05-25-1972 - Regular Meeting - MinutesMINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL
CITY OF WEST COVINA, CALIFORNIA
MAY 25, 1972
The adjourned regular meeting of the City Council was called to order at
4:07 P.M. by Robert O. Young in the West Covina Council Chambers.
johe Pledge of Allegiance was recited.
ROLL CALL
Mayor Young; Councilmen Shearer, Nichols,
Lloyd, Chappell
George Aiassa, City Manager
Gloria Davidson, Deputy City Clerk
Leonard Eliot, Controller
(Tape was not turned on at start of meeting)
Young: Thats fine it doesn't really matter. We
passed it unanimously. Then I think we can
move right in to the budget hearing.
Aiassa: I have one Mr. Mayor, its embarassing
fortme to bring it up before you because
normally I don't like to bring these up to
the council but its a matter of the issue that you made the motion because
I was late I was negotiating with Miss Joan Colman and she actually has served
he San Gabriel Valley Humane Society as long as I have and she want to
•ropose a rate increase. Now, the reason that this is important is that they
give licenses at the same time that they give the rabie shots. Now, she
wants an expression from the council whether or not we should maintain the'
$4.00 rate or go to the $5.00 rate which all others have now maintained. And
I was dickering upstairs for more than 207o and I just didn't seem to get to
far. But I was working in the interests of the City of West Covina.
Young: Well, you know were only kidding, Mr,- Aiassa,
lets get right to the point. Do you want
some action now?
Aiassa: Yes, I would suggest that we authorize and I
will recommend on our first meeting in June
that we award the contract to the San Gabriel
Valley Humane Society for on a 2 year period at the fee of $5.00 per dog.
Young: Alright, we have the staff recommendation,
councilman Nichols has requested the floor.
Nichols: For several years I was the council's liaison
to the Humane Society, and met with the
representative of that society and reported
back to the council on the various developments in terms of the services that
were being offered and implemented. For some strange reason in the course of
evolution I was dropped by the wayside and all of the contacts and all of the
loecent negotiations with the society have been handled exlusively by the staff,
nd the council hasn't been involvedk.in any way. I wasn't informed that I
had been rejected and so I don't know exactly how it developed to the point
where the council liaison dropped into limbo on this matter. So I have two
points to make one for about 7 or 8 years the society has been squeezed for
funds and there is no question at all in my mind but what some adjustment
should.be made and this one is moderate in the extreme so I certainly don't
desire to throw any block into this and will vote for.it and recommend it.
But I feel a very gentile element of critizism is warranted in that these
recommendations and the discussions ,that had gene on should have been related
to the council as they evolved. And if council liaison is to be suddenly
Page 2
dropped and negotiations continue at the staff level I think that some
explanation would have been due at that point. I'm sure its inadvertant so
my critizm is not one of intent but one of ommission and I feel then that
this is a area, an element that relates to thousands literally of our
citizens in the community. That when proposals are under way or discussions
are under way for a change of service a modification of service a change of
rates, etc., the council should be as much involved in this in the earlier
0ages as the area of trash pick-up or water rates, or anything else. And
• to have this proposal come before us now at the very out set of a budget
hearing with an element of urgency attached to it is inadvertintly or otherwise
really moderately or minorly a disservice to the council. And I would urge
upon staff that this type of liaison be reinstituted or that these things
not again come before us with no advance notice what so ever.
Young: Well, excuse me, is there comment from other
councilmen on this?
Chappell: I think that councilman Nichols has a point
whenever were negotiating things of this
nature and I think he threw in the trash
we should have liaison there so that council can be kept abreast of whats
going on because basically its going to finally come to us and if there is
anything we may disagree with or want more information on the council liaison
can at that time request that information and we will be better informed. I
always thought councilman Nichols was on this committee still and didn't
realize he hadn't been attending them.
Young: Just a minute, councilman Lloyd has requested
the floor.
Lloyd: Mr. Aiassa, as I read this thing, this thing,
.has been operating without a contract for
• a period of how long now?
. Aiassa: Now, we were running without a contract and
then we amended the contract to make it
effective to June 30, 1972. So you have a
bonified contract running right::=now, til June 30. Now the problem that has
come up and it is a -----
Young: Can I ask a question too? Not to uct you
off councilman Lloyd, are you, -threw?
Lloyd: Let him finish , then I have some things I
want to know, go ahead.
Aiassa: At that time the council extended the contract
to June 30, of this year. There is only one
thing we didn't finalize on and that was
whether or not a $4.00 fee was to be charged or a $5.00 fee was to be charged.
Now the problem that is created is that while there giving rabie shots
there making out receipts and also giving the individuals there tags and there
is a receipt whether it be $4.00 or $5.00. Now, if the council doesn't want
the rate increase, Miss Coolman, all she wants to is -- Just say yes.
Young: Mr. Aiassa, here is the point. We have come
down here tonight for a meeting scheduled
for 4:00 for a budget hearing. Anything
�s important as a 20% increase in any kind of a fee with'a contract of long
. standing should not have to come before this council on an emergency basis
where the thousands of people that councilman Nichols refers to have no
notice of it what so ever. We're given a stack of, sheets of papers here 17
or 18 sheets of it that were supposed to vote on and its passed out here at
this meeting and I'm very irritated that were not threw a substantial portion
of what we came here to do. I thought we were coming down here we would
certainly authorize the clinic for the rabie shots but this thing is worthy
of the dignity of a regualr council meeting. Its worthy of the dignity of the
public having an opportunity to participate because they are affected by it
and I would suggest that if the council wishes to go along perhaps we can go
Page 3
ahead and let the fee's be written on the $5 basis with the understanding
that his council does not have an appropriate hearing to go along with that,
that the extra dollar will be refunded, but to come down here and get
ourselfs into an hour long debate at a budget session on this special item
is wearing me just a little bit thin after a real long day.
Lloyd:
•
Why do we have to do it right now?
Obviously everyone of us is caught short
on this thing.
Aiassa: There would be no problem. All you would
do tonight is say, Miss Colman, have your
rabie shots on June the 8th and proceed.
But we had made this steady and this was Mr. Alec Andrus who is not with us
and he was suppose to have brought it on agenda in May. But do to some
problems that he was catching up with work that he did, he just didn't get
it up to us. I have to apologize for him because he had other things that
were crucial too. But the question now faces is this, is that why don't we
go ahead and allow the same exsisting contract the same exisiting fee and
then what we'll do if its necessary, we'll just send out a special notice
out and if the council decides after they have time to deliberate the 16
or 27 pages and want to raise the rate then we'll go back and collect the
extra dollar.
Chappell: I would be against going back and asking for
another dollar after we started it.
Lloyd: You want a motion now for the authorization
of the rabie shots.
Young: I thought we passed that already. Thats
been passed.
Now you want either the increase to $5
which
�loyd:
I'm not prepared, I will vote
against
it, if
the motion is made for $5 I'll
vote against
it right now.
Mainly because I'm not prepared to act on it so
I solved
the
problem.
If you want a motion for'$4 then I think you're stuck
with it
as
councilman
Chappell has already indicated.
Aiassa: The $4 is exsisting.
Lloyd: If we continue the exsisting then you're
stuck with it for a year. In other words
what I'm saying to you is I recommend that
you provide some moment of study. Can we extend this thing til July 1st or
something.
Young: Councilman Shearer.
Shearer:
Roughly how many dogs do you expect to
vacinate on June 8th, Mr. Aiassa?
Young:
Mr. Aiassa, can't we just have an answer
to the question.
Miss Colman:
I think around 900 to 1000.
Shearer:
Alright, why don't we just charge them 4
Abucks
raise it to 5 July 1 and they got off
J
with a buck and the city looses $900.
