MINUTES OF A REGULAR MEETING OF THE CYPRESS CITY COUNCIL HELD FEBRUARY 10, 2014

A regular meeting of the Cypress City Council was called to order at 6:00 p.m. by Mayor Mills in the Executive Board Room, 5275 Orange Avenue, Cypress, California.

Members present:
Mayor Leroy Mills
Mayor Pro Tem Rob Johnson
Council Member Doug Bailey
Council Member Prakash Narain
Council Member Mariellen Yarc

Staff present:
City Manager John Bahorski
City Attorney William Wynder
Director of Finance and Administrative Services Richard Storey
Police Chief Jackie Gomez-Whiteley
Public Works Director Doug Dancs
Recreation and Community Services Director June Liu
Assistant Finance Director Matt Burton
Assistant City Engineer Kamran Dadbeh
Public Works Superintendent Bobby Blackburn
Water Quality Manager Gonzo Vazquez
Recreation Superintendent Dena Diggins
Planning Manager Doug Hawkins
Administrative Services Manager Andrew Tse
City Clerk Denise Basham

ORAL COMMUNICATIONS:

None.

WORKSHOP SESSION:

The Director of Finance and Administrative Services stated that for Fiscal Year 2013-2014 there is no need for any budget adjustments, and that General Fund revenues are expected to be up and expenditures to be under budget. 

The Director of Finance and Administrative Services stated that, as of December 31, 2013, General Fund revenues are 31% of the budget, and he spoke of how the timing of some revenues are received.  He stated that the State Educational Relief Augmentation Fund (ERAF) shifts only come twice per year and that the first payment of $3+ million did not come until January 2014, which would put revenues at 44% of the budget.  He also stated that utility franchise fees are paid annually in April.  He stated that the expenditures are within budget at 52% due to making operating transfers at the beginning of each fiscal year.  He commented that there is an expected revenue increase of $500,000 above what was budgeted due to the ERAF triple flip. 

Council Member Bailey asked for an explanation of ERAF. 

The Director of Finance and Administrative Services indicated that the State is not able to take money directly from cities but they may shift property tax monies between taxing entities resulting in schools gaining more property tax money. 

The Director of Finance and Administrative Services reported that with the elimination of the Redevelopment Agency, the City would get more property tax and that residual monies were budgeted for the City as if the Successor Agency would not get any money; therefore resulting in residual amounts exceeding current estimates.

The Director of Finance and Administrative Services stated that overall, revenues are expected to be $500,000 greater than what was initially budgeted, and that expenditures are estimated to be under budget by approximately $350,000 mostly due to personnel cost savings as a result of vacancies and frozen positions and budgeting a higher Consumer Price Index (CPI) percentage for negotiated salary increases.  He stated that money not used this year would be re-programmed into next year’s budget. 

The Director of Finance and Administrative Services reported that net operations is in the positive by nearly $5 million, and that operations are typically capped at 85% of the revenue with the remaining 15% available to fund the Capital Improvement Program at the City Council level.  He stated that capital projects could always slow down and that the infrastructure would always be maintained. 

The Director of Finance and Administrative Services stated that the General Fund continues to have a contingency of $6 million which represents 25% of the City’s operating budget, and that funds have been assigned for future infrastructure.  He indicated that these monies are set aside for capital projects and storm drains, and that it is City Council policy that a minimum amount of $2 million be transferred into those funds annually.  He stated that the unreserved fund balance of the General Fund is expected to be approximately $130,000. 

The Director of Finance and Administrative Services stated that the Capital Projects total appropriations are approximately $35 million and that, as of December 31, 2013, 41% has been encumbered or expended.  He stated that an analysis of recurring projects will be done at the end of the year and that funds will not be carried over if the projects are not being done.  He stated that the department would have to re-budget for funding. 

Council Member Bailey asked that in the future, a breakdown of the revenue classification entitled “other taxes.”  

The City Manager responded that the budget includes a detailed sheet of revenues. 

The Mayor commented that the information is also posted on the City’s website.

The Director of Finance and Administrative Services indicated that other taxes are summarized because there are so many, however, details are listed in the budget summary each year. 

