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06-13-1973 - Regular Meeting - MinutesFA 6 0 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL CITY OF WEST COVINA, CALIFORNIA JUNE 13, 1973 The adjourned regular meeting of the City Council of the City of West Covina was called to order at 4:00 PM, and recessed to the City Manager's Conference Room 305. Councilman Chappell led with flag salute. ROLL CALL Present: Mayor Lloyd; Councilmen: Young, Nichols, Shearer, Chappell Others Present: George Aiassa, City Manager George Wakefield, City Attorney Lela Preston, City Clerk George Zimmerman, Public Service Director Leonard Eliot, Controller Ray Diaz, Ass't. Planning Director Bert Yamasaki, Community Redevel. Coordinator John Lippitt, Acting City Engineer Allen Sill, Police Chief Morris Wolfe, Street Maintenance Superintendent Gary Duvall, Administrative Assistant Ross Bonham, Administrative Analyst Mark Volmert, Administrative Analyst, Jr. Ken Larson, Administrative Analyst, Jr. Clarence Markham, Administrative Assistant Mike McDonnell, Staff Reporter - S.G.V.D.T. 1973-74 BUDGET REVIEW Leonard Eliot: We have put everything in one binder this year instead of having several binders to work with for summary and detail, and hopefully, we won't have to flip back and forth as much -- as we have in the past. It is printed on both sides of the page so therefore the bulk has been reduced. It is loose leaf. We have changed the form somewhat in that we have indicated on each expenditure summary sheet the reasons for changes from last year. Some of the questions that are being anticipated as to if it is over last year's, why is it over, if it is less than last year's, what have you deleted. So we do start off as usual with a summary sheet of revenue and expenditures. It is essentially a balanced budget. We are using $50,000 of unexpended funds from this year carried forward. Other than that, it,,is current revenue against current expendi- tures. It is predicated on maintaining the same tax rate as we have this year. I am anticipating the $.02 for Gingrich Park. Last year, $.02 of the total tax rate was ear -marked for Gingrich Park. There is no longer an ear- mark of $.02 for Gingrich Park, but total tax rate is the same as last year's, so in effect, you could say we are expending $.02 more for general fund purposes rather than for special purposes. George Aiassa: Last year it was predicated that we were going to get federal matching funds and Mr. Chappell made the motion that instead of waiting for federal funds, we ear -mark �— sufficient funds to do the entire project. �1 raid Page 2 6/13/73 • • Leonard Eliot: The $2,084,000 projected revenue includes the exact same total tax rate, $1.33, total tax rate last year. This is predicated upon $1.33 tax rate this year. To accomplish this though, we should also say that there is an amount plugged in the budget for a moderate increase in wages. But to accomplish that we have also had to anticipate that the P.E.P. Program will be phased out by the end of this coming fiscal year, and we have not provided for retaining those people within the budget. There are 23 positions. Rather than lay everyone off at the end of six months, the federal government said "send us a program which reduces this gradually by absorption or lay off". And what we have shown them is an attrition program that approximately two employees a month will be reduced from our payroll, so that by the end of June 30, 1973, there will no longer be any P.E.P. funds nor will there be P.E.P. employees. They either will have filled vacan- cies existing within our existing positions, or they will have to have been terminated by that time. So we should all be aware of the fact that it does call for a reduction of 23 positions by June 30, 1974. Councilman Shearer: The positions are all denoted as P.E.P. em- ployees, so anything noted as a P.E.P. em- ployee on here would be not for the full -term of the year. Leonard Eliot: One exception, administratively, I will say that we do not intend to reduce the staff of the Police and Fire Department, so that some �—� other departments will have to take the brunt of the reduction of staff. So, therefore, even though there are two Police Officers that we have indicated in here as P.E.P. employees, will fill vacant positions, and we will then fill two more posit -Ions out of the general fund so that the impact will fall on depart- ments other than Police and Fire. George Aiassa: So we will keep the status quo. Leonard Eliot: If you remember, two years ago we were contem- plating 18 layoffs. We did for a couple of months. P.E.P. came along and we were able to ` — fill those positions along with 3 or 4 more. This time we say we are going to have to go back to where we were two years ago. • • Page Three 6/13/73 George Aiassa: We might as well also tell the Council that we were luckier than most cities.. When we applied for the maximum amount of employees ems'- it was done on an estimate and Los Angeles approved it and the amount came from Washing- ton. We had overestimated our allocation. And we said what do you want us to do, lay off these people, and they said no, we will just deficit you.each time an employee goes off, then you reduce the amount until you reach the amount we approved in Washington. So we ended up with how many more additional employees than we would have if