Loading...
05-29-19_CC Agenda Packet City of Rolling Hills INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 FAX (310) 377-7288 Page 1 of 3 AGENDA CITY COUNCIL CITY OF ROLLING HILLS REGULAR MEETING WEDNESDAY, MAY 29, 2019 7:00 P.M. Next Resolution No. 1239 Next Ordinance No. 362 1. CALL TO ORDER 2. ROLL CALL PLEDGE OF ALLEGIANCE 3. OPEN AGENDA - PUBLIC COMMENT WELCOME This is the appropriate time for members of the public to make comments regarding the items on the consent calendar or items not listed on this agenda. Pursuant to the Brown Act, no action will take place on any items not on the agenda. 4. CONSENT CALENDAR Matters which may be acted upon by the City Council in a single motion. Any Councilmember may request removal of any item from the Consent Calendar causing it to be considered under Council Actions. A. MINUTES – REGULAR MEETING OF APRIL 22, 2019. RECOMMENDATION: APPROVE AS PRESENTED B. PAYMENT OF BILLS. RECOMMENDATION: APPROVE AS PRESENTED C. REPUBLIC SERVICES RECYCLING TONNAGE REPORT FOR APRIL 2019. RECOMMENDATION: APPROVE AS PRESENTED D. CONSIDERATION AND APPROVAL OF A MEMORANDUM OF UNDERSTANDING (MOU) WITH ROLLING HILLS COMMUNITY ASSOCIATION TO COST SHARE DESIGN FEES ASSOCIATED WITH ASSESSMENT DISTRICT PROJECTS. RECOMMENDATION: APPROVE AS PRESENTED E. FINANCIAL STATEMENT FOR THE MONTH OF APRIL 2019. RECOMMENDATION: APPROVE AS PRESENTED City Council Agenda 05/29/19 Page 2 of 3 5. COMMISSION ITEMS NONE. 6. PUBLIC HEARINGS A. A HEARING TO CONSIDER WHETHER NONCOMPLIANCE WITH CITY COUNCIL RESOLUTION NO. 1196 AND THE COVENANT RECORDED AGAINST TITLE PURSUANT THERETO CONSTITUTES A PUBLIC NUISANCE WITH REGARD TO FAILURE TO ABATE A VIEW IMPAIRMENT AT 15 PORTUGUESE BEND ROAD (COVENANT RECORDED AS DOCUMENT NUMBER 20170547814 AND DATED 05/17/2017) (OWNERS: WILLIAM AND JUDITH HASSOLDT). 7. OLD BUSINESS A. CONSIDERATION AND APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH WILLDAN ENGINEERING FOR THE SANITARY SEWER IMPROVEMENT FEASIBILITY STUDY PHASE 2 AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT FOR AN AMOUNT NOT-TO- EXCEED $32,420. B. CONSIDERATION AND AWARD OF A CONSTRUCTION CONTRACT THROUGH THE CITY OF ROLLING HILLS ESTATES, TO ALL AMERICAN ASPHALT FOR THE RESURFACING OF THE CITY HALL PARKING LOT AND PORTUGUESE BEND ROAD BETWEEN PALOS VERDES DRIVE NORTH TO ENTRY GATES FOR A NOT-TO-EXCEED AMOIUNT OF $238,480.96. C. CONSIDERATION AND APPROVAL OF A MEMORANDUM OF UNDERSTANDING (MOU) WITH ROLLING HILLS ESTATES FOR RESURFACING THE CITY HALL PARKING LOT AND PORTUGUESE BEND ROAD BETWEEN PALOS VERDES DRIVE NORTH TO ENTRY GATES. 8. NEW BUSINESS A. CONSIDERATION AND APPROVAL OF A NEW FIVE-YEAR AGREEMENT WITH THE LOS ANGELES COUNTY ANIMAL CARE AND CONTROL. 9. MATTERS FROM THE CITY COUNCIL AND MEETING ATTENDANCE REPORTS A. REPORT OUT BY REGIONAL LAW COMMITTEE MEMBERS ON THE MAY 9, 2019 MEETING (ORAL). B. REPORT OUT BY BUDGET/AUDIT/FINANCE COMMITTEE MEMBERS ON THE MAY 16, 2019 COMMITTEE MEETING. City Council Agenda 05/29/19 Page 3 of 3 10. MATTERS FROM STAFF A. CONSIDERATION AND APPROVAL OF A RESOLUTION ELECTING TO JOIN OTHER COMMUNITIES IN LOS ANGELES COUNTY IN OPTING OUT OF THE REQUIREMENTS OF THE CONGESTION MANAGEMENT PROGRAM (CMP) ESTABLISHED IN 1990 BY PROPOSITION 111. B. FISCAL YEAR 2019/20 BUDGET WORKSHOP. 11. CLOSED SESSION NONE. 12. ADJOURNMENT Next meeting: Monday, June 10, 2019 at 7:00 p.m. in the Council Chamber, Rolling Hills City Hall, 2 Portuguese Bend Road, Rolling Hills, California. Public Comment is welcome on any item prior to City Council action on the item. Documents pertaining to an agenda item received after the posting of the agenda are available for review in the City Clerk's office or at the meeting at which the item will be considered. In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting due to your disability, please contact the City Clerk at (310) 377-1521 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility and accommodation for your review of this agenda and attendance at this meeting. All Planning Commission items have been determined to be categorically exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines unless otherwise stated. DRAFT Agenda Item No.: 4A Meeting Date: 05/29/2019 -1- MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA MONDAY, APRIL 22, 2019 1. CALL TO ORDER A regular meeting of the City Council of the City of Rolling Hills was called to order by Mayor Mirsch at 7:00 p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. 