Nichols:
Of course, gentlemen, the Hmane Society
will loose the money, not the city.
Miss Colman:
I think it would be a little unfair to the
citizens if we charge for a 1972-73 license
some $4 and some $5. Well, our proposal
Pa ge 4
is with $4 we retain 100% of the license fee. Our costs have gone up to
such extent that we have to raise something.
Nichols: Mr. Mayor, may I ask a question of Miss Colman`
Young: Yes sir.
40ichols: What is the date of your proposal to the
city for the adjustment in the rate? What
date did you communicate with the city?
Miss Colman: 4/28
Nichols:
April 28 was
your first
commuication.
Aiassa:
No, our first
meeting is
the 12th of June.
Nichols: No, I'm not making my self clear. When did
the Humane society first communicate with
from 4 to 5 dollars. the city and make a proposal to raise the fee
Aiassa: April 28th.
Nichols: Less than a month has gone by, I don't think
thats a great deal of time I don't think the
council can act on it on that short of time..
I think the council should consider it obviously. But I don't think today
is the time. We haven't had time to talk about it to discuss it. This is
a budget hearing. I'm not prepared to vote on the issue at all.
Chappell: Mr, Mayor, may I make a motion?
Oung: Yes sir
Chappell: I make a motion that we hold this over and
that licenses not be sold when their giving
the rabie shots. Just the rabie shots be
given and collect the licenses in a normal manner from door to door as they
have been doing in the past. If we decide to raise it then there is no
problem.
Nichols: Before there is a second on that can we
inquire if this creates an inordiate hardship
on the Humane Society.
Chappell: No, it isn't they've told me that.
Young: We have a motion and second before us is
there further discussion to the motion?
Those in favor say I. Oppose None.
Chappell: So well get this on the next regularly
scheduled meeting, Mr. Mayor.
Young: May we Mr. Aiassa?
Aiassa: Yes,
*ung: Miss Colman, we are very sorry, I'm so sorry
I'm so irritable at this hour. But thats
the way it is and we'll get in to the budget
hearing now and we will cover this problem in the proper manner. Mr. Aiassa
the hour of 4:30 having arrived could ive possibly get into the budget. I
believe you have a presentation to make.
Page 5
Aiassa:
a choice in this matter it came
Young:
Yes, I do Mr. Mayor.
want to apologize to
inconvienence in this
to me about 3:00 this
In the first place I
the council for the
matter but I had not
afternoon.
We'll for give you if .you just get going on
the budget.
Oiassa: OK, now the seoond item of most importance
to the budget is the Revenue Account. And
I believe I have my city controller here
Mr. Eliot who will proceed and review the basic revenues that we have received
and have expended. And I think particularly in reference is made to the
Audit report. Now each one of you councilmen has received an Audit report,
thats, that brown folder that.you have in your file. And in this Audit
report this shows the budget approved by the council for the fiscal year of
70-71. It actualy shows the physical receipts received actual shows you the
disbursements the expenditures where the money goes how it is spent how its
accounted for and then a private independent firm comes into the city and
goes threw the entire controllers files and certifies that what he finds and
what he puts forth in this report is what is the exsising condiditon of the
city as far as finance is concerned.
Young: Of course, that Audit report bares
relevancy only as far as might let us know
what to expect at a future.time with respect
to 71-72, right.
Aiassa: The Audit report is the tool in which that
tells you from year to year how you are
functioning how well.your receipts are coming
in and how good are your estimates.
*bung: The point is though its almost a year old
already we're into a new year, is there anyway
to get an audit report sooner.
Aiassa: Theres only one way that you can get an audit
reposrt sooner and that is put a great big
burden on your own physical staff. Because
we close the books we can't close the books until the first of July and when
the books are closed on the first of July, that means all the posting and all
the accounting has to take place. Also we have to do it somewhat with the
convenience with the audit agent that is employed to do the job, because he
sends over a crew of men who go over each indivdual warrant. And they take
these piles of warrants out and they go into the conference rooms and each
group they actually physically audit the books. And this is not a slow
methodical job and then they do re -analyze and they take staff time to go back
and re-evaluate. Now we've tried, one year, we,,,:were-back a.whole year and so
what I'm saying is were coming next year, you'll be right as close as possible.
This is a very valuable instument to us because it tells us at the close of
the fiscal year of 1971 we knew exactly how much money we had in balance
reserves. So that meant that we could start our new fiscal year with a
new balance with the money that was justified by the certified accountant.
Now, the instrument itself its a compact report, it has sufficient breakdown,
it shows down in each department show its usually brokedown in three items.
One is salary, which is the bulk of the expenditures of the city, the other
one is expenses and capital outlet. 'And then it also breaks down where
,4 JK1 the different funds and the distribution of the funds where the funds
e charged. Alright, now in the present budget we have here we have 2 one
of them is the base budget which shows you where all your receipts are
coming. Now -this is a very important portion of the budget because this
is the area in which tells you how much money you've got that will be
avalihble to expend to do the services that are going to be required by
the city. Now first of all and the most important part is that we are
actually predicting receipts or revenue 14 months in advance. And that
means we are sometime in March and April we are putting the budget together
so that we can get it ready for the council sometime in May. And that
Page 6
means we have to go threw these accounts and determine as whether or not we
have 6 or 8 months of real receipts and then we'.11 have to estimate the
other receipts to see that at least we're somewhere with in the ball park
as far as the actual receipt. Now the only time we ever know what the actual
receipt is, is when the final Audit is made and the account sheet is posted
with us. OK, then the next item comes is the budget itself. This is the
operational budget this is the instrument in which the city council gives
he city administrator officer the authority to operate the services the
ity require. Now each one of these items are listed. Each one of these
items are listed not only by salary and expenses and capital outlet. I
would like to say this to the council you do not have what we usually call
a very lucrative budget. We are running an austerity budget. We try to
maintain an austerity operation and I think if the council as it goes in
threw all these items from 701 to 781 you will realize what the expenditures
are. Now, if you have this brown book you can look into your book here and
it tells you exactly what they did last year. But we extended that physical
figure or that dollar figure into this budget so that you didn't have to
inconvenience your self to go threw this other book. Now, I will let Mr.
Eliot proceed here and I think he will give you a list of some of the, each
one of the budget that were going threw like 701 which is the city council
702 is the city clerk and so on down the line. Mr. Eliot.
Mr. Eliot: Well I do think that we should review where
we stand righ now and perhaps clear up a
little misconception. Financial reports is
merely a conformation by an outside accounting firm that the records are
being kept in an proper accounting method, are accurate and that they are
fairly reflecting the financial condition of the city. Therefore, in
preparing the budget we do project where we stand today and where we hope
we will be June 30, 1972. So as we go threw the budget and on the revenue
and expenditures both you will see a columns that says projected receipts
or projected expenditures thats our best guess based on the latest evidence
we have on hand which is our April financial statment of where we will be on
40une 30. We have been fairly accurate by using those figures. The Audit
,eports that you did receive represent an examination of the financial reports
prepared by the finance office and they confirm to the public that an
outside agency has examined them and finds that they are in order. The
thing they do illustrate graphically in these very two small volumns that is
comparing June 30, 1970 to June 30, 71 we see a disstressing trend in that
our general fund reserves have been dwindling primarily, of,�course, because
of our efforts to keep from raising taxes we have been dipping into our
reserves. At this point if you look at your June 30, 1971 report on exhibit
A you will see that our general fund combined unappropriated reserves and
surplus balances amount to 19 thousand dollars combined. This is hardly
a conducive to a restful night when we have billings coming due, payroll to
meet, funds are coming into the city not in a regular flow as you are aware
of, property taxes come at one time of the year, motor vehicle taxes come in
great chuncks, but our expenses go in a steady flow. Some reserves are
necessary just because of the cash position of the city, for this reason
this year you have probably already noted that the city is has in its front
piece to its budget stated that their is a deficit because there are no
reserves to dip into. We are facing a year in which we must consider 3
alternatives a massive reduction further than what we've been able to do.
