HomeMy WebLinkAbout1976 04 15 CC MIN1976 04 15 CC MIN (Ìì Ï peINDEX
APRIL 15, 1976
Housing and Community Development Committee Appointees
Santos Hernandez Appointed to Housing and Community
Development Committee
Adrian Ruiz Appointed to Housing & Community Development
Committee
Ord. No. 721, Creating a Senior Citizens Advisory Commission for
the City of Baldwin Park Waived Further Reading Failed
to Carry 2
Waive Further Reading of Ordinance No. 721 3
Ordinance No. 721 Not Adopted
Ord. Nos. 721. 722, 723, 724 and 725 be Continued Until
May 19, 1976 so There will be Plenty of Time to Have a
Study Session With Groups
Reconsider Ord. No. 721 and Cont. Ord. Nos. 722. 723, 724
and 725 Until 5/19/76 to Allow Study Session With People
to Define Duties and Functions
Ord. No. 726, Amending Zoning Map and Rezoning Property From
Zone C-1 and C-2 to Zone R-1 and Zone R-3 Z-390)- Adopted
Ord. No. 663. Amending the Zoning Map and Rezoning Certain
Described Real Property From Zone R"1 to Zone C-2 Z-357,
Applicant: E. W. Van Citters) Adopted
3 & 4
4
4, 5 & 6
Ord. No. 727, Amending the Zoning Map and Rezoning Certain
Herein Described Real Property From Zone C-2 to Zone
R-3 Z-391) Applicant: Dr. Thomas Koumas Adopted
Ord. No. 728, Amending the Baldwin Park Municipal Code Re
Position of City Manager Urgency)
Ord. No. 728 Urgency) Not Adopted
Ord. No. 728 Introduced
E. W. Van Citters Re Letter Denying Newspaper Article
Res. No. 76-26, Establishing a Holiday Plan Adopted 7
James File Study Session on Audit 7-13
Mr. Newman Re Audit 13-16
Discussion Meeting With Agencies and Commissions 16
Housing and Community Development Committee Will Meet in
Council Chambers 16
9:30 P.M Meeting Adjourned 16
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1976 04 15 CC MIN (Ìì Ï peADJOURNED REGULAR MEETING OF THE BALDWIN PARK CITY COUNCIL
CITY HALL COUNCIL CHAMBERS) 14403 East Pacific Avenue
The City Council of the City of Baldwin Park met in adjourned
regular session at the above place at 7:30 p.m.
Roll Call: Present: COUNCILMEN AGUILAR,
BLEWETT, HAMILTON,
KITCHEL AND MAYOR WALDO
Also Present: ACTING CITY MANAGER SEXTON,
ACTING CITY ATTORNEY RITCHIE,
DIRECTOR OF PUBLIC WORKS LATHROP.
ASSISTANT PLANNER MONTOYA,
DIRECTOR OF FINANCE HALLOWAY,
CHIEF OF POLICE ADAMS, CITY
TREASURER MONTENEGRO AND
CITY CLERK BALKUS
Absent: DIRECTOR OF PLANNING KILGOUR
00-
Mayor Waldo said that the Study Session with the auditors
was first on the agenda but a request had been made that
it take place later in the meeting.
00-
Assistant Planner Montoya said it had been discussed at
the April 12 Housing and Development Committee meeting
who should be appointed to the two vacancies on the
committee and due to the character of the community
it was felt that a balanced representation of the
community should be on the committee and they would like
to see the vacancies filled with two persons from
the Spanish surname community.
Assistant City Manager referred to a letter which had
been received from the Parents & Youth Committee relative
to a recommendation they made to the Council for Mr.
Santos Hernandez.
Mayor Waldo explained that there had been 15 people on
the committee and now there were only 13.
Councilman Hamilton was in favor of appointing the
2 people tonight.
Councilman Blewett recommended Adrian Ruiz.
MR. SANTOS HERNANDEZ APPOINTED TO THE HOUSING & COMMUNITY
DEVELOPMENT COMMITTEE. M/S/C: HAMILTON/AGUILAR.
There were no objections.
MR. ADRIAN RUIZ APPOINTED TO THE HOUSING & COMMUNITY
DEVELOPMENT COMMITTEE. M/S/C: BLEWETT/HAMILTON.
There were no objections.
00-
Acting City Attorney Ritchie referred to a series of
Ordinances which were introduced at the last meeting
and would be considered for adoption.
Councilman Blewett said he thought that meetings for
the proposed members of the Commissions were going to
be set up to try to hammer out reasons for the Commissions
to exist, as the Ordinances as written are vague as to
what the Commissions are going to do for the community.
He stated that the federal government now has bills
pending in both the state and U.S. Congress to make
continued^
00069SO
APRIL 15, 1976
7:30 P.M.
ROLL CALL
HOUSING & COMMUN.