2. ROLL CALL Councilmembers Present: Mayor Mirsch, Dieringer, and Pieper. Councilmembers Absent: Black and Wilson. Others Present: Elaine Jeng, P.E., City Manager. Mike Jenkins, City Attorney. Planning Director, Yolanta Schwartz. Finance Director, Terry Shea Senior Planner, Julia Stewart. Budget Consultant, Jim Walker Diana Nuccion, 18 Portuguese Bend Road. 3. OPEN AGENDA - PUBLIC COMMENT WELCOME There were no public comments. 4. CONSENT CALENDAR Matters which may be acted upon by the City Council in a single motion. Any Councilmember may request removal of any item from the Consent Calendar causing it to be considered under Council Actions. A. Minutes – 1) Regular Meeting of April 8, 2019. RECOMMENDATION: Approve as presented. B. Payment of Bills. RECOMMENDATION: Approve as presented. C. Financial Statement for the Month of March 2019. RECOMMENDATION: Approve as presented. D. CalOES Designation of Subrecipient’s Agent Resolution Authorization. RECOMMENDATION: Approve as presented. Councilmember Dieringer moved that the City Council approve the items on the consent calendar as presented. Mayor Pro Tem Pieper seconded the motion. City Manager Jeng noted that there is a minor change in the Designation of Subreceipient’s Agent form. DRAFT Minutes City Council Meeting 04-22-19 -2- The form cannot be self-certified with the City Manager and the City Clerk being the same person. Councilmember Dieringer amended her motion to approve the items on the consent calendar as modified and presented. Mayor Pro Tem Pieper seconded the motion and the motion carried without objection by a voice vote as follows: AYES: COUNCILMEMBERS: Mayor Mirsch, Pieper and Dieringer. NOES: COUNCILMEMBERS: None. ABSENT: COUNCILMEMBERS: Black and Wilson. ABSTAIN: COUNCILMEMBERS: None. 5. COMMISSION ITEMS A. RESOLUTION NO. 2019-03. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS GRANTING APPROVAL OF A VARIANCE TO ENCROACH WITH A GARAGE AND BASEMENT ADDITION INTO THE SIDE YARD SETBACK, IN ZONING CASE NO. 954 AT 9 WILLIAMSBURG LANE, LOT 27-RH, (MACLEAN). Planning Director Schwartz presented the project. Mayor Mirsch called for public comments. There were no public comments. Mayor Pro Tem Pieper moved that the City Council receive and file the items as presented. Councilmember Dieringer seconded the motion and the motion carried without objection by a voice vote as follows: AYES: COUNCILMEMBERS: Mayor Mirsch, Pieper and Dieringer. NOES: COUNCILMEMBERS: None. ABSENT: COUNCILMEMBERS: Black and Wilson. ABSTAIN: COUNCILMEMBERS: None. B. RESOLUTION NO. 2019-06. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS GRANTING APPROVAL FOR A MINOR MODIFICATION TO A CONDITION IN A PREVIOUSLY APPROVED CONDITIONAL USE PERMIT ON APPEAL IN ZONING CASE NO. 808-MOD., AT 7 RINGBIT ROAD EAST, (LOT 38-SF), (SHADDEN). Planning Director Schwartz presented the project. Mayor Mirsch called for public comments. There were no public comments. Mayor Pro Tem Pieper moved that the City Council receive and file the items as presented. Councilmember Dieringer seconded the motion and the motion carried without objection by a voice vote as follows: DRAFT Minutes City Council Meeting 04-22-19 -3- AYES: COUNCILMEMBERS: Mayor Mirsch, Pieper and Dieringer. NOES: COUNCILMEMBERS: None. ABSENT: COUNCILMEMBERS: Black and Wilson. ABSTAIN: COUNCILMEMBERS: None. 6. PUBLIC HEARINGS A. A HEARING TO CONSIDER WHETHER NONCOMPLIANCE WITH CITY COUNCIL RESOLUTION NO. 1196 AND THE COVENANT RECORDED AGAINST TITLE PURSUANT THERETO CONSTITUTES A PUBLIC NUISANCE WITH REGARD TO FAILURE TO ABATE A VIEW IMPAIRMENT AT 15 PORTUGUESE BEND ROAD (COVENANT RECORDED AS DOCUMENT NUMBER 20170547814 AND DATED 05/17/2017) (OWNERS: WILLIAM AND JUDITH HASSOLDT) City Manager Jeng presented a brief history on Resolution No. 1196. Resolution involves the property owner at 15 Portuguese Bend Road to perform tree maintenance work every two years by March 1st. On March 5, 2019 city staff visited a neighboring