we had to wait - it was 19 vs 4, wasn't it? Leonard Eliot: Something like that. We have not filled vacancies for the last few months of the pro- gram, wo we have a head start on the attrition <;� program. We had 34 and we are down to 23. Councilman I want to commend the City Manager because that was Shearer (?) the position that the Council had taken that when we didn't have the money we wouldnt have the employees and acting on that premise and showing good faith, staff has obviously moved along in the spirit of that and has followed our directions Councilman Young: On the revenue side of this thing, Mr. Eliot, does the (?) revenue include the anticipated yield from the federal revenue sharing? Leonard Eliot: No; it does not. Revenue sharing is not reflected in here, we left it out because that is a separate program to be administered by the Council. Mr. Aiassa: You get a separate budget on Revenue Sharing. We have one more budget to give you, and that's the CBD budget. Leonard Eliot: With all that, the budget is within a few thousand dollars total expenditure of last year's budget, even though there may be some changes within various items of revenue, in total we come out almost exactly the same as last year. We are anticipating a slight adjustment upwards in the property tax, only because of increased valuation, because of new building, and not because of any change in the tax rate. Councilman The Central Business District Redevelopment area, what is the implication there? Leonard Eliot: There will be a slight decline in revenue from that area, but overall, with other building in the City, we'll offset that. Councilman All that is still on the tax rolls? Leonard Eliot: That is on the tax rolls for 1973-74 because it is a March 1st assessment date Page four 6/13/73 Councilman Lloyd? Do we have to pay taxes a third year: Leonard Eliot: Ours won't because in our case, the City for the Agency has purchased a great portion of that property and we have consealed the taxes. Councilan Lloyd:l Why is there a significant drop showing the assessed value rather than an increase? • Leonard Eliot: Because of the other construction in other areas more than offset other consutrction. Mr Aiassa: We actually went to the building codes. ? This is not to be confused, like Wickes for example. ? Wickes wasn't affected. ? That doesn't affect our general fund revenues. Mr. Aiassa The property tax does. That goes 100% to the redevelopment. That is any increase in value. Mr. Aiassa: The only thing that will come to us is sales tax. Jim Lloyd: But the existing Hacienda Bank and Wickes will fall in that area. Leonard Eliot: Any increase from the new development will go entirely to the Redevelopment Agency. But there has been buildings throughout the City just under construction and there have been apartments just coming on stream; Larwins out on Grand Avenue, on Citrus and we have gone to two building records themselves to build up our property evaluation. We base this on the property evaluation. Jim Lloyd: How many factors do you apply? Leonard Eliot: We apply the 25%. Jim Lloyd: No, I mean what percent of increase of the assessed value do you anticipate. Leonard Eliot: Only on new construction. Allthe increase_ is exH±xakizx based on actual assessed evaluation. Jim Lloyd: No, I am asking, were there 103 million dollars in assessed value last Year? Mr. Aiassa: 157 million. Jim Lloyd: What ever it was. 0 Jim Lloyd: What was the approximate increase in the assessed value.? Mr. L. Eliot: Approximately 3 million dollars. Jim Lloyd: At one and one half percent. Page five 6/13/73 Leonard Eliot: At about 3 per cent. Its about 144 million dollars. Mr. Aiassa: That also takes care of our annexations. We took in two annexations. Leonard Eliot: When we talk about evaluation increase we are not talking about the assessor coming through and re- assessing the value of the property. Is this the increased value of the assessed properties. We are not dealing with this for a couple or three years. Leonard Eliot: Probably not.. Thats what I am saying. We should not expect a windfall like this. This is primarily from new construction. This is at approximately 3% increase. Mr. Aiassa: We missed one big one, and that was the Villas. We missed one other and that was because of our time element. But we will miss automatically, Mr. Wakefield said was not to be planned till the following year but the others will. Leonard Eliot: We have and I'll say in over 15 years we have been guessing close enough and our percentage in the auditor's report will show that we haven't been off too far. Pretty close on the property tax. Mr. Aiassa: Actually the only thing we have been a little shakey off on was sales tax. Leonard Eliot: That's a little more difficult. We have as you notice, continued to depend more on property tax than on sales tax the last two years and the trend is continuing for the time being. The two significant items shown there,--are.