DEVELOPMENT COMM.
APPOINTEES
SANTOS HERNANDEZ
APPOINTED TO
HOUSING & COMMUN.
DEV. COMMITTEE
ADRIAN RUIZ
APPOINTED TO
HOUSING & COMMUN.
DEV. COMMITTEE
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1976 04 15 CC MIN (Ìì Ï pe0006961
Adjourned Regular Meeting of the Baldwin Park City Council
April 15, 1976
Page 2
each agency of government justify its existence and he
thought before something was created it should be defined
what it was going to do. He said he would rather sit
down with the people proposed to sit on the Commissions
in a study session to see what they would like their
Commissions to do and if they intend for it to have
funding and what kind of power they would have and
what they are going to do for their Commission.
Mayor Waldo said the idea behind the Commissions was to
be advisory commissions to take it to the people and to
get their input. The second reading of the Ordinance
would give 30 days before becoming effective and he
said the Commissions could meet during those 30 days
and build guidelines, if that is what the Council
wish. He said he did not want to delay the formation
of the Conmissions but did want to delay the appoint-
ments to the Commissions until the Comnissions have
been formed and the 30 day waiting period is ended.
Councilman Hamilton thought it would be advisable to
hold off on the Commissions until they found out what
they would do and their input would be as some of the
people proposed for the Youth Advisory Commission had
indicated that they felt they would like to sit down
with Council to find of what benefit they would be to
the community. He stated that if you start something
and it fails that is bad and gives the Council a black
eye. He said there were a lot of good people whose
names are on the Commissions and that some of them
had declined to serve.
Mayor Waldo said that if you have a Commission that
has been commissioned, that Commission is there but
it isn't active until people are appointed to it.
He referred to the 5 Advisory Commissions by name
and said there was a definite need for them and
that they were Advisory Commissions and that if
the Council wanted to fund those people they may
do so or don't have to if they don't want to,
but he said let's start getting the input from
the people.
Councilman Kitchel said he had no objections to fore-
going the appointments to the Commissions but felt
that the Commissions, acting in an advisory capacity,
touching upon the subjects relative to the young,
senior citizens, housing authorities, job counselors
et a1 can at least start to ask some of the necessary
questions that the City has been deprived of relative
to those subjects. He stated that delaying the
process puts us once again behind and said he was
all in favor of the formation of the Commissions
and approving the Second Reading tonight.
City Clerk Balkus read by title:
ORDINANCE NO. 721, CREATING A SENIOR CITIZENS
ADVISORY COMMISSION FOR THE CITY OF BALDWIN PARK
WAIVE FURTHER READING OF ORDINANCE NO. 721. M/S:
KITCHEL/AGUILAR. Roll Call. Ayes: KITCHEL/WALDO.
Noes: AGUILAR/BLEWETT/HAMILTON. The motion failed
to carry.
continued)
ORD. NO. 721
CREATING A
SR. CITIZENS
ADVISORY COMM.
FOR B.P.
WAIVE FURTHER
READING OF
ORD. NO. 721
FAILED TO CARRY
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1976 04 15 CC MIN (Ìì Ï pe
Adjourned Regular Meeting of the Baldwin Park City Council
WAIVE FURTHER READING OF ORDINANCE NO. 721.
HAMILTON. There were no objections.
M/S/C: BLEWETT/
ADOPT ORDINANCE NO. 721. M/S: KITCHEL/WALDO. Roll Call.
Ayes: KITCHEL/WALDO. Noes: AGUILAR/BLEWETT/HAMILTON.
The motion failed to carry.
Councilman Blewett asked if each of the Ordinances was voted
down whether they would appear on the next agenda.
Acting City Attorney Ritchie said if the Ordinance was defeated
that would be the end of it unless someone brought it up
again by another motion.
ORDINANCES NO. 721, 722. 723, 724 and 725 BE CONTINUED UNTIL
MAY 19, 1976 SO THERE WILL BE PLENTY OF TIME TO HAVE A STUDY
SESSION WITH EACH GROUP OF PEOPLE SO THEY CAN DEFINE WHAT THEY
WANT THE COMMISSIONSTO BE AND WHAT THE COUNCIL WOULD LIKE THEM
TO BE. M/S: BLEWETT/HAMILTON.
April 15. 1976
Page 3
WAIVE FURTHER
READING OF
ORD. NO. 721
ORD. NO. 721
NOT ADOPTED
ORD. NOS. 721,
722, 723, 724
& 725 BE CONT.
UNTIL MAY 19,'76
SO THERE WILL BE
PLENTY OF TIME TO
HAVE A STUDY
SESSION W/GROUPS
Acting City Attorney Ritchie clarified that if Council
wished to reconsider Ordinance No. 721, then the motion
should include to reconsider Ordinance No. 721." This
would not kill the no" vote on the Ordinance but it
would bring it and alt the Ordinances back before Council
RECONSIDER ORDINANCE NO. 721 AND CONTINUE ORDINANCE NOS.
