and reviewed the mid-year financial status of the General Fund and considered staffs recommendation on the budget amendments. NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Azusa does approve and adopt the following FY 2013-14 general fund budget adjustments: SECTION 1. Revenues Fees-Plan Check $ 201,120 Host Fees (MRF) ($ 270,000) Penalties (Late Fees) $ 340,000 Permits-Building $ 139,200 Permits-Electric $ 31,500 Permits-Plumbing $ 21,600 Reimbursement-Court Costs ($ 20,000) Taxes-Transient Occupancy ($ 20,000) Total Revenue Adjustments $ 423,420 Appropriation/Expenditures Retiree Health Premium Reimb. $ 31,300 Sick Leave Pay-Off $ 87,000 Utilities $ 47,000 Vacation Pay-Off $158,300 Total Approp. Adjustments $323,600 SECTION 2. The City Clerk shall certify as to the adoption of this resolution. PASSED APPROVED and ADOPTED, this 24th day of February, 2014. 41 74^^44 oseph Romero Rocha Mayor ATTEST: f J: rey L..sepoPe Cornejo, . City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No.14-C13 was duly adopted by the City Council of the City of Azusa at a special meeting thereof, held on the 24th day of February, 2014, by the following vote of Council: AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: ROCHA Je r-/ a,/• Cornejo, T ity Cler