Minutes 2011-05-09MINUTES OF A REGULAR MEETING OF THE
CYPRESS CITY COUNCIL
HELD
May 9, 2011
A regular meeting of the Cypress City Council was called to order at 5:31 p.m. by Mayor Mills
in the Executive Board Room, 5275 Orange Avenue, Cypress, California.
Members present:
Mayor /Agency Chair Leroy Mills
Mayor Pro Tem /Agency Vice Chair Todd Seymore
Council /Agency Board Member Doug Bailey
Council /Agency Board Member Phil Luebben
Council /Agency Board Member Prakash Narain
Staff present:
City Manager John Bahorski
Assistant City Attorney Lindsay Tabaian
Assistant City Manager /Director of Finance and Administrative Services Richard Storey
Director of Community Development Ted Commerdinger
Chief of Police Mark Yokoyama
Public Works Director Doug Dancs
Recreation and Community Services Director June Liu
Police Captain Jackie Gomez Whiteley
Police Lieutenant Jeff Kepley
Assistant City Engineer Kamran Dadbeh
Public Works Superintendent Bobby Blackburn
Assistant Director of Finance and Administrative Services Matt Burton
Administrative Services Manager Andrew Tse
City Clerk Denise Basham
ORAL COMMUNICATIONS:
None.
WORKSHOP SESSION:
The City Manager stated that the City Council would be presented with the Fiscal Year 2011-
2012 annual budget.
The Assistant City Manager /Director of Finance and Administrative Services stated that the
budget cycle began in January and included review by the City Manager. He indicated that
the budget would be submitted to the City Council for adoption on June 13, 2011.
The Assistant City Manager /Director of Finance and Administrative Services commented that
assumptions in preparing the Fiscal Year 2011 -12 Budget included maintaining the General
Fund balance, which is 25% of the Annual Operating Budget, funding approved City goals,
allocating resources for the Capital Improvement Plan, and addressing financial restraints.
The Assistant City Manager /Director of Finance and Administrative Services stated budget
compliance includes assuring that budgeted monies are used for what they are assessed for.
He stated that money would not be inappropriately borrowed from revenue sources.
Mayor Mills asked if there had been issues related to inappropriately borrowing of funds.
The Assistant City Manager /Director of Finance and Administrative Services responded that
there has not been an issue related to such.
Mayor Pro Tem Seymore asked about General Fund revenue designation.
The Assistant City Manager /Director of Finance and Administrative Services stated that there
are certain departmental designations such as zoning fees and engineering fees.
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CITY COUNCIL MINUTES MAY 9, 2011 172
Council Member Bailey clarified that there are structural and policy restrictions.
Council Member Luebben added that there may be a source of fund restrictions, as well.
The Assistant City Manager /Director of Finance and Administrative Services indicated that
there would be employee cost increases for the Public Employees' Retirement System
(PERS) over the next four years, along with State impacts to the budget. He stated that
goals included minimizing future employee layoffs and maintaining services.
The Assistant City Manager /Director of Finance and Administrative Services informed that
the Administration Department has been cut by 9 the Finance Department has been cut by
3 the Community Development Department has been cut by 17 the Public Works
Department has been cut by 13 the Recreation and Park District has been cut by 17
and the Police Department has increased by 4 He indicated that the City is spending less
than it was four years ago.
Council Member Luebben suggested that there be a waiting period or that consideration be
given for outsourcing before vacated positions are filled.
Mayor Mills reiterated that the budget does not include State takeaways or dissolution of
redevelopment agencies.
The Assistant City Manager /Director of Finance and Administrative Services stated that the
budget documents include the City's Annual and Operating Budgets, along with the Cypress
Recreation and Park District's Operating Budget. He stated that the combined budget
proposal is $50,489,751 and includes the City, Park District, and Redevelopment Agency
budgets. He indicated that the proposed combined budgets are an $8.7 million reduction
from last year.
The Assistant City Manager /Director of Finance and Administrative Services indicated that
the City's proposed budget is $41 million with significant reductions in the Capital
Improvement Program and Capital Outlay. He stated that the City's proposed budget is $25
million including a PERS increase of $450,000. He informed that two currently vacant
positions of Police Lieutenant and Secretary to the Community Development Department
have been frozen for Fiscal Year 2011 -12.
Council Member Narain asked if the Operating Budget includes personnel costs.
The Assistant City Manager /Director of Finance and Administrative Services replied in the
affirmative, and that supplies and services are included, as well.
Mayor Mills inquired as to the services affected by the frozen positions.
The Police Chief responded that the frozen Police Lieutenant position would not affect
services and that other command staff would assume that position's responsibilities.
The Assistant City Manager /Director of Finance and Administrative Services stated that the
City's General Fund Revenues /Sources is $29.5 million which is a $300,000 decrease from
the previous year due to the reduction in the Redevelopment Agency interest payments to
the General Fund for the City's recent land purchase from the Redevelopment Agency.