722. 723, 724 AND 725 UNTIL MAY 19, 1976 SO THERE WILL BE
PLENTY OF TIME TO HAVE A STUDY SESSION WITH EACH GROUP OF
PEOPLE SO THEY CAN DEFINE WHAT THEY WANT THE COMMISSIONS
TO BE AND WHAT THE COUNCIL WOULD LIKE THEM TO BE.
M/S/C: BLEWETT/HAMILTON. There were no objections.
RECONSIDER ORD.
NO. 721 & CONT.
ORD. NOS. 722,
723. 724 & 725
UNTIL 5/19/76
TO ALLOW STUDY
SESSION WITH
PEOPLE TO DEFINE
DUTIES & FUNCTIONS
00-
City Clerk Balkus read by title:
ORD. NO. 726, AMENDING THE ZONING MAP AND REZONING
CERTAIN HEREIN DESCRIBED REAL PROPERTY FROM ZONE C-1
AND ZONE C-2 TO ZONE R-1 AND ZONE R-3 ZONE CASE NO.
Z-390)
ORD.NO. 726,
AMENDING ZONING
MAP & REZONING
PROPERTY FROM
ZONE C-1 & C-2
TO ZONE R-1 &
ZONE R-3 Z-390)
WAIVE FURTHER READING OF ORDINANCE NO. 726. M/S/C:
BLEWETT/HAMILTON. There were no objections. The
motion carried.
ORD. NO. 726 ADOPTED. M/S/C: BLEWETT/HAMILTON.
There were no objections. The motion carried.
00-
WAIVE FURTHER
READING OF ORD
NO. 726
ORD. NO. 726
ADOPTED
City Clerk Balkus ready by title:
ORD. NO. 663, AMENDING THE ZONING MAP AND REZONING
CERTAIN HEREIN DESCRIBED REAL PROPERTY FROM ZONE R-1
TO ZONE C-2 ZONE CASE NO.Z-357; APPLICANT:
E. W. VAN CITTERS)
WAIVE FURTHER READING OF ORDINANCE NO. 663. M/S/C: BLEWETT/
HAMILTON. There were no objections. The motion carried.
continued)
ORD. NO. 663
AMENDING THE
ZONING MAP &
REZONING FROM R-1
TO C-2 Z-357;
VAN CITTERS)
WAIVE FURTHER
READING OF ORD.
NO. 663
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1976 04 15 CC MIN (Ìì Ï pe0000953
Adjourned Regular Meeting of the Baldwin Park City Council
ORD. NO. 663 ADOPTED. M/S/C: HAMILTON/BLEWETT. There
were no objections. The motion carried.
00-
City Clerk Balkus read by title:
ORDINANCE NO. 727. AMENDING THE ZONING MAP AND
REZONING CERTAIN HEREIN DESCRIBED REAL PROPERTY
FROM ZONE C-2 TO ZONE R-3 ZONE CASE NO. Z-391;
APPLICANT: DR. THOMAS KOUMAS)
April 15, 1976
Page 4
ORD. NO. 663
ADOPTED
ORD. NO. 727,
AMENDING THE
ZONING MAP &
REZONING CERTAIN
HEREIN DESCRIBED
REAL PROPERTY
FROM ZONE C-2 TO
ZONE R-3 Z-391)
WAIVE FURTHER READING OF ORDINANCE NO. 727. M/S/C:
BLEWETT/HAMILTON. There were no objections.
The motion carried.
ADOPT ORD. NO. 727. M/S/C: HAMILTON/KITCHEL. There
were no objections. The motion carried.
00-
City Clerk Balkus read by title:
ORDINANCE NO. 728. AMENDING THE BALDWIN PARK
MUNICIPAL CODE RELATING TO THE POSITION OF
CITY MANAGER URGENCY)
ORD. NO. 727
WAIVE FURTHER
READING
ORD. NO. 727
ADOPTED
ORD. NO. 728,
AMENDING B.P.
MUNI. CODE RE
POSITION OF
C.M. URGENCY)
Councilman Blewett said he would like to have the
Ordinance read and have some discussion on it by
the City Attorney.
City Clerk Balkus read Ordinance No. 728 in its entirety.