property to inspect and photograph the trees in questions. Staff’s observation and photo comparison showed that the tree maintenance work was not performed. City staff sent a letter to the owner of 15 Portuguese Bend Road. Several letters were exchanged and additional compliance date was provided to property owner in middle of April. Just before publishing of the staff report, the property owner provided a fax of tree maintenance work proposals to City staff. The faxed documents also showed the resident engaged the services of Travers with a signed the agreement with Travers dated April 5, 2019. Work is expected to commence three to four weeks from April 5, 2019. Staff had requested the City Council to conduct a hearing but because the resident demonstrated effort in complying with the resolution, City Manager Jeng recommended the City Council ask for the date in which the work will be performed and to postpone the public hearing to May 29, 2019 to allow the resident to perform the tree maintenance work. Mayor Pro Tem Pieper asked the public hearing be postponed to the next Council meeting in early May, instead of the second meeting in May. Mayor Mirsch called for public comments. Ms. Diana Nuccion of 18 Portuguese Bend Road noted the notice should have gone out in November to remind the resident to perform the tree maintenance work. The resident knew the deadline and continued to postpone the work and at what point does it become a nuisance? If the City Council declared a nuisance, what does that mean? And why wouldn’t the nuisance be declared now? Ms. Nuccion noted that the resident faced jail time last time for not performing tree maintenance work. City Attorney Jenkins responded that it doesn’t make sense to declare a nuisance with a signed proposal from a legitimate company to perform the tree maintenance work and no one will go to jail for not trimming trees. City Attorney Jenkins recommended that the City Council continue the public hearing to May 13, 2019. Councilmember Dieringer moved that the City Council continue the hearing to May 13, 2019. Mayor Pro Tem Pieper seconded the motion and the motion carried without objection by a voice vote as follows: DRAFT Minutes City Council Meeting 04-22-19 -4- AYES: COUNCILMEMBERS: Mayor Mirsch, Pieper and Dieringer. NOES: COUNCILMEMBERS: None. ABSENT: COUNCILMEMBERS: Black and Wilson. ABSTAIN: COUNCILMEMBERS: None. Councilmember Dieringer instructed the City Manager to give Travers a call to place the tree maintenance work at 15 Portuguese Bend Road on the top of their list. 7. OLD BUSINESS A. CONSIDERATION OF A MEMORANDUM OF UNDERSTANDING (MOU) WITH ROLLING HILLS COMMUNITY ASSOCIATION TO COST SHARE DESIGN FEES ASSOCIATED WITH ASSESSMENT DISTRICT PROJECTS. City Manager Jeng noted that at the Association’s Board meeting on Thursday night, the Board expressed interest to eliminate specific percentage split. The Association Board was not able to complete their discussion on this item. City Manager requested to table the item until the Association Board is able to complete their discussion on the item. Councilmember Dieringer noted that the final MOU should not include item 2B as it was included by mistake. City Manager Jeng confirmed that the final MOU will strike item 2B. The Association plans to discuss the item at the May 1, 2019 Board meeting. B. CONSIDERATION AND APPROVAL OF RESOLUTION NO. 1236 TO EXCHANGE PROPOSITION A FUNDS WITH THE PALOS VERDES PENINSULA TRANSIT AUTHORITY FOR GENERAL FUNDS AT A RATE OF $0.75 TO $1.00 City Manager Jeng noted that the City receives tax allocation dedicated for transit or transit related services. Since the City does not provide transit services or have opportunities to use the fund, consistent with past practices, staff solicited interest to exchange the Proposition A funds. PVP Transit went to their board on April 18, 2019 and approved an exchange with the City at a rate of $0.75 to $1.00. City Manager Jeng requested the City Council to approve 1236 to memorialize the exchange and the MOU with PVP Transit. The exchange is $75,000 of Proposition A funds for $56,256 of general funds. Mayor Mirsch called for public comments. There were no public comments. Councilmember