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HomeMy WebLinkAboutMinutes - January 30, 1961 - CC (2)CITY H,4LL AZUSA, CALIFORNIA MONDAY, JANUARY 30, 1961 An adjourned regular meeting of the Azusa City Council was scheduled at the above time and place. At 7:40 P.M. Councilman Paul called to order this adjourned meeting. Those present at this time were: Councilman Paul and City Clerk Miller, Absent: Councilmen: McLees, Johnson, Teasley, Ortuno Councilman Paul ordered the meeting adjourned at 7:45 P.M. due to a lack of a quorum, and to be set at 9:00 P.M. the same evening. The following notice was posted on the door of the Civic Auditorium by the City Clerk: "Due to the lack of a quorum, the regular adjourned meeting of the Azusa City Council scheduled for Monday, January 30, 1961, at 7:30 P.M. is adjourned to 9:00 P.M. the same evening. Said adjourned meeting will be held at the Civic Auditorium, the regular place set for meetings of the City Council." s/ James Miller City Clerk 7:30 P.M. Notice of adjourned meeting 222 CITY HALL AZUSA, CALIFORNIA MONDAY, JANUARY 30, 1961 The City Council of the City of Azusa met in adjourned session at the above time and place. Mayor Ortuno called the meeting to order. Present at Roll Call: Councilmen: Paul, McLees, Johnson, Teasley, Ortuno Also present: City Attorney Williams, Supt, of Light and Water Smith, Asst. Adm. Officer Caswell and City Clerk Miller A Resolution was presented approving payment of a warrant in the amount of $600,000.00 to the Title Insurance and Trust Company for 2,965 shares of Azusa Agricultural Yater Company stock. Councilman Paul offered the following Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS AND SPECIFYING THE FUNDS OUT OF WHICH THE SAME ARE TO PE PAID. Mnved by Councilman Paul, seconded by Councilman Teasley that the Resolution be adopted. Resolution passed and adopted by the following vote of Council: AYES: Councilmen: Paul, McLees, Teasley, Ortuno NOES: Councilmen: Johnson ABSENT: Councilmen: None and numbered Res. No. 4138. A Resolution was also presented appointing Title Insurance and Trust Company as escrow agent for the consumation of the transaction. Councilman Teasley offered the following Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AP- POINTING AN ESCROW AGENT AND AUTHORIZING THE DELIVERY OF CERTAIN ITEMS TO SAID AGENT. This Resolution was read in full. Moved by Councilman Teasley, seconded by Councilman Paul that the Resolution be adopted. Resolution passed and adopted by the following vote of Council: 223 9:00 P.M. Call to Ord. Roll Call Res. 4138 water stock pmt. auth. Res. 4139 appt.eacrow agent AYES: Councilmen: Paul, McLees, Teasley, Ortuno NOES: Councilmen: Johnson ABSENT: Councilmen: None and numbered Res. No. 4139. The subject of Mr. Miller's intentions to return to work Consideration both as City Clerk and Administrative Officer was presented of C. Adm. for the consideration of Council. tabled Mayor Ortuno stated that he would like to have consideration of a full-time Administrator tabled for six months, particularly in view of the current austerity program, to allow the City to get back on its feet financially. Mayor Ortuno pointed out that we already have a full-time Acting Administrative Officer. After further discussion on the matter, it was Moved by Councilman Teasley, seconded by Councilman McLees and unanimously carried that Mr. Miller's letter, which had pre- viously been forwarded to members of the Council be read into the record. 224 CITY HALL AZUSA, CALIFORNIA MONDAY, JANUARY 30, 1961 Mr. Miller read his letter as follows: "Honorable City Council January 28, 1961 City of Azusa, California Dear Council Member: As you know, I have been serving this City as City Clerk since June 1, 1953, and also as Administrative Officer since November, 1956. Subsequent to my becoming ill some months ago, the Council granted me a six months leave of absence, which I appreciate. Now, I understand, the Council would like to knav what is in my mind as to the future, and I am glad to comply. 225 Page 2 Miller letter In discussing this matter, however, it would seem proper and also wise to take a look at the present situation with a glance at the past. I might say that I have been at the office for a time almost daily the past two weeks, and even before that I was able to keep informed as to developments. You may recall that when I was appointed Administrative Officer the salary for that position was set at $450 per month. At -the next Council meeting I suggested that it should be re- duced $200, since it was a new position and should be subjected to the test of time. More recently, the salary was raised -- however, had a full time Administrative Officer been appointed in November, 1956, at a salary level prevailing for that type of work, along with the inevitable Assistant Administrator, the cost to the City for the period involved would have been at least $50,000 more than it has been under my direction --and quite possibly, a good deal more than that. I am quite sure that the City would have received no benefit in services or results for that $50,000 that it did not receive anyway --this is an indisputable fact. Now it is proposed to adopt a new City Ordinance, making the position of City Administrator a full-time one. This, of course, would remove me from that work. With respect to this proposal, I want to make the following observations: 1) While I, as Administrative Officer, am not on a full- time basis, being also City Clerk, the Off -ice of Administrator is already full-time, and has been for more than a year. This is because, at my own suggestion, a full-time Admministrative Assistant was appointed; and, on my own recommendation, the present Acting Administrator was approved for the position, to work under my direction. 