Acting City Attorney Ritchie explained:that what was
originally in the Code was a restatement of the provisions
of the Government Code which say that a City Manager shall
serve at the pleasure of the City Council. Then a contract
was regotiated with a City Manager which contained a pro-
vision that it would take 4 votes of the Council to term-
inate that contract and built in certain financial penalties
on the Council in the event that they did terminate it
and assuming that they could get the 4 votes. In effect,
if you could never get the 4 votes, you could never termin-
ate the contract and if you got the 4 votes there would be
a substantial financial penalty. Then, apparently thinking
that that might be in conflict with the Municipal Code,
the City Council amended the Code to add a Section, 2306,
which suspended all of the provisions of the Code which
allowed the City Council by 3 votes to terminate the
services of the City Manager. It suspended all of those
provisions during such time as a contract was in existence
between the City Manager and the City. That left a Muni-
cipal Code that had no provisions whatsoever in regard
to the termination of the services of the City Manager.
He said If the Council had then wanted to terminate those
services, with or without the contract, he would have
recommended the Ordinance be changed in the Code to
restore the 3 vote requirement before the contract can
be terminated. That was not done so there was nothing In
continued)
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1976 04 15 CC MIN (Ìì Ï peAdjourned Regular Meeting of the Baldwin Park City Council
the Code but a suspension of the original provision with
nothinq to replace it. He stated that there was a
contract and that his view on the contract is that you
cannot, by device of the contract, change the Government
Code which says that a City Manager serves at the pleasure
of the City Council, and no 3 members of the City Council
can change that and provide that it would take 5 votes,
for example, or 4 votes to get rid of the City Manager.
He said that you can see that a City Council with perhaps
2 months to serve and perhaps wishing to take care of
a City Manager that they felt might be in trouble after
the election could then with 3 members of the Council vote
a contract for a City Manager and in it provide that it
took 5 votes to get rid of him. Then 2 months later
you would have new people take office with new policies
and mandates from the voters and find that they are
saddled with the contract with substantial financial
penalties and with the requirement that it takes 5
affirmative votes to change the contract. He clarified
that he was not saying that was the case here but was
pointing out why those provisions were in the Code
and that in this case there were 4 votes but there
was philosophically no difference between 4 votes and 5.
He said you can change the government of the City from
a majority vote and you change the whole concept of
government in cities and that he thinks this is a
totally void provision and an attempt to frustrate the
Government Code provision that says that a Manager
shall serve at the pleasure of the City Council. He
thinks the contract is void for that reason a.nd he
thinks some provision should be restored to the Ordinance
for how you terminate the services of a City Manager.
He suggested the provisions be restored which allow
those services to be terminated by a majority vote of
the City Council, because that is what the state law
says should be done and that is why he has prepared
and recommended the Ordinance.
Councilman Blewett asked Mr. Ritchie if there were
legal cases that have found that 4/5 contract with a
City Manager is invalid.
Mr. Ritchie said he had been unable to find any case
where anybody ever tested the question of a 4/5 vote
and was not aware of any 4/5 contract. He said he was
aware of a City-initiated Ordinance in West Covina
which required 4 votes to get rid of the City Manager
and he assumed they would have to vote upon it to get
rid of it, but it has not been tested in court.
Councilman Blewett said that since West Covina was a
General Law City they were subject to the Government
Code. He said he takes a very different position that
when a City gives its word and binds a contract with
somebody that it has an obligation to honor that
contract although it is an ironic position because
twice he voted in opposition to contracts as he is
opposed to contracts for City Managers and believes
they should serve at the pleasure of the Council.
Mayor Waldo said that when he voted on the contract
it was presented by the City Attorney who at no time
stated that it violated any laws or Codes and that
if he had known that he would not have gotten his vote.
continued)
TW~^
6006^
April 15, 1976
Page 5
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1976 04 15 CC MIN (Ìì Ï peococass
Adjourned Regular Meeting of the Baldwin Park City Council 1976
April 15,
Page 6
Councilman Hamilton said that he agreed with Mayor Waldo's
statement but that 5 Council men had entered into this
agreement and did not question it. They all understood it
but as far as the legality was concerned the City Attorney
had not mentioned this. He said he had been informed that
the City would be in litigation over the dismissal of
Mr. Mitchell and that he would not want to vote on the
Ordinance until after the litigation is over and asked
that it be held over unfit the case is settled.
Council discussion followed with disagreement over whether
the action had been illegal since it hasn't been proven yet
and there are two opinions by two attorneys.
Councilman Aguilar said it was wrong to take away the
democratic right of the people to rule by a majority,
and that it takes us back to Comnunism and not a democracy
and that when the City Council took the Ordinance out and
made it a 4/5 vote it did take the right of the majority
away from the City Council.
Councilman Kitchel stated that he strongly disagreed with
the manner in which the Municipal Code was suspended,
depriving the Council of its right for its majority rule
and that being a new member of the Council with a different
attitude on the subject he was strongly in favor of amend-
ing the Ordinance in order to once again have a majority
rule.
ADOPT ORDINANCE NO. 728 URGENCY). M/S: KITCHEL/AGUILAR.
Ayes: KITCHEL/AGUILAR/WALDO. Noes: BLEWETT/HAMILTON.
The motion did not carry.