The Director of Finance and Administrative Services stated that the Cypress Recreation and Park District General Fund revenues are expected to be down to $5.2 million which is a decrease of approximately $99,000. 

Council Member Bailey asked about the net effect after a one year loss of the Redevelopment Agency.

The Director of Finance and Administrative Services responded that annual projections are fairly close to what was predicted and that there is an approximate $5 million loss of funding not coming into the City/Redevelopment Agency. 

The Director of Finance and Administrative Services stated that the Cypress Recreation and Park District mid-year revenues are at 43% which is slightly below what one might expect because the operating transfer has not yet been made from the open space to cover capital projects, and that expenditures are at 26% due to budgeted capital projects not being done as of December 31, 2013.  He stated that the Cypress Recreation and Park District Fund Balance is $6+ million with assigned funding to include cash flow of $2 million, contingency of $1 million, infrastructure and amenity upgrades of $3 million, and unassigned of approximately $170,000. 

The Director of Finance and Administrative Services spoke of mid-year issues which include the economy, a weak growth in sales tax, a decrease in construction revenues, the dissolution of the Redevelopment Agency, and litigation costs.  

Mayor Pro Tem Johnson asked if there is an end in sight for the redevelopment litigation.

The Director of Finance and Administrative Services responded that the 13 acres would be the last Redevelopment Agency issue to resolve. 

The Director of Finance and Administrative Services spoke of State budget impacts and stated that he does not foresee a major impact from the State and that no budget adjustments would be needed for this year. 

Mayor Pro Tem Johnson asked about funds available for the purchase of park land.

The Director of Finance and Administrative Services responded that funds are available for an expected Naylor Act land purchase, however a shift of the seven-year capital project plan would be necessary.  He spoke of budget issues for next fiscal year which include local impacts, business relocations, State budget impacts, and minimum wage impacts.  He stated that services and programs would remain status quo and that budget impacts would include negotiations with the Cypress Employees’ Association and the Maintenance Employees Association.  He stated that a future concern is with the Public Employees’ Retirement System and the impact of actuarial valuations. 

Mayor Mills commended his colleagues and staff on their budget diligence for the past several years. 

At 6:42 p.m., the Mayor recessed the meeting.

7:00 P.M. SESSION:

The 7:00 p.m. session of the City Council meeting was called to order at 7:01 p.m. by Mayor Mills.

Members present:
Mayor Leroy Mills
Mayor Pro Tem Rob Johnson
Council Member Doug Bailey
Council Member Prakash Narain
Council Member Mariellen Yarc

Staff present:
City Manager John Bahorski
City Attorney William Wynder
Police Chief Jackie Gomez-Whiteley
Public Works Director Doug Dancs
Recreation and Community Services Director June Liu
Assistant Finance Director Matt Burton
Assistant City Engineer Kamran Dadbeh
Planning Manager Doug Hawkins
Administrative Services Manager Andrew Tse
City Clerk Denise Basham

PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Council Member Bailey.

INVOCATION:  The invocation was given by City Attorney Wynder.

REPORT OF WORKSHOP AGENDA/CLOSED SESSION:

The City Manager reported that the City Council held a workshop regarding Fiscal Year 2013-14 mid-year budget review.  He stated that staff presented the City Council with a status on the current year’s budget as well as discussion issues for the upcoming budget.  He indicated that revenues are up, expenditures are down, and that the economy is improving slightly. 

ORAL COMMUNICATIONS:   LIMITED TO ONE-HALF HOUR.  (THREE MINUTES PER SPEAKER, SPEAKING ONCE.)

Mayor Mills asked anyone who wished to speak on any topic not included on the meeting Agenda to come forward.

George O’Hara, Cypress Chamber of Commerce, spoke regarding activities and events.

Helen Richardson, Branch Manager of the Cypress Library, spoke regarding Agenda Item No. 8.

PUBLIC HEARINGS:    7:00 P.M. (PUBLIC COMMENTS RESTRICTED TO TEN MINUTES PER SPEAKER, UNLESS EXTENDED BY THE CITY COUNCIL).