2) For some reason, the details of the proposed City Ad- ministrator Ordinance have not been made public --this is im- portant! Apparently, an attempt was made at the Council meeting of January 16th to introduce this Ordinance without previous discussion as to its contents. I suggest that in a matter of this importance there should be a full and free scrutiny and discussion of all of the details; it should not be quietly and quickly eased into the City set-up by way of a side entrance. 3) Judging by the limited information made available to the public, it seems clear that the proposed new Ordinance would, in effect, establish a City Manager under another name. 4) In my opinion, if we are going to have a City Manager, we,sl,ould call him just that, and not disguise the position by the use of another name --there should be no need for subterfuge. 5) If it is sought to establish a City Manager form of government in Azusa, the people of this City should be given an opportunity to make the final decision. It has been pointed out 226 227 CITY HALL AZUSA, CALIFORNIA MONDAY, JANUARY 30, 1961 Page 3 many times that twice in the past decade a City Manager pro- position has been submitted to the people, and both times the people voted against it by substantial margins. If those in- terested in making this drastic change believe that the majority of our people would now favor it, or can be persuaded to do so, they should not hesitate to permit the people to register their decision. 6) I understand that it is proposed also to establish a new position to be called "Director of Finance". So far as I can see, this position can serve no purpose except to increase the City's payroll. The City Council is responsible for the amount of the City's revenue by reason of the measures it ad- opts, and the Council is also Pully responsible for all expendi- tures. The cash itself is handled by the Treasurer. The only other factor needed is information as to the condition of the accounts, and this should always be available by way of the Accounting Department --although that information may be arranged and analyzed for the benefit of the Council by the City Clerk or Administrative Officer. 7) The one sure result of the adoption of these proposals would be to add substantially to the cost of our City govern- ment, with no gain in services or their efficient operation. This seems especially strange in view of the present talk of "austerity" and the need for drastic cuts in departmental costs. 8) With reference to the City's financial situation, I think we should take a balanced, sensible view. Obviously, with an unusually large expenditure for the water company stock due within a few days, and another for a new fire station in the near future, care should be taken not to over -spend --even for desirable projects --otherwise the City could run short of operating cash. On the other hand, there is no reason for a.nervous treatment of the problem. For some years the City has enjoyed an exceptionally good financial status, and basically still does. 9) I have made the foregoing comments because they have a bearing on my own situation --because of my very close associ- ation with our municipal affairs over a period of years, I believe that I have a familiarity with our problems which enable me to provide a rather special service. I would agree that I am not indispensable, but neither is anyone else. I would concede that the City of Azusa can get along without me, but that is true of all of us. It is, after all, not primarily a purely personal matter, but one of principle -- of doing the right things, and above all, of serving our City. 10) Concluding, therefore, I would like to say that on the expiration of my leave of absence I fully expect to be completely able to assume my duties again, both as City Clerk and as Adminis- trative Officer, depending only on the lcy alty of my staff, whatever cooperation of the City Council is reasonable, and the good wishes of the people of Azusa --so many of whom have accorded me their generous support, both in good times and bad. Very truly yours, s/ James Miller City Clerk" Councilman Johnson stated that she had two letters which she would also like to have entered into the minutes. 228 229 CITY HALL AZUSA, CALIFORNIA MONDAY, JANUARY 30, 1961 Page 4 Mrs. Johnson read the following letters: Nov. 30 "To: George Caswell - Administrative Office From: Carl W. Reynolds - Accounting Office Reynolds letter In accordance with your request, I have prepared the following comments and recommendations with respect to Mr. Clark's letter of October 31. I have asked Mr. Stroud to comment on those facets which are more particularly concerned with the utility commercial office. The comments follow auditors segregation by subject matter and conclude with recommendations not mentioned in his letter. 