Loading...
HomeMy WebLinkAboutMinutes - May 27, 2014 - CCCITY OF AZUSA MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL, THE SUCCESSOR AGENCY AND THE PUBLIC FINANCING AUTHORITY TUESDAY, MAY 27, 2014 - 7:32 P.M. The City Council, the Successor Agency and the Public Financing Authority of the City of Azusa, met in Special Session at the above date and time in the Azusa Light and Water Conference Room located at 729 N. Azusa Avenue, Azusa, California. A copy of the Notice of Special Meeting was delivered to the Mayor and Councilmembers on May 22, 2014, between 4:45 and 5:15 P.M., by Administrative Technician Juarez and Senior Office Specialist Bautista. Mayor Rocha called the meeting to order ROLL CALL: Roll call was taken by City Clerk/Secretary Cornejo. PRESENT: COUNCILMEMBERS/BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA ABSENT: COUNCILMEMBERS/BOARDMEMBERS: NONE ALSO PRESENT Elected Officials: City Clerk/Secretary Cornejo, City Treasurer Vasquez. Staff Members: City Manager Makshanoff, City Attorney Martinez, Director of Public Works/Assistant City Manager Haes, Finance Director Paragas, Police Chief Gonzalez, Interim Human Resources Director St. Peter, Economic and Community Development Director Christiansen, Information Services/Library Director Graf, Recreation and Family Services Director Jacobs, Assistant Director of Economic and Community Development, McNamara, Budget Analyst Lam, Public Works Senior Management Analyst Del Toro, Public Information Officer Quiroz, City Librarian Strege, Utilities Accounting Executive/Public Benefits Reid, Utilities Senior Management Analyst Yang, Assistant/Deputy City Clerk Hernandez. PUBLIC PARTICIPATION None Given REPORTS, UPDATES, AND ANNOUNCEMENTS FROM STAFF/COUNCIL Call to Order Roll Call Also Present Pub Part Rprts/Updates City Manager Makshanoff announced that June 18, 2014, at 5:30 P.M., is the potential date and time for J. Makshanoff the dedication of the trail of the Fish Canyon Falls; staff has been working with Vulcan to ensure that the Comments event goes on smoothly; the community, elected official's and dignitaries will be invited to the event. Moved by Mayor Pro -tem Gonzales, seconded by Councilmember Alvarez, to approve the Mayor's Certificates request for certificates to congratulate the 2014 Christbridge Academy class, to be presented at the Christbridge graduation ceremony on June 6, 2014, at Canyon Christian Fellowship, by the following vote of the Academy 'Council: YES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE Moved by Councilmember Carrillo, seconded by Mayor Pro -tem Gonzales, to approve the Mayor's Certificate V. request for a certificate commending Ms. Martha Robertson, Lifetime Volunteer at Hodge Elementary Velasquez School, to be mailed to Principal Victoria Velasquez for presentation on May 29'h, by the following vote of the Council: YES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE Moved by Councilmember Carrillo, seconded by Councilmember Alvarez, to approve the Mayor's Certificate J. request for a certificate congratulating Ms. Julie Pusztai, MSN., RN., PhD., for earning the Woman of Pusztai Achievement Award, to be mailed for presentation on June 12, 2014; by the following vote of the Council: YES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAR'EZ, ROCHA NOES: COUNCILMEMBERS: NONE CONTINUED ITEM: Council's Appointment to the Canyonty Foundation. City Manager Makshanoff addressed the item stating that the selection and appointment process to fill the recently vacant seat to the City's representation on the Board to the Canyon City Foundation, is for ',Council to submit nominations to the City Clerk's Office, and interviews are to be conducted at a Council Meeting; he suggested June 16, 2014, for the interviews, in order to have someone appointed in time to start the grant award application review process. Moved by Councilmember Carrillo, seconded by Councilmember Macias, to set the deadline of June 5, 2014, for Council to submit nominations to the City Clerk's Office, and to hold the interviews on June 16, 2014, by the following vote of the Council: YES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE The City Council recessed for break at 7:39 P.M. and reconvened at 7:52 P.M. SCHEDULED ITEMS. FISCAL YEAR (FY) 2014-15 CITY, AZUSA PUBLIC FINANCING AUTHORITY AND SUCCESSOR AGENCY PRELIMINARY BUDGET REVIEW. Finance Director Paragas presented the Preliminary Budget for Fiscal Year 2014-2015, to the Council: BUDGET BACKGROUND: Keep same budget as last year's, while emphasizing on maintaining the same service level; There has been an increase in personnel costs; The Economy's impact on City's Revenues is the continued low interest rates; The CPI (Consumer Price Index) was 1.4% from April 2013 to April 2014, last year being 1.5%; Despite the