No items.

CONSENT CALENDAR:

All matters listed on the Agenda under “Consent Calendar” are to be considered by the City Council to be routine and will be enacted by one motion approving the recommendations listed on the Agenda.

Council Member Yarc requested Agenda Item No. 8 be pulled from the Consent Calendar.

It was moved by Mayor Pro Tem Johnson and seconded by Council Member Narain, to approve Consent Calendar Items No. 1 through 7, 9 and 10.

The motion was unanimously carried by the following roll call vote:

AYES:        5    COUNCIL MEMBERS:   Bailey, Narain, Yarc, Johnson and Mills
NOES:        0    COUNCIL MEMBERS:   None
ABSENT:    0    COUNCIL MEMBERS:   None

Item No. 1:   APPROVAL OF CITY COUNCIL MINUTES OF THE MEETING OF JANUARY 27, 2014.

Recommendation:   That the City Council approve the Minutes of the Meeting of January 27, 2014, as submitted.

Item No. 2:   MOTION TO INTRODUCE AND/OR ADOPT ALL ORDINANCES AND RESOLUTIONS PRESENTED FOR CONSIDERATION BY TITLE ONLY AND TO WAIVE FURTHER READING.

Item No. 3:   PROCLAIMING THE MONTH OF FEBRUARY 2014 AS “CAREER AND TECHNICAL EDUCATION MONTH” IN THE CITY OF CYPRESS.

Recommendation:   That the City Council officially proclaim the month of February 2014 as “Career and Technical Education Month” in the City of Cypress.

Item No. 4:   PROCLAIMING THE CITY OF CYPRESS A “PURPLE HEART CITY.”

Recommendation:   That the City Council officially proclaim the City of Cypress a “Purple Heart City.”

Item No. 5:   EXTENSION OF DESIGN REVIEW COMMITTEE PERMIT NO. 2009-06, A REQUEST FOR A ONE-YEAR EXTENSION TO ALLOW THE CONSTRUCTION OF A 6,000 SQUARE FOOT MEDICAL OFFICE BUILDING ON THE PROPERTY LOCATED AT 5001 CERRITOS AVENUE IN THE CG COMMERCIAL GENERAL ZONE.

Recommendation:   That the City Council grant a one-year extension of Design Review Committee Permit No. 2009-06 subject to the original Conditions of Approval.

Item No. 6:   AWARD OF TASK ORDER FOR CONSULTANT SERVICES TO UPDATE THE CITYWIDE TRAFFIC SIGNAL TIMING.

Recommendation:   That the City Council approve a Task Order for consultant services to update the Citywide Traffic Signal Timing to comply with changes in the California Manual on Uniform Traffic Control Devices (CA MUTCD), in the amount of $50,200, within the existing agreement for On-Call Traffic Signal Interconnect System Support and Traffic Signal Operations to Hartzog & Crabill, Inc., Tustin, California; authorize a contingency of $7,530 (15% of contract amount) to be used for unforeseen work; and direct the Director of Public Works/City Engineer to act as Contract Officer.

Item No. 7:   AWARD OF CONSTRUCTION CONTRACT, AWARD OF TASK ORDER FOR CONSTRUCTION INSPECTION SERVICES FOR FIBER OPTIC INSTALLATION/CCTV UPGRADE PROJECT (PHASE 3), PUBLIC WORKS PROJECT NO. 74, AND AWARD A TASK ORDER FOR CCTV NETWORK IMPLEMENTATION AND MAINTENANCE.