1. General Fixed Assets Real property inven ory cards were prepared by the Ac- counting and Administrative offices of the City early in the last fiscal year. This information was compiled from recorded deeds on file in the City Clerks office. Personal property re- cords were prepared in the Administrative Office from a physical inventory taken by City Departments. Actual coats, when known or determinable have been entered on those subsidiary records. We have been authorized to have an appraisal made of City owned real property by an independent or insurance appraiser. Upon completion of that appraisal we intend to incorporate the subsidiary property records into the general ledger. To implement auditors recommendation we suggest: a. That controllable or units of personal property subject to inventory control be defined, and b. That proper reporting forms be devised and utilized for the purpose of keeping the Administrative and the Account- ing Office informed at all times of the location of those units of property. 2. Accounts Payable Procedures recommended by auditor in connection with the treatment of vendor billings have been in effect. Errors in ac- count classification and undue delay in disbursements have been noted and efforts are being made to correct these deficiencies. Present procedures call for initial account classification by the ordering or using department. It is the responsibility of the Accounting Office to pre audit purchase documents for account classi- fication and the related documents for propriety of payment. It is readily apparent that this pre audit technique requires the exercise of trained independent judgment and initiative. Be- cause of this I have recommended that personnel now classified as account clerks in the accounting office be reclassified as account- ing clerks and the Job requirements and remuneration be raised accordingly. 3. Purchase Orders We are in agreement that actual costs or reasonable estimates be placed on all purchase orders. This is imperative for the exercise of budgetary control over expenditures and underlines the necessary close liaison between accounting and purchasing. 4. Voided Checks Voided checks have been made known to the City Treasurer but have not been included with his records of paid checks. Current plans call for placing of all voided vouchers in a numerical file, properly cross indexed for internal control and audit purpose. 230 CITY HALL AZUSA, CALIFORNIA MONDAY, JANUARY 30, 1961 5. Check Signatures At least 2 of 3 authorized signatures should be required on all checks or warrants drawn on City bank accounts. This would provide for the temporary absence of a key employee or Officer of the City. 231 Page 5 6. Payroll Account The payroll bank account reflects the amount of money kept on reserve deposit in a special bank account for employee pay- roll purposes. Each payroll date, a warrant is drawn on the general bank account in the amount of the gross payroll and deposited in this account to meet the demands of the payroll checks issued employees. Unremitted amounts withheld from employees result in a balance in the account greater than the amount shown on the 'books' of the Clty. Monthly reconcilements of bank statements are made and the differences are accounted for. Interim adjustments are not made on City ,records but are made at year end. 7. General Ledger AS pointed out by auditor, the operating account or fund was an accounting device utilized fcw the purpose of simplifying the mechanical aspects of data recording and to meet previous criticism of the accounting system from adherence to a strict funding of the financial transactions. Reelashifieation of the control information from 'Operating' to the proper fund was Auditors election and not requested by this office. The general ledger will be placed on the NCR accounting mabhine for 1960- 1961 year. 8. Budgeting A Iiudgef—is a plan of financial operation embodying an estimate of proposed expenditures for a given period or purpose and the proposed means of financing them. In this regard we have attempted to keep council and city officers intormed through interim financial reports which reflect estimated and actual revenues as well as appropriations and expenditures and encum- brances related thereto. In the adoption of the 1960-1961 budget, we provided $101,000. for contingencies that might arise during the year and for which no provision had been made. The function and responsibility of the accounting or finance officer of the city encompasses four areas.briefly summarized as follows: Planning T_- Participates in fiscal planning for the City as a whole: a - as a budgetary aide to the administraLtor and council b - administrative participant im long term financial planning. 2 - Planning within the department a - preparing department budget estimates for the administrator b - determining additional personnel requirements or revised assignments in certain activities of his office, c - changes in fiscal procedure or increase in volume of work may call for a program of mechanizing certain accounting activities of the department. Organization The principal features of organization may be fixed by statutes or custom. Flexibility should be inherent in such statutes or custom however as new problems call for new methods. New methods call for new distribution of duties and responsibilities. An alert yyrogres- sive department is continuously in a state of regrgantzstivh acrd-tt is the job of the accounting or finance officer to determine what distribution of assisnments will produce the best results at any given time with the personnel available. 