Dieringer moved that the City Council approve Resolution No. 1236 and MOU. Mayor Pro Tem Pieper seconded the motion and the motion carried without objection by a voice vote as follows: AYES: COUNCILMEMBERS: Mayor Mirsch, Pieper and Dieringer. NOES: COUNCILMEMBERS: None. ABSENT: COUNCILMEMBERS: Black and Wilson. ABSTAIN: COUNCILMEMBERS: None. DRAFT Minutes City Council Meeting 04-22-19 -5- C. CONSIDERATION OF OPTIONS FOR SOLID WASTE SERVICES BEGINNIGN JULY 1, 2020 Mayor Mirsch noted that Councilmember Black is very interested in the issue and that Councilmember Wilson has been working on the negotiations and suggested to table this item until the other two members can join in on the discussion. Councilmember Dieringer suggested having a discussion to have more information on the matter and then table the item until the other two members can join. Mayor Pro Tem asked for staff presentation. City Manager Jeng reminded Councilmembers that the instruction provided to her at the last City Council meeting was to reach out to competitors and gauge interest in serving Rolling Hills. Athens Services was interested as well as Waste Management Services. Mayor Mirsch inquired if staff noted to potential providers of the special services provided at Rolling Hills. City Manager Jeng responded that Athens and Waste Management Services are aware of the special services in Rolling Hills. Councilmember Dieringer inquired if there were other entities considered for calls. City Manager Jeng responded that a third entity was on the list, EDCO but after two calls, she felt the question from the Council of whether if there are interest by other competitors to serve Rolling Hills was answered. Councilmember Dieringer inquired if the City has anything specific from Republic that can easily be used in a bid for an apple-to-apple comparison. When was the last time that the City put out a competitive bid? City Manager Jeng responded that a lot of effort is put into a bid and therefore Republic would not provide such information unless they were sure to get a contract. Republic does not want the information to be used by others. In reviewing city records, in 2009 City staff attempted to go out to bid. Mayor Pro Tem Pieper noted that residents are not interested in changing the level of service but maybe the service provider depending on contract price. Councilmember Dieringer suggested getting the following info: the last bid, and current contracts from neighboring cities. City Attorney Jenkins summarized that the choices for the City Council are to negotiate with Republic or go out to RPF. If the RFP route is selected, the City Council will have to decide if a consultant should be hired to prepare the RFP with the most current requirements and draft a new state of the art contract. It is DRAFT Minutes City Council Meeting 04-22-19 -6- premature to review any other contracts. Future contracts could be different and in other areas similar. But if the City does not hire a consultant, staff will rely heavily on his office for the work. Either way, the City will have to pay to support staff. But this is a decision that does not need to be made for another two weeks. Asking staff to provide contract information at this point may not be relevant to the decision at hand and that is to negotiate the contract without the ability to see other competitive bids or go out to the market. Likely, the City has not gone out to the market for over 20 years. Councilmember Dieringer stated that she is in favor of going out to the market place. Mayor Pro Tem Pieper noted that Councilmember Black wants to be present for the discussion to discuss the need of a consultant and not to fight over if the City should go out to the market place. City Attorney Jenkins added that asking for contract information is getting ahead of the game and the information will not be necessary in two weeks to make a decision on the path forward. Mayor Mirsch postponed the item to the next meeting. D. CONSIDERATION OF AN ORDINANCE NO. 361 AN ORDINANCE OF THE CITY OF ROLLING HILLS, CALIFORNIA AMENDING CHAPTER 13.18 (WATER EFFICIENCY LANDSCAPE) OF TITLE 13, WATER AND SEWERS OF THE ROLLING HILLS MUNICIPAL CODE, AND WAIVE THE FULL