Council Member Luebben asked about the Transient Occupancy Tax (TOT) rate and the
opportunity for additional revenue from that tax.
The Assistant City Manager /Director of Finance and Administrative Services stated that the
City's TOT rate is 10 which is average for Orange County, and that the City of Anaheim's
rate is significantly higher. He informed that an increase in the tax would have to go under
Proposition 218 and would require a vote.
The Assistant City Manager /Director of Finance and Administrative Services indicated that
the General Fund Operating proposed budget is $23 million with no net change. He stated
that the unreserved, undesignated fund balance is approximately $40,000.
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CITY COUNCIL MINUTES MAY 9, 2011 173
The Assistant City Manager /Director of Finance and Administrative Services commented that
the Cypress Recreation and Park District's proposed estimated revenues are approximately
$4.6 million with proposed expenditures of approximately $4.9 million. He stated that 70-
80% of the District's budget comes from property taxes and that an assessment from the
O.C. Employees' Retirement System will be billed this year.
The Assistant City Manager /Director of Finance and Administrative Services stated that the
Redevelopment Agency's proposed estimated revenues and proposed expenditures are
approximately $4.3 million each. He informed that there is a contingency plan should the
Redevelopment Agency be disbanded.
The Assistant City Manager /Director of Finance and Administrative Services informed of the
revenue impacts that are not included in the budget that include the COPS Grant which
funds a Police Services Officer position and the possible elimination of the Redevelopment
Agency or the tax increment.
The Assistant City Manager /Director of Finance and Administrative Services indicated that
Capital Outlay is estimated at $315,000 which will be replacement funds not General Fund
money.
The Assistant City Manager /Director of Finance and Administrative Services stated that the
Internal Service Funds are fully funded and include employee benefits.
Council Member Luebben asked for clarification on the costs associated with various Capital
Outlay items.
Mayor Pro Tem asked if other agencies such as West County SWAT contribute towards
Capital Outlay items.
The Chief of Police responded that each agency purchases their own equipment.
The Assistant City Manager /Director of Finance and Administrative Services commented that
future concerns include PERS rate increases totaling $1.2 million over the next three years
along with labor legislation.
The Assistant City Manager /Director of Finance and Administrative Services concluded that
the City has a balanced budget without layoffs or furloughs. He stated that the budget would
be on June 13, 2011, City Council agenda for adoption.
Council Member Bailey asked about the budget for Capital Improvement projects
The Public Works Director provided an explanation of how funding is determined for the
Seven -Year Capital Improvement Projects.
At 6:41 p.m., the Mayor recessed the meeting.
7:00 P.M. SESSION:
The 7:00 p.m. session of the City Council meeting was called to order at 7:00 p.m. by Mayor
Mills.
Members present:
Mayor /Agency Chair Leroy Mills
Mayor Pro Tem /Agency Vice Chair Todd Seymore
Council /Agency Board Member Doug Bailey
Council /Agency Board Member Phil Luebben
Council /Agency Board Member Prakash Narain
Staff present:
City Manager John Bahorski
Assistant City Attorney Lindsay Tabaian
Assistant City Manager /Director of Finance and Administrative Services Richard Storey
Director of Community Development Ted Commerdinger
Chief of Police Mark Yokoyama
Public Works Director Doug Dancs
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CITY COUNCIL MINUTES
Recreation and Community Services Director June Liu
Police Captain Jackie Gomez Whiteley
Police Lieutenant Jeff Kepley
Assistant City Engineer Kamran Dadbeh
Senior Civil Engineer Alvin Papa
Administrative Services Manager Andrew Tse
City Clerk Denise Basham
PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Council Member Bailey.
INVOCATION: The invocation was given by Mayor Mills.
REPORT OF WORKSHOP AGENDA/CLOSED SESSION:
The Mayor asked for the report of the Workshop Session Agenda items discussed earlier in
the evening.
The City Manager reported that the City Council held a workshop regarding the proposed
Fiscal Year 2011 -2012 Annual Budget. He stated that the City's proposed budget is fully
balanced, is fully funded in its contingencies and reserves, and there is an operating budget
of $23 million. He stated that the proposed budget will be submitted to the City Council for
approval on June 13, 2011.
ORAL COMMUNICATIONS: LIMITED TO ONE -HALF HOUR. (THREE MINUTES PER
SPEAKER, SPEAKING ONCE.)
Mayor Mills asked anyone who wished to speak on any topic not included on the meeting
Agenda to come forward.
George O'Hara, Cypress Chamber of Commerce, spoke regarding upcoming activities and
events.
PUBLIC HEARINGS: 7:00 P.M. (PUBLIC COMMENTS RESTRICTED TO TEN
MINUTES PER SPEAKER, UNLESS EXTENDED BY THE CITY COUNCIL).