Mr. Ritchie clarified that it took 4 affirmative votes
to adopt the Ordinance as an Urgency Ordinance and that if
it didn't succeed it could be introduced as a non-Urgency
Ordinance since it had been read and the Urgency provision
had been eliminated.
INTRODUCE ORDINANCE NO. 728. M/S/C: KITCHEL/AGUILAR.
Roll Call. Ayes: KITCHEL/AGUILAR/WALDO. Noes: BLEWETT/
HAMILTON. The motion carried.
ORD. NO. 728
URGENCY)
NOT ADOPTED
ORD. NO. 728
INTRODUCED
00-
M/S/C: BLEWETT/HAMILTON.
OPEN ORAL COMMUNICATIONS.
There were no objections.
Mr. E. W. Van Citters, 616 Almirante Drive, read a
letter that he wrote to Mayor Waldo and Councilmen of
the City of Baldwin Park, replying to comments made
in a San Gabriel Valley Tribune article dated April
14, 1976. Letter in official files) His letter denied
he had ever been promised that he would make a lot
of money by selling to the CRA" and said that he had
never been denied the right to develop the property
by the City and that Mr. Sexton had always met with
and encouraged developers that he had brought to
his attention.
00-
Frank Zarate, 1748 Hatinor, stated that he was a
resident of Baldwin Park and that he was still a
Mexican citizen but that pretty soon he would be
a U.S. citizen. He said he would tike to answer the
person who criticized him in the newspaper. He
said this was a free country and that she had a
right but that he had a right, too. and he wanted
to tell her that if she is wilting to take his
place she is welcome take it.
continued)
OPEN ORAL
COMMUNICATIONS
E. W. VAN CITTERS
RE LETTER DENYING
NEWSPAPER ARTICLE
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1976 04 15 CC MIN (Ìì Ï peOCOG3S6
Adjourned Regular Meeting of the Baldwin Park City Council
Mayor Waldo closed Oral Communications.
City Clerk Balkus read by title:
RESOLUTION NO. 76-26. ESTABLISHING A HOLIDAY PLAN
April 15, 1976
Page 7
ORAL COMMUN-
ICATIONS CLOSED
RES. NO. 76-26
ESTABLISHING
A HOLIDAY PLAN
City Attorney Ritchie said that last year the City became
aware of a District Court of Appeal decision upholding
that Good Friday is a religious Holiday and could not be
granted as a holiday by the City Council. Last year there
was no such holiday granted but the City did not then
amend its Holiday Plan. The Resolution proposed would
amend the Holiday Plan to make it clear that Good Friday
as a holiday is not going to be granted to the City
because of this DCA opinion which is still a law. The
point of the opinion was that it was so clearly a religious
holiday that it runs afoul of that provision in the Con-
stitution against mixing church and state.
RESOLUTION NO. 76-26 ADOPTED. M/S/C: BLEWETT/HAMILTON.
There were no objections. The motion carried.
00-
James S. File, C.P.A. of Harman and Company who are
auditors for the City of Baldwin Park, referred to the
financial statements included in the Independent Auditors'
Report. He said the report covers the Fiscal Year
ending June 30, 1975 and this is the first opportunity
the auditors have had to meet with the Council to go over
the Financial Statement. Mr. Michael Newman, a partner
in charge of the Baldwin Park audit, was with him and
would be able to answer specific questions. He emphasized
that the auditors work for the City Council and the Report
is addressed to the City Council along with any remarks
the auditors wish to convey in the letter on the front
page which they call a clean opinion." The rest of the
book is the City's Financial Statement which they feel
states fairly the'financial position of the City.
Mr. File referred to the Balance Sheet and said it had
a particular date June 30, 1975, and could be thought
of as a photograph of the financial position of the City
on that date. He referred to the various funds listed
across the top of the page on the Balance Sheet and
said that in a City your money has to be put in a
particular pocket and these pockets are called funds.
General funds can be spent on anything that is a
legitimate budget purpose while other funds are spent
for the purpose for which the money is raised, i.e.,
for instance, the Gasoline Tax funds the City gets
can only be spent for street improvements and certain
things the State says are legitimate gasoline tax
expenditures. So whenever they have earmarked type revenue
they have to be sure it is spent for the purposes that
are legal for that fund. He said in the back of the
book is an itemization of all the funds of Baldwin Park
with a brief explanation of each of them and how they
get the money and what it is spent for.
The first set of financial statements concern the
General Fund, which is where most of the money usually
is and where you can make most decisions as this is
money that can be spent for any purpose. This shows
the picture of the General Fund at the end of June 1975
and, for comparison, how it looked June 1974.
continued)
RES. NO. 76-26
ADOPTED
JAMES FILE
STUDY SESSION
ON AUDIT
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1976 04 15 CC MIN (Ìì Ï pe00069S9
Adjourned Regular Meeting of the Baldwin Park City Council April 15, 1976
Page 8
He said he would tike to call to attention on this particular
Balance Sheet the figures under Taxes Receivable. These are
the taxes that have been levied. The City has the County
do its tax collecting for it. These property taxes have not
been received by the County as of June 30th. The amount of
these Receivables went up from $28,000 in 74 to $42,000 in 75.