Such reduction of course, as you are aware would primarily be in salaries
because that is the major part of.your budget. A major reduction in that
area would reduce the level of service to the people of the city and we have
not made that decision. The second alternative of course is to go to the
most convenient revenue source of a city which is the property tax. That is
Ve indicated rate that we have shown on the first page. The rate that would
necessary to balance the budget at its present position.
Young: Essentially a 14� increase is that correct?
Page 7
Mr. Eliot: Essentially a 31� increase. Of course, there
could be a combination of both reduction
and tax increase. The 3rd alternative that
we are suggesting to the council and of course it will be developed over the
next few days, the ultimate decision is yours, is that business license tax
should be adjusted thatthere is sufficient revenue available by an adjustment
of the business license tax essentially balance the budget. We realize that
his is an unpopular measure we are talking about a gross receipts tax
ith a rate adjusted for retail and professional persons. The rate would
be very close and below that of Los Angeles. But higher than the rates we
are presently charging, in order to raise additional funds. For that reason
we will present to you, we are typing up as many comparable cities as we
could possibly locate so that you'll have a chance to study that over the
next few days and next few weeks. Therefore we'll just go on to the budget
as it is prepared but we wish you to be aware of the suggested solutions to
our present problems. Our budget this year is approximately 900 thousand
dollars.
Aiassa: There is also the Mills Bill which is now
being reviewed in Washington D.C. that 750
thousand dollars will be made available
to municipal government. If this becomes a reality, this makes notonly a
2 phase operation, one of them is that it helps subsidze the budget but it
also can give council the power to reduce the tax rate.
Chappell: I was under the impression that thats bpen
held off for some reason this last day or two.
Eliot: This morning latest bulletin,is that it passed
the House Committee on ways and means by an
8 to 7 vote and its gone on to the floor with
a provision attached to it, that it can't be amended on the floor. Which
is what Congressman Mills wanted. So its on a position on the floor to be
Doted on without amendments. At the moment its a 50-50 proposition as far
as we are concerned. And as Mr. Aiassa said council would be in a position
to make adjustments in any tax increase or cuts in services at such time
and if this bill were to pass. We will of course keep you posted but we
do anticipate that in all that this budget will be adopted. Or a budget will
be adopted before final action would be taken on this bill. So only thing
left would be to amend the budget later in the fiscal year to reflect the
congressional action.
Shearer: Isn't it correct that we have until the
31st of August to set the tax rate?
Eliot: That is true and you probably have an
additional 60 days to change the business
licenses taxes if you wish to do so.
Because they are due on 1 January. We probably mail around the 1st of
December and so probably some time in November, I have to check with the
city attorney, would probably give us sufficient time to send notices to
business enterprises if that were the will of the council.
Nichols: Mr. Mayor, at what point in the discussion
of the budget will we go into staff
projection for revenue that is sales tax
revenue, etc;
Aoung: Anytime.
Eliot: Right novv I mean sales tax projection are
current revenue estimates. Are you talking
about business license projection or sales
tax sir?
Page 8
Nichols: Well, we have budget figures here which
project a certain amount of retail revenue
that is, retail tax revenue, property tax
revenue and were in a transion period in the economy now where all avaliable
evidence points to a significant up surge in retail sales and revenues and
the council will certainly need the benefit of a staff analyst of its
projections in terms of the general economy. As to whether these projections
•are ultra -liberal, ultra -conservative, mid -point projected, etc, and the
conclusions that will be reached relative to these projections might mean
the difference in terms of 10 or 20� on the tax rate. We have generally in
our city taken a more conservative position and rightfully so in terms of
cash flow, income from local sources, non -subvention revenues and I speaking
only for my self and I hope however for others would like a little bit more
detailed analysis this year of the basis for a projections at the staff level.
Eliot: Yes, we can furnish that at our very next
meeting. I believe were tentively scheduled
for the 5th of June. If I remember correctly
and we would be happy to provide our basis of projection for all revenues that
we show in our budget. Not only to sales tax.
Aiassa: Also, a very important item of the over-all
budget summary is also a important item
is that the council as a legislative body
can adopt a minium amount of money that they feel is sufficient or adaquent
to operate the city. And if that is the case and the council desides to do
that and it would direct the staff to go back and re -negotiate the operational
budget to make it meet the obligation. Now, that means that if just say
arbitrarily council decides that a tax rate of 0 is not going to be demanded,
is not going to be required not going to be set. Then we would have to go
back to the exsisting budget and actually go threw it and weed out that
amount of money thats not going to be raised. Now we have already weeded out
•a large section of the budget. And we have figures here to show if the
council would like these are the figures that we feel justify that we can
operate without. We also feel and we also want the council to be cognizant
of 2 things, the freeway widening to be 3 years and the CBD areas is going
to be 22 years. And we're going to be in a strong sweat period economically.
Now there is no way around it. We also have the pressure put on from
Saera.mento where there passing liegislation that are demanding the cities to
pay the tab without representation. And some of the bills that are now
passing such as the CHP plan is requiring the city to pick-up the tab with
no substate. Now these are the things we can not predict and we can not
tell you in a crystal ball that it will happen.
Nichols: But Mayor and City Manager these elements
are not reflected in this budget at all.
Aiassa: No.
Shearer: If we get hit with the early retirement the
CHP provision for safety employees. This
is going to be a load way in excess of what
we're talking about here now. And all of us have to be aware of that. That
we may be forced indeed to look at tax increases and levies way in excess of
even this projection. Which even compels us to take even a closer look at
what we are having before us now.
Aiassa: We are also now right smack in the middle of
• negotiation and meeting with the various
representative groups of the city employees
who are now making forth there demands and desires and requirements. And
our proposals will be brought forth to the council and the council will make
decisions as they see fit as far as those proposals are concerned. We do have
inwhich we did not have last year thats why you developed a 60 day budget
was that we did put in a lump amount of money which is probably more
Page 9
•
equivalent to about a 527o cost of living in the budget. Its in the budget,
so actually physically if you adopt the budget July 71, you have it built in.
And that would permit you the power and authority to adopt the budget. Thats
why you couldn't adopt the budget last year is you didn't have the revenue
built in the budget.
Shearer:1
requested based on the request
Is that correct?
Aiassa:
You mentioned, Mr. Aiassa, that you had
already made some cuts if I read the
submittal correct. The total deficit as
of the various departments as 1.3 million.
Yes.
Shearer: On the basis of the difference between in
the meat of the budget, between the request
of the preliminary you are recommending to
us a reduction approx 900 thousand leaving a, I would say I guess you are
recommending a budget that is out of balance by 448 thousand.
Aiassa: Thats techincally right the basis that we've
done that proposal is that if the council
wants us to bring the budget into line.
Going back to the revenue receipts then we would have to go back to all the
budgets and bring them back reduce them to the amount to adjust to the
7 million 888 thousand 252 dollars.
Shearer: But your recommendation is 900 thousand
dollars less than the various departments
have requested.
Aiassa: I haven't made a basic recommendation as yet
for the budget I just propose the budget now,
reviewing it and seeing what the council feels
about it. Because the council is the only one who:,ihas the power to determine.
Shearer: I know that Mr. Aiassa, but aren't you
recommending a budget to us this is your
proposal. So many police officers and so
forth, so you're presenting tonight a budget 400 thousand short. I'm not
complaining don't get defensive now please. That might come in a couple of
weeks. You have already sat down with departments heads, just answer yes
or no and have reduced 900 thousand dollars. If we gave them everything they
wanted we would have a deficit of 1.3 million.