232 CITY HALL AZUSA, CALIFORNIA MONDAY, JANUARY 30, 1961 Council and the Administrator can collect accounting and financial information more promptly through a central account- ing office than through a number of departmental accountants. A revised organization would incorporat@ all personnel and offices now performing an accounting function in the accounting office. A suggested organization chart reflecting that revision is attached hereto. Direction recting the activity of the accounting or finance office through orders, coordination and control occupies the largest share of the accounting officers time. Two manifestations of direction are the preparation of procodural manuals for the guidance of employees and in-service train4ng programs. My recommendations in regard to an in-service training program is the subject of a separate memorandum. 233 Page 6 Re resentation s a epartment head and as a managerial aide, the account- ing or finance officer has responsibility for representing the City or his department: 1 - to the Council, through the administrator, for information in connection with the annual budget; For periodic financial reports or other financial date. 2 - to various State and Federa] agencies for financial reports of a varying nature 3 - conference with creditors, vendors, officials of other governmental agencies, civic organizations, individual citizens. 4 - as a department head, responsible for establishing and maintaining high standards of courtesy and tact in all these contacts. To assist the accounting or finance o;ficer in meeting the responsibility of his position and properly performing his function the following specific recommendations are made: 1 - Effect the organization of the accounting function in accord with the chart submitted. 2 - Perform all municipal billing through the accounting office for financial control and information dissemination. 3 - Establilah.a-central cashier ,in City offices that would be charged with receiving all municipal funds and the proper reporting of those receipts to the Treasurer and the Accounting Officer. 4 - Establish a central stores, responsible to the Ad- ministrative office and removed from an op ating department head control. Liaison could be estabj„ishegbetween central stores and accounting for more effective b:}dgetary control and the reduction of City's investment in inventory. Responsibility for safeguarding stores could be placad ijk one individual with an internal check provided by the Aow=tyag office inventory control. 5 - Route supplemental appropriation requests through accounting so the Administrator and council may be more ad- equately informed with respect to the financial condition and position of City finances. These recommendations are not tg'b@,cpnstrued as complete but in my opinion are the most pressing. If further clarifioatton is deemed necessary or desirable please let me know. Carl W. Reynolds" Mrs. Johnson then read the following comXcupicatiou: "To: Carl Reynolds, Senior Accountant From: Earl Strvadt, Pub To M-11ty Accountant ?34 235 CITY HALL AZVSA, CALIFORNIA M(N DAY, JANUARY 30, 1961 Page 7 The following comments refer to certain items contained in Stroud Mr. Clark's letter dated October 31, 1960 addressed to Mr. letter Caswell and are being submitted at your request. Unquestionably Mr. Clark's remarks suggest the establishment of a sound organizational structure from which constructive results should be expected. To some extent, in this case we have the cart before the horse. If we put our house in order, primarily so that accounting people perform and direct account- ing functions through a responsible central control, then the conditions that Mr. Clark mentions will be resolved as a matter of internal integration. We have, in the mill, plans to establish "units of property" applications for the physical systems of the light and water utilities so that the actual costs of additions and retire- ments will be established year by year. This is an absolute must. The facilities of the cost section of the utility now located in the commercial office will of necessity be utilized to a great extent. Its present location is physically incon- venient and the line of supervision is impractical. I am heartily in accord with Mr. Clark's suggestion to improve our inventory control methods. I am sure better results will maintain if we pin point responsibility to an individual and provide security measures as may be indicated. We are speaking of the security of approximately one hundred thousand dollars. It is my opinion that there is no justification to carry this large an inventory. In the light of possible declining market values measure should be undertaken to reduce this inventory to reasonably anticipated needs only., New methods of internal control have been adopted since 6/30/60. A mid -year physical Inventory on December 31, 1960 will provide us with information to appraise the effectiveness of these tighter controls. Mr. Clark mentions in his letter the hbLndling of deposits in the utilities. I believe that we should treat the funds re- presenting these deposits as trust funds and carry them in a separate bank account. A detailed agreeing support should be established making available a ready analyZis of the character of the deposits. These records should be of the visible system type permitting the insertion of signals, fla4ging the deposit for future refund, if of this character. By no means should we