2015-01-26400
MINUTES OF A REGULAR MEETING OF THE
CYPRESS CITY COUNCIL
HELD
January 26, 2015
A regular meeting of the Cypress City Council was called to order at 6:30 p.m. by Mayor
Johnson in the Council Chambers, 5275 Orange Avenue, Cypress, California.
Members present:
Mayor Rob Johnson
Council Member Stacy Berry
Council Member Paulo Morales
Council Member Jon Peat
Members absent:
Mayor Pro Tem Mariellen Yarc
Staff present:
City Manager Peter Grant
City Attorney Anthony Taylor
ORAL COMMUNICATIONS:
None.
CLOSED SESSION:
The City Attorney reported that the City Council would be meeting in Closed Session
regarding Conference with Legal Counsel — Anticipated Litigation, Significant Exposure
to Litigation Pursuant to Government Code Section 54956.9(b)(d)(e)(1), Number of
Cases: One Potential Case.
At 6:32 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 7:04 p.m. by
Mayor Johnson.
Members present:
Mayor Rob Johnson
Council Member Stacy Berry
Council Member Paulo Morales
Council Member Jon Peat
Members absent:
Mayor Pro Tem Mariellen Yarc
Staff present:
City Manager Peter Grant
City Attorney Anthony Taylor
Director of Finance and Administrative Services Matt Burton
Police Commander Rodney Cox
Director of Community Development Doug Dancs
Recreation and Community Services Director June Liu
City Engineer Kamran Dadbeh
City Planner Doug Hawkins
Redevelopment Project Manager Steve Clarke
Senior Management Analyst Alisha Farnell
Deputy City Clerk Rhonda Barone
City Clerk Denise Basham
t
PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Council Member
Morales.
CITY COUNCIL MINUTES JANUARY 26, 2015
INVOCATION: The invocation was given by Pastor Mike McKay, Cypress Church.
REPORT OF WORKSHOP AGENDA/CLOSED SESSION:
The Mayor asked for the report of the Closed Session Agenda items discussed earlier
in the evening.
The City Attorney reported that the City Council met in Closed Session regarding
Conference with Legal Counsel — Anticipated Litigation, Significant Exposure to
Litigation Pursuant to Government Code Section 54956.9(b)(d)(e)(1), Number of Cases:
One Potential Case. He stated that no reportable action was taken.
No other action was taken in Closed Session, nor was any solicited.
PRESENTATIONS:
None.
ORAL COMMUNICATIONS: LIMITED TO ONE -HALF HOUR. (THREE MINUTES
PER SPEAKER, SPEAKING ONCE.)
Mayor Johnson asked anyone who wished to speak on any topic not included on the
meeting Agenda to come forward.
Nancy Kyllingstad, Cypress, spoke regarding the invocation policy at City Council
meetings.
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 Council Member Morales and seconded by Council Member Berry, to
approve Consent Calendar Items No. 1 through 12.
The motion was unanimously carried by the following roll call vote:
AYES: 4 COUNCIL MEMBERS: Berry, Morales, Peat, and Johnson
NOES: 0 COUNCIL MEMBERS: None
ABSENT: 1 COUNCIL MEMBERS: Yarc
Item No. 1: APPROVAL OF CITY COUNCIL MINUTES OF THE MEETING OF
JANUARY 12, 2015.
Recommendation: That the City Council approve the Minutes of the Meeting of
January 12, 2015, as submitted.
Item No. 2: MOTION TO INTRODUCE AND /OR ADOPT ALL ORDINANCES AND
RESOLUTIONS PRESENTED FOR CONSIDERATION BY TITLE ONLY AND TO
WAIVE FURTHER READING.
Item No. 3: CONSIDERATION OF APPROVAL OF A RENEWAL AGREEMENT
WITH THE DISCOVERY SCIENCE FOUNDATION FOR DELIVERY OF A GRANT -
FUNDED RECYCLING EDUCATION PROGRAM.
