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02-19-2019 - AGENDA ITEM 01 JANUARY 15, 2019 CITY COUNCIL/SUCCESSOR AGENCY SPECIAL MEETING CLOSED SESSION MINUTESAGENDA ITEM NO. 1 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: February 19, 2019 TO: Mayor and City Council FROM: Chris Freeland City Manager SUBJECT: JANUARY 15, 2019 CITY COUNCIL/SUCCESSOR AGENCY SPECIAL MEETING CLOSED SESSION MINUTES JANUARY 15, 2019 CITY COUNCIL/SUCCESSOR AGENCY/WEST COVINA COMMUNITY SERVICES FOUNDATION REGULAR MEETING MINUTES RECOMMENDATION: It is recommended that the City Council receive and file the Closed Session and Regular Meeting Minutes of January 15, 2019. DISCUSSION: Prepared by: Carrie Gallagher, Assistant City Clerk, CMC Attachments 01.15.19 Special Closed Session Meeting Minutes 01.15.19 Regular Meeting Minutes ABSENT: None 6) APPROVAL AND TRANSMITTAL OF AN ADMINISTRATIVE BUDGET AND A RECOGNIZED OBLIGATION PAYMENT SCHEDULE "ROPS" PURSUANT TO HEALTH AND SAFETY CODE SECTION 34179.7(0)(1), FOR THE PERIOD OF JULY 1, 2019 THROUGH JUNE 30, 2020 FOR THE SUCCESSOR AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT AGENCY It is recomrnded that the City Council, acting as the Successor Agency to the former West Covina Redevelopment Agency, adopt the following resolution: RESOLUTION NO. 2019-04 — A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING THE TRANSMITTAL OF AN ADMINISTRATIVE BUDGET AND A RECOGNIZED OBLIGATION PAYMENT SCHEDULE `BOPS" FOR THE PERIOD OF JULY 1, 2019 THROUGH JUNE 30, 2020 Item No. 6 was pulled by Councilwoman Lopez-Viado for further discussion. City Manager Freeland gave a brief overview on Item No. 6 and defined the Recognized Obligation Payment Schedule (ROPS) as the payment to the Successor Agency, which is required by all cities, per California law. Mayor Pro Tern Wu asked for clarification regarding the time frame as to when the ROPS will be paid in full and asked for the total amount the City still owes. City Manager Freeland stated that a time frame cannot be given due to the bonds and obligations the City still owes on and it can take approximately decades to completely pay off the debt owed. He also indicated that the City believes the state currently owes West Covina approximately $30 million in sales tax diversion funds. A motion was made by Councilwoman Lopez-Viado and seconded by Councilman Castellanos to adopt Resolution No. 2019-04. Motion was carried by a vote of 4-0. AYES: Castellanos, Lopez-Viado, Wu, Johnson NOES: None ABSENT: None 7) APPROVAL OF ASSIGNMENT AGREEMENT AND RELATED CUSTODIAL AGREEMENT ENTERED INTO IN CONNECTION WITH THE ISSUANCE OF REDEVELOPMENT AGENCY OF WEST COVINA COMMUNITY FACILITIES DISTRICT NO.1989-1 (FASHION PLAZA) 1996 SPECIAL TAX REFUNDING BONDS It is recommended that the City Council, acting as the Successor Agency to the former West Covina Redevelopment Agency, adopt the following resolution: RESOLUTION NO. 2019-03 — A RESOLUTION OF THE SUCCESSOR AGENCY OF THE FORMER WEST COVINA REDEVELOPMENT AGENCY APPROVING AN ASSIGNMENT AGREEMENT RELATING TO THE ASSIGNMENT OF THE COLLATERALIZED INVESTMENT AGREEMENT AND RELATED CUSTODIAL AGREEMENT ENTERED INTO IN CONNECTION WITH THE ISSUANCE OF THE REDEVELOPMENT AGENCY OF THE CITY OF WEST COVINA COMMUNITY FACILITIES DISTRICT NO. 1989-1 (FASHION PLAZA) 1996 SPECIAL TAX REFUNDING BONDS AND THE TAKING OF CERTAIN ACTIONS IN CONNECTION THEREWITH Item No. 7 was pulled by Councilwoman Lopez-Viado for fwther discussion City Manager Freeland gave a brief overview on Item No. 7 and indicated that a reserve account was invested, and financial institutions were created to oversee said investments. A motion was made by Councilwoman Lopez-Viado and seconded by Councilman Castellanos to adopt Resolution No. 2019-03. Motion was carried by a vote of 4-0. AYES: Castellanos, Lopez-Viado, Wu, Johnson NOES: None ABSENT: None HUMAN RESOURCES 8) STATE MINIMUM WAGE SALARY ADJUSTMENTS It is recommended that the City Council: 1. Approve wage adjustments to eight limited service positions to bring them into compliance