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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. 171 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. 2 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 3 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. 4 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. 5 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 6 MAYO MAY 9, 2011 176 HE CITY OF C PRESS