He thought this reflected the general economic conditions
and the fact that more people are not paying their property
taxes, and this has to be taken into consideration because
you can't spend the money you don't have. Economic conditions
fluctuate and this affects the money the City Council can
spend. Another item of interest was at the bottom of the
page in Reserves. This was set up to putt out of the
available fund balance things that you really can't spend.
The reserve for Taxes Receivable indicates the amount that
they feel is a proper amount to withhold from the assets
so they aren't spent until they have them. Another reserve
is the reserve for Self Insurance. In 1975 the City of
Baldwin Park elected to self insure for Workman's Compen-
sation. A reserve was set up by an amount equal to the
premiums that had been paid to the Insurance Company being
set aside to provide for the City's self funding. At the
end of the year that reserve had built up to a little less
than $47,000. He said the Unappropriated Fund balance at
the bottom of the page indicated what was there June 30
that you could budget for future expenditures and was not
definitely earmarked for other things. It amounted to
$1.6 Million in 1975 as opposed to $1.5 Million in 1974.
Statement No. 3 of the General Fund shows Revenues, Ex- STATEMENT NO. 3
penditures. Encumbrances and Transfers. He said this,
unlike the Balance Sheet which is a photograph, is a story
of what happened during the last Fiscal Year. By taking
the photograph at the beginning of the last Fiscal Year you
can see the changes that took place in the story on the
incoming statement and end up with the picture of what
things were at the end of the Fiscal Year back on the
Balance. In the General Fund, during the 1975 Fiscal Year
there were Total Revenues and Transfers of $3.874,000
and total Expenditures and Encumbrances of $3,778,000,
the result being that during that Fiscal Year the General
Fund balance increased by slightly under $96,000. He said maybe
slightly misleading, just looking at it as it is, is an
item called Transfers From Other Funds, which is a perfectly
legitimate thing because there are expenditures made out of
the General Fund that could be made out of Special Revenue
Funds or other types of funds but as a matter of bookkeeping
convenience they have taken the equal amount of money out of the Special Funds
and put them in the General Fund. That is what the transfers
are a11 about. Included in these Transfers are the
Revenue Sharing monies the money that comes in from
the federal government as revenue sharing. This amounted
to something over $300,000 during the year and serves to
inflate the General Fund revenue that is produced within
the City by your own things such as sales tax, court
fines and interest, etc. He said so long as revenue
sharing continues to rock along this is fine and the
fund balance has increased by $96,000 but the City is
entirely dependent upon Congress to see that that
revenue sharing continues to rock along. His point
was that the Council should always keep in mind that
a substantial amount of money is completely out of their
control if the Congress decided to change revenue sharing
or do away with it and there is not much that can be
done about it and you should think about this in the
budgeting process.
continued)
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Adjourned Regular Meeting of the Baldwin Park City Council
Councilman Blewett asked Mr. File if he was saying that
the City should have grown at a larger rate last year
and asked if the City then spent some money out of the
Revenue Sharing.
Mr. File said in looking at the General Fund fund balance
in the last 4 years the increase in that fund balance
represents revenue sharing money.
Councilman Blewett asked if all of the revenue sharing
money had been saved and if we had enough revenue last
year to operate the City if we had not gotten revenue
sharing money.
Mr. File said it would have been a break even situation
and that if you take the Fund Balance at June 1972 which
was the beginning of revenue sharing and compare it to
the Fund Balance of June 1975 the increase is within $700
of the total amount of revenue sharing received from
the federal government.
Councilman Blewett said then this means if the City
Council goes on a spending foray they would be moving
themselves into a deficit position, including revenue
sharing money.
Mr. File confirmed that if all other things stay the
same and Congress continues revenue sharing everything
is fine but if they stop revenue sharing either Council
will have to dip into the Reserves or stop spending
money.
Mayor Waldo asked Mr. File to explain how this relates
to the IBM system with the Police Department; the grants
received to bring it in and now the cost of operation
with the rate of inflation.
Mr. File said the installation process was achieved by
categorical grants received from various levels of
government. The EVIS grant amounted to $8,000 and
from now on the installation that has been purchased
with those funds is going to have to be maintained by
the City. This year, according to the budget, the
cost of operating the system will run about $130,000
from which about $30,000 is coming in from the CETA grants.
The City is going to have to consider whether it is getting
$130,000 worth of value out of this facility or anything
else of an administrative nature that the City does.