with the State's mit imurn wage requirement as of January 1, 2019; 2. Approve a wage adjustment to the Lifeguard Instructor position to address adverse pay compaction created by the State's minimum wage increase as of January 1, 2019; 3. Approve the deletion of Reprographics Assistant from the Limited Services Pay Schedule due to the position being operationally obsolete; and 4. Adopt the following resolution: RESOLUTION NO. 2019-01- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADJUSTING THE HOURLY PAY RATES OF CLASSIFICATIONS WITHIN THE LIMITED SERVICES PAY SCHEDULE AND AMENDING RESOLUTION NO. 2018-10. A motion was made by Mayor Pro Tem Wu and seconded by Mayor Johnson to approve the aforementioned actions and adopt Resolution No. 2019-01. Motion was carried by a vote of 4-0. AYES: Castellanos, Lopez-Viado, Wu, Johnson NOES: None ABSENT: None POLICE DEPARTMENT 9) AGREEMENT WITH WEST COVINA UNIFIED SCHOOL DISTRICT FOR SCHOOL RESOURCE OFFICERS AND CROSSING GUARD SERVICES It is recommended that the City Council approve the cost sharing three-year agreement with West Covina Unified School District for School Resource Officers and Crossing Guard services. A motion was made by Mayor Pro Tern Wu and seconded by Mayor Johnson to approve the cost sharing three-year agreement with West Covina Unified School District for School Resource Officers and Crossing Guard services. Motion was carried by a vote of 4-0. AYES: Castellanos, Lopez-Viado, Wu, Johnson NOES: None ABSENT: None PUBLIC SERVICES 10) AUTHORIZATION TO SUBMIT APPLICATIONS TO THE DEPARTMENT OF RESOURCES AND RECYCLING AND RECOVERY (CALRECYCLE) It is recommended that the City Council approve the following resolutions: RESOLUTION 2019-06 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA APPROVING SUBMITTAL OF APPLICATIONS TO THE DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (CALRECYCLE) FOR THE USED OIL PAYMENT PROGRAM (OPP) UNDER THE CALIFORNIA PUBLIC RESOURCES CODE SECTIONS 48690 ET SEQ. COMMENCING WITH THE FISCAL YEAR 2018-2019 TO AND INCLUDING THE FISCAL YEAR 2023-2024 RESOLUTION 2019-07 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA AUTHORIZING SUBMITTAL OF APPLICATION FOR PAYMENT PROGRAMS AND RELATED AUTHORIZATIONS TO THE DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (CALRECYCLE) A motion was made by Mayor Pro Tern Wu and seconded by Mayor Johnson to approve and adopt Resolution No. 2019-06 and Resolution No. 2019-07. Motion was carried by a vote of 4-0. AYES: Castellanos, Lopez-Viado, Wu, Johnson NOES: None ABSENT: None END OF CONSENT CALENDAR City Manager Freeland re -organized the agenda so that Item No. 11 is the last item up for Council discussion. DEPARTMENTAL REGULAR MATTERS PUBLIC SERVICES 12) WEST COVINA COMMUNITY SERVICES FOUNDATION POTENTIAL FUNDING FOR COMMUNITY EVENTS It is recommended that the City Council acting as the West Covina Community Services Foundation Board of Directors provide staff direction regarding use of current fund balances in the West Covina Community Services Foundation for community events. Assistant City Manager/Public Services Director Bresciani provided a brief report on Item No. 12 and indicated that there is a fund balance of $60,037 available for programming in the Community Services Foundation. In addition, she provided Council with staff recommendations regarding the allocation of the aforementioned funds. Vice Chair Wu asked how the money in the foundation is funded. Assistant City Manager/Public Services Director Bresciani indicated that the funds originated from the donations designated to fund the City's community events. In addition, she also stated that Royal Coaches Towing and Mavericks provide a majority of the fiords, which is a part of their contract with the City where they provide for community events on an annual basis. Mrs. Bresciani also shared that the donations for the foundation are random and vary depending on the types of events that companies wish to fund. Vice Chair Wu asked how many community events the City plans on hosting this year. Assistant