READING AND INTRODUCE ON FIRST READING ORDINANCE NO. 361 Planning Director Schwartz noted this item was presented to the City Council at the March 25, 2019 and several changes to the ordinance was discussed. Planning director summarized the changes incorporated into the current draft and recommended to the City Council to waive the full reading and introduce the ordinance for first reading and direct staff to bring the item back for second reading. Councilmember Dieringer noted that section 13.18.043 calls for a requirement to identify water supply and inquired does identifying water supply consist of? Planning Director Schwartz gave examples of water source, such as potable water or recycle water. Mayor Mirsch called for public comments. There were no public comments. Mayor Pro Tem Pieper moved that the City Council approve the recommended action and bring back the item for second meeting at the next meeting. Councilmember Dieringer seconded the motion and the motion carried without objection by a voice vote as follows: AYES: COUNCILMEMBERS: Mayor Mirsch, Pieper and Dieringer. NOES: COUNCILMEMBERS: None. ABSENT: COUNCILMEMBERS: Black and Wilson. ABSTAIN: COUNCILMEMBERS: None. DRAFT Minutes City Council Meeting 04-22-19 -7- 8. NEW BUSINESS A. A.) REPORT ON FINANCE/BUDGET/AUDIT COMMITTEE RECOMMENDATIONS ON FINANCIAL AND INVESTMENT POLICIES AND SCHEDULE OF FEES AND CHARGES AND B.) DISCUSSION OF FISCAL YEAR 2018/19 BUDGET PRIORITIES Finance Director Shea noted the Finance/Budget/Audit committee met two weeks ago and discussed all the city’s financial and investment policies. The cities’ policies are in compliance with state law. Compliance is based on safety and liquidity but not earnings. No change in investment policy is proposed. There is one proposed change to the Financial and Debt policy. The City’s policy calls for an audit every 5 years. California Government code 12410.6-B recommends change of auditors every six years. Finance Director Shea noted that the City is in its third year of a five-year cycle with the current auditor. When the current five-year contract is up, the City will go out to Request For Proposal for a six year contract. Councilmember Dieringer inquired how long have we had the same auditing firm? Finance Director Shea responded the city conducted a RFP 3 years ago and hired the current firm. The current firm served the city for 6 years before. At the end of the current term the same firm would have served the city for 11 years. Councilmember Dieringer inquired of the firm prior to the current firm. Budget Consultant Jim Walker responded that there was a local CPA firm serving the city and then the city moved over to a municipal government audit firm in 2009. Finance Director responded to Councilmember Dieringer’s inquiry noting that the current audit firm has been serving the city since 2009. The firm rotated partners twice. This is our third partner and third managers. State law mandates that cities don’t have to switch firms but have to switch partners. Budget Consultant Walker added that the rotation of the partners do help tremendously by having different people looking at the same numbers. Councilmember Dieringer inquired if the firm looks at documents from prior years or just the year before. Finance Director responded auditors look at just the year before. The current firm is the top 5 firm in the State for municipal auditing. The lowest bidder was out of Oakland and was only going to charge $8,000 and didn’t demonstrate enough hours to do the work. Finance Director Shea stated he sent the RPF to 20 firms and received 5 responses. Finance Director Shea summarized the fee review by the committee. Staff had two recommendations. Both committee members supported increasing the demolition permit fee from $25 to $100 and collecting $750 refundable deposit for compliance report submittal. The amount $750 is arbitrary and based on experience in incentivizing the reports to be submitted to the city. The committee wanted to keep the current animal appeal fee unchanged at $40. DRAFT Minutes City Council Meeting 04-22-19 -8- Mayor Mirsch inquired that the paper work asking to come back to the city is reporting on the waste diversion. Councilmember