reduction of staff in 2013, the benefits costs continue to rise;, The State's Budget crisis and the dissolution of the Redevelopment Agency (RDA). REVENUES: MRF (Materials Recovery Facility) revenue increase by $355,000 (full year estimate) Property Tax Revenue increase $477,000 Building Permits increase $73,000 Franchise Fee increase $174,000 EXPENDITURES: Election Cost $78,000 COLA (Cost of Living Adjustment) increase $155,000 PERS (Public Employee Retirement System) increase $209,00 Fire Service Contract increase $209,000 Projected Liability Claim increase $160,000 Part-time Community Improvement Officer to full-time position Police Department Records Specialist III -Lead and a Part-time Reserve Officer 5% salary increase. NOT INCLUDED ON BUDGET: Several Employee Reclassifications and Support positions requests Capital Outlay Equipment requests 'Capital Improvement Projects requests Equipment replacement fund for future vehicle replacements requests Contract negotiations with three bargaining units for new contract Additional Vulcan Revenue A one-time reimbursement from Successor Agency last year, not available this year Funding of Self Insurance Fund Replenishment of Fund Reserves Canyon City Foundation Nominations Recess Sched Items Presentation Preliminary 2014-15 Budget Budget Background Revenues Expenditures Not Included on Budget FUTURE ISSUES: Future Issues CaIPERS (California Public Employees Retirement System) rate increase will affect all cities starting with the smoothing rate in 2015 up to 2024, as well as longevity as a result of retirees living longer, and Risk Pool Rates that will be adjusted to approximately $170,000; Negotiations with 4 employee 05/27/2014 PAGE TWO J_ bargaining units; all bargaining, with the exception of 2, are contributing 5% towards their CaIPERS, should the other 2 groups contribute the same, this would assist the general fund by $300,000; even though the ACEA (Azusa City Employees Association) and the AMMA (Azusa Middle Management Association) continue making their CalPERS contributions, the last time a COLA increase of 3% provided to them, was in 2009-10 fiscal year, and 2010-11 for CAPP (Civilians Association of Police Personnel); the funding of the anticipated retirements payouts for approximately 12 personnel who are close to retirement, will have an impact on the finances; Waste Management MRF (Materials Recovery Facility) have been operating to full capacity, but they are restricted to the recyclables by the Puente Hills Landfill still being open, it may take 2 more years for the MRF to be fully functional; staff is waiting to find out what the State Controller will determine as far as the Successor Agency; and the importance of building up the City's reserve account. OVERVIEW: Overview ' Budget Summary: Community Development Total FY 2014-5 Budget $82,670670,629 Fund Summary: MRF addition — full year, 2/3 of full capacity General Fund 35,449,915 Special Revenue Fund 26,704,969 Capital Project Funds 1,099,750 Debt Service Funds 7,500,035 Enterprise Funds 2,729,950 Successor Agency Fund 4,977,810 Internal Service Funds 4,208,200 Internal service funds entail Risk Management, Information & Technology (IT), computer replacement for Police Department; Enterprise Fund is the same as the Sewer Fund. EXPENDITURES BY FUNCTION — General Fund Public Safety 0.86% Increase in Budget Revenues Expenditures by Community Development Increases: Function, Culture and Recreation MRF addition — full year, 2/3 of full capacity General Fund General Government Price Club Agreement — 2/3 of payment Highway and Streets Franchise Fee Decreases: Plan Check Revenues of approximately $100,000 One-time Successor Agency Reimbursement ' . Sales Tax from fuel sales are low due to more efficient 1.21% Increase in Budget Expenditures cars are being used. Increases: COLAs PERS Rates Fire Service Contract Election Decreases Personnel Cost -Redistribution Price Club Payment Capital Outlay GENERAL FUND SUMMARY FY2014-15: Projected Revenues and Transfers In $ 35,600;445 General Fund Operating Expenses and Transfers Out -35,437,915 Summary Preliminary Projected FY 2014-15 Balance 162,540 Discretionary and One Time Expenses - Capital Outlay/Equipment -12,000 Initial Proposed FY2014-15 Balance 150,540 Rental Inspection Revenue 50,000 Full-time Community Improvement Officer -33,635 Salary Adjustments: Records Specialist 111 -Lead P.D. -3,210 Part-time Police Officer -Reserves -7,885 PARS Contribution Rate Adjustment -26,600 Adjusted Proposed FY2014-15 Balance 1292-10 EXPENDITURES BY FUNCTION — General Fund Public Safety 60.3% Includes Fire Service Cost Expenditures by Community Development 5.5% Function, Culture and Recreation 12.0% General Fund General Government 16.9% Highway and Streets 1.6% 05/27/2014 PAGE THREE EXPENDITURE BY FUNCTION — All Funds: Utilities 