City Manager/Public Services Director Bresciani indicated that the current events that can be funded are the ones the City co-sponsors or partners with another company which include the following: • Martin Luther King Jr. birthday celebration • Cherry Blossom • Movies in the park (co -sponsored with West Covina Plaza) • Summer Concerts • Pumpkin Run (partner with Kiwanis) • Red Ribbon Rally (partner with Rotary) • Earth Day & Arbor Day (partner with West Covina Beautiful) • Veteran's Day • Memorial Day • Cl&dren's Christmas Parade (partner with Kiwanis) Vice Chair Wu expressed concerns regarding the lack of community events in the City Boardmember Lopez-Viado expressed concerns regarding the Fourth of July celebration and indicated that the celebration should be re -implemented. Assistant City Manager/Public Services Director Bresciani indicated that the bigger events such as the Easter egg hunt and the 41h of July celebration provides a minimal amount of revenue for the City. Boardmember Kaufman stated that both of these larger events must be preserved. Boardmember Lopez- Viado asked Assistant City Manager/ Public Services Director Bresciani if there is a lower cost alternative to the Fourth of July event. Boardmember Castellanos inquired on the price of the eggs for the Easter celebration and if the event could be downsized to save the City on capitaL Assistant City Manager/ Public Services Director Bresciani indicated that the Easter egg hunt could be downsized to one site, however, it would be a high safety risk for both City staff as well as the residents. Public Services Superintendent Cresap stated that the eggs for the Easter celebration is a major expense as 75% of the budget is allocated to eggs and $4000 is spent on eggs per site. He added that staff is exploring every avenue possible in order to find a company to co-sponsor the event. Chair Johnson stated that since the 4th of July event is going to cost the City $75,000 and there is only $60,000 available, it would be more beneficial to re -instate other City events instead of just one event that would put the City over budget. Assistant City Manager/Public Services Director stated that the 4th of July celebration could potentially be moved to an earlier date to save on costs. A motion was made by Chair Johnson and seconded by Vice Chair Wu to implement all current aforementioned City events totaling up to the allotted $60,000, with the elimination of the 4th of July celebration. Motion was carried by a vote of 5-0. AYES: Castellanos, Kaufinan, Lopez-Viado, Wu, Johnson NOES: None ABSENT: None MAYOR/ COUNCILMEMBERS REPORTS CITY COUNCIL REQUESTS FOR REPORTS, STUDIES OR INVESTIGATION 13) REQUEST FROM MAYOR LLOYD JOHNSON REQUESTING THE CITY COUNCIL'S CONSENSUS TO RE-EXAMINE THE CITY'S TEMPORARY SIGN ORDINANCE TO STRENGTHEN MEASURES TO ADDRESS VIOLATIONS OF ORDINANCE It is recommended that the City Council direct staff accordingly. Mayor Johnson gave a brief overview on Item No. 13 and expressed concerns regarding the lack of penalties incurred on candidates who violate the temporary sign ordinance. A motion was made by Mayor Johnson and seconded by Councilman Castellanos to re-examine the City's temporary sign ordinance to strengthen measures to address violations of said ordinance. City Attorney Porter indicated that Council direction would be to direct the Planning Commission to discuss this issue at a future meeting and would indicate an initiation of a code amendment. He also stated that a roll call vote would not be necessary since a general consensus of 4-0 was reached. CITY MANAGER'S OFFICE 11) APPOINTMENT OF VACANT AT -LARGE CITY COUNCIL POSITION It is recommended that the City Council discuss and make an appointment of an individual to serve the vacant At -Large City Councibnember position through December 2020. City Manager Freeland reordered the agenda so that the discussion of Item No. 11 takes place after Item No. 13. He also gave a brief overview on Item No. 11 and indicated that there is a vacancy for the at -large