Dieringer noted that there is a lot of efforts that go into investigating a dog case and would be meritorious to increase the appeal fee because there is a lot effort on the part of the staff to process dog appeal cases. Councilmember Dieringer proposed that the dog appeal fee increase be reconsidered during the budget process. Mayor Mirsch called to hold the motion and asked for public comments. There was one public comment inquiring about the dog fee. Councilmember Dieringer explained the dog appeal process and the fee associated with the process. Mayor Pro Tem Pieper inquired about how often the city staff receives dog cases. Mayor Pro Tem Pieper expressed that he didn’t not want to change the dog appeal fee. He also noted that the dog appeal fee increase could be punitive given how emotional dog cases can be. Mayor Mirsch expressed that the fee increase is not to be punitive; the fee increase is to recuperate the cost. Mayor Mirsch also expressed that she is not interested in overruling the committee’s recommendation without having all of the committee members as part of the discussion. Mayor Pro Tem suggested to leave everything as it is and discuss the dog appeal fee increase at a future agenda. Councilmember Dieringer inquired if the Council will be voting on the overall budget at a later date and if the current discussion is just preparatory discussion to the budget adoption. Mayor Mirsch suggested a motion to receive and file and the dog appeal fee increase will be discussed at a later time. Councilmember Dieringer inquired about the revision date on the policies. Councilmember Dieringer also requested detailed budget requests for next fiscal year similar to the way that the Interim City Manager Schwartz did it last year. Finance Director Shea responded that when the policies are amended, the revision dates are listed at the bottom of the document. The policy change discussed today will be included at the bottom indicating April 22, 2019 revision date. City Manager Jeng responded to Councilmember Dieringer that the detailed budget sheets will be made available to the committee. City Manager Jeng listed high level budget priorities for next fiscal year as a part of the current report shown on page 2/28. The next committee meeting is scheduled for May 13 and staff will present a detailed list of budget wish list with cost as requested by Councilmember Dieringer. Councilmember Dieringer inquired if the modernization of IT will include cyber security. DRAFT Minutes City Council Meeting 04-22-19 -9- City Manager Jeng confirmed that, the modernization work will include cyber security and internal credentials. Mayor Mirsch called for public comments. There were no comments. Mayor Mirsch then called for motion to receive and file item. Mayor Mirsch moved that the City Council receive and file as presented. Mayor Pro Tem Pieper seconded the motion and the motion carried without objection. B. RECEIVE AND FILE FY2019/20 BUDGET PREPARATION DOCUMENTS (1) FY2018/2019 YEAR-END REVENUE AND EXPENDITURE PROJECTIONS; (2) FY 2019/2020 CONSUMER PRICE INDEX (CPI) ADJUSTMENTS FOR BUDGET AND FY2019-2020 SOLID WASTE COLLECTION SERVICES Finance Director Shea introduced Budget Consultant Jim Walker. Budget Consultant Walker noted that there are three items in the staff report. The first item is the 18/19 year end revenue and expenditure projection for the general fund; the second item is the March CPI for the 19/20 budget planning and the third item is staff’s review of the recovery cost for refuse billing. Budget Consultant Walker noted that the property tax is coming in strong. Even though there was an interest income adjustment, the interest income is still coming in strong. On the expenditure side, the salary and benefits have some changes through vacancies and timing of hiring resulting in savings. Additionally we dedicated consulting fees that will not be spent this fiscal year. There are also projects that won’t be transferred out as they will not be completed this fiscal year. On the second item, the March CPI is at 2.7% and this is used for budget purposes however based on the employee handbook, the May CPI is used for the annual employee salary adjustment