59.4% Debt Service 6.2% Community Development 1.9% Public Safety 18.8% Highway and Streets 5.1% General Government 4.8% Culture and Recreation 3.7% EXTERNAL FACTORS: CalPERS Rate Increases Projected Increase $3,000,000 FY2014-15 vs FY2017-18 $8,100,000 FY2014-15 vs FY2020-21 Fire Safety Contract $824,000 Increase from FY2009-10 to FY2014-15 Successor Agency — Administration Allocations TO BE CONSIDERED: Increase User Fees and Charges Recreation Program Fees Reduce Services Library Hours Recreation Programs Negotiations with Employee Bargaining Units PERS Contributions New Hire Benefit Reductions Successor Agency Bond Refunding Explore Other Revenue Sources WHAT IS NOT INCLUDED: Employee Reclassification Support Positions Capital Outlay Equipment—Unfunded Capital Improvement Projects — Unfunded Equipment Replacement Fund for Future Vehicle Replacements Potential Impact Related to Current Employee Contract Negotiations Funding of Self Insurance Fund Deficit Negotiations with Employee Bargaining Units Employee COLAs Successor Agency SUCCESSOR AGENCY, FISCAL YEAR 2-14-2015 PROPOSED BUDGET: Estimated Revenues Estimated Expenditures Net Balance $ 4,977,810 -4,977,810 $ 0 ISSUES: Housing Administrative Allocation Bond Refunding Loans Between City and Former RDA (Redevelopment Agency) Transferred Properties Discussion was held regarding sales tax bening lower than projected; the State Budget crisis continues to affect the City's ability to sell RDA properties, on June 16-17, 2014, the State Controllers will be auditing the property transfers that have been made since 2011, which may allow the sale of those properties; the budget Housing Administrative Allowance that the City, as the Successor Agency, is supposed to transfer to the County housing assets totals $150,000 for the next two years, that will be taking from the $250,000 allocated to the Azusa Successor Agency by the State; the part-time Community Improvement Officer to full-time position will create revenue, which will minimize the impact of funding that position; not included on the budget were requests made by staff, as they cannot be funded at this time; the Vulcan Revenue is uncertain, as the type of mining or tonnage for next year is unknown, and the City is only allowed a certain percent of the mining; last year the City received a one- time reimbursement from the Successor Agency, which helped balance the budget; the City is self insured and pays all the claims that are settled, since -June of 2013, there has been a deficit of approximately $426,000 in these funds; staff has been looking at the possibility of setting up a minimum reserve policy prior to FY 2015-16, but certain outside factors need to be considered, such as if 1% of income is put into the reserve, this would mean having to out services, a policy it is not something that can be set without looking at the ramification, because there are limitations to what can and can't be done; the revenue tax that is transferred to Costco will began to decrease in FY 2014-15, the anticipated 05/27/2014 PAGE FOUR Expenditures by Function, All Funds External Factors To be Considered Not Included Sccr Agency ISSUES Discussion amount to be kept by the City is included in the budget; should the L. A. County Fire operating costs increases by 5%, the City's contract amount will automatically increase, as stipulated in the contract. Suggestions were given to reduce programs or increase recreation program fees, increase transient tax, measures that can be place on the ballot such as utility tax or sales tax; the burden that departments have taken after the layoff of employees, and the lack of capital improvements. Mayor Rocha thanked Best Best & Krieger, the City's Law Firm, for keeping the same fees as last year; staff responded to his questions as follows: flashing pedestrian beacons are located at Sierra Madre and Vernon by the Golf Course; the portable toilets expense are for the various programs throughout the year; the Police media platforms were launched in January, 2014, it was set up by a Police Officer at a minimal cost, and has been very successful; the police records cannot be shredded during the City's shred-a-thon event due to their confidentiality, as they are not public information; the entire amount of $4,000 set aside to apply for the All America City Award may not be used, staff feels that it would be a good idea to start looking into what that process involves, and try to move the City forward to compete and hopefully win; with the current situation, it is not a good time to bring back Azusa Day at Dodger Stadium at this time; the $6,000 for traffic accidents are non-refundable, as the City is self insured; the gel bracelets purchased for Seniors were for advertisement at the Rose Parade; it is estimated that before the end of the