Recommendation:   That the City Council: 1) Award a contract for the Fiber Optic Installation/CCTV Upgrade Project (Phase 3), Public Works Project No. 74, in the amount of $658,293, to the lowest responsible bidder, Pro Tech Engineering Corporation, Corona Del Mar, California; authorize a contingency of $98,744 (15% of Bid Amount) to be used for unforeseen work; and direct the Director of Public Works/City Engineer to issue any necessary change orders to complete additional work within budgetary authority; and 2) Approve a Task Order for Inspection Services, in the amount of $59,461, within the existing agreement for On-Call Construction Management/Engineering Support/Testing and Inspection Services, for the Fiber Optic Installation/CCTV Upgrade Project (Phase 3), Public Works Project No. 74, to Vali Cooper & Associates, Inc. (VCA); authorize a contingency of $8,919 (15% of contract amount) to be used for unforeseen work; and direct the Director of Public Works/City Engineer to act as Contract Officer; and 3) Award a Task Order for CCTV Network Implementation and Maintenance, in the amount of $59,380, within the existing agreement for On-Call Traffic Engineering Design Services, to Iteris; authorize a contingency of $8,907 (15% of contract amount) to be used for unforeseen work; and direct the Director of Public Works/City Engineer to act as Contract Officer.

Item No. 9:   INSTALLATION OF MULTI-WAY STOP SIGNS ON HOLDER STREET AT MOUNT WHITNEY DRIVE WITHIN CYPRESS AND BUENA PARK BOUNDARIES.

Recommendation:   That the City Council receive and file the report.

Item No. 10:  APPROVAL OF COMMERCIAL WARRANT LIST AND WIRE TRANSFERS FOR FISCAL YEAR 2013-14 FOR WARRANTS NO. 28864 THROUGH 28997.

Recommendation:   That the City Council approve the attached warrant register and wire transfers for Fiscal Year 2013-14.

Regarding Item No. 8:       REQUEST FOR CYPRESS BRANCH LIBRARY BOOKSTORE ADDITION. (COUNCIL MEMBER NARAIN), Council Member Yarc asked if the action on this item would only be relative to funds for a design plan. 

The Director of Public Works responded in the affirmative, and stated that City Council’s decision tonight would be to procure funds to hire an architect who would prepare preliminary design drawings and ultimately the final design.  He stated that the next option would be for the City Council to procure funds for capital funding for the actual project. 

Council Member Yarc asked when the plans would be submitted to the City Council.

The Director of Public Works stated that plans would be submitted to City Council within the next three months. 

Mayor Mills asked about the total cost of the project, should City Council proceed that way. 

The Public Works Director replied that construction estimates are approximately $160,000 plus $24,000 for construction contingency, for a total cost of over $200,000 including the design costs.

It was moved by Council Member Bailey and seconded by Council Member Yarc, that the City Council: 1) Approve a transfer in the amount of $23,920 from the assigned fund balance of the General Fund (Account No. 111-99999.4501_415) to the City Capital Improvement Projects Fund (Account No. 415-99999.3901_111); and 2) Authorize an appropriation in the amount of $23,920 from the City Capital Improvement Projects Fund (Account No. 415-80600-8065.4186) for the  design of the Cypress Branch Library Bookstore Addition; and 3) Approve a Task Order in the amount of $20,800 for architectural consultant services for the Cypress Branch Library Bookstore Addition, Public Works Project No. 118, to BOA Architecture, Long Beach, CA; authorize $3,120 as contingency to be used for unforeseen work; and direct the Director of Public Works/City Engineer to act as Contract Officer.

The motion was unanimously carried by the following roll call vote:

AYES:        5    COUNCIL MEMBERS:   Bailey, Narain, Yarc, Johnson and Mills
NOES:        0    COUNCIL MEMBERS:   None
ABSENT:    0    COUNCIL MEMBERS:   None

END OF CONSENT CALENDAR

NEW BUSINESS:

Item No. 11:  AWARD OF PROFESSIONAL CONTRACT SERVICES AGREEMENT FOR SOLID WASTE FRANCHISE AGREEMENT COMPLIANCE EXAMINATION.

The Administrative Services Manager provided background information on this item.

Council Member Bailey asked about the contract amount and asked if contracts under $25,000 are obtained at the discretion of staff. 

The Administrative Services Manager stated that the not-to-exceed contract amount is $19,930. 

The City Manager clarified that this was a City Council agendized item. 

Mayor Pro Tem Johnson asked if the consultant would be looking at the previous two or more years during the audit.

The Administrative Services Manager stated that the consultant would be looking for underpayment of franchise fees, as well as shortfalls of service areas, and that review of the previous two years is cost containment, however more than two years back can be reviewed. 

