71-0607_CC_Minutes_Adjourned Regular MeetingJune 7, 1971
ADJOURNED REGULAR MEETING - CITY COUNCIL - CITY OF SAN JUAN CAPISTRANO
The City Council of the City of San Juan Capistrano, California,
met for an adjourned regular meeting on Monday, June 7, 1971 at 7:08
PM in the Council Chambers of the City Hall.
Councilmen present: Bathgate, Chermak, Gammell and Thorpe
Councilmen absent: Mayor Forster
Mayor Pro Tem William A. Bathgate convened the meeting at 7:08
PM and suggested Council deal with a recent request of the San Juan
Capistrano Chamber of Commerce for release of budgeted funds for
printing of promotional brochures.
CHAMBER OF COMMERCE REQUEST FOR BROCHURE FUNDS
Mrs. Pat Toner of the Chamber of Commerce was present and explained
that the total cost for the brochures describing the City, as approved
by the Council's Committee of Councilmen Bathgate and Chermak, would
be $4,117. Mrs. Toner also stated that the printer, Cal -Graphics of
Laguna Niguel, would incur an immediate expense of approximately
$2,000 for which they requested advance payment. Councilman Gammell,
seconded by Councilman Thorpe, moved that the City advance the $2,000
as a part of the City's budgeted expense for this item. Councilman
Chermak questioned the printer's need for a 50% advance of the print-
ing costs. Mrs. Toner explained that Cal -Graphics was chosen by the
Chamber as the best qualified low bidder and that they would immediately
assume considerable out-of-pocket expense for supplies and services
from subcontractors who have to be paid. The Mayor Pro Tem called
for the question of a $2,000 advance to the Chamber of Commerce for
partial payment on the brochures. Carried unanimously with 4 ayes
and one absent.
PUBLIC WORKS PRESENTATION ON PROPOSED TREATMENT PLANT EXPANSION
Mayor Pro Tem Bathgate next introduced the subject of the proposed
expansion of the City's waste water treatment plant and asked the
Director of Public Works for a report. Mr. T. J. Meadows informed
Council that to meet certain Federal and State Grant deadlines, the
City must advertise the expansion project before July 1, 1971. Mr.
Meadows then asked Mr. Don Martinson of Engineering -Science to present
a detailed explanation of the problem. Mr. Martinson said that the
project is based upon a hoped for 80% Federal -State Grant. He said
the problem that has developed is that the State has been deluged with
Grant applications for this type of project and the City's application
did not receive a high enough priority rating to qualify in this fiscal
year. An alternative approach available to the City would be to qualify
for a reimbursable grant within the City and other participating agencies
would immediately finance the project and be reimbursed by the Federal
and State government in fiscal year 1971-72. In order to do this,
San Juan Capistrano as the requesting agency must certify that 100%
of funding is available. He explained that current and proposed funds
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from imminent bond sales will be available to allow this certification.
Mr. Martinson further stated it was not clear at this moment exactly
what percentage of reimbursement would be available in fiscal 1971-72,
but it would be between 65% and 907o. Council was advised that it
should take bids no later than July 30, 1971 and include a 60 day hold
on bid award for the purpose of studying methods of financing. Mr.
Martinson said the estimated cost of the treatment plant expansion
is $2,300,000 with Moulten-Niguel assuming 800 of the costs, Santa
Marguerita Sanitary District 10%, and San Juan Capistrano 10%. Mr.
Meadows informed Council that the purpose of tonight's presentation
to Council was informational only and that if Council agreed, the
necessary forms and documents for Council action would be presented
at the June 14th regular meeting.
Mayor Pro Tem Bathgate asked if the imposition of a 60 day study
period following receipt of bids would raise the contractor's bid
amounts for the project. Mr. Martinson replied that this requirement
was not unusual in projects of this nature and that it was not antici-
pated that there would be an inflationary effect. Mr. Meadows added
that according to the proposed schedule of financing, grant payments
and construction completion, the City should receive all eligible
grants prior to progress payments being billed by the selected con-
tractor. Council then directed Mr. Meadows to present the necessary
documentation for plans and specifications and bid requests on the
proposed treatment plant expansion at the June 14th meeting. Council-
man Chermak stated that if he were to be present at that meeting he
would support such action as outlined by Mr. Meadows and Mr. Martinson.
BUDGET STUDY SESSION FOR PROPOSED 1971-72 FISCAL BUDGET
The Council began its first study session on the proposed 1971-72
budget by reviewing the Fund Summary pages at the beginning of the
budget. Councilman Gammell asked why County Gas Tax revenues in prior
budgets were deleted in the proposed budget. Staff responded that
these revenues are for special projects negotiated with the County in
the past and that none of this type are included in the proposed budget.
Mayor Forster arrived at 7:38 PM and took his seat. Mayor Pro Tem
Bathgate turned the Chair over to Mayor Forster at that time.
Mayor Forster and Councilman Bathgate asked questions on the 1971-
72 projected assessed evaluation for the City. Staff replied that
projected growth is based on fairly solid trends and that fluctuations
in exemption amounts were the result of changes in state law.