for the actual payout. The May CPI will not be available until after the budget is adopted. Mayor Pro Tem Pieper inquired why is the March CPI is used instead of the May CPI. Mayor Pro Tem expressed that he would like to see the payout number to be as close to the budget number as possible. Mayor Pro Tem Pieper suggested to continue to use the May CPI for this year and changing to the March CPI the following year. Finance Director Shea responded that the policy can be changed and that using March CPI would be much easier going forward. Budget Consultant Walker noted that the CPI rates come out on the 10th of the following month. Councilmember Dieringer and Mayor Mirsch both agreed to change to March CPI. Budget Consultant Walker continued to item 3 relating to the Republic Services and annual increase. Republic Services calculated this year’s increase to be 3.9% effective from July to July. The 3.9% increase equates to about $45 per billing parcel over last year. The $45 increase is about $31,000 difference year over year. Tax roll is billed at $1,100 but Republic Services is billing the City DRAFT Minutes City Council Meeting 04-22-19 -10- approximately $105 more. Budget Manager Walker noted that the City cannot continue to adsorb the cost increase because we will run out of money in the fund. City Manager Jeng noted that the year-to-year increase will be discussed with the committee at the May 13 meeting. Mayor Pro Tem Pieper inquired if he is on the Budget/Audit/Finance Committee now or after May 13, 2019. City Manager Jeng noted the current committee members will stay on until after May 13, 2019. Finance Director Shea noted that if the cost increase continues to be absorbed, the City will be 20% behind. Finance Director Shea also discussed the cash reserve fund and the city will not be aligned with the reserve policy with the absorption but the policy can be changed. Mayor Pro Tem Pieper noted that it does not make sense to change the residents’ bill until a new contract is in place. He like to see that the City continue to absorb the increase this year and make adjustments to residents’ bills when the new solid waste contract is in place. Finance Director noted that the draft budget continue to show the residents to be billed at $1,100. Mayor Mirsch inquired if this discussion is undoing the Committee’s recommendation. Finance Director responded no and that the Committee did not discuss the refuse fund yet. Budget Consultant Walker noted that depending on the discussion at the Committee level, the refuse fund reserve may need to be adjusted. Councilmember Dierienger inquired the basis for setting the serve at $175,000. And what is the appropriate amount? Finance Director noted that it was not clear but it usually involves infrastructure, but our fund does not have it. Budget Consultant Walker noted that this fiscal year, the reserve fund should be sufficient to cover the refuse, however this is the 5th year absorbing the cost increase. Additionally, $24,000 is transferred from the refuse fund to the general fund for administrative cost such as working on submitting the tax roll. Mayor Mirsch called for public comments. There were no public comments. Mayor Pro Tem Pieper moved that the City Council approve the recommended action. Councilmember Dieringer seconded the motion and the motion carried without objection by a voice vote as follows: AYES: COUNCILMEMBERS: Mayor Mirsch, Pieper and Dieringer. NOES: COUNCILMEMBERS: None. ABSENT: COUNCILMEMBERS: Black and Wilson. DRAFT Minutes City Council Meeting 04-22-19 -11- ABSTAIN: COUNCILMEMBERS: None. C. CONSIDERATION AND APPROVAL OF AMENDING THE EMPLOYEE HANDBOOK AND PERSONNEL POLICY MANUAL CHAPTER IV CLASSIFICATION TO CHANGE THE CITY CLERK/EXECUTIVE ASSISTANT TO THE CITY MANAGER FROM FULL-TIME NON-EXEMPT TO FULL-TIME EXEMPT City Manager Jeng noted that the position became vacant in mid March. The position provides independent judgement, external customer service including interaction with Councilmembers, attends night meetings and supports the City Manager. Based on the nature of the position, it was difficult to have the position operate on an hourly basis. The City Attorney’s office was consulted and the