City Council position. Candidates for at -large City Council seat Karin Armburst Steve Bennett Alan Caricco Jessica Shewmaker Marsha Solorio Dave Stewart Ben Wong Karim 7aklama A motion was made by Mayor Pro Tem Wu to nominate Marsha Solorio to the at -large City Council seat. Motion dies for lack of a second. A motion was made by Mayor Johnson to nominate Steve Bennett to the at -large City Council seat Motion dies for lack of a second. A motion was made by Councilwoman Lopez-Viado and seconded by Councilman Castellanos to appoint Jessica Shewmaker to the at -large City Council seat. Motion was carried by a vote of 3-1, with Mayor Johnson in opposition. AYES: Castellanos, Lopez-Viado, Wu NOES: Johnson ABSENT: None AB 1234 Conference and Meeting Report (verbal, if anv) None given CITY COUNCIL COMMENTS Councilman Castellanos stated that Fire Chief Whithorn will have a response regarding Forrest Wilkins concerns during Oral Communications. In addition, Councilman Castellanos inquired on how the City can provide services to residents 5 days a week. Councilwoman Lopez-Viado requested for staff to agendize a sign ordinance discouraging pan handling within the City and to research information on outside agencies that can assist those in need. ADJOURNMENT Mayor Johnson adjourned the meeting at 1207 a.m. Submitted by: Carrie Gallagher, CMC Assistant City Clerk Lloyd Johnson Mayor CITY OF WEST COVINA CITY COUNCIIJSUCCESSOR AGENCY JANUARY 15, 2019, 5:30 PM SPECIAL MEETING - CLOSED SESSION CITY MANAGER'S CONFERENCE ROOM 1444 W. GARVEY AVENUE SOUTH WEST COVINA, CALIFORNIA 91790 Mayor Lloyd Johnson Mayor Pro Tem Tony Wu Councilman Dario Castellanos CouncilwomanLetty Lopez-Viado MINUTES Mayor Johnson called to order the Closed Session Meeting of the West Covina City Council/Successor Agency at 536 p.m in the City Manager's Conference Room at City Hall, 1444 W. Garvey Avenue, West Covina, California. ROLL CALL Present: Councilwoman Letty Lopez- Viado, Councilman Dario Castellanos, Mayor Pro Tern Tony Wu, Mayor Lloyd Johnson Other Present: City Manager Chris Freeland, City Attorney Scott Porter, Assistant City Manager/ Public Services Director Nikole Bresciani, Human Resources Director Edward Macias, Outside Counsel Myrna Castellano, Police Chief Marc Taylor, Planning Director Jeff Anderson, Economic Development/ Housing Manager Paulina Morales, Economic Development Gerardo Rojas PUBLIC COMMENTS ON ITEMS ON THE AGENDA Representatives from Starwood spoke at 6:30 p.m . 11 1 4 111 CONFERENCE WrM LEGAL COUNSEL - EXISTING LITIGATION Pursuant to Government Code § 54956.9(d)(1) Miller v. City of West Covina (Los Angeles Superior Court Case No.18STCV08613) Villasenor, Lorraine v. City of West Covina, et at (Los Angeles Superior Court Case No. BS165795) Franco, et at vs. City of West Covina, et at (U.S. District Court Case No. 5:18 cv-02587-JGB- SHK) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Pursuant to Government Code § 54956.9(d)(2) Number of Cases: One (1) CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code § 54956.8 Property: APN Nos. 8474-003-915, 8474-003-918, 8474-003-940, 8474-007-928, 8474-007- 931, 8474-007-932, 8474-007-933, 8474-007-934, 8474-007-935, 8474-007-939, 8474-007- 940 Agency Negotiator: Freeland, Bresciani, Anderson, Morales, Porter Negotiating Parties: Starwood Retail Partners, LLC. Under Negotiation: Price and Terms of Payment CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code § 54956.8 Property: APN NOS: 8735-001-933 AND 8735-001-934 Agency Negotiator: Freeland, Bresciani, Anderson, Morales, Porter Negotiating Parties: M & A Gabaee Under Negotiation: Price and Terms of Payment CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code § 54956.8 Property: APN NO: 8493-003-911 Agency Negotiator: Freeland, Bresciani, Anderson, Morales, Porter Negotiating Parties: Suburban Water Systems Under Negotiation: Price and Terms of Payment CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code § 54957.6 City Negotiators: Freeland, Macias, Bresciani, Porter Employee Organizations