Staff asked Council to take notes of technical errors on page 3
of the budget which required the 1970-71 figure for "Other Taxes" to
be changed from $133,000 to $143,000, and the category of "Licensing
and Permits" to be reduced from $52,700 to $42,700. Councilman Bathgate
asked for explanations on various proposed transfers to the General
Fund from Special Funds listed or. page 5 of the budget. The Director
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of Finance answered that General Fund often incurs expenses which
really are the responsibility of Special Funds and hence the need for
transfers. He used as examples the Gas Tax and Traffic Safety Funds.
The Mayor asked if transfers to the General Fund from the Sanitary
Sewer Fund were based on the same rational and was given an affirmative
answer. Lengthy discussion ensued on the cause of an approximate
$200,000 drop in General Fund surpluses from the end of fiscal 1969-70
to the beginning of fiscal 1971-72. Council and staff retraced the
history of certain capital expenditures including the Public Works
administration building and Four Oaks Park and satisfied themselves
that the money was.accounted for.
The Mayor queried staff on the purpose of the $227,000 figure
listed for State Grants on page 4 of the budget. The Finance Director
explained that these figures were for reimbursement of flood damage
such as La Novia and Oso Creek bridges.
The increase of business license taxes from $10,000 to $20,000
was questioned by Councilman Gammell, who was informed that new fee
schedules used for only a portion of the current fiscal year would be
in force for a full fiscal year in 1971-72. Councilman Thorpe asked
for an explanation of the staff's procedures in obtaining new population
certification as the city grows. The Mayor questioned a projected
decrease in building permit fees and why no revenues were shown for
the Parks and Recreation fund. This question generated detailed staff
and Council comment with the conclusion that any fees paid by developers
for park development need not necessarily be shown as a revenue but
instead could be placed in some form of ear -marked fund as long as they
were not precluded from being invested and earned interest to be returned
to the Park Fund. The Mayor asked for a detailed accounting of expendi-
tures from the Parks and Recreation Fund surplus in the prior two
fiscal years. The Finance Director is presenting this report at the
next budget study session.
Mayor Forster reminded staff to maintain an inventory of surplus
equipment and liquidate it as the opportunity arose.
Considerable discussion ensued on Councilman Bathgate's comment
for the rate of annexation fees which would require annexed property
coming into the city to assume a portion of the City's investment in
its capital plant and services.
The Director of Public Works reminded Council that a complete report
and set of recommendations was made on this subject some time ago, but
was not enacted. Councilman Thorpe commented that it might be necessary
to have provision for such annexation fees enacted by some ordinance.
The Mayor then requested the City Attorney to investigate the possibility
of an ordinance for annexation fees with recommendation on the basic
elements of such an ordinance to be included.
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Additional discussion between the Mayor and staff followed on the
current theories and philosophies on the cost of living for the
employees. The City Administrator said that he felt a strong case
could be made for a 6% cost of living increase across the board to
all employees. The Mayor asked the Administrator if this was his
formal recommendation at this time. The Administrator replied that
this was informational to Council only and that documentation for any
request for such an increase would be brought to Council prior to budget
adoption. The Mayor commented that cost of living increases versus
merit increases were debatable and some times misused. He also said
that there was no guarantee or contract with employees that they would
receive any type of periodic raise other than scheduled merit increases.
After reviewing the proposed budget for Council operations with
no changes, Council then devoted the balance of its study session to
various elements of the Department of Public Works budget.
Function 4310 (Public Works Administration ) was reviewed with no
initial changes. An approximate $25,000 decrease in this budget was
explained by the removal of Engineering Services to a new Function -
4311.
Councilman Gammell asked if expenses were included in this budget
for the use -of the Water District's billing machinery and was told that
rather than a dollar charge we trade warehousing services to the District
for the use of this machinery.
Council then reviewed Function 4320 (Building Maintenance) and
Councilman Chermak asked for a schedule of duties and functions of the
building maintenance man so that he could better understand and justify
a $7,000 salary for this function. Council then studied Function 4360
(Street Maintenance) and discussed the need for a new dump truck and
roller. The only changes made at this time were the request of staff
when it was discovered that one too many laborers had been included in
the budget following transfer of the building maintenance man's salary
out of this fund. It was further explained to Council that Special
Department expenses (Object #330) and Services - Professional and
Technical (Object #200) were increased because of high street light
energy charges and expanded street maintenance and repair programs.
Council then reviewed the Sanitary Sewer budget (Function 4000). Mayor
Forster asked if we_were budgeted for additional employees as the
treatment plant expands. Mr. Meadows replied that plans were being
formulated to turn the entire waste water treatment operation over to
SERRA and that in the interim it appeared we would have sufficient
qualified employees to operate the plant. A brief discussion followed
on the reimbursement formulas which would be applied for compensation
to the City if the plant were to be operated by SERRA. Explanations to
comments followed on the need for capital outlay items in the Sanitary
Sewer Budget. Mr. Meadows explained the need of the proposed skiploadep,
welding and torching equipment, dies and pipe vice. He said that these
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items were necessary as the plant expanded and grew older and these
items were becoming too expensive to rent.
Following review of the above categories, with no initial changes
by Council other than correcting of apparent technical errors, the
Council adjourned at 10:12 PM to an adjourned regular meeting at 7:30
PM, June 8, 1971, in the Public Works Conference Room.
City Clerk
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