Recommendation: That the City Council consider the approval of a renewal agreement
with the Discovery Science Foundation for the delivery of a grant- funded recycling
education program.
2
401
CITY COUNCIL MINUTES JANUARY 26, 2015
Item No. 4: APPROVAL OF PLANS AND SPECIFICATIONS FOR THE ANNUAL
CONCRETE REHABILITATION, PROJECT NO. 128.
Recommendation: That the City Council approve the plans and specifications for the
Annual Concrete Rehabilitation, Project No. 128.
Item No. 5: APPROVAL OF PLANS AND SPECIFICATIONS FOR THE ANNUAL
SLURRY SEAL, PROJECT NO. 129.
Recommendation: That the City Council approve the plans and specifications for the
Annual Slurry Seal, Project No. 129.
Item No. 6: APPROVAL OF PLANS AND SPECIFICATIONS FOR ANNUAL
OVERLAY, PROJECT NO. 130.
Recommendation: That the City Council approve the plans and specifications for the
Annual Street Overlay, Project No. 130.
Item No. 7: AWARD OF CONSTRUCTION CONTRACT AND AWARD OF TASK
ORDER FOR CONSTRUCTION INSPECTION SERVICES FOR THE SEWER
IMPROVEMENTS AT VARIOUS LOCATIONS, PROJECT NO. 117.
Recommendation: That the City Council: 1) Award a contract for the Sewer
Improvements at Various Locations, Project No. 117, in the amount of $197,512, to the
lowest responsible bidder, Sancon Engineering, Inc., Huntington Beach, California;
authorize a contingency of $29,627 (15% of bid amount); and direct the Director of
Community Development to issue any necessary change orders to complete additional
work within budgetary authority; and 2) Approve a Task Order for Construction
Management and Inspection Services, in the amount of $25,425, within the existing
agreement for On -Call Construction Management/Inspection /Engineering Services, for
the Sewer Improvements at Various Locations, Project No. 117, to Vali Cooper and
Associates, Inc. (VCA); authorize a contingency of $3,814 (15% of contract amount) to be
used for unforeseen work; and direct the Director of Community Development to act as
Contract Officer.
Item No. 8: ACCEPTANCE OF THE INDEPENDENT ACCOUNTANTS' REPORT ON
AGREED -UPON PROCEDURES APPLIED TO THE CITY OF CYPRESS'
APPROPRIATIONS LIMIT WORKSHEET FOR THE YEAR ENDED JUNE 30, 2014.
Recommendation: That the City Council receive and file the Independent Accountants'
Report on Agreed -Upon Procedures Applied to the City of Cypress' Appropriations Limit
Worksheet for the Year Ended June 30, 2014.
Item No. 9: REVIEW OF INVESTMENT REPORT FOR THE MONTH OF
DECEMBER, 2014.
Recommendation: That the City Council receive and file the Investment Report for the
month of December, 2014.
Item No. 10: APPROVAL OF COMMERCIAL WARRANT LIST AND WIRE
TRANSFERS FOR FISCAL YEAR 2014 -15 FOR WARRANTS NO. 33009 THROUGH
33134.
Recommendation: That the City Council approve the attached warrant register and
wire transfers for Fiscal Year 2014 -15.
Recreation and Park District Matters:
Item No. 11: ACCEPTANCE OF THE INDEPENDENT ACCOUNTANTS' REPORT ON
AGREED -UPON PROCEDURES APPLIED TO THE CYPRESS RECREATION AND
PARK DISTRICT'S APPROPRIATIONS LIMIT WORKSHEET FOR THE YEAR ENDED
JUNE 30, 2014.
3
402
CITY COUNCIL MINUTES JANUARY 26, 2015 403
Recommendation: That the City Council, acting as the ex- officio Board of Directors of
the Cypress Recreation and Park District, receive and file the Independent Accountants'
Report on Agreed -Upon Procedures Applied to the Cypress Recreation and Park
District's Appropriations Limit Worksheet for the Year Ended June 30, 2014.
