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 Public Works Commission Minutes September 18, 2002
The meeting was called to order at 7:10 p.m.
At this point the agenda was modified to include a presentation by Stephen Burrell, City Manager. Mr. Burrell explained the process by which the City creates and implements a budget. A concept statement sets priorities; foremost is maintaining service levels. In some past years, cuts were necessary and the goal had been to do the minimum to get by. This was the case in 1994-95, and some service levels have never changed from that time. The state ran surpluses in the late 1990s, but the state deficit for 2003-04 is expected to be large. The state's first obligation is to fund schools, and with the state's population growing, funds for cities diminish. In Hermosa Beach, CIP projects are funded from excess funds from general operating revenues. Three years ago we added $100,000 to fund CIPs. Usually ongoing business operations (permit fees, assessments, etc.) pay for CIP projects rather than general operating revenues. Some projects require additional funding from the budget, such as the master plan for the fire station, removing and capping an oil well, and a master plan study for the police station. We are seeking a grant from the Getty Foundation for work at the Community Center; the City has someone who writes grant applications, but not on a full-time Staff basis. Some projects such as police station and communication centers may be eligible for federal grants. Commissioner Cheatham inquired whether the City has established that the police and fire station have a higher priority than other CIP projects like Pier Avenue beautification, sewer systems, etc. Mr. Burrell replied that at this point we are just gathering information. Mr. Burrell raised some general issues pertaining to the budget. One potential difficulty with using bonds is that the repayments must be made out of the general fund, and bond payments will have priority over other needs. The City Manager must fit requests from Public Works into the existing budget. It is not prudent to allocate funds for feasibility studies or designs if it is known in advance that funds will not be available for actual construction on a particular project. The recommendations and priorities established by this commission have been useful in budget negotiations. Big streets are eligible for County Proposition A funds, but smaller residential streets are not. Some streets are private, and the City is not responsible when these streets wear out. Assessment districts have been formed (although not lately); these improvements can add value for the property owners who are therefore generally willing to accept the assessments; for example if undergrounding utilities clears up a view obstructed by a utility pole, the property value is likely to increase by something like three times the cost of the assessment. Hermosa Beach generally asks for 60% of owners to agree; everyone in the district is notified and given a chance to participate. Mr. Williams inquired whether this commission should be concerned with potential costs in making recommendations. Mr. Burrell responded that this commission should concern itself with whether a project is a good idea; it is the function of Staff to determine whether or not it is cost effective. It is important for the commission's recommendations to get on the list of priorities during budget negotiations; even if it is not funded initially, it needs to be recognized in order for it to be funded eventually.
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