-property tax, sales tax, other revenues .which are primarily again here;your subventions from the State which­dk your gas'taxds primarily on your motor vehicle in (lieu from the State of California. I think that really covers the overall look on revenues. We do have a detailed list of revenue by source in where you can go through and look at where we have decided our best estimate is of the individual items and that is three pages forward. I don't know if you want to review that at this time, I don't know if you would or not. Russ Nichols: Can we ask one additional question on the budget? Leonard Eliot: Yes. Russ Nichols: It showed an unincorporated reserve spent at $12,000 for 72-73. Are we carrying that into the end of the year? Leonard Eliot: No. No. We are not. That was used to balance the,.budget • in 72-73. We will have some unappropriated funds avail- able. Russ Nichols: $50,000 is the figure you are talking about. Young: We are using that. Nichols: The estimate of the 312 ? Page six 6/13/73 Leonard Eliot: That was used up. That was 72-73. Mr. Aiassa: I think Russ has a good point. If you look at the auditor's report the one that we really got missed on was the tax rate that we put in for retirement. We figured 26 plus cents. We are about $26,000 short. So actually our retirement fund took out a bigger chunk than we anticipated. One of them is stop the • retirement of some of the people going on disability retirement what it was but it did show marked increase. ? I remember we also took some of our revenue sharing money to balance the budget last year. No. No. Mr. Aiassa: The only thing we took was the $46,000. Our original request was that we ask for an increase in business license. We increased the business license in January and we continued the complete budget of the Chamber of Commerce.. So actually what you gave us back was technically about $30,000. Where are we now? We are on the summary of review.of sources. On the sources, I note that building permits will be up primarily because of the construction in the CBD area. We are demanding building permits. Doesn't that go in? It goes into the city building permits and we have not waived that. Lloyd: Then my question is: how come it "isn't higher? Wouldn't it be higher than that? Eliot: No. Because the actual other construction in the city we don't anticipate to go up too much. We have a decline back there and an increase here. Mr. Aiassa: For five years now we have never been able to predict the revenue from the building permits.. No matter whether sewers or. anything. So Eliot and I have generally been diminishing them and they still fell short. So we are a little bit chagrinned to put any increases in there until we can see some dal-lars in it. Nichols: That's fine. Incidentially, Mr. Mayor, I heard a rumor that Bullocks was pulling out of that deal. Was there any truth to that: Lloyd: No. If they are, there's going to be;=a new one to us. Mr. Aiassa: Come on now. We just signed an REA. Don't spread it around. Sometimes rumors don't start with fact. Bob, you got that rumor a little late. We got it three weeks ago. Well, I just heard it recently so I can assure and reassure... Mr. Aiassa: Page seven 6/13/73 John Garter was at it again. If that rumor proves to be worthwhile, I think we may have considerably a high staff turnover in the city. I think I made a commitment to resign too. Mr. Aiassa: We have one advantage and I'm glad you brought that up Bob. We have a little info that maybe Bullocks will . open their store a little prematurely than they did at first because they feel it might be an advantage to get the Christmas sale and forget J. C.. Penney's opening date. That is exactly opposite of what your rumor is because at our last meeting of the ------ That came from Joe Davino and he is their representative. Their attorneys led us all to open hinting that if anything, they are accelerating their construction. Chappell That is what he told me the night Pete Schabarum was there. Mr. Aiassa: You were sitting at his table? Chappell So what has happened since then, I don't know. Since that time, we have had a meeting and they weren't going'to open till Penney's. Chappell They were going to open together for the big splash but now they are thinking about that dollar and cent business and they are trying to move their schedule ahead and open up October. Eliot: Actually, Bullocks has asked us to deliver their pad a month early, if possible. We will deliver their prepared pad October 1, and we are trying like the darndest to get itto them by September 1 of this year. They are in plan check right now. Their plans are downstairs this week. Mr. Aiassa: There is one element that we might as well pose to Council and that is the cigarette tax has been a pretty consistent income tax to the city and since all this anti -nicotine and everything, keeps smoking and we want to be a little conservative on that. Lloyd: You don't have to be conservative on that, George, excuse me for interrupting, but the Reader's Digest had a thing that smoking on a percentage factor is up something like 4 or 5 percent. Mr. Aiassa: Well, we just didn't know. I think we would prefer a conservative approach, of course. • Eliot: So, just reflecting in our budget that the property tax is up slightly not because of raise but because of valuation increase, sales taxes substantially close to what we are expecting this year even though there will be some effect on the decline in the CBD area, we still feel that with inflation, the dollar vo?lume is going up even if the unit value isn';t. Franchise taxes we expect to stay pretty steady, transient occupancy pretty steady, though we may be fooled if the Ambassador Inn gets open in time for Page eight 6/13/73 this next year. Cigarette taxes pretty much the same