Aiassa: Absolutely
Shearer: OK fine that all I wanted you to say.
Aiassa: If we gave them there demands thats the figure
that would be required to raise and provide
and fund the expense.
Young: Mr. Aiassa, another question
Aiassa: Now, let me go one step further.
Young: Can I ask my
question.
aiassa: Yes, I was going to answer Mr. Shearers.
Shearer: You have answered mine already
Page 10
Young: Just to clarify my thinking.and going threw
the material that we have scheduled to
study tonight. I haven't gone threw the
entire budget just what we have tonight is all I've looked at but I notice
increases substantial increases in various departments running 5-6-8-10
thousand dollars, and are thoughs essentially pep increases?
•
Eliot:
That is
correct. If you, if it
is in the
salary
area.
Young:
So we
cut out there we cout of
revenue
right
along with it.
Eliot:
Right,
they match each other.
Essentially the
budget
is at the same level as
last year
there
is not a single additional
employee.
Over last year we cut 18 position. We have added pep positions that is the
reason there is a raise in the total salaries, and as were going threw here.
Young: For example, on the police budget Mr. Eliot,
I think 4 additonal policeman were recommended
3 for special detail and 1 detective and
that would be essentially a pep increase.
Eliot: No, that was deleated the request was
deleated for the additional officers. The
pep staff is last years that we did fill
with pep people. The 4 additional officers were requested and deleated from
the preliminary budget this year. There is not a single additional position.
Young: I'll reserve any further question till we
• get to the budget in our study.
Aiassa: I just want to make one statement I'm not
thin skinned. I want to answer Mr. Shearer's
question. The budget I'm proposing is.a
workable and functional budget I can give you a balanced budget but you will
not get the service and the productional level services that you now accustomed
to. Now thats the point I wanted to make. What I'm thinking is the range of
budget that you're now being proposed this is somewhere were we can function
and operate the city on the level of performances and services that were now
rendering. Its a matter that should be made of record so that you know if
you reduce the budget then you've got to realize that you have to reduce
the services peilod.
Chappell: How accurate is this evaluation figure we
have now received this figure 143 million is
Eliot: This is my estimate based on I think very
accurate data. We have started with last
years gone threw all of our building permits
in addition we have asked for an advance estimate from the county assessors
office the council did pass a resolution inableing us to do this earlier
this year. We have received that estimate from the county assessors office
and its within 400 thousand dollars of which assess evaluation of this is
practically no difference at all and I feel very confident that its an
accurate figure.
• Aiassa: Because for 5 years we've been matching our
estimates compared to the county's.
Chappell: I was just hoping that there were 10 or 15
million laying in there that we hadn't got
to yet.
Page 11
Aiassa:
Young:
I think council realizes that
isn't due until December the
receipts do not come in until
Very well shall we proceed.
the tax bill
5th and our
December the 5th.
Nichols: Well, I would like to ask one more question.
• A rather general one. George you've
indicated that the budget you are recommending
is a statis quo budget and that it maintains services that any reductions in
that budget by the council would involve a reduction in services. The
budget that you are recommending to us shows a deficit of 448 thousand dollars.
What expenditures are represented in the 448 deficit. Obviously, salary
increases are there.
Aiassa:
Nichols:
Benefits.
Can you state with some definity that the
448 thousand dollars is totally in employee
benefits.
Aiassa: Not completely because there are certain
operational function in the budget that this
is actually by a normal growth and operation
in annexations the city is growing in size of proportion were we are adding
not only police cars but also communications operations and things like that.
This is, some of it is just one of those things that were faced with. Is that
we are growing in population and we are functioning and requiring an increase
in a personnel and also in certain departments. Now I am not out right
subsidiz.ing any of the departments that are now being benefited by an out
right grant of 29 employees,under the pep program. And when that day is
over those departments are going to be minus those people. Because there is
• no money in the budget in the general operational budget to cover them.
Nichols: Of course, we also recognize that we have
an approximate 47o inflation factor on
everything from tooth picks to policemans
hats, that has to be reflected in the budget. But could you just for general
purposed here indicate to the council what proportion of this projected
deficit is represented in employee benefits. Either in raises that you,'ve
recommended in the budget or other built-in employee costs that are unavoidable.
In otherwords in this deficit.
Eliot: Approximately 2/3 of the 260 thousand dollars
is the amount thats projected for possible
salary increases and the related costs such
as workmans compensation on that salary. We also face the fact that the
turn over rate of the city has declined to where I believe somewkere around
9/10th of one per cent because its cold out there. Therefore you're getting
more long term employees going up our steps, therefore, there salaires are
going up as that happens. Other than that inflation yes, has it us very
graphically especially in our utilities. Telephone f'or instance this year, if
I remember correctly is probably close to 20 thousand dollars more than last
year. Primarily because of the General Telephone rate increases and we find
this with the rest of our ultilities, water and the edison company.
Nichols:
*adjustments or in miminal
El iot :
What your saying in effect then is that the
448 thousand dollar deficit is represented
largely in recommended employee salary
inflation factors.
Thats correct. However I say not recommended
it just a reserve in the event there is a
meeting of the minds on something.
Page 12
Nichols: Then what we have before us that we're
going to be tearing apart is a budget more
or less -.identical to last years level of
services with employee adjustments and dollar giures to represent increase
cost bein levied against the city. So that as we go into this any downward
thrust that we -make in terms of reducing of cost are literally and without
any fat are a reduction of services. And you will be able to show us that
es we move threw it.
Eliot: That would be correct sir.
Young: Are we prepared then to move into the
budget itself.
Eliot: Yes, I believe so.
Aiassa: I think the first series of the budget is
pretty well self explanatory unless council
has specific comments.
Eli®t: We could run real rapidly perhaps.
Aiassa: Staring out with 701 is your city council
budget.
Young: Well you see on salaries and positions
object worksheet 11 an increase of 42 hundred
dollars for example.
Aiassa: This is bookkeeping account because of the
amount of service per centage wise that
we've been keeping in our own operational
•in house as a service that we render. This. -is not what it shows in your
budget it will show in another but it still isn't the total budget.
Young: You mean it will be a reduction in some other
budget?
Aiassa: Thats right, you'll see in part of city
managers and park in one other department.
El iot : May I suggest Mayor that if you :arse the
summary budget I think we could go a little
faster and if.we need the detail we can go
to that. And the summary budget does have an advantage it does show the
position being discaussed who is the person in that position. It will go
a little faster perhaps for you.
Young: Its your presentation.
Eliot: Do you have it sir?
Young: Yes, sir.
Eliot: So if we run threw 701, is the city council
budget and if you were to turn to summary
position budget worksheet C. You bould
see the actual 3 positions or halfs of positons that are being charged to the
city council budget. Again as to your discussion as to the difference in
•
salary from last year to this year. I have to look at last years staffing
figure.
Aiassa: We have removed to administrative intern.
Page 13
Eliot: We have an additional half position last
year two a half we're charged to the city
council budget. This year there were 3 and
a half if you notice. Thats the primary difference of about 4 thousand dollars
in salary. The other items of expenditure -are pretty much set as you know
the salaries are set by law. The rest of the items are nominal amounts to set
aside for council business amounting all in all to less than 2 thousand
Dollars. Are there any question on that budget?
One clarification, we have the column
heading authorized estimated. Is estimated
budget as to what these would be. the prediction as of the time you made the
Eliot: Thats true our estimated expenditures
is based on our latest experience.
And the authorized is the last years budget
that have been made by subsequent
action.
Eliot: That is correct.
Aiassa: We're actually using a 5 year tabulation our
per centage should be pretty close.
Eliot: Move on to 702 is the City Clerk's budget.
