06-09-2014 - Special 2 Meeting - MinutesMINUTES
ADJOURNED SPECIAL MEETING OF THE
WEST COVINA CITY COUNCIL
June 9, 2014
Mayor Herfert called to order the special meeting of the West Covina City Council at 6:10 p.m. in the
City Hall Council Chambers, 1444 W. Garvey Avenue, West Covina.
PLEDGE OF ALLEGIANCE Led by Mayor Herfert
ROLL CALL Mayor Herfert, Mayor Pro Tern Sykes
Councilmembers Spence, Toma, Warshaw
REPORTING OUT FROM CLOSED SESSION
Deputy City Attorney Chris Cardinale reported the following:
The West Covina City Council and Successor Agency met
in closed session at approximately 5:35 p.m., with all
Councilmembers and Agency Board Members present.
Conference with Real Property Negotiators — 1340 E.
Puente Avenue, 1500 W. Rowland Avenue, 625 E. Merced Avenue
— Verizon Wireless [City Council Agenda] and Conference with
Real Property Negotiators — 2000 E. Garvey South [City Council
and Successor Agency Agendas] — Staff provided an update on
status of negotiations but no direction was provided and no final
action taken.
Conference with Labor Negotiators - City Negotiators:
Chung, McKay — Confidential Employees, Maintenance & Crafts
Employees, Non -Sworn Safety Support Employees, W. C. Police
Management Association, W.C. Firefighters ' Association, I.A. F. F.,
Local 3226, General Employees, Mid -Management Employees,
W.C. Police Officers Association, W.C. Firefighters' Management
Association [City Council Agenda] — This item was not discussed
and will be continued following the open portion of tonight's
meeting.
Conference with Legal Counsel — Existing Litigation — City
of West Covina v. Hassen Imports Partnership, et al.; Los Angeles
Superior Court Case No. KC048157; In re Hassen Imports
Partnership, Debtor, United States Bankruptcy Court Case No.
2:11-bk-42068-ER; In re Hassen Imports Partnership, Debtor,
United States District Court Case No. 2:13-cv-07532-CAS[City
Council and Successor Agency Agendas] — The Mayor did not
participate due to a potential conflict of interest. A briefing was
provided by special counsel. By a vote of 4-0 the City Council and
Successor Agency approved settlement on the terms and conditions
discussed in closed session and authorized the Mayor or his
designee to execute the agreement as presented, however, parties
of the settlement agreement have not signed and delivered copies
of the agreement and there are also conditions subsequent in the
agreement that must be satisfied before it is final, therefore there is
no final agreement to report.
0 PUBLIC COMMENT ON ITEMS ON THE AGENDA
Lloyd Johnson, thanked Councilmember Warshaw for answering
questions that arose from the last budget study session; inquired
about the increase requested for administration overhead in the
City Manager's Office budget.
City Manager responded.
Special Meeting of June 9, 2014
Mayor Herfert announced that this is the second budget study
session, continued from May 28, 2014.
2014-2015 FISCAL YEAR BUDGET — STUDY SESSION
2014-2015 Fiscal Year Proposed Operating and Capital
Improvement Program Budget Study Session
City Manager Chung made opening remarks stated that changes
can be made throughout the year. The presentation will provide a
review of the various department's proposed expenditures.
[Departments reviewed this evening are departments that were not
reviewed at the May 28, 2014 Special Meeting.] Chung introduced
Finance/Administrative Services Director Nita McKay.
McKay stated the staff report has answered questions
brought forth by the councilmembers at the first study session.
McKay started the departmental review with the Public
Works department budget. Changes to the department budget were
reviewed which included a new organizational chart, funding
changes to various positions and the transfer of the Code
Enforcement Program to the Police Department.
Questions and discussion ensued regarding street crew
coverage on Friday, Saturday and Sundays; So. California Edison
projected expenditures; capital equipment lease payments and
NPDES.
Councilmember Spence stated his objection to the transfer
of Community Enhancement to the Police Department.
Public Works Director Yauchzee presented an overview of the
proposed Capital Improvement Program for next fiscal year.