as this past year, business license again holding pretty much the same. As we go through,,these items, building permits were up again because of commercial building. We expect to get some good size building permits out of the buildings to be put up in the CBD area and that would also apply to electrical permits and your plumbing. That all falls in together in your building. Vehicle code fines were the same this past M year because there, -there is nothing significant happen- ing in the courts on fines. Interest on deposits pretty much the same though usually on the low side. We can never foretell what the interest rates are going to be and this year we are significantly ahead of our estimates and we maybe next year but we are usually very conser- vative on interest estimates because of the rate fluctuating so much. Rents are pretty well set, we are ahead of last year, again because of special consideration of the parking structure. We are renting the 3, 000 square feet to the County Probation Department at 45� per square foot, which figures out $1350 per month, or $16, 200 per year. What has caused the shift in our Account 537 where you're looking under "Rents" was $42, 759, and it has been adjusted to $28, 933 for 1972-73 because that rent figure before included the lease of parking spaces in our parking lot, and the Probation offices together, and since we've rearranged the agreement with the County for the parking structure, all the rents are coming in the parking structure so we've decided to segregate that because they r e quire &,us,,.,to keep that we can make the payments on the bonds, so we've pulled out the amount that was paid on the parking so that we have a single parking arrangement, all within the parking structure. Mr. Aiassa: To make it really simplified, we have three agreements with the County; one was for the library, one for the court, and one miscellaneous one, plus the Probation Office, and so we combined the library and court when we put the parking . structure on, and they made it mandatory that we segregate it from the Probation Office rent. Leonard Eliot: The County lease parking you see last year $45, 000 some odd for County parking, this year you see $109, 000 because it's just a half a year, it started in January. Now it's a full year. George Aiassa: You see an increase on it because now you're paying for a covered parking space, a large percentage of their space is covered, which is a much higher rate than they were paying in prior years on the open space. Leonard Eliot: It's all income and outgo - whatever is provided for in revenue takes care of the lease payments plus the maintenance of the structure so you see further on where the expenditures will be roughly equal to the revenue. Revenue from other agencies --- there is quite a list of them ---the TOPICS Program has been phased out, the Alcoholic Beverage license fees is more of a guesstimate than most figures because it is based on the transfer of liquor licenses and those are • hard to foretell. Trailer coach fees pretty steady, motor vehicle fees, an increase again with an increase in population, certain taxes that are subventive from the State are based on a per capita basis and over the past couple of years we've gotten new population estimates that have increased the number of persons officially residing in the city and the amount of money from those subventions will go up. So we see that th"e motor vehicle fee has gone up primarily because of the per capita rate has gone up for us. The gas tax the same thing, the 2107 gas tax again is based on a per capita distribution and with increased population we are getting a little larger slice. The last Page nine 6/13/73 census that was certified by the Secretary of State was 72, 800. So because of that, our gas :tax subventions are up for the 2106 gas tax, as well as the ATC Gas : Tax which is a State Aid to Cities and also on a per capita basis. HTC again is a special item and that is an estimate as to what might be available. only Aiassa: Let me explain this: the HTC Fund is a fund which/the B®. rd of Supervisors has the power to grant, the other one we get automatically as our share of the Gas--, Tax money. Now, part of this money was going to be used for the extension of Cameron Avenue, and the second part was the Sunset project, and as the Council will remember, we held off the Sunset project because we had the fountain in it and the bid was so far out that we blew it, so we just held off a bit. Now most of these funds have to be matched. We have been lucky, every year we've been coming in with $100, 000 of free money from the County, and that's been for the last 12-15 years. Now we have a problem in that we do not have front money tb match $90, 000 this year that I'm going to try to see if I can match for a major street. This is going to be a little different because the County has budgeted this money, but will not forward it until we finish the project. As soon as we finish the project, then the Council adopts a resolution and they forward the money. Now I'm in a little bit of an awkward position to ask for more money when I've got $200, 000 and some, that I haven't spent, so I'm going to try my best to see if I can get another $90, 000. This money was used to extend Cameron Avenue and I think Russ will agree, we did a lot of bad streets, we spent; a lot of money on