year, staff may have an update on Successor Agency transfers; and set up a workshop sometime in July 2014, to do a study on reduction of services. Mayor Rocha further stated that he will request that the Veteran's Committee to absorb the cost of portable toilets for the Veteran's events, and the Azusa Beautiful Committee has funds that can be used to help toward the All American City Award expenses. Mayor Rocha Comments/ Questions THE CITY OF AZUSA PUBLIC FINANCING AUTHORITY ADJOURNED AND THE CITY APFA Recess COUNCIL AND THE SUCCESSOR AGENCY CONTINUED AT 8:58 P.M. ORDINANCE AMENDING CHAPTER 30 OF THE AZUSA MUNICIPAL CODE AND ADOPTION OF THE 2014 EDITION OF THE OF THE LOS ANGELES COUNTY FIRE CODE. Community Development Director Christiansen addressed the item stating that this is the annual update of the Fire Code, and a request to set up a Public Hearing on June 16, 2014, for second reading and adoption of the ordinance; the proposed amendments are recommended by the Los Angeles County Fire Department. Mayor Rocha addressed the Item, posing a question regarding the change in prohibition of the use of charcoal burners and other open flame cooking devices within a certain distance of combustible structure buildings, whether the City assumes liability knowing that those are dangerous conditions; City Attorney responded that not in this case, because this is a request by the L.A. County, the City is adopting the ordinance by reference, and suggested that any questions regarding the changes made, should be addressed at the Public Hearing; in the mean time, staff will look into the concerns addressed and come back with an answer. Councilmember Carrillo offered an ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING AZUSA MUNICIPAL CODE SECTIONS 30-36 AND 30-37 AND ADOPTING BY REFERENCE THE 2014 EDITION OF THE LOS ANGELES COUNTY FIRE CODE. Moved by Councilmember Carrillo, seconded by Mayor pro -tem Gonzales, to waive further reading and introduce Ordinance No. 14-02, and to set-up the Public Hearing for June 16, 2014, by the following vote of the Council: YES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE First Reading of Ord 14-02, and Setting up Pub Hrg for Second Reading, on the Adoption by reference of L.A. County Fire Code CONSENT CALENDAR: It was moved by Mayor Pro -tem Gonzales, seconded by Councilmember Consent Alvarez, to approve the Consent Calendar Items D-1 and D-2, by the following vote of the Council: Calendar YES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCI4A NOES: COUNCILMEMBERS: NONE The Minutes of the Regular Meeting of May 5, 2014, were approved as written. Minutes 2. Resolution No. 14-C28, was adopted and entitled: 05/27/2014 PAGE FIVE A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ALLOWING Warrant Reso CERTAIN CLAIMS AND DEMANDS AND SPECIFYING THE FUNDS OUT OF WHICH 14-C28 THE SAME ARE TO BE PAID SUCCESSOR AGENCY RELATED BUSINESS Sccr Agency Resolution Approving the Issuance of Refunding Bonds, 2003A and 2008A. Finance Director Paragas addressed the item stating that the resolution was to approve the refunding of the 2003A and 2008A Bonds; by refunding the two bonds, there can be additional savings of $150,000 to $300,000 for the City. ' Councilmember Alvarez introduced a Resolution entitled: Reso 14-116, Appv Issuance A RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF of Refunding THE CITY OF AZUSA APPROVING THE ISSUANCE OF REFUNDING BONDS IN ORDER TO Bonds 2003A & REFUND CERTAIN OUTSTANDING BONDS OF THE DISSOLVED REDEVELOPMENT 2008A AGENCY OF THE CITY OF AZUSA, APPROVING THE EXECUTION AND DELIVERY OF AN INDENTURE OF TRUST RELATING THERETO, REQUESTING OVERSIGHT BOARD APPROVAL OF THE ISSUANCE OF THE REFUNDING BONDS, REQUESTING CERTAIN DETERMINATIONS BY THE OVERSIGHT BOARD, AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO Moved by Councilmember Alvarez, seconded by Councilmember Carrillo to waive further reading and adopt Resolution No. 14-R6, by the following vote of the Agency: YES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE Mayor Pro -tem Gonzales introduced a Resolution entitled: Reso 14-R7, Sccr Agency A RESOLUTION OF THE SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT Warrants AGENCY OF THE CITY OF AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS TO BE PAID OUT OF SUCCESSOR AGENCY FUNDS. 'Moved by Mayor Pro -tem Gonzales; seconded by Councilmember Carrillo, to waive further reading and adopt Resolution No. 14-R7, by the following vote of the Council: YES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE ADJOURNMENT Adjourn It was consensus of the City Council to adjourn the meeting. TIME OF ADJOURNMENT: 9:07 P.M. - 5;�' d {/SECRETA ,' NEXT RESOLUTION NO. 2014-C29. (City) NEXT ORDINANCE NO. 2014-03. ' NEXT RESOLUTION NO. 2014-R8 (Former Redevelopment Agency) 05/27/2014 PAGE SIX