retain our customer's deposit beyond the requirements. An an- alysis of deposit procedure should by undertaken and a revision of present practices effected. The presenco of large sums of cash in the commercial office should be discontinued. Under the hearing "Organiyation of Accounting" a suggestion was made to employ direct posting methods rather than the existing system. It is my understanding that the direct method was in use previously and abandoned for practical reasons. I believe the present method to be more suitable for our particular require- ments. The term "proper liaison" appears in Mr. Clark's letter. Let me say again, if we put our organisational house in order, the "liaison" is a natural by-product. It is not a product that can peremptorily be injected into a situation by an order but rather the result of intelligent administration. I would be less than honest if I refrained, at this time, from commenting on the conduct of our utility commercial office. It is my opinion that the office is considerably overstaffed. This can be established as a fact by comparing our billing and collect- ing costs to those of neighboring cities who operate parallel municipal utilities. It appears that the efforts of the personnel in this department are misdirected. Too much time is spent on non-essential, inconsequential, detail.- Here again, we should employ modern, efficient and standardized utility office practices and 236 v CITY HALL, AZUSA, CALIFORNIA MONDAY, JANUARY 30, 1961 tecnhiques and pass the advantages of improved service along to our customers. Our public relations in this department need upgrading and strengthening and should be promulgated along the approaches of non -discriminating policies. This insures fair and impartial applicationand embodies the principles of administration under public ownership." Mrs. Johnson stated that the recommendations for a City Administrator were made by the firm of Griffenhagen-Kroeger, and asked the City Attorney whether he had prepared the Ordinances as requested, relative to these positions. The Attorney replied that he did have the ,Ordinance relative to the position of City Administrator, but that he had not completed the Ordinance establishing a Director of Finance, as it entailed several changes in the Code. Councilmen Paul, Teasley and Ortuno all indicated that they did not wish to have the Ordinance relative to the City Administrator introduced at this meeting as they had not even seen the Ordinance or its contents, and wished an opportunity for study. A Quit -Claim Deed was offered to the City by Frank 0. Sarinana for street purposes on Grandview Drive, along with a letter from Mr. Sarinana indicating he wished the sewer extended and the street paved and that he, in turn, would install curbs and gutters. This portion was originally offered to, and accepted by the City, under the same conditions in 1956, but never recorded. 237 Page 8 Councilman Teasley offered the following Resolution entitled: Res. 4140 acc._Quit- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ACCEPT- Claim Deed ING A QUIT -CLAIM DEED AND DIRECTING THE RECORDATION THEREOF. Sarinana Moved by Councilman Teasley, seconded by Councilman Paul and unanimously carried that further reading be waived. Moved by Councilman Teasley, seconded by Councilman Paul that the Resolution be adopted. Resolution passed and adopted by the following vote of Council: AYES: Councilmen: Paul, McLees, Johnson, Teasley, Ortuno NOES: Councilmen: None ABSENT: Councilmen: None and numbered Res. No. 4140. Reverting back to the discussion relative to City Administrator, Councilman McLees stated he felt consideration should be given to the recommendations of the Griffenhagen-Kroeger survey. Moved by Councilman Teasley, seconded by Councilman Paul and unanimously carried that the matter of consideration of a full- time Administrator be tabled until the full report is received from Griffenhagen-Kroeger and Associates, Mr. Caswell was asked to contact the organization and determine when the com- plete report will be ready for presentation. Hope was expressed that it would be possible for Mr. Martin to meet again with the Council, and also that Council could work towards an Ordinance that would be s&tisfactory to all concerned. Mayor Ortuno asked Councilman McLees whether the position of City 4dwinistrator, if established, would be advertised and filled by the most qualified applicant available. Councilman McLees concurred. 238 � It,� �" . , 239 CITY HALL AZUSA, CALIFORNIA MONDAY, JANUARY 301 1961 Page 9 The City Attorney asked whether Council wished to have the second reading of the Ordinance relative to handbill distribution. Councilman Teasley offered the following Ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING Ord. 66C CERTAIN PROVISIONS OF THE AZUSA MUNICIPAL CODS RELATING TO THE re: DISTRIBUTION OF HANDBILLS. handbill Moved by Councilman Teasley, seconded by Councilman McLees and unanimously carried that further reading be waived. Concilman Teasley moved, seconded by Councilman Paul that the Ordinance be adopted. Ordinance passed and adopted by the following vote of Council: AYES: Councilmen: Paul, McLees, Johnsons, Teasley, Ortuno NOES: Councilmen: None ABSENT: Councilmen: None and numbered Ord. n.-660. Moved by Councilman Teasley, seconded by Councilman Paul and Adjourn unanimously carried that the meeting adjourn. Time of adjournment - 10:03 P.M. City Clerk 240