The City Attorney stated that the statute of limitations for breach of contract would be four years. 

It was moved by Mayor Pro Tem Johnson and seconded by Mayor Mills, that the City Council: 1) Award a Professional Services Agreement for Solid Waste Franchise Agreement Compliance Examination to R3 Consulting Group, LLC, Roseville, California, and direct the Administrative Services Manager to act as Contract Officer; and 2) Approve the appropriation of $19,930 to Account No. 111-20120.4189 (Professional Services – Other) from the unassigned fund balance of the City’s General Fund for Solid Waste Franchise Agreement Compliance Examination services.

The motion was unanimously carried by the following roll call vote:

AYES:        5    COUNCIL MEMBERS:   Bailey, Narain, Yarc, Johnson and Mills
NOES:        0    COUNCIL MEMBERS:   None
ABSENT:    0    COUNCIL MEMBERS:   None

Item No. 12:  ESTABLISH CITY COUNCIL PROCEDURES FOR THE INTERVIEW AND SELECTION OF A SOLID WASTE SERVICES PROCUREMENT CONSULTANT.

The Administrative Services Manager provided background information on this item.

Mayor Mills discussed his recommended interview process for the selection of a consultant.

Mayor Pro Tem Johnson stated that he would prefer going through an interview process with the four qualified applicants, with the hope that a selection be made in two weeks.

Council Member Bailey spoke of the importance of price when selecting a consultant. 

The Administrative Services Manager stated that the proposers would need to be contacted and that a request was received to post the proposals on the City’s website, however the proposals are confidential until a contract has been executed.  He indicated that two of the proposers stated that they would allow their proposals to be posted on the City’s website with conditions. 

Council Member Bailey asked about making the pricing available to the City Council. 

The Administrative Services Manager responded that written permission from the proposers would have to be obtained. 

The City Attorney stated that it is a City Council decision point to request pricing and that it is not uncommon in hiring a consultant to look at qualifications first and negotiate price second.  He stated that consideration is given for someone to develop a franchise that would establish a business relationship with a trash hauler for a period of 8-15 years.  He commented that it has been his experience that the City Council look at credentials first and ability to perform the services, then negotiate pricing by opening all of the proposals after the vendor has been selected. 

Council Member Bailey asked about the proposed hours and the assumption that more hours equate to a better proposal.  He stated that he would like to agendize this matter to the next regular City Council meeting, and that it would be up to the discretion of each City Council Member as to whether they wish to ask any or all questions, or remain with staff’s recommendation. 

Council Member Narain clarified that staff interviewed and ranked the consultants, and that it is being proposed that each City Council Member question the consultants independently and make a recommendation at a future City Council meeting. 

Council Member Bailey responded that he does not feel interviews are necessary and is prepared at the next meeting based upon his due diligence to make a decision.

Council Member Yarc stated that she would like to see the cost proposals and that the interview process would give the City Council Members an opportunity to have a more personable conversation with the proposers. 

The City Attorney stated that the City Council Members have the ability to speak to the proposers individually, however he recommends against it.  He acknowledged that a collective interview is somewhat formal and somewhat stilted, however answers may be given to questions that all of the City Council Members have all at the same time with an opportunity for follow-up questions.  He stated that a formal interview would be more effective and transparent in a collective interview setting.

Mayor Pro Tem Johnson stated he would also like to see the proposal costs and that he would be willing to interview the consultants individually with the option of having other City Council Members join him. 

The City Attorney stated that the City Council Office or another City facility may be used for the interviews and that three or more City Council Members would constitute a quorum which would need to be noticed and open to the public.  He stated that if the City Council does not go through a formal interview process, the City Council could do a one-on-one interview. 

Mayor Mills asked the City Attorney to comment on this process being coordinated at the discretion of the Chair and how that would be handled. 

The City Attorney stated that the Chair, serving as the presiding officer, could accomplish the preference unless there is an objection by his colleagues, and that his preference could be in the form of a motion. 