City Attorney researched FLSA and California Wage Orders for this matter. The City Attorney determined that the position qualifies for exemption under FLSA (exemption from minimum wage and maximum hour). The California Wage Order generally applies to private organizations and it requires that the hourly wage of the position to be at least twice the Federal minimum wage. In 2019, the Federal minimum wage is at $11 per hour. Twice that amount is $22 per hour times 40 hours a week and 52 weeks. The current salary range of the position exceeds the required amount for exemption and therefore does not require adjustment. City Manager added that per the Employee Handbook, any changes to the employee classification must be brought to the City Council for approval. Mayor Pro Tem Pieper noted that he is on board with changing the status. Mayor Mirsch called for public comments. There were no public comments. Councilmember Dieringer moved that the City Council approve the recommended action. Mayor Pro Tem Pieper seconded the motion and the motion carried without objection by a voice vote as follows: AYES: COUNCILMEMBERS: Mayor Mirsch, Pieper and Dieringer. NOES: COUNCILMEMBERS: None. ABSENT: COUNCILMEMBERS: Black and Wilson. ABSTAIN: COUNCILMEMBERS: None. 9. MATTERS FROM THE CITY COUNCIL AND MEETING ATTENDANCE REPORTS Councilmember Dieringer requested a policy discussion on the usage of exterior building material. Planning Director Schwartz responded that the City adopted the County code. Recognizing that the City of Rolling Hills is located in a high fire severity zone, the code already requires the applicant to specify additional treatments to proposed wood type material for exterior of the building. Mayor Mirsh noted that a zoning case came to the city not for the determination of the building exterior material but the previous case said the property cannot make changes. DRAFT Minutes City Council Meeting 04-22-19 -12- 10. MATTERS FROM STAFF A. QUARTERLY SCHEDULE OF INVESTMENTS REPORT FOR THE QUARTER ENDING MARCH 31, 2019 Finance Director provided information to third quarter of fiscal year 18/19. Cash is down because we paid Republic Services and we pay every six months. We are investing at 110% of our money. Comparing interest this year to last year. We raised the budget at midyear to $100,000. Last year the interest earning was at $50,000 so we doubled our money. We are 96% of our budget with three months left. Our two biggest investment is the LAIF and CalPERs. We expect another $30,000 with the LAIF account. We will exceed well over $120,000 in investments. CalPERS had a good quarter and earned $48,000 from the money invested in the stock market. Next budget cycle, the earnings will be used to pay the four retiree health benefits and that will free up some money in the general fund for other items. Mayor Mirsch asked for clarification of funds to be used to pay for retiree health benefits. Finance Director responded that the funds reside in CalPERS in the OPEB trust fund. Last year the earning was not great but this year is good. Finance Director noted that Money Market investment is doing well and CDs are paying 1% to 2.75%. CDs at 1% will not be renewed next year. Checking account and petty cash today totals $6.8M. Mayor Mirsch called for public comments. There were no public comments. Mayor Pro Tem Pieper moved that the City Council receive and file the report. Councilmember Dieringer seconded the motion and the motion carried without objection by a voice vote as follows: AYES: COUNCILMEMBERS: Mayor Mirsch, Pieper and Dieringer. NOES: COUNCILMEMBERS: None. ABSENT: COUNCILMEMBERS: Black and Wilson. ABSTAIN: COUNCILMEMBERS: None. 11. CLOSED SESSION NONE. 12. ADJOURNMENT Hearing no further business before the City Council, Mayor Mirsch adjourned the meeting at 9:30p.m. The next regular meeting of the City Council is scheduled to be held on Wednesday, May 29, 2019 beginning at 7:00 p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. DRAFT Minutes City Council Meeting 04-22-19 -13- Respectfully submitted, __________________________________________ Elaine Jeng, P.E. City Clerk / City Manager Approved, _____________________________________ Leah Mirsch Mayor