Merced, and Cameron, and now we're finishing off Cameron, and I want to make a special note here --Chester Shearer did help us with one of the property owners over there, and it paid off, we have the project rollling, it's gone to bid and it's now on its way. Chester, I want to thank you for that help with Melrose. This is what they call "Christmas Tree" money and the one that all the cities really jump around and play games with and I just want to advise you. So,, on the 29th I ;.may bring this up for more support. If you figure out $150, 000 of City tax money, how much is that on the tax rate. Leenard Eliot: About 3� - assessed valuation is now a little bit over 150 million dollars, . so you figure a penney is $50, 000 this year. (? ? ? ) Emergency Services - again is a federal aid program which pays a portion of the costs of our Emergency Services program. County Deed Transfer is just the old documentary transfer tax. George Aiassa: The Crossing Guard aid we're going to lose because a portion of this because we have annexed the San Jose School and the Highway Patrol will not be sharing some of this and this is one we will be absorbing now that it's under City jurisdiction. We were getting approximately $2486. Le6n' and Eliot: State Highway maintenance again is a portion of Azusa Avenue north of the freeway that we are maintaining and billing the State for. Again, all these from other agencies and just a miscellany of items like the landscaping that we share with the County on Badillo wherein our forces maintain all of the landscaping of the median strip and bill the County for their share of it. The school district swimming pool fees, again the same thing, it's a billing back to the school district for the number of hours they use the pool down at Edgewood High School. Communication aid is part of our agreement with the surrounding cities of Azusa & Baldwin Park to use our staff for some of the repair of their equipment and they will pay us back for some of the costs. phis helps pay for some of our people. Hotline reimbursement again is the special federal gram that we entered into a year ago. The f kih/ Criminalist position has been changed instead of getting aid from other local jurisdictions or from the State grant, this year, as you know, it has been picked up completely by the State, wherein the State is paying directly for the laboratory, it is no longer our responsibility even though it is housed within our Police Department. And then, of course, there is POST, which is Police Officers' Standard Training which is just a reimbursement for those educational courses which are approved for them. And the last item is Redevelopment and we have eliminated that budgetary amount, no longer are we asking the City to put in "seed" money, the Agency has its own money from bond issue funds and at a future date, once we have reached a point where we find all the final costs, the City will be in a position to ask for reimbursement of those monies advanced up to now. Page Ten, 6/13/73 Charges for services, again we are in building, subdivision fees, we don't anticipate very much compared with the past year. Filing fees, we're keeping all at a minimum, exca- vation, sanitation, plan check is up again because of commercial construction within the CBD. Engineering, sale of publications, these are all just miscellaneous items. Weed assessments again are assessments back to the property owners when we clean the weeds off and normally that is the same amount as the budgeted amount because we budget what we feel it takes in the coming year. If it's more, the assessments are more. 16mayor Lloyd: What was it this last year, this $37, 277, is that correct? Leonard Eliot: Right. We can't tell in advance how many weeds we're going to abate. In any case when we do abate them that's the cost and we assess against the individual property owner. Mr. Aiassa: Every year we reduce more lots because they are going into construction. I think we have at least 3%-%4 every year lost on building of buildings. Leonard Eliot: Then we come to current lighting assessments. As you know, the energy rate did increase and you approved an increase in the per foot charge to the property owners and that reflects in the higher charge. Open Space Maintenance Districts 1 and 2, again that is based on a tax rate that we will also discuss when we come to the expenditure part of the Open Space Maintenance Districts. In prior years we showed the 4� under the property tax. This year we're just showing it as a separate item as a charge for service. It still remains the same as we've always charged in the past, it's a separate District where the City some three years ago took over from the County Sanitation District to reduce the costs to our citizens the drains in our CifX ere comparatively new, compared to many of the ones maintained by the County, / our rates aretstill lower even though the County has reduced over the last two years. This is a Municipal Sewer District and we're just showing it as a charge for services rather than a separate tax for it, but it's the same rate, it will be shown on the 4� item on the tax roll. George Aiassa: O. K. , but there's a key to this too, the money expended under this rate is solely for salaries, it is for capital equipment and so we are actually building our own services where with the County we were not building