07-26-2018 - Special Meeting - MinutesCITY OF WEST COVINA
CITY COUNCIL/SUCCESSOR AGENCY/
HOUSING AUTHORITY/PUBLIC FINANCE AUTHORITY
THURSDAY JULY 26, 2018, 6:30 PM
SPECIAL MEETING
CITY COUNCIL CHAMBERS
1444 W. GARVEY AVENUE SOUTH
, WEST COVINA, CALIFORNIA 91790
MINUTES
CALL TO ORDER — Mayor Lloyd Johnson called the meeting to order at 6:30 p.m.
PLEDGE OF ALLEGIANCE — Led by Mayor Lloyd Johnson
ROLL CALL
Present: Councilman Mike Spence, Councilmember James Toma, Councilmember Corey
Warshaw, Mayor Pro Tern Tony Wu, Mayor Lloyd Johnson
Staff Present: City Manager Chris Freeland, Assistant City Manager/Community Services
Director Nikole Bresciani, Deputy City Manager Laura Biery, City Attorney Kimberly Hall
Barlow, Public Works Superintendent Micah Martin, Human Resources Director Edward Macias,
Assistant City Clerk RosaHa Butler, Fire Chief Larry Whithorn, Police Captain Richard Bell,
Senior Planner Ron Garcia, Human Resources Management Analyst Eva Sahagun, Public Works
Management Analyst Michelle Mansour, Human Resources Technician Rachel Hirota, Police
Administrative Services Manager Alex Houston, Police Chief Marc Taylor, Assistant Fire Chief
Vince Capelie, Police Captain Doug Murray, Police Lieutenant Dennis Patton, Interim Finance
Director Judy Lancaster, Finance Management Analyst II Serena Bubenheim
Thursday July 26, 2018
Mayor Johnson made an adjournment motion in memory of retired West Covina Police
Lieutenant Wayne Heieck.
The presentation of Item No. 1 was given before Public Comment to allow speakers to voice their
concerns on all items proposed on the agenda.
DEPARTMENTAL MATTERS
1) Adoption of the City of West Covina Fiscal Year 2018-19 Annual Operating and
Capital Improvement Program Budget
it is recommended that the City Council approve the Fiscal Year 2018-19 Proposed
Operating and Capital Improvement Program Budget by adopting the following
resolution:
RESOLUTION NO. 2018-99 - A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF WEST COVINA, CALIFORNIA, ADOPTING THE OPERATING BUDGET
FOR THE CITY OF WEST COVINA, WEST COVINA PUBLIC FINANCE
AUTHORITY, WEST COVINA HOUSING AUTHORITY, THE SUCCESSOR
AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT AGENCY AND
THE CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2018-19
2) Adopt the additional budget related recommendations presented by staff, as
summarized on Page 10 of the staff report.
City Manager Freeland thanked City staff for compiling the proposed budget report, City
Council for their patience and support, and the residents for their suggestions and
recommendations to balance the City's budget. He also gave a brief overview regarding
the history of the current budget and discussed the reductions the City had to implement to
close the budget gap.
Interim Finance Director Lancaster gave a PowerPoint presentation detailing the proposed
budget plan for the City. In addition, she also listed all the revisions that were
implemented to the preliminary budget during the Special Meeting on July 12, 2018 and
discussed all ongoing adjustments that closed the budget gap of the General Fund.
Furthermore, she informed the Council that there were still several financial challenges
that must be resolved to sustain a balanced budget for years to come.
Councilmember Toma thanked City staff for the formulation of the multiple budget
reports and commended them for their hard work and dedication. He also asked for
clarification regarding all future budget projections.
Interim Finance Director Lancaster clarified that the Finance Department had budget
projections until the year 2047.
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Thursday July 26, 2018
PUBLIC COMMENTS ON ITEMS ON THE AGENDA
John Shewmaker spoke on unfunded liability and PERS and expressed concerns regarding
fee increases for residents.
