MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL

of the City of Hermosa Beach, California, held on Thursday, May 29, 2003, at the hour of 7:20 p.m.

PLEDGE OF ALLEGIANCE

Judy English

ROLL CALL

Present: Dunbabin, Keegan, Reviczky, Yoon, Mayor Edgerton
Absent: None

PUBLIC PARTICIPATION:

None

1. WRITTEN COMMUNICATIONS

   1. Letter from 18th Street residents requesting allocation of Capital Improvements Funds to repair public right-of-way; 18th Street Walkway between Hermosa Avenue and The Strand.

      Coming forward to address the Council on this item were:

      Lael Stabler

      - Hermosa Beach, noted that the walkway served as a public access route to the beach; said improvements made in the early 1960s, including street lighting, irrigated planter boxes, a masonry wall, street surfacing and a drainage system, have deteriorated, and the residents were requesting another joint effort at this time to repair and update the street;

      Judy English

      - Hermosa Beach, presented a photo display; said they have the plan from 1961, requested that the City work with the residents to repair their street; said they were ready to form an assessment district; and

      Charlie Cheatham

      - Hermosa Beach, Public Works Commissioner, said the Commission briefly looked at the project and advocated proceeding with it.

      City Manager Burrell responded to questions.

      Action: To direct staff to work with the 18th Street residents, gathering all information possible, and report back to the Council with regard to costs and the formation of an assessment district for the walkway renovation.
      Motion Reviczky, second Mayor Edgerton. The motion carried by a unanimous vote.

2. PRELIMINARY BUDGET REVIEW

   1. Overview of Budget Changes - City Manager Burrell said the budget as proposed would maintain current levels of service and was balanced, with recommended increases to parking fees and fines, made necessary by the City's loss of two car dealerships and the major increase in health insurance and benefit costs.

   2. Overview of Revenue Changes - City Manager Burrell said the City would be significantly impacted by the loss of the two car dealerships and that additional revenue sources would be needed. Finance Director Copeland reviewed revenue sources and projected a 1% increase in overall revenues, noting that sales tax was down by 4% but that property tax continued to go up.

   3. Review of Department Expenditures - City Manager Burrell noted the major increases in health insurance and benefit costs this year and said the budget reflected a 5% increase in overall expenditures. The Council then reviewed the departmental budgets and staff responded to questions. Fire Chief Russ Tingley noted that the amount budgeted for the nurse educator (page 117, code 4201) has dropped to $18,900.

   4. Capital Improvement Program - City Manager Burrell responded to Council questions, noting that $275,000 was proposed to fund street repair. The Council reviewed the proposed program.

   5. Consideration of ballot measures for the business license tax and transient occupancy tax - City Manager Burrell spoke of the need for future additional revenue sources and said the proposed ballot measures would be scheduled as a hearing at the June 10 meeting for public input and Council consideration.

   Following Council review of the proposed budget, staff was directed to:

   • Eliminate the community picnic (page 105, code 4319) but retain the $4,108 proposed for other special events.
   • Report back on the increase in contract service cost (page 166, code 4231) for the parking lot operator.
   • Agendize the policy issue of replacing City Council laptop computers (page 216) for the next meeting of June 10, 2003.
   • Evaluate and report back on the equipment fund regarding the number of vehicles and the replacement time.
   • Report back on options with regard to the $66,000 needed to fund the Lighting/Landscape District improvements.
   • Report on savings from unused funds in the FY 2002-03 budget.
   • Review and report back on Community Resources Department cost versus revenue.
   • Report back on policy options with regard to possible changes to encroachment costs, differentiating between users, perhaps tiered to encourage retail.
   • Perform a future study on dealing with grease traps.
   • Review and report back on the Prop A funded WAVE program and taxi voucher program.
   • Include the Fire Department on the City's website (page 118, code 4201).
   • Retain the $30,000 for the Police facility needs study (page 139, code 4201), with the Council to decide on it at a later date.
   • Provide Health District financial statements and budget.
   • Provide a cost benefit analysis on the $25,000 expense for the New Year's Eve event.
   • Report back on the possibility of installing meters and sharing the lower parking lot at the Von's shopping center.

   The following straw votes were taken by the Council:

   Straw Vote: There was Council consensus to direct staff that any additional money available be put into the Capital Improvement Program fund for the purpose of increasing street repairs.

   Straw Vote: There was Council consensus to conduct a public hearing on the placement of parking meters on upper Pier Avenue (City Manager Burrell said he would bring the matter back as part of the budget packet for the scheduling of a public hearing at a future date).

   Straw Vote: There was Council consensus (3-2) for raising parking fees from $0.75 per hour to $1 per hour in the FY 2003-04 budget.

   Straw Vote: There was Council consensus (4-1) for raising parking fines from $30 to $35.

ADJOURNMENT

The Adjourned Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Thursday, May 29, 2003, at the hour of 10:46 p.m. to an Adjourned Regular Meeting on Tuesday, June 10, 2003, at the hour of 6:00 p.m. for the purpose of conducting Planning Commission applicant interviews.