any services or capital equipment. We were merely paying out a fee for them to service our area. Leonard Eliot: Actually, we've been able to buy all of our capital equipment for the Sewer Maintenance District out of that same rate, without any additional funds necessary. Woodside Water revenue, again is our hopeful projections of the water revenues. Last year it was a little high. Since building did not expand in the Woodside Village as rapidly as we anticipated we have had to scale y�,9 down a bit our estimated revenue, and our estimated costs. I think Umark is going to end up loosing their water and they may end up loosing of their outside investment Voice: It's a good contract. Leonard Eliot: Its a very good Contract, yes. As'yet it's basically the same as last year. Weorge Aiassa: That was a good Contract. Leonard Eliot: Again, the 1911 Act or just whatever fees, -:we get or any 1911 Acts we may enact is just an estimate and miscellaneous item. So, our total revenue is 7.6 Million Dollars and I think that really covers the revenue, unless there are specific questions that the Councilmen may wish to ask. C.C. Meeting Page Eleven 6/13/73 George Aiassa: Except there is one thing I want to mention to the Council before they have any questions and that is that we have not had an opportunity to go to Sacramento and audit the Sales Tax. Now, every year we go up prior to the Budge time and we specific- ally audit all the accounts and we usually get a pretty good ratio of what dollars and cents we make, and Eliot and I have not been able to go up there this year, but we are going to try and make it in August. This will give us a better, truer picture'on Sales Tax. We may actually complain or file an unfair returns, because we did that on Akron one year and we found that we Gained quite a bit because they had a uniform earning for four consecutive quarters and I don't think there is any Company that can have exactly the same earnings four seperate quarters. This also gives us a pretty good picture of what we're going to face the next two years and hence. Voice: Are you saying that people aren't recording accurately? George Aiassa: Well, you see, if they don't transfer this chances are that they don't give credit properly to the City where those sales are consumated. For example, Akron has a District Warehouse where they.... Voice: George Aiassa: Leonard Eliot: George Aiassa: Leonard Eliot GeorgeAiassa: I understand. O.K. Where May Company has made a few gains and a few others,so we keep a tab on them and we also Not that they are being dishonest. We get an estimated cost on each one of them and throw all that's left over for that month into their head office. They're not being dishonest, the State Board of Equaliz- ation is being dishonest to us. In allocation, right. So, what do you have next on our schedule? Leonard Eliot: I think we should start on Expenditures for this month. Now that we have all this money, let's see how we're going to spend it. I think you have it scheduled to start with the City Council first. - George Aiassa: Yes, City Council, 701. Leonard Eliot: If there are seven sets to the Budget George Aiassa: We should be able to cover up to 728. Leonard Eliot: In this years Budget we did attempt to do a little more than in prior years, by first of all making more of a program budget than just a line item -and having fiscal year objectives, wherein we try to discuss what that department does. It is probably helpful when the public picks up one of the Budgets, to understand maybe how a Government operates and maybe what it is that departmeftt supposed to do. So, it's somewhat self-serving, no doubt, but it is helpful to have it so we did try to include some general 0tatements of objectives of each department and whether there has been a change, we tried to discuss more on a summary page, why it is going up or why it is going down, because this is the most frequent question asked actually, why did we change from last year, what happened. So, the first one is the City Council and you do note that the total Budget was $31,000 or $30,000 approved in the Budget and Preliminary we're talking more about $39,000 and almost at the bottom of that page we're telling you the reasons for the increase in the Budget is that the up -grading of the Clerk -Steno position to Secretary I 70 Page Twelve C.C. Meeting 6/13/73 Voice: You promised not to say anything about that. Leonard Eliot: Alright - and assigning of half of that individual's salary to the City Council Budget for the first time. George Aiassa: Does that sum come off somewhere else: Leonard Eliot: Yes sir. The other half comes off my *voice: I'ts not an increase, we just divide. It's a bookkeeping device that keeps the City Manager's Office happy and tells his people, hey, look, he's not reducing his staff really, he's just charging it to some other department. George Aiassa: Actually, I'm not reducing any staff, the only thing that I'm prorating is the position, as we've done in the past. Gerry Lynn is devoting a considerable amount of time to that and we've worked it out. Voice: Gentelmen, there is a history to that. The City Council used to have a Council assigned secretary and then George Aiassa said one day,.if you will just let us get rid of that secretary you have up there in the council and will let me handle it, well:;. we can handle it in our