Yauchzee answered specific questions from council.
Councilmembers discussed joint use agreements with school
districts and concern with project Y-6, improvements at Covina
High and Traweek Middle School. Council discussed removing Y-
6 from the CIP budget and council concurred to make changes at
the end of the presentation. Councilmember Warshaw requested
funding for the painting of Fire Station 1.
McKay continued with a detailed presentation of proposed budgets
for the City Attorney. Staff responded to questions/comments
regarding the City Prosecutor budget.
McKay presented the proposed budget for the
Finance/Administrative Services Department and presented
requests from the department for the addition of an Office
Assistant II and cashiering module for the Eden financial system,
which will require council action.
McKay presented the proposed budget for Non -Departmental and
explained that this new section includes anything that is citywide
such as bond interest and principal, tax anticipation notes, Prop A
Exchange and others which are not department specific.
Resident Lloyd Johnson requested the Council permission to
comment. Councilmember Warshaw stated that at the last budget
is
meeting the council agreed to receive oral communications from
audience members during the budget presentation.
Motion by Herfert and seconded by Warshaw to open public
comment during the process.
Motion carried 4-1 (Herfert No)
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Special Meeting of June 9, 2014
Lloyd Johnson, West Covina resident, asked for clarification on
other contractual services in the Finance/Administrative Services
budget.
Councilmember Warshaw inquired as to where in the budget is
funding for the State Controller's Audit. McKay responded that
there are no funds budgeted in the next fiscal year. McKay
responded to questions pertaining to the department budget.
McKay presented the Successor Agency budget and provided an
overview of Financial Policies. McKay stated that the City is
proposing to fund the General Fund emergency reserve at 20% of
operating expenditures and proposed options to achieve this.
Discussion ensued regarding construction tax and Mayor Herfert
requested a Thursday memo report to the Council.
The City Council took action on the following budget items:
Motion by Herfert and seconded by Warshaw to reduce the City
Prosecutors budget by $15,000 and to allocate the funding to paint
Fire Station 1.
Motion carried 5-0.
Motion by Warshaw and seconded by Herfert to approve
appropriations for Finance and Administrative Services Office
Assistant II position and cashiering module for the total of
$101,140.
Motion carried 5-0.
Motion by Warshaw and seconded by Toma to approve
restructuring of the department, creating a Principal Planner
position and eliminating full time Planning Assistant to create two
part time Planning Assistant positions
Motion carried 5-0.
Motion by Warshaw and seconded by Sykes to decrease Impact
Fee Study budget from $75,000 to $40,000.
Motion carried 4-1 (Spence No)
Motion by Spence and seconded by Warshaw to add to the Police
Department budget one Police Officer position, one
Communications Supervisor position
Motion carried 5-0.
Motion by Warshaw and seconded by Sykes to move Code
Enforcement to the Police Department and create a second
Community Enhancement Officer. Councilmember Spence stated
he would not support the moved of the division to the police
department.
Motion carried 4-1 (Spence No)
City Manager Chung stated the Ambulance Subscription program
will be brought back to a subsequent meeting with options for
• Council action. Item will be brought back in July.
City Manager Chung stated it is proposed to unfund three positions
and change the Street Coordinator position to a supervisor position
in the Public Works Department and transfer Code Enforcement to
the Police Department. Following discussion, consensus is to
bring back to the June 17 meeting when the budget is adopted.
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Special Meeting of June 9, 2014
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Motion by Warshaw and seconded by Toma to reduce the ICSC
conference budget in half.
Motion carried 3-2 (Herfert, Spence No)
Motion by Warshaw and seconded by Spence that 25% of any
additional revenue at year end be put into reserves.
Motion carried 5-0
Motion by Warshaw and seconded by Spence to remove Y-6,
request from Covina Unified School District from the CIP budget.
Motion carried 5-0.
ADJOURNMENT Meeting adjourned at 7:50 p.m. to reconvene the special meeting
closed session discussion in the City Manager's Conference Room.
Motion carried 5-0.
Submitt b
Assistant'City;Cler Susan Rush
Mayor Steve 11e rt
Cl