This is the first budget we come to where
we do see a pep "position is the difference
between the salaries for 71-72 verses the salaries for 72-73 and this is
occasioned by the funding by pep of a clerk typist position and the amount of
59 hundred dollars has reflected on budget worksheet C.
�ihearer: What is your best guess as to the chances
and the odds of the pep program continuing
on past Sept. I.
Eliot: They seem to be excellent seem to be every
other indication other than saying yes.
From the County and from the Federal
government that this will be funded again for a second year. They have not
contacted us yet as to filling out forms because there're getting there're
briefing from the federal government. There is no reason to believe that it
will not be funded for a second year.
Aiassa:
results and I think if there
gives us a positive assurance
fill reasonably assured that
Shearer:
Aiassa:
0imilar as city employees.
Young:
I think one more step to answer Mr. Shearer's
question. The people that are in charge of
the pep program are rather pleased with the
satisfied and pleased with the results that this
that the program will continue. Thats why we
it will continue.
salaries this year 100% increase.
pep salaries would double too.
If we grant any type across the board pay
increase to regualr employees will the pep
increase.
They are employed techincally and professionaly
the same as any other employee of the city
and derive the same benefits. There just
To put councilman Shearer's question in a
ridculous perspective. So I can understand
it better. If we doubled our city employees
If we were to do that then that means the
Page 14
Eliot: Absolutely.
Young: Does that mean the agency suppling the
funds for the pep program would automatically
send twice as much money.
Eliot: Its not automatic.
•Young: So des that mean then say go 57o on our
employees that the pep people get the 57o
but we plug in the 57o the contributing
agency does not. Is that what your telling us.
Eliot: Not quite.
Aiassa: We apply for it.
Eliot: Mr. Aiassa, is quite correct in our
application for funding we would indicate
the new level of wages. We have indicated
in our salary savings that recently you were presented with funding some
additional positions with salary savings. I believe 4 or 5 meeting ago. In
that application we did plug in across the board increase. Out of some of
those salary savings, and this was approved. This takes us threw October.
Qur new application will go in undoubtley sometine after our budget and our
salary rates are established and in that new application we will include the
new wage rates. At which time we anticipate the county would approve our new
wage scale. They anticipate that this is the manner in which they will
handle wage increases in agencies.
Young: This is another suttle method to keep us
from complaining when the county goes
overboard on the sheriffs department or
• someone because they cut us off when we request their contribution to a----
Aiassa: There is one difference the Sheriffs
department doesn't have to apply to another
agency to get their receipts. They stay
within the same little organization.
Eliot: In this particular instance however. The
money is not coming from the county. There
merely serving as a agent of the federal
government as federal funds and because of the size of our city the federal
govenment has designated the county as coordinator agency. A separate
department handles it on a coordinated basis that really doesn't tie in with
county operations. The county by the way so far as I know it has recommended
no wage increases for safety employees this year.
Chappell: Are we back on this City Clerk now?
Eliot: Yes, sir.
Chappell: We have in the budget here looks like a
recommendation for a Senior Account Clerk
which was deleated. A clerk typist was not
asked for. Were they just changing title of that individual?
•Eliot: No, sir, this reflect the addition pep
position during the year.
Chappell: In 16A we had a clerk typist last year.
Correct?
Aiassa:. It was requested.
Page 15
Chappell: Were on budget worksheet C. We have a
Clerk typist 1 here which we have current
there was none requested for the new year.
But we've put one -back in the -preliminary. Would you do that. y
Eliot: Yes, I will the department in preparing there
budget included a provision to up grade the
exsisting Clerk Typist position to a Senior
�ccount Clerk and was told this is not the proper way in which to handle it.
It goes threw our administrative revenue committee and is not a manner that
the council would decide that this time.
Chappell: Well thats what I was asking. OK fine.
Eliot: The other items in the budget parallel last
year and are relative small expense items
amount to something less than 2 or 3 thousand
dollars and are in line with last years expenditures for supplies and
expenditures. Any further questions on that account? Then we'll move on to
703 which is the City Tressures budget. Which shows furtually no change
from last year. A difference of I think 500 reduction primarily in misc.
supplies. $300 a primary in the limited service employee pardon -me. Is the
only difference in this years budget from last years so the total approved
budget is $500 last years budget is $500 more than this years preliminary budget.
Aiassa: I would also like tonadvise the council that
the next fiscal year that if we go into the
CBD development plan there will be a need to
sell bonds, and this may create the'need and demands of this department.
Right now we feel it is not because its on a deminishing returns.
Chappell: Was Mabel out of this the whole:•year?
0liot: She will be out this entire coming
year.
Chappell: No last year.
Aiassa: Yes, but she was only drawing $100 a month.
Chappell: She was not a full-time employee.
Aiassa: She does not have to show up at the city hall.
She was not in the position of Senior Account
Clerk, it was not filled last year.
Chappell: OK fine thats what I wanted to know.
Nichols: Mr. Mayor, a question thats probably more on
ignorance than logic. But in the orginal
proposal we had a 400 thousand dollar deficit
which included a salary adjustment yet in these first categories as they'have
come across in terms of the figure tetals. I don't see that salary adjustment
represented.
Eliot: That is correct. We have not completed our
meet and confer process. Normally to make
any recommendation for the councils action.
I would be difficult to say who, and which department, which classification
•employee would get a raise. There for we have included it as a lump sum
eserve for salary adjustment under account 737. In your budget is a lump sum.
Nichols: Your not projected a so many point raise right
across the board. You'I"-`}_ left a lump sum
figure to be left to negotiate.
Page 16
Aiassa: Lets say we per centage the total payroll
and per centage the total amount of money
it would require to cover it.
Are we are Ci'ty Treasure still? In the
detail for the justification for the
permanent part time clerk typist. This
Sitatement is made. There is a need for this position who can be named Deputy
nd handle the office 5 days and on days when the Treasure is not here.
Thats been deleated however there are funds still there for,�Deputy City Treasure
Does that mean someone else is Deputy other than this person?
Eliot: Deputy doesn't necessarily,: have to be an
employee.
Aiassa: The code provides the City Clerk and City
Treasure the power to deputize anyone for
an sextra salary as long as they are acting
as there Deputy. We do that show it in the budget just in case that there is
someone deputized. Right at present there is no one deputized in the City
Clerks office.. Only acting City Clerk and Yvonne was deputized in the
City Treasurers office.
Shearer:-,- So then the City Treasure could deputize
this senior account clerk thats in here.
Eliot: She could deputize someone who doesn't
work in her office or a citizen.
Aiassa: She could deputize Eliot if she wants too.
Shearer: How much is that worth Eliot?
0liot: I've applied for it.
Shearer: So she could have a deputy even though
there is not position. Seh can appoint.
Aiassa: On no, its got to be a person.
Shearer: Well obviously you can't appoint someone who
is not there. She doesn't have to appoint
someone in the city treasures office.
Eliot: Thats correct.
Aiassa: She can pick out anyone.
Young: OK anything else on city treasures?
Eliot: Then we go on to the City Managers budget.
Its again essentially the same level as
last year. This is account 704.
Young: Apparently the City Managers office has over
drawn during the current year by about 5
thousand dollars. Is that right?
iassa: The City Controller doesn't make transfers
until the end of the close of the fiscal year.
Most of the time when he gets threw making
his transfers they usually balance. In other words instead of doing a monthly
quarter salary transfer from the account of the city council or any other
department. Its such a damn way of keeping things. I'm not overdrawn because
you can look at your audit report and it shows pretty close that I hope I'm
not.
Page 17
Young: Toe audit report is the year preceeding
George, now were talking about the immediate
year that were still in and apparently your
going to over draw $5,000. So your asking for the budget of the coming year
to met the realities of.your office.
Aiassa:e: May I only make one statement out of all
• the,, years I've been here.
Chappell: I think he's not with us. Account 704
worksheet 11.