department. Now he's going to start charging us again for it. George Aiassa: No, I don't charge you for Eileen. Voice: The next year we'll be coming back and wanting our own secretary. George Aiassa: Now, I never charged you for Eileen. If I charged you for Eileen, you'd be bankrupt. Leonard Eliot: This is Gerry Lynn and I think if you'll turn that page on the back where the Personnel Positions are listed, Full Time, you can see what charges there are to the City Council for Administrative Assistants and its half the cost for an Administrative Assistant, half the cost of an Administrative Analyst, half the time of a Junior Analyst, half the time of a Secretary I. So that is the salary charges to the City Council Budget. George Aiassa: Well that's just on a basis on this thing. On the 1973-74 Budget, we have a request column and a preliminary column. Who is the requesting party. Leonard Eliot: The requesting party is usually the Department Head. In the case of a department such as the City Council, the Administrative Staff in the City Manager's Office usually prepares a request budget for submission on behalf of the City Council. The preliminary is after it is reviewed by the City Manager, so where the preliminary comes from is after it is reviewed by the City Mnaager, whathis recommendation is after reviewing the Department Head's request. There will be a third column added to show what was approved later on. George Aiassa: Now, as far as the Council is concerned, all we do is use part of your presidents and the other percentages where we see in the Annual Audit Report. We don't do nything different unless the Council directs, and they should be speaking if they want any modifications or changes. Voice: Our own allowances, where the City Budgeted $1,000 last year. These expenditures..last year was $1300 now its $2800. George Aiassa: 0.K., I questioned that. When the League of California Conferences is in the Division, we use roughly $1,000 or somewhat in that equivalent. But, if its in San Francisco, we automatically multiply 5 X 175. I think that's the difference. If you watch the prognosis, you'll see this will happen. Page Thirteen C.C: Meeting 6/13/73 Voice: What memberships are we dropping? I notice they've reduced that more than half, from $1200 to Leonard Eliot: Well #49, in the same book, here we have the total following right behind and let's see, on Item #49... Voice: #47 and #49. Oleonard Eliot: Well in #47 we're talking about the Mayor's expenses. the increase in the budget in #47 and we're talking about why we go from $1,000 to $2800, that supposedly was the question. In these items, of course, we have found that the Council members have, number one, been a little more active than in the past .in attending various meetings and they've also taken occasions to be generous and gave some of their money to other organizations, and then found out during the year that they still wanted to go someplace and found out that they were short, to be quite honest with you. George Aiassa: Yes, but the big one is in San Francisco.... Voice: You've caught onto that, huh? Leonard Eliot: Well, we started running an overdraft on the account. Voice: Well, we'll say we're staying home and we're giving it to the Youth Commission. LeonardEliot: That's right, and then you decide you want to go. George Aiassa: See, Bob, the very last time it shows here the League Conference in 1972-73 Budget and this one was the one in San Francisco last year. In 1972-73 you had nothing; this year you have $875. Leonard Eliot: It's not an apostrophy, because if it isn't used, it will last to the end of next year and go back into the ivh}inappropriate funds, so it's not an expense in the fullest sense. Voice: Discussion George Aiassa: Discussion Leonard Eliot: Discussion Voice: All I'm saying George is that last year the figure wasn't zero. Last year the figure was $600, but it was in #49 rather than #47. You just pulled a switch. We had voted last year to attend the meeting'last year. It wasn't zero, it was $600. George Aiassa: I think what they put in here was like Chester shows.... Voice: All we did was simply take the allowances, which was related to League Conferences and transfer them fvom 47 to 49. Voice: Technically, it was zero last year. We budgeted $600 to;attend the League Conference last year. This year we're budgeted for $875. It just happens to be in a different account. Leonard Eliot: It is a slight increase because it is outside of State and we did increase the attendance of meetings and dinners by some hundred odd dollars. George Aiassa: We did the same thing in reverse too, in the #47 account. Voice: I think we understand that. C.C. Meeting Page Fourteen 6/13/73 George Aiassa: It's a bookkeeping situation, so it doesn't make any difference, the total amount shows pretty much the same. Leonard Eliot: So, that pretty well answers your question on #49 on why the Membership is down.. because it's just a switch from one account to another account. Essentially, miscellaneous meetings were $500 last year and it's $500 this year. eorge Aiassa: Actually, for Council information, at the end of June 30, 1972, the -account shows no expenditure in miscellaneous expenses other than a salary of $1744.88. They salary was $23,106.54............ $24,851.00, but you did budget in total $26,626.00. So you actually show a reserve of $1774.56. •