Brian Biddulph shared his concerns regarding the proposed layoffs in the Maintenance
Department.
Carole Muliner expressed concerns regarding the proposed layoffs in the Maintenance
Department and shared her concerns relating to the City's budget.
Rick Shield spoke on the duties of the Maintenance team and expressed concerns
regarding the impact the proposed layoffs would have on the residents.
Elsie Messman expressed concerns regarding the proposed tax increase and stated her
disapproval regarding the proposed layoffs in the Maintenance Department.
Brian Jobst expressed his disapproval regarding the proposed staff layoffs and expressed
concerns regarding the level of transparency within the City.
Sarah Love expressed her disapproval regarding the proposed tax increase.
Bill Robinson advocated for the implementation of mandatory staff furloughs and
expressed concerns regarding the proposed tax measure.
Jim Grivich spoke on the substantial amount of City expenditures and expressed concerns
regarding the amount of overtime compensation for public safety employees.
Jerri Potras expressed concerns regarding the proposed layoffs and stated that furloughs
should be implemented in every department within City Hall.
Chris Miller spoke on the budget and proposed a resident funded program to reduce the
amount of electricity usage in the City during high demand times. He also expressed his
disapproval regarding the proposed tax increase and opposed the proposed elimination of
the elected City Clerk and City Treasurer positions.
Bruce Leinbach expressed concerns regarding the proposed layoffs of City employees.
Shirley Buchanan expressed her disapproval regarding Item No.5 and stated that the City
Clerk and City Treasurer should remain elected positions.
City Manager Freeland and Interim Finance Director Lancaster gave responses to speaker
inquiries.
Councilmember Warshaw asked Interim Finance Director Lancaster when the City would
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Thursday July 26, 2018
need to start borrowing money to replenish General Fund Reserves.
Councilmember Toma asked for clarification regarding the increase in City revenues
during FY 16-17.
Interim Finance Director Lancaster addressed Councilmember Warshaw's inquiry that this
would occur during Fiscal Year 2019-2020. She also explained that the "triple flip" was
responsible for the increase in City revenues during FY 16-17. In addition, she elaborated
on the "triple flip," and explained that it occurred when the state of California needed to
realign their General Fund and moved money around between the school districts, cities,
and the state of California which was allocated over a period of seven to ten years.
Mayor Pro Tem Wu expressed concerns regarding the amount of City expenditures and
the amount of overtime for Public Safety employees.
Councilman Spence expressed concerns regarding the lack of a Closed Session meeting to
discuss the proposed budget plan.
City Manager Freeland addressed Councilman Spence's concerns and stated that there
was no additional direction given by Council or staff to require a Closed Session meeting.
Councilmember Toma asked for an additional report from the Police and Fire Chiefs
regarding the overtime amounts for Public Safety employees and detailed how much it
would cost to hire additional employees rather than giving copious amounts of overtime to
current staff.
City Manager Freeland stated that both Police Chief Taylor and Fire Chief Whithorn
would discuss the overtime issue, as well as the change in Police and Fire deployment
models.
Police Chief Taylor stated that while overtime is not directly correlated to vacancies, it is
attributable to the current staffing model and the policy regarding time off to employees.
In addition, Mr. Taylor also stated that if the Police Department were to hire additional
employees, the overtime amount would increase due to training costs and court time. He
also indicated that if the restructuring of the patrol model is approved, two officers would
be allowed off on a crew instead of on overtime, effectively decreasing the amount of
allowed overtime.
Mayor Pro Tern Wu expressed concerns regarding the potential for excessive overtime,
and shared his concerns pertaining to the increased liability of over worked employees.
Police Chief Taylor indicated that the Police Department does not have enough officers
but was given the task of cutting 10% of the budget which included the elimination of 6
positions and a change in the staffing model. He also added that the amount of overtime
given to employees is closely monitored and that most of the overtime is due to
contractual obligations for staff. In addition, he also stated that the WCPD has very
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Thursday July 26, 2018
specific rules for staffing, and any change to the current deployment model or its policies,
would require a meeting with the West Covina Police Officers Association.