Aiassa: In other words your on the summary sheet.
Chappell: Right, its easier to distinguish here.
Eliot: Essentially in your summary budget if you look
at budget wor.khheet C you would get pretty
much the same detail as you would get on 11.
You can stay in one book if you care to do it that way.
Aiassa: May I make one comment to the council that
the City Manager returned an excess not
expended 7 thousand 291 dollars and 22 cents
last year.
Lloyd: Where's that?
Aiassa: It's in your audit page 7 exhibit B.
Nichols: And the imprint show your catching up this year.
Aiassa: No, I'm riot, I will guarantee the Mayor that
•
I will not over draw this year.
Eliot: The primary difference in budget in the up
coming year from the present year is the pep
position again . In the budget worksheet C.
Young: That answers the question righ there.
Aiassa: I think the key answer for the mayor and I
think the key answer for the council is to
look at the auditors report and that shows
you where the finance department is overdrawn. Take a little crack at the
finance department.
Eliot: We shall move to 706 which shows an increase
in the budget from last years, level of 1
thousand dollars again this occurs in the
salary account and this effect is primarily 2 pep positions. The primary
difference":here again is 2 pep positions with 13 thousand dollars therefore
the increase over last year is 11 thousand dollars so it can be seen the
primary difference in salary. The other accounts are approximately the same
as last year except for capital out lay in which there is an increase of
$600 budget worksheet D details the items requested under operating out lay.
Shearer: I found a type"a graphical error on your
• detail sheet D-31 increase due to additional
3 pep employees. I think its 2 isn't it.
Aiassa: Thats right.
Nichols: I wonder what a 1 thousand dollars a piece for
supplies for 2 employees.
Page 18
Eliot: The finance
the cost of
processing
All the purchase order forms are charged to
warrants, checks, payroll,.registers, it is a
it is not comsumable paper and supplies used
for general city hall operations as they are
Ourchasing.
and purchasing of course absorbs
all supplies that are used in
items for the entire city hall.
the finance department. All the
service center and therefore
by a secretary but supplies used
reflected in finance and
Nichols: If 2 employees had not been hired then these
services would not have been rendered to
the city and this 2 thousand dollars would
not have been expended.
Eliot: I would estimate that we probably would find
that it is difficult in any department
including my own to pin point what exactly
the result would be if you were to omitt 1 or 2 employees. My best estimate
now would be if you were to omitt 1 or 2 employees. My best estimate now
would be that some of these cost would be reflected in some other manner.
Such as increase purchasing cost for the city because obviously we would
shut off spending time interviewing salesmen, getting competitive quotations,
cutting down the number of competitive quotations resulting in higher prices
being paid by the city. But difficult' -to pin -point and prove where we
would end up.
Shearer: I have comment in that if the city of West
Covina could do that at such an elaborate
accounting system that we would relate how
many pieces of paper and pencils 1 employee use. I would say we had to great
a finance and accounting department. We could save some money right there
by perhaps cutting in half. I think that would be to much to adk and expect
•anyone to relate specific office supplies to specific person.
Aiassa: I think also one of the items that are hard
to explain is that we are called upon several
times a year to make a physical reports and
it takes volumnes of work to provide for the vardous agencies of the
government. And these are hard to spell out and these are hard to account
for because of the time.
Young: May I ask a question not to be picky or picky
une. I went threw, this relates to budget
worksheet D in the larger book again, account
706 Finance and Purchasing in the summary. I went threw the other books for
my homework and I dint pay much attention to this summary book that were
working with tonight. So I'm a little short handed there. I notice on budget
worksheet D requested 1455 preliminary 1055.
Eliot: You've found another type a graphical error.
Worksheet D should be less. It should reflect
the same as 61. We did cut one of the 2
calulators out of the budget and therefore it should read in the preliminary
column one $400 rather than 2 at $800.
Young: Alright, thats fine, Thank you.
Aiassa: They were a little more greedy and they did
• not accomplish the number they wanted. Shall
we go to the next item.
Eliot: 708 is our planning department budget.
Nichols: How did the planning department slip in a
complete organizational chart on us this year.
Page 19
Aiassa: This is not official so the council does not
have to adopt the organizational chart.
Eliot: We just tried to get everyone to let us know
who is in charge of the shift. This is the
department where we have 1 transfer of salary
out of the department. It is the same transfer as we made last year. Its a
ransfer of 10 thousand dollars against the CBD project because the planning
directors time is so taken up with CBD that we felt it appropriate to charge
against CDB where it will be a reimbursable item. The total budget for
salaries again shows an increase over last years. And again we point to the
Jr. planners pep position of approximately 96 hundred dollars for the
principal cause of the increase in the budget and as we say 96 hundred
of that is the pep position so we come up with a total of 34 thousand dollars.
Which is in the limited services positions and again these are needed in the
planning department, primarily because of the CBD work load that the typing
and steographic work cannot be accomplished the routine work for the planning
commission and council as well as the CBD and therefore there is this increase
of a half of a position fo clerk typist these two items the pep position and
the half clerk typist account for the entire increase.
Aiassa: Mr. Mayor, we also would like to take this
opportunity to put a plug in. I think the
newpaper always like to take the ng;gitive
side but they might want to take the positive side. The amazing factor is
that we have not increased the staff any portion to do all the work that is
now being undertaken to put this CBD project together. And all cost is born
within the same budget operation that it was as the year prior.
Shearer: I hope our delineator in the planning
department get rid of using his own tools.
I think for the 3rd year now I've seen the
same excuse. Why don't we just advise the planning department that we
Wecognize that tools wear out and we'll buy them new tools.
Eliot.
refused to by them. Of course,
unappropriated balance.
I was just going to make a comment that might
be interesting to you. He refused them this
year. It was in last years budget and he
that money is reverting back into the
Shearer: Another item is only a $15 item but I won't
object but I hope the planning department can
get $15 use of a subscription to Cry California
From what I've seen of the magazine its a rather useless pice of material.
Now, two serious one I notice under on item here object worksheet 53. 32
hundred dollars was requested for material from the data bank. How will that,
is that something thats new or is that something that has been an on going
project that they won't be able to be a available vacility this year.
Eliot: It is a project that has come to a temporary
halt in any case because the company that
previously furnished the service is no
longer furnishing it. The planning department has not used the service for
the last, -year or two. They were proposing to re-establish something that has
been in limbo for 2 year. It was elimated because it had not been used for
2 years and it was felt we were getting in to a new cost item and using the
reasoning that if they were able to get by 2 years try 3. Because we did no
want to enter into what was essentially a new program at this point it was
new because it had not been used for that length of time.
Aiassa: Mr. Shearer, I would like to give a more
complete story on that we were sold a package
good by the city of commerce for 75 hundred
Page 20
dollars and threw the process it was to utilize us to certain land values
and simple reports that were less than $18. What happened since that time
of we have been putting this package together the company has gone broke.
And but we have up dated our records and we have everything up to date now
we are to make a transional period of whether we can transfer the data into
another storage bank and then put it on different computer card to get the
back results that we want. But it was one of thoughs things that we were
kind of trapped in and I would never want to go threw that type of program
,gain.
Shearer: One more question that I can't help but
ask two office doors we did not get them
when they built city hall or did somebody
break then or what?
Eliot: They were built as alcoves as part of
alcove off the work room the planning
department and it has become a fact that
it is noisy in the outer workroom and disturbing to the persons working in
those alcove areas. And these are new doors which isn't to unusual I guess
but these are new doors.
Aiassa: I think you have a good point. When the
orginial plans were made plans by one
planning director and when the building
was built it was under the supervision of another planning director and when
the building was finally completed and occupied it was under the jurisdiction
of a new planning director. And now the new planning director feels that this
is one of the areas that he needs the privacy for those too areas. And we
concurred after we and part of it is threw management they felt that they
weren't getting the results that they needed, and so the 2 doors were left
out temporarily to see if there going to be a necessity and if there is we
might have to come back later on And press the council for them.