No items.
CONSENT CALENDAR:
All matters listed on the Agenda under "Consent Calendar" are to be considered by the City
Council to be routine and will be enacted by one motion approving the recommendations
listed on the Agenda.
It was moved by Mayor Pro Tem Seymore and seconded by Council Member Luebben, to
approve Consent Calendar Items No. 1 through 5.
The motion was unanimously carried by the following roll call vote:
AYES:
NOES:
ABSENT:
Item No. 1:
2011.
5 COUNCIL MEMBERS: Bailey, Luebben, Narain, Seymore and Mills
0 COUNCIL MEMBERS: None
0 COUNCIL MEMBERS: None
MAY 9, 2011 174
APPROVAL OF CITY COUNCIL MINUTES OF THE MEETING OF APRIL 25,
Recommendation: That the City Council approve the Minutes of the Meeting of April 25,
2011, as submitted, with Mayor Mills abstaining due to his absence from the meeting.
Item No. 2: MOTION TO INTRODUCE AND /OR ADOPT ALL ORDINANCES AND
RESOLUTIONS PRESENTED FOR CONSIDERATION BY TITLE ONLY AND TO WAIVE
FURTHER READING.
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CITY COUNCIL MINUTES
Item No. 3: SECOND READING OF ORDINANCE ADOPTING CHANGES TO THE
CYPRESS ZONING ORDINANCE RELATED TO NATIONAL POLLUTION DISCHARGE
ELIMINATION SYSTEM (NPDES) REQUIREMENTS.
Recommendation: That the City Council adopt the Ordinance by title only, adopting
changes to the Cypress Zoning Ordinance related to National Pollution Discharge Elimination
System (NPDES) requirements.
ORDINANCE NO. 1126
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
ADOPTING ZONING ORDINANCE AMENDMENT NO. 2011 -01 TO
MODIFY SECTION 3.10.130 OF THE CYPRESS ZONING CODE.
Item No. 4: FISCAL YEAR 2010 -11 PAVEMENT MANAGEMENT PROGRAM.
MAY 9, 2011 175
Recommendation: That the City Council receive and file the Fiscal Year 2010 -11 Pavement
Management Program (PMP).
Item No. 5: APPROVAL OF COMMERCIAL WARRANT LIST AND WIRE TRANSFERS
FOR FISCAL YEAR 2010 -11 FOR WARRANTS NO. 17551 THROUGH 17707.
Recommendation: That the City Council approve the attached warrant register and wire
transfers for Fiscal Year 2010 -11.
NEW BUSINESS:
No items.
RECREATION PARK DISTRICT MATTERS: The Cypress City Council, Acting as the Ex
Officio Governing Board of Directors.
No items.
CYPRESS REDEVELOPMENT AGENCY MATTERS: The Cypress City Council, Acting as
the Cypress Redevelopment Agency.
No items.
ORAL COMMUNICATIONS: For Matters Not on the Agenda.
None.
ITEMS FROM CITY COUNCIL MEMBERS:
Mayor Mills requested reports from the Council Members on their respective committee
assignments.
Council Member Luebben:
Attended the Cypress Chamber of Commerce Corporate Challenge golf tournament.
Attended the SCAG Regional Conference and General Assembly in La Quinta. Spoke
regarding an article in the O.C. Register concerning the meeting between the cities of Los
Alamitos, Seal Beach, and Cypress to discuss merging of police departments.
Mayor Pro Tem Seymore:
END OF CONSENT CALENDAR
Attended an O.C. Fire Authority Board meeting. Emceed the Rising Stars Awards program.
Emceed the FOCCA Scholarship Awards program.
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CITY COUNCIL MINUTES
Mayor Mills:
Reminded of the Memorial Day ceremony at Cypress Forest Lawn. Attended the Tip -A -Cop
fundraiser at Chili's for Special Olympics. Attended an OCCOG Board of Directors meeting.
Attended the grand opening of Cypress College's Veterans Resource Center. Presided over
the Cypress Art League awards and reception. Attended the FOCCA Scholarship Awards
program. Attended the SCAG Regional Conference and General Assembly in La Quinta.
Council Member Narain:
Asked for an update on the construction of the fire station.
The City Manager stated that a presentation is scheduled for the May 23, 2011 City Council
meeting.
Council Member Bailey:
Commented on the meeting held between the cities of Los Alamitos, Seal Beach, and
Cypress.
ITEMS FROM CITY MANAGER:
No items.
ADJOURNMENT: Mayor Mills adjourned the meeti g a 7:32 p.m. to a Special Meeting on
Monday, May 16, 2011, beginning at 5:30 p.m. in t cutive •ard Room.
ATTEST:
liackuuot OcooLa4y)
CITY CLERK OF THE CITY OF CYPRESS
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MAYO
MAY 9, 2011 176
HE CITY OF C PRESS