Councilman Spence expressed concerns regarding the amount of overtime allowed.
Fire Chief Whithom spoke on the required staffing levels for the Fire Department and
stated that they did not have discretionary overtime. He also discussed the impact the 10%
budget cuts had on the department and stated that all fire fighters are paid overtime in 15-
minute increments.
Mayor Pro Tern Wu asked if hiring additional personnel would reduce the overtime cost.
Fire Chief Whithom indicated that due to the vast number of vacancies within the Fire
Department, hiring additional employees would reduce the amount of overtime allowed
for current employees. However, he explained that there are still going to be employees
who request time off for various reasons, which would create overtime for others.
Councilmember Warshaw asked for clarification regarding the overall savings for the
current staffing model as opposed to a fully staffed model.
Fire Chief Whithom indicated that there would be a savings of $89,000 with the current
staffing model as opposed to being fully staffed. He also stated that while a fully staffed
model would reduce the amount of overtime, it would also increase the overall budget for
the Fire Department.
Councilmember Warshaw expressed concerns regarding the lack of contracts the City has
with Union businesses and contractors. He also spoke on the Fire Department negotiations
and discussed the increase in overtime for the department. In addition, Mr. Warshaw
indicated that West Covina is the only city without a utility tax and expressed his approval
regarding a general sales tax for the City.
Mayor Pro Tern Wu shared his concerns regarding Measure H and expressed his
disapproval regarding the proposed budget.
Councilman Spence expressed his disapproval regarding the proposed budget plan.
Councilmember Toma expressed concerns regarding the increase in PERS costs and the
impact it had on City employees.
Mayor Pro Tern Wu suggested for City management to implement a pay cut for staff to
alleviate the budget dilemma.
A motion was made by Councilmember Toma and seconded by Mayor Johnson to adopt
Resolution No. 2018-99. Motion failed to be approved by a vote of 2-3, with Councilman
Spence, Councilmember Warshaw, and Mayor Pro Tern Wu in opposition.
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Thursday July 26, 2018
AYES: Toma, Johnson
NOES: Spence, Warshaw, Wu
ABSENT: None
City Attorney Hall Barlow indicated that if the Council decided to give staff direction to
commence negotiations to implement pay cuts for City staff, it would be a lengthy process
and would result in litigation. She also stated that a cut to the City Management team
would result in a savings of $100,000.
City Manager Freeland informed the Council that further delaying the budget adoption
costs the City between $50,000 and $100,000.
2) Annual Appropriations Limit for Fiscal Year 2018-19
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2018-101 - A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF WEST COVINA, CALIFORNIA, SETTING THE ANNUAL
APPROPRIATIONS LIMIT FOR THE FISCAL YEAR ENDING JUNE 30, 2019
Due to the delay of the budget adoption, Item No. 2 was held over to the next scheduled
Special Meeting on August 2, 2018.
3) Business License Tax Analysis and Ordinance Review
It is recommended that the City Council take the following actions:
1) Authorize the City Attorney to draft an ordinance amending Chapter 14 entitled
"License and Business Regulations" of the West Covina Municipal Code ("Business
License Ordinance") that would adopt a new fee structure for business license taxes based
upon Gross Receipts - Classification Based Tax Rates; and
2) Direct staff to prepare necessary documents to allow the City Council to call for an
election for voters to consider the amendments to the Business License Ordinance.
Councilman Spence expressed concerns regarding the four-vote requirement for adopting
the Business License Tax and commented on the 24-hour notice requirement discussed by
City Attorney Hall Barlow at the previous Regular City Council meeting on July 17, 2018.
Since there were not enough votes to pass Item No. 3, the item failed to be approved and
Mayor Johnson requested to proceed to Item No. 4.