•Young:
somebody like the county.
Aiassa:
Young:
I think we should complete the lst floor
move the 3rd floor offices down to the
1st floor and rent the 3rd floor to
Now, how did that get into planning.
You are talking about 2 doors being left
off they forgot a whole floor here.
Eliot: The next account is 710 it is the
Personnel department primary increase in
the salary account two items have caused
the increase one is the increase of 6 thousand dollars because of there is
a pep position that was not present before. The second is an increase in the
budget salary for the administrative person in charge of the office of approx.
36 hundred dollars as you recall there was a change in the staffing in the
personnel office.
Aiassa: Lets not leave that so The city
manager did without an assistant for
almost 5 to 6 months and we made the
director of public service acting city personnel officer and by doing we ran
an economy and that why the budget shows a lower cost. But now its become
a necessity after due process and meeting with the personnel board. That they
• want someone to be closer to the needs such an affirmative programs and all
these other things and we just don't have the man power as it presently exsist
to accommodate it.
Shearer: Geor , just a-Aittle side line don't
brag to much having got along without
him for 5 months because then we might
Page 21
turn around and say well if you got along without this has been my experience
that if you got along without him for 5 months why not a whole year. You
don't have to answer that.
Aiassa:
•loyd:
I want to answer that I was desperate for
5 months.
Excuse me, George, isn't that the
assistant personnel officer were talking
about now?
Aiassa: That was Mr. Ray Winsor. No, -at the time -
Mr. Shearer we came to a lul in employment
and we came to a lul of turn over and
greater time was consummed between the manager and the higher eshalance of
staff to meet and confer and we felt that would be a good apportune time to
utilize the limited staff personnel to the lower grades to do the routine
processing 6f jobs, job descriptions and job changes and things like that.
And it worked out satisfactorily now we can't do it any longer.
Eliot: Now the total budget therefore, as
authorized last year was approx. 11
thousand difference between that year and
this year and again the salary accounts on those 2 items account for it all
except about 5 or $600 of the difference
Young:
Eliot:
This object educational have you
commented on that?
Number 45 is the educational item. Did
you what some explanation on what it is
and why it is?
evoung: Is this built in by any change to
employee benefits which are taken in to
consideration in salary negotiations.
That some of the other councilmen would like further explanation.
Aiassa: Let me elaborate a little deeper on that.
At one time each department had $100 and
$125 for. this and we felt it .would_:be
better if we did group training and `groupi-in)-ihouse training.
Young: For example would this be used in the
para-medic program that were encounting
now with the fire department.
Aiassa: yes sir.
Young: I would come out of this budget here.
Eliot: The next would be 714 City Building
which relates primarily to the maintenance
and repair of the city buildings.
Young: How do you arrive at a minus factor on
utilities this time threw number 41.
Down 2 thousand from authorized and
•estimated. That utilities are more expensive now.
Eliot: All I say is that no one is turning out
the lights any earlier than before, the
projected estimated for 71-72 is not really
I believe accurate because the 4 thousand dollars figure was computed by the
building department. By their department heads based on actual bills I would
have to say that the 44 thousand is more accurate, therefore, this year we
should end up with spending less than the 46 thousand dollars.
Page 22
Young: We hope, thank you.
Shearer: I have two questions on city buildings.
We are reducing as it appears to me one
night custodian. Is that correct?
Eliot: Yes, sir.
&hearer: What basis?
Aiassa: I think we are reducing it on two basis
one of them is that we lead a program that
our orginal program was that to have a
maximum coverage of all the departments on a fixed amount of cleaning. We
have now come to the point where certain departments do not require that
concentrated cleaning. I think this is one area that we feel is econmic
and its a savings. We also feel is that we feel we might be able to get*' -,a
little more night supervision on that night crew that is now working.
Chappell: Did that man work night or day?
Aiassa: The one that was proposed was a night
man.
Shearer: Is that position a filled position now?
Eliot: Yes it is filled.
Lloyd: You do your major part of your cleaning
and everything at night anyhow. You
don't have anyone cleaning during the day.
• Aiassa: There's only 2/3 or 3/4 work is done at
night 1/4 is during the day and that is
the misc. things that can not be done
during the time when stores and things like that are open and major repairs
and things like that. I mean not major repairs but that are not ----
Chappell: Are you talking about changing light
bulbs, changing planting.
Aiassa: See they come in on odd shifts one
group comes in at 2:00 another group may
come in at 6:00 and another group comes
in a little later. So that its completely covered as the departments close
out and there available to the service and each man is assigned a floor.each
is given specific duties and check out list for them. Now are question is does
he put, in the full time thats required. I'm just like Mr. Shearer. Is the
time comsummed tp check the guy putting in'his full time worth the number of
pencils and papers that are consummed. I think we have worked out a program
now thats going to work.
Shearer: Just a comment on worksheet 53. I'm a
little taken back at even somebody would
even suggest the necessity to re -paint
the city hall and police building to match a building that hasn't even been
built yet. Unless that again was a type -a -graphical error I would suggest
who ever in the city is thinking along those lines of building a building
land then painting it to match the exsisting building. I'm looking at city
buildings object worksheet 53 statement for 12 thousand 3 hundred dollars
which fortunately you recommend be deleated. Say re -paint exterior city
hall and police building to match the parking structure. The parking
structure isn't even built yet I would hope that the architect will specify
a color that matches what we already have.
Page 23
Aiassa: Mr. Shearer, at the time that we proposed
the budget we were well in thought of
if but it isn't now. Its deleated in our
budget.
.Shearer: I think also, that we take a look at the
color if that was even a problem in even
remotely possible that we review the
Opecifications before the thing goes to bid to quarantee that its going to look -
like this building in color. Somebody dosen't have to come back and say hey
we go to spend 12 thousand bucks to paint something that doesn't look right.
Aiassa: The items that were proposed were 2.
There are certain areas that take a great
deal of extended use that is your
cooidors, stairways and areas like that.
Shearer: It says exterior.
Aiassa: Well that exterior that the stairway on
the exterior way going in to the area.
Shearer: In that case the statement should be to
re -paint the city hall because of use not
to match the new parking structure.
Aiassa: I didn't make up the budget but I met with
staff that reviewed the condition and at
that particular time at one time we do
the mimium we built the city hall to be sure that the paint protects and
everything else that necessary and as we gradually get the landscaping and
everything to comply and develop as a mass that sometime, someday the city
council will have to desire to make the building more desirable and more
•ttractive to fit.
Shearer: Thats all fine and thats another reason
to paint the city hall all I'm saying we
shouldn't even be thinking that were going
to have to paint city hall to match a building that we haven't even built yet.
Thats all I'm saying. If need to paint the city for maintenace or for any
other reason fine. I hope our employees don't think along this line.
Aiassa: When this budget came to the controllers
office to be reviewed we were in the
we were ready to go to bid. process of completing the parking structure
Young: Well you're 3 times threw all this there
is no point in delaboring this forever
and forever. The point is if that
parking structure is built and when it is I think Councilman Shearer would
appreciate it and I know the rest of us would. If they would paint it to
match what we have because that will be the first paint job and we don't need
alot of explanation back lets just hope that we can do that.
Aiassa: All I don't want is that the enthusiasm
someone kinda alittle in advance and
gives me a little imput before. Like
night with the Humane Society that someone gives me some imput that this might
coming forth in 3 or 4 years. So I can plan it.