Councilman Kitchen questioned if it wasn't fair to
conclude that without revenue sharing dollars and
considering the slow growth of finances the performance
of the community would be seriously affected.
Mr. File said this would probably be true of both
the City and Los Angeles County. He stated that at
the end of 1972 the General Fund Batanace was $465.000
and at the end of 1975 it was $T,6 Minion and that
the decision of the City Council was what the right
amount of reserves would be and whether this City
can operate with less than $.5 Million or if $1.5
Million is needed in reserves.
Councilman Hamilton asked if it was correct that he
had understood that the City had operated without
revenue sharing and that they had only used about
$700 of that money.
continued)
April 15, 1976
Page 9
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Adjourned Regular Meeting of the Baldwin Park City Council April 15, 1976
Page 10
Mr. File said he wasn't sure if the City had dipped in that
much or made out it was pretty much break even.
Councilman Hamilton explained that the City has operated
within the budget and tried to keep the revenue sharing
money for the purpose of building a new City Ha11, Police
Department facilities and moving out the City Equipment
Yard. He agreed with Councilman Blewett that the City
will be in trouble if they go on a spending spree.
Mayor Waldo referred to some of the grants received where
the grant puts up a certain amount of money and the City
puts up money in matching funds and asked if the money
the City puts up comes out of the General Fund.
Mr. File clarified that in 1975 the General Fund expended
$118,000 and that was the City's share for the Police
Department Data Processing facility, while the year
before it only amounted to $17,000.
Councilman Hamilton asked Mr. File if Baldwin Park was
a financially sound City.
Mr. File said that it was not in his realm to make a
judgment like that; that he could tell them that the
City had $1,703,00 in the bank in General Funds and
a fund balance of $1.6 Million but that they would have to
decide if Baldwin Park was a financially sound City.
It is better than New York.
Mr. File said the next group of statements are the same
statements as seen on the General Fund but they cover
each of the Special Revenue Funds, which means that
money received in can only be spent for a special
purpose. Parks and Recreation Fund, for which property
tax is levied, has a fund balance of a little less than
$78,000; the total expenditures for the year were
$252,000 so the expenditures exceeded the revenues
by $5400 in the year 1975 where the prior year the
revenues exceeded the expenditures by $5900. That
fund stays in there because if additional monies are
needed in Parks & Recreation they could be spent out
of the General Fund to subsidize that If desired.
He explained that Statement No. 6 has to do with the
Revenue Sharing Funds and that during that Fiscal Year
the Federal revenue sharing entitlements were $342,726
and any interest earned in the bank is added, making
$22,127 more. All of that revenue was transferred to the
General Fund to compensate for the expenditures made
in law enforcement, which are legitimate revenue sharing
expenditures.
Mr. File stated that the State Gasoline Tax Fund is
a fund where the revenue comes from a very small
share of the tax on gasoline distributed to the
City on a per capita basis and can only be spent
for street purposes. He said traditionally this
money is saved up, then spent in a great lump and
then you start all over again. In 1975 the City
spent $715,000 when they bought the railroad
right-of-way that is now a street on Ramona
and only took in $484,000 which had been saved
up in advance because there is still a $52,000
fund balance in that fund. State Gasoline Tax
revenues have gone down in the past years a little
and is based on the gallons sold in the state rather
than the price of gas. A couple of years ago the
continued)
STATEMENT NO. 5
STATEMENT NO. 6
\
STATEMENT NO. 7
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1976 04 15 CC MIN (Ìì Ï
pe0006961
1
Adjourned Regular Meeting of the Baldwin Park City Council April 15, 1976
Page 12
against property owners. He referred to the Sewer District STATEMENT NO. 16
Funds and said that the old sewer districts from 1961 and
1962 have total fund balances of $46,000 and the same
amount of cash. He said they are pretty inactive and there
is some legal problem about what to do with that money
and thought the Council might want to pursue that to find
if they could use it for other purposes.
He said the Street Lighting Fund is an assessment made to STATEMENT NO. 17
provide street lighting and is creating more problem in
many cities as the cost of street lighting energy has
gone up and under SB 90 you can't raise taxes to pay for
the cost of street lighting. In Baldwin Park during 1975
the expenditures exceeded the revenues by $7500 with
$28,000 stilt in the fund balance.
He said Trust and Agency Funds were monies that for various STATEMENT NO. 18
reasons have been deposited in the City Treasury and
don't belong to the City; they belong to somebody else.
The Guarantee Deposits are money that people have put
up to guarantee work on streets, etc. and when they have
done what they are supposed to do the City gives them
their money back. The Assessment Bond Fund is money
the City holds and belongs to the bond holders and is
in the process of being paid out at the end of the year.
The CETA trust under the CETA program the City is required to
maintain the money they have received through the
Federal government in a separate fund until such time
as the money is expended for CETA employees.