4) Tax Measure for the November 2018 Ballot
It is recommended that the City Council discuss whether to direct staff to prepare a tax
measure to place on the November 2018 Ballot.
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Thursday July 26, 2018
City Manager Freeland gave a brief overview on Item No. 4 and stated that a special tax
would only require three votes from Council instead of four.
City Attorney Hall Barlow indicated that the only kind of special tax that would require
four votes would be a transaction and use tax.
Mayor Pro Tern Wu expressed concerns regarding the change in how many votes are
necessary to approve a special tax as opposed to a general tax. He also asked how much it
would cost to place the proposed measure on the ballot for the upcoming election.
City Manager Freeland indicated that it would cost $9,000 to place the proposed measure
on the ballot and stated that the total cost of the election would amount to $200,000. He
also asked Council to provide direction to staff indicating how to proceed in this matter.
City Attorney Hall Barlow stated that the Council needed to specify the type of tax desired
and indicated that it could be a sale and use tax, a utility tax, or a local property tax if the
City did not exceed the statutory limit.
Mayor Pro Tern Wu asked for clarification regarding the percentage of the proposed tax
increase.
City Manager Freeland indicated that staff could bring back options but that per County
and State regulations, cities could not exceed a tax rate of 10.25% or more without state
legislature approval. He also specified that since the City is currently at a 9.5% tax rate, an
increase of a maximum of three quarters percent could be implemented so that it did not
exceed the aforementioned threshold.
Mayor Pro Tern Wu expressed concerns regarding the proposed tax increase.
Councilmember Warshaw expressed approval regarding a general sales tax increase.
A motion was made by Mayor Johnson and seconded by Councilmember Toma to move
forward with item and prepare ballot measure materials for a Sales and Use special tax.
Motion was carried by a vote of 3-2, with Councilman Spence and Mayor Pro Tern Wu in
opposition.
AYES: Toma, Warshaw, Johnson
NOES: Spence, Wu
ABSENT: None
Councilman Spence stated that since the deadline for placing measures on the ballot
occurred on August 10, 2018, he would prefer to draft the arguments for this item at a
later date.
City Manager Freeland asked Council for a specific date in which the next meeting would
be held to discuss the budget as well as the proposed tax measure. He also stated that the
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Rosalia A. Btlifle.r.,. MMC
Assistant City Clerk
Thursday July 26, 2018
next Special Meeting would occur at 7:00 p.m. on Thursday, August 2, 2018, while the
Closed Session meeting would occur at 6:00 p.m.
5) Argument in Favor of Ballot Measures on Changing the Office of the City Treasurer
and the Office of the City Clerk from Elected Positions to have them Appointed by
the City Manager and Potential Rebuttal Arguments
It is recommended that the City Council take the following actions:
1) Consider and discuss a proposed argument in favor of the Ballot Measure to change the
position of the City Treasurer from an elected official to a position that would be
appointed by the City Manager based upon professional qualifications;
2) Consider and discuss preparation and submission of a rebuttal to any primary argument
against the Ballot Measure, to change the position of the City Treasurer from an elected
official to a position that would be appointed by the City Manager based upon
professional qualifications, which may be timely submitted;
3) Consider and discuss a proposed argument in favor of the Ballot Measure to change the
position of the City Clerk from an elected official to a position that would be appointed by
the City Manager based upon professional qualifications; and
4) Consider and discuss preparation and submission of a rebuttal to any primary argument
against the Ballot Measure, to change the position of the City Clerk from an elected
official to a position that would be appointed by the City Manager based upon
professional qualifications, which may be timely submitted.
Council agreed to hold Item No. 5 over to the next scheduled Special Meeting on August
2,2018.
CITY COUNCIL COMMENTS
Mayor Johnson asked for City staff to agendize a report regarding the reconsideration of the Last,
Best, and Final Offer for the Fire Department.
ADJOURNMENT
Mayor Johnson adjourned the meeting at 9:05 p.m.
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