Item No. 12: ACCEPTANCE OF SENIOR CENTER DONATION AND APPROPRIATION
OF $1,000 FOR THE PURCHASE OF ROUND LOBBY TABLES AT THE SENIOR
CENTER FACILITY.
Recommendation: That the City Council, acting as the ex- officio governing Board of
Directors for the Cypress Recreation and Park District: 1) Formally accept a donation in
the amount of $1,000 from Carole Fujishiro - Fukuroku; and 2) Increase estimated
revenues in Account 212 - 99999.3713 (Donations) by $1,000 and increase appropriations
by $1,000 to Account 212 - 90317.4113 (Small Tools — Senior Activities) for the purchase
of round lobby tables for the Senior Center.
END OF CONSENT CALENDAR
NEW BUSINESS:
Item No. 13: ACCEPTANCE OF THE COMPREHENSIVE ANNUAL FINANCIAL
REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014.
The Director of Finance and Administrative Services provided background information
on this item.
Council Member Peat thanked staff for the effective management of the City's
resources, and asked about the growth rate of expenses as compared to the growth
rate of revenues.
The Director of Finance and Administrative Services replied that as more is invested
into the City's capital infrastructure, there are associated depreciation charges that go in
with those, and that not all of the expenses depicted are cash out flow and are more
bookkeeping and accounting issues which could contribute to the slight uptake of
expenses versus revenues.
The City Manager spoke regarding property tax effects and pension liabilities through
the California Public Employees' Retirement System (CaIPERS).
Mayor Johnson spoke of recent embezzlement allegations of a local city, and asked
about the City's embezzlement safeguards.
The Director of Finance and Administrative Services responded that there are a
significant number of auditing safeguards.
Mayor Johnson complimented the Director of Finance and Administrative Services and
his staff for their budgetary diligence.
It was moved by Council Member Peat and seconded by Council Member Berry, that
the City Council receive and file the report.
The motion was unanimously carried by the following roll call vote:
AYES: 4 COUNCIL MEMBERS: Berry, Morales, Peat, and Johnson
NOES: 0 COUNCIL MEMBERS: None
ABSENT: 1 COUNCIL MEMBERS: Yarc
Item No. 14: ACCEPTANCE OF THE AUDIT LETTER TO THE CITY COUNCIL FOR
THE FISCAL YEAR ENDED JUNE 30, 2014.
The Director of Finance and Administrative Services provided background information
on this item.
4
CITY COUNCIL MINUTES JANUARY 26, 2015
Mr. Nitin Patel, White Nelson Diehl Evans LLP, spoke regarding his firm's auditing
responsibilities of financial statements.
Council Member Berry asked how audit samplings are determined.
Mr. Patel responded that the audit samplings change each year and that they are
based on audit tests.
It was moved by Council Member Berry and seconded by Council Member Peat, that
the City Council receive and file the Auditor's Letter to the City Council.
The motion was unanimously carried by the following roll call vote:
AYES: 4 COUNCIL MEMBERS: Berry, Morales, Peat, and Johnson
NOES: 0 COUNCIL MEMBERS: None
ABSENT: 1 COUNCIL MEMBERS: Yarc
RECREATION & PARK DISTRICT MATTERS: The Cypress City Council, Acting as
the Ex Officio Governing Board of Directors.
Item No. 15: ACCEPTANCE OF THE COMPONENT UNIT FINANCIAL REPORT OF
THE CYPRESS RECREATION AND PARK DISTRICT FOR THE FISCAL YEAR
ENDED JUNE 30, 2014.
The Director of Finance and Administrative Services provided background information
on this item.
Mayor Johnson asked about funding for Measure R, the Mackay School site.
The Director of Finance and Administrative Services responded that the purchase of
the Mackay School site land is included in the District budget.
Mayor Johnson asked about the advantage /disadvantage of separate City and Cypress
Recreation and Park District funding.