Nichols: Well Mayor, I think the implication here
is that when employees of the city request
Page 24
budget appropriation that don't make alot of sense to the public or the
council or that in fact give the impression of requesting a champagne livly
hood on a beer budget to us a very common term it tends in the minds of the
council and in the minds of the general public to empune the asking budget.
It tends to create an inverence that the budget is loaded and any reductions
in it are just taking off unnecessary fat. Now I know this isn't true
George you know it isn't true but when you get this kind of a budget just
•one item alone it probably can do more damage to the asking budget than
anything you can imagine. And I think thats the point being made here. That
when employees come into you and make submissions they should be uterly
realistic and any cuts from that should be desperation cuts that you engage
in. And when it comes out in print that some one is recommending to the
council that we do this sort of thing it does damage to the budget concept.
And thats the point I think we bring to you.
Aiassa: What we've done I think basically and not
to delay the question is that we aloud
a certain degree of liberty to the
departments to review all the needs and necessities that are pending their
office. Now the sheet that Mr. Shearer is looking at 53 isn't one that we
publish and distribute publicly. This is more of our in house confirmed
worksheet that ties in with the master budget which is the summary budget.
And I think this gives more the council an input of what we do administratively
in cutting it out. Now I think Mr. Nichols point is well put is that if
you're running an asterity budget somebody decides to build a swimming pool
which is not very valid request. And I can see that point very clearly.
Chappell: I notice Mr. Mayor, another item on here
that a someone recommended that we have
a re -roof job on fire station 1 and
thats been eliminated I'm wondering if the roof has bad enought to recommend
a re -roof job if that hasn't been thoroughly looked into because if that
roof leaks you'll liable to have more damage than 11 hundred dollars.
Eliot: No I don't believe that the case at the
moment. Again this is a request that
may go bad inspection does not reveal'
that it is bad now. It is an older roof but it is still useable condition
as far as we can determine and we on that basis we deferred taking care of it
this year. Referring to the other item again I'm sure the action that the
department head received that is was reviewed administratively on the higher
item is sufficient that we will not see that again in his budget anyway.
I'm sure our reaction was quite the same as yours was. The roof again is
servicable and we did not arbitrarily cut it.
Young:
Aiassa:
a way to show that if we prolong
because of scraping and scaling.
parking structure the only item
Shearer:
Alright anything else on 714 cipy building?
I could make just 1 comment and I think
this might have some validity to why it
shows here. I think the departments have
painting with the cost of painting increases
And I think if they left off to match the
that has no significance.
make up some phony excuse like I've
•Young:
Eliot:
Bingo, you hit it, thats all I've been
saying for 20 minutes. If they want to
paint it for some other reason don't
been using my tools or something else.
OK, how about 717.
This is central services the area that
incompases print shop, the data processing
of the city, the mail room and the
duplication funcitons for engineering and for other departments. Its salary
budget is pretty much the same as last year. Its primary difference unusual
from the other budgets is the increase is in service and supplies. And this
is occasioned by the contractual item 53.
Page 25
Nichols: In the budget so far in the salary
accounts they appear all to be furturaly
identical and all the prior years that
I recall there has been an up -ward thrust in all salary projection due to
normal step increases. Now I recongize and acknowledge the statement that
was made earlier that we are achieving more seniority of positions and
therefore fewer employees relatively .in absolutely moving up. But is this
Wn area where there are no salry steps involved?
Eliot: Well I believe that on this particular
figure here that thats not quite true.
If you were to look at the budget item
11 as reflected on budget worksheet B instead of C. 11 which you look on the
detail budget or summary budget worksheet B you will see full time positions
authorized as of last year of 16 thousand 588 dollars and verses a preliminary
figure for this year 19 thousand 9 hundred dollars. The difference being in
reading budget worksheet C is called current which current means people
projected for step increases and therefore does not reflect last years
salary accounts. Merely the same number of people including the step increases.
Aiassa: I think the council should understand that
we utilize off -shift firemen to print
our work and" -this where the printing
takes place. Now its coming to a day and to a time that will have to go
full time. And at the present time it is not economically full-time position.
Nichols: To delabor this for just moment longer
for general information purposes. If
you take the authorized and estimated
figures and project them into the next year that figure is considerably in
success of any expected normal increments that would apply to individual
positions.
*Eliot: That also includes a pep position. If
you look on the second item. This is on
budget worksheet C the second item is
a pep position.
Young: What about this item 45 educational
wouldn't that more properly be moved
over to personnel. And increase that
particularly budget in light of the---- There's $900 projected into that.
Eliot: Yes, it perhaps could be except personnel
budget usually is a small sums of money
or college type training. This does
reflect a change in data processing within the department and we did wish the
council to see a prpposal because it does include both educational expenses
as well as an increased.lease rental expense and it is perhaps a little more
convenient to see what the impact would be if it were on one budget.
Young: On item 53 contractual which is
substantailly increased about 11 thousand
detailed on object worksheet 53. dollars what of these items are new its
Eliot: I just mentioned it is primarily the
proposal to up grade our present computer
system the item of 10 thousand dollars
he soft -ware is an item that is presently not in the budget we have an out
going installation. There is a proposal to up grade are present computer
system to something more in keeping with are needs. Our present computer is just
about become the etsel of the IBM line. I believe there are about 2 other
models 6400 in the entire San Gabiel Valley we have service men coming from
IBM who have to call men from.the home office to service it because they
don't see it that frequently. It is 7 years old and was evidently not a to
Page 26
popular model not many were put out. It is relatively slow and for these
reasons we believe we are not getting out moneys worth out of it. I'm
quite confident were not. So therefore we are proposing to up grade are system
we are not making a specific proposal for a specific machine we have a
explored mchines our dollars are based on a mini -computer but we have not
made any firm recommendation and we would not spend any of the money left
if it were left in budget until we came back to the council with a proposal
and showing equipment and asking permission to proceed. This is merely to
Vrovide it if council were to give approval at a future day.
Aiassa: This answers that invitation that I was
given to IBM to be in their plant for
3 days. To utilize every avaliable
type of machine in equipment thats avaliable be utilized in our operation.
And this is where I was going to see where I get rid of this so called 6400
and replace it with a more modern machine.
Nichols: You mean that cheap 3 day trip is
really costing us 2 thousand dollars.
Aiassa:
Nichols:
Lloyd:
Aiassa:
Nichols:
*El iot
Now Russ that want very nice because
I didn't take it.
May I ask a question? Is the stenographic
services-----
Didhe ask for the money instead?
It was scheduled for later on in the fall.
Is the stenographic services costs off
set somewhere else in the budget by
a decrease.
No they are not. That is what is costing
US.
Nichols: The 71-72 authorized and estimated
expenditure in this particular item,
in fact on all of these items on
worksheet 53 indicate that they are new expenditures. Under this classification
this area.
Eliot: No I'm afraid not. They didn't detour
the items. The told expenditures last
year if you'll look at the upper left
hand column authorized last year was 29 thousand 5 hundred dollars for all
those items. And the only increase that I can pin point for you is the 10
thousand dollars for the soft -ware on the computer which brings the 29 up t0
39 thousand dollars.
Nichols:
Why shouldn't these items then reflect
themselfs on the first 2 columns here
listed.
Eliot: We just do not complete the detail in
that manner to list each individual
item. We can do so if the council's
wishes us to do so. The principal change is supply and services and the
piperating out lay and the principal cause of change in supply and services
s the request for operating the computer. The change in the operating
out lay are the 2 large items requested on budget worksheet D totaling
54 hundred dollars.
Nichols:
particular page you can't see where
You can appreciate when you see all these
listed here and totaled and none of them
appear on the lst too columns. On that
the increase is.
Page 27
E1 iot :
Aiassa:
•
•
•
I do appreciate and I do think it would
be more informative if we did do that.
We will attempt to do that in subsequent
years.
Mr. Mayor dinner is served........