Confidential Employees Maintenance & Crafts Employees Non -Sworn W.C. Police Officers' Association W.C. Firefighters' Management Assoc. W.C. Firefighters' Association, I.A.F.F., Local 3226 Unrepresented Employee Group - Department Heads ADJOURNMENT Mayor Johnson adjourned the meeting at 7:13 p.m. Submitted by: Carrie Gallagher, CMC Assistant City Clerk General Employees Mid -Management Employees W.C. Police Management Association Lloyd Johnson Mayor CITY OF WEST COVINA CITY COUNCIL/SUCCESSOR AGENCY/ WEST COVINA COMMUNITY SERVICES FOUNDATION JANUARY 15, 2019, 7:00 PM REGULAR MEETING CITY HALL COUNCIL CHAMBERS 1444 W. GARVEY AVENUE SOUTH WEST COVINA, CALIFORNIA 91790 Mayor Lloyd Johnson Mayor Pro Tern Tony Wu Councilman Dario Castellanos Councilwoman Letty Lopez-Viado MINUTES CALL TO ORDER Mayor Lloyd Johnson called the meeting to order at 7:22 p.m INVOCATION Led by Pastor Samuel Martinez from Amazing Love Ministries PLEDGE OF ALLEGIANCE Led by Mayor Pro Tem Tony Wu ROLL CALL Present: Councilman Dario Castellanos, Councilwoman Letty Lopez-Viado, Mayor Pro Tern Tony Wu, Mayor Lloyd Johnson Staff Present: City Manager Chris Freeland, Assistant City Manager/ Public Services Director Nikole Bresciar i City Attorney Scott Porter, Planning Director Jeff Anderson, Assistant City Engineer Monica Heredia, Assistant Fire Chief Vince Capelle, Police Chief Marc Taylor, Police Captain Richard Bell, Police Captain Doug Murray, Human Resources Director Edward Macias, Assistant City Clerk Carrie Gallagher, Finance Director Marcie Medina, Public Services Superintendent Mike Cresap REPORTING OUT FROM CLOSED SESSION City Attorney Porter indicated that no reportable action was taken. CHANGES TO THE AGENDA City Manager Freeland indicated that Item No. 11 will be moved to be the last item on the agenda and those who wish to speak on that item during Oral Conan nications will have three minutes to do so. PRESENTATIONS 1) Introduction/Swearing in of the New Assistant City Clerk, Carrie Gallagher 2) Resolution of Commendation for Planning Commissioner Jose Jimenez 3) Check Presentation by West Covina Kiwanis for the Pumpkin Run/Walk 5K 4) Recognition of West Covina Pop Warner Cheer Program 5) Presentation by Union Station Homeless Services 6) Presentation by Department of Toxic Substances Control Regarding BKK Landfill ORAL COMMUNICATIONS - FIve (5) minutes per speaker Brian Franzen, representative for GWC, discussed the 2nd Annual 5K Fun Run. Rose Lopez expressed her approval regarding the appointment of Dr. Zak for the at -large City Council position. Rebecca Urac asked the City Council for support regarding sanitation employees. Dr. Charles Hinman spoke in support of Jessica Shewmaker for the at -large City Council position. Brad Manning spoke in support of Dr. Zak for City Council. Michael Flowers spoke in support of Jessica Shewmaker for City Council Camie Poules thanked the Council for recognizing the Pop Warner program and spoke in support of Jessica Shewmaker for City Council. Carole Mullner encouraged those in attendance to continue attending City Council meetings. Andrew Soliman spoke in support of Dr. Zak for City Councill, Dan Rodriguez expressed his support of Dr. Zak for City Council Ashley Vargas expressed her support for Dr. Zak as a candidate for City Council Wen Wen Zhang spoke on upcoming library events and programs. Ana Montane -Munoz spoke in favor of Dr. Zak for City Council. Marlen Fernandez spoke in favor of Dr. Zak for the available City Council seat. Ashlee Page expressed her support for Dr. Zak for City Council Bill Elliott shared his concerns regarding self-protection rights and expressed his opinions on the prospective Council candidates. Janette Morales expressed her approval for Karim Zaklan for City Council. Forrest Wilkins shared his concerns regarding the lack of Fire Department response at a fire alarm that was triggered at a local movie theatre. Deonne Mclean expressed concerns regarding the conversion of the Heritage group home to a residential group home. RECESS Mayor Johnson called