The Director of Finance and Administrative Services replied that it is advantageous to
have dedicated revenue sources for the Cypress Recreation and Park District, and that
co- mingling monies could cause unavailable funding for the Recreation Department.
The City Manager commented that the Cypress Recreation and Park District is a
separate legal entity with a restricted source of funding which is reflective of the will of
the people when the District was created in 1949.
It was moved by Council Member Peat and seconded by Council Member Morales, that
the City Council, acting as the ex- officio Board of Directors for the Cypress Recreation
and Park District, receive and file the report.
The motion was unanimously carried by the following roll call vote:
AYES: 4 COUNCIL MEMBERS: Berry, Morales, Peat, and Johnson
NOES: 0 COUNCIL MEMBERS: None
ABSENT: 1 COUNCIL MEMBERS: Yarc
SUCCESSOR AGENCY TO THE CYPRESS REDEVELOPMENT AGENCY MATTERS:
The Cypress City Council, Acting as the Successor Agency to the Cypress
Redevelopment Agency.
Item No. 16: ADOPTION OF THE ADMINISTRATIVE BUDGET FOR THE CYPRESS
SUCCESSOR AGENCY FOR THE SIX -MONTH PERIOD OF JULY 1, 2015 THROUGH
DECEMBER 31, 2015.
The Director of Finance and Administrative Services provided background information
on this item.
5
404
CITY COUNCIL MINUTES JANUARY 26, 2015 405
Successor Agency Member Peat asked if the expenses exceed the estimate.
The Director of Finance and Administrative Services replied that any additional
expenses would be included in the next budget.
Successor Agency Member Berry asked about any resolution to the development on
the 13 acres site on Katella Avenue.
The Director of Finance and Administrative Services responded that a positive
resolution is hopeful in the near future.
It was moved by Successor Agency Member Berry and seconded by Successor Agency
Member Morales, that the Successor Agency adopt the administrative budget for the
Successor Agency for the six -month period of July 1, 2015 through December 31, 2015.
The motion was unanimously carried by the following roll call vote:
AYES: 4 AGENCY MEMBERS: Berry, Morales, Peat, and Johnson
NOES: 0 AGENCY MEMBERS: None
ABSENT: 1 AGENCY MEMBERS: Yarc
ORAL COMMUNICATIONS: For Matters Not on the Agenda.
None.
ITEMS FROM CITY COUNCIL MEMBERS:
Mayor Johnson requested reports from the Council Members on their respective
committee assignments.
Council Member Peat:
Attended the Cypress State of the City Luncheon.
Council Member Morales:
Attended the New Mayors and Council Members Academy. Toured the Anaheim Union
High School District. Attended the Cypress State of the City Luncheon. Attended an
O.C. Vector Control Board orientation. Attended a Catholic Schools Week event at St.
Irenaeus School.
Council Member Berry:
Attended the Cypress Chamber of Commerce Networking breakfast. Attended the New
Mayors and Council Members Academy. Attended a Cypress Children's Advocacy
meeting. Attended the Cypress State of the City Luncheon. Attended a Santa Ana
River Flood Protection Agency meeting.
Council Member Johnson:
Attended the New Mayors and Council Members Academy. Spoke at the Cypress
State of the City Luncheon. Attended an O.C. Fire Authority Board meeting. Attended
an O.C. City Selection Committee meeting. Attended a Catholic Schools Week event
at St. Irenaeus School.
ITEMS FROM CITY MANAGER:
The City Manager thanked the City Council for their attendance at the New Mayors and
Council Members Academy.
6
CITY COUNCIL MINUTES JANUARY 26, 2015 406
ADJOURNMENT: Mayor Johnson adjourned the meeting at 7:56 p.m. to Monday,
February 9, 2015, beginning at 5:30 p.m. in the Executive Board Room.
ATTEST:
to ' -t2 1
CITY CLERK OF THE CITY OF CYPRESS
7
MAYOR OF HE CITY OF CYPRESS