It was moved by Mayor Mills that the City Council approve his recommended interview process as outlined. 

The motion failed due to lack of a second.

It was moved by Council Member Bailey and seconded by Council Member Narain, that individual City Council Members will do such due diligence as they deem appropriate, a formal staff report will be presented to the City Council to include a reiteration of the rankings of the vendors that staff has interviewed, and the City Council will make a decision as to whom to award the agreement. 

The motion was unanimously carried by the following roll call vote:

 AYES:       4    COUNCIL MEMBERS:   Bailey, Narain, Yarc and Johnson
*NOES:      1    COUNCIL MEMBERS:   Mills
ABSENT:   0    COUNCIL MEMBERS:   None

(*Mayor Mills changed his vote during Items From Council Members.)

The City Manager asked for clarification as to whether or not the City Council desires to have the vendors attend the next regular City Council meeting.

Council Member Narain stated that the vendors should be available at the next regular City Council meeting for possible questioning. 

RECREATION & PARK DISTRICT MATTERS:  The Cypress City Council, Acting as the Ex Officio Governing Board of Directors.

No items.

SUCCESSOR AGENCY TO THE CYPRESS REDEVELOPMENT AGENCY MATTERSThe Cypress City Council, Acting as the Successor Agency to the Cypress Redevelopment Agency.

Consent Calendar:

It was moved by Successor Agency Member Narain and seconded by Successor Agency Member Yarc, to approve Consent Calendar Item No. 13.

The motion was unanimously carried by the following roll call vote:

AYES:        5    AGENCY MEMBERS:    Bailey, Narain, Yarc, Johnson and Mills
NOES:        0    AGENCY MEMBERS:    None
ABSENT:    0    AGENCY MEMBERS:    None

Item No. 13:  ADOPTION OF THE ADMINISTRATIVE BUDGET FOR THE CYPRESS SUCCESSOR AGENCY FOR THE SIX-MONTH PERIOD OF JULY 1, 2014 THROUGH DECEMBER 31, 2014.

Recommended Action:  That the Successor Agency adopt the administrative budget for the Successor Agency for the six-month period of July 1, 2014 through December 31, 2014.

ORAL COMMUNICATIONS:  For Matters Not on the Agenda.

None.

ITEMS FROM CITY COUNCIL MEMBERS:

Mayor Mills requested reports from the Council Members on their respective committee assignments.

Mayor Mills:

Attended the Buena Park State of the City Address.  Attended the Cypress Oversight Board meeting.

Mayor Pro Tem Johnson:

Attended a Cypress Chamber of Commerce seminar regarding advertising online. Attended the Orange County Fire Authority awards dinner.  Introduced Supervisor John Moorlach at the State of the County luncheon.  Attended the Cypress Girls Softball League Opening Day.  Worked with Boy Scout Matthew DeTarr on his merit badge project.

Council Member Bailey:

Attended the Cypress Oversight Board meeting.  Attended a Cypress High School local control funding meeting.  Attended an awards ceremony at the Los Alamitos Youth Center.

Council Member Narain:

Attended an O.C. Sanitation District Board meeting.  Spoke regarding the need for a bookstore at the Cypress Library.

Council Member Yarc:

Attended a Cypress College Americana Auction Committee meeting.  Attended the Library Advisory Committee and Board meetings.  Attended the Cypress Chamber of Commerce mixer.  Attended the Woman’s Club of Cypress meeting.  Attended the State of the County luncheon.

Mayor Mills stated that he voted yes on Agenda Item #12 when his intention was to vote no.  He instructed the City Clerk to change his vote accordingly. 

ITEMS FROM CITY MANAGER: 

No items.

ADJOURNMENT: Mayor Mills adjourned the meeting at 7:54 p.m. to Monday, February 24, 2014, beginning at 5:30 p.m. in the Executive Board Room.

_______________________________
MAYOR OF THE CITY OF CYPRESS

ATTEST:

___________________________________
CITY CLERK OF THE CITY OF CYPRESS

City of Cypress Department of Administration ~ 5275 Orange Avenue ~ Cypress, CA 90630 ~ 714-229-6780