for a brief recess at 9:25 p.m. and reconvened with all Councilmembers present at 9:36 p.m CONSENT CALENDAR APPROVAL OF MEETING MINUTES 1) SEPTEMBER 4, 2018 REGULAR CITY COUNCIUSUCCESSOR AGENCY CLOSED SESSION MEETING SEPTEMBER 4, 2018 REGULAR CITY COUNCILISUCCESSOR AGENCY MEETING SEPTEMBER 18, 2018 REGULAR CITY COUNCIL/SUCCESSOR AGENCY CLOSED SESSION MEETING SEPTEMBER 18, 2018 REGULAR CITY COUNCIUSUCCESSOR AGENCY MEETING A motion was made by Mayor Pro Tent Wu and seconded by Mayor Johnson to approve the aforementioned meeting minutes. Motion was carried by a vote of 4-0. AYES: Castellanos, Lopez-Viado, Wu, Johnson NOES: None ABSENT: None 2) TRAFFIC COMMITTEE MINUTES FROM NOVEMBER 13, 2018 It is recommended that the City Council approve the attached minutes of the Traffic Committee Meeting held on November 13, 2018. A motion was made by Mayor Pro Tent Wu and seconded by Mayor Johnson to approve the aforementioned minutes. Motion was carried by a vote of 4-0. AYES: Castellanos, Lopez-Viado, Wu, Johnson NOES: None ABSENT: None CLAIMS AGAINST THE CITY 3) GOVERNMENT TORT CLAIM DENIALS It is recommended that the City Council deny the following Government Tort Clairns and the claimants be notified: • Richard & Yvonne Franco vs. The City of West Covina • Marta Guevara vs. The City of West Covina A motion was made by Mayor Pro Tern Wu and seconded by Mayor Johnson to deny the aforementioned tort claims. Motion was carried by a vote of 4-0. AYES: Castellanos, Lopez-Viado, Wu, Johnson NOES: None ABSENT: None ORDINANCES FOR ADOPTION 4) ADOPTION OF ORDINANCE NO.2452 AUTHORIZING THE EXTENSION OF THE TERMS AND PROVISIONS OF ORDINANCE NO. 2238 REGARDING FORECLOSURES It is recommended that the City Council adopt the following ordinance: ORDINANCE NO. 2452 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, EXTENDING THE TERMS AND PROVISIONS OF ORDINANCE NO. 2238 FOR AN ADDITIONAL PERIOD OF THREE YEARS, AMENDING CHAPTER 15 OF THE MUNICIPAL CODE TO REQUIRE REGISTRATION, MAINTENANCE AND SECURITY OF PROPERTIES IN FORECLOSURE A motion was made by Mayor Pro Tern Wu and seconded by Mayor Johnson to adopt Ordinance No. 2452. Motion was carried by a vote of 4-0. AYES: Castellanos, Lopez-Viado, Wu, Johnson NOES: None ABSENT: None FINANCE DEPARTMENT 5) FIRST QUARTER FINANCIAL REPORT FOR FISCAL YEAR 2018-19 It is recommended that the City Council approve the First Quarter Financial Report for Fiscal Year 2018-19. Councilman Castellanos pulled Item No. 5 for father discussion. Finance Director Medina provided abrief PowerPoint presentation regarding Fiscal Year 2018-19 and discussed the General Fund Expenditures as well as the budget for the City. Councilman Castellanos asked for clarification regarding the amount of the fund balance for the end of the first quarter report. Finance Director Medina clarified that the fund balance will not be recalculated until the second quarter report is completed which will reflect the City's revised projections regarding expenditures and revenues. She also stated that the second quarter report wil be available for Council review in late February or early March of 2019. Mayor Pro Tern Wu expressed concerns regarding the usage of the City's reserve fluids. Finance Director Medina clarified the definition of fund balance and stated that it is the difference between assets and liabilities. She also stated that it is the product of the City's beginning balance and revenue and expenditures. Mayor Pro Tern Wu expressed concerns regarding the City's Public Safety overtime budget issue. Councilman Castellanos asked for clarification regarding the projections and why they are not made on a quarterly basis. Finance Director Medina clarified that the fund balance equates to approximately two months of cash flow and will not have the data available until that time. A motion was made by Councilman Castellanos and seconded by Mayor Johnson to approve the First Quarter Financial Report for Fiscal Year 2018-19. Motion was carried by a vote of 4-0. AYES: Castellanos, Lopez-Viado, Wu, Johnson NOES: None