Mr. File referred to Statement 20, the Statement of STATEMENT NO. 20
Changes in Fund Balance for these various funds. He
said this Statement is the one that ties in the Income
Statement, the picture of what happened in the year,
with the Balance Sheet which shows what things were
as of June 30. It shows that General Fund was increased
about $96,000 from the $1.5 Million in June 1974 by spending
less than what was taken in in the General Fund; that there
was an adjustment in the reserves of $1000 and some other
minor item, but that basically It ends up $1.6 Million in
the Fund Balance and that the reason was because
$96,000 less was spent than was taken into the General Fund.
The revenue sharing was included 1n the General Fund
because the revenue sharing was spent in law enforcement.
He said in 1975 all the revenue sharing money was not
saved but more had been saved in other years so that
in a 4 year period you broke even. The Gasoline
Tax Funds shown were spent from $644,000 down to $75,000
because of the large acquisition of the right-of-way. \
The Other Funds are lumped all together and itemized
on other pages, but the total picture is that it went
from $150,000 down to $100,000-not that much of a
variance considering the dollars involved.
He referred to the Footnotes to Financial Statements,
saying they are part of the Financial Statement and
should always be read. The footnotes show that the
Fire and Library Taxes are shown as a City tax, which
is not exactly so as these taxes are levied by the
County, who tells you how much to levy. The County
says this is what we are collecting from the City
of Baldwin Park to pay for Fire and Library services
not what they cost in Baldwin Park. The only
reason the City levies these taxes is because by doing
so they get credit for revenue sharing.
continued)
/
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Adjourned Regular Meeting of the Baldwin Park City Council April 15, 1976
Page 13
These figures go in with the other revenues? the Census
Bureau and the federal government put them in their mill
and the City gets more revenue sharing.
He referred to the footnote on the Workman's Compensation
regarding self insurance which he said seemed to be a
fine money saving device the City has gone into and with
a little luck there wi11 soon be sufficient reserves
so that the contribution to the fund can be reduced.
Footnote 4 referred to advances that have been made to
the Baldwin Park Redevelopment Agency a loan authorized
by the Council to be repaid from future tax increments
but since there is no apparent ready ability on the part
of the Redevelopment Agency to pay the money back, this
money has been reserved in the City's General Fund so
that it does not show in the Unappropriated Fund Balance.
He said if the City gets the money back the Fund Balance
will increase by whatever comes back.
He said the last entry shows that the City did receive
various grants and aids and the General Fund will be
contingently liable for any refunds that might be caused
if the federal auditors disqualified any of these expend-
itures. So far the state auditors have been fairly well
satisfied.
Mr. File said about 20 more pages had been added that
might be of help because they are in a lot more detail
than the basic financial statement. AH of the funds
of the City are explained, a schedule of the cash in-
vestments of the City as of June 30, 1975 and what fund
they belong in is shown and detailed schedules of
revenues, showing each account and what happened with
it. Another page shows the Schedule of Transfers to
the General Fund as he had discussed; another page shows
by department the amount of activity and expenditure
throughout the Fiscal Year.
Mr. File referred to Schedule F and said it showed how
the revenues and expenditures relate to each other
percentage wise. As an example which was shown, he
said in Baldwin Park in 1975 the Sales Tax was 15% of
the total revenue. In 1974 it was 13.2 %. He pointed
out that there was almost 56X increase in the expend-
itures to General Government.
He referred to the Analysis of Changes in General Fixed
Assets and said it indicated that as of June 30, 1975,
the City had an inventory of Fixed Assets of $2,281,000,
and shows the dollars invested in the physical plant
to operate the government of the City.
Mr. File completed his report and suggested that
questions be directed to Mr. Newman* and that the
Council should go over these Financial Statements and
ask their own Financial Department for interim
financial statements that give them the information
they want to search out.
Mayor Waldo questioned Mr. Newman as to why the Council
had never held study sessions with the auditors before.
Mr. Newman said the Audit Report is generally presented MR. NEWMAN
to the City Manager with the offer extended that the
auditors are always witting to meet with the City Council
to answer questions, but that the previous City Managers
have indicated that this was not necessary. This offer
had been made in June, 1975,
continued)
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Adjourned Regular Meeting of the Baldwin Park City Council April 15, 1976
Page 14
Mayor Waldo said that during the transition between the
different Directors there had been some difficulties
and he asked Mr. Newman to enlighten him about the
$250.000 boondoggle" as he said he had never gotten
a precise answer on what happened. The money had
been put in a fund and they did not know where it
was put.
Mr. Newman said there had been an interim Finance Director
whose duties were just to keep a smooth running ship
and he didn't know what he was doing. Then a Finance
Director was hired who had been a City Clerk and had
no experience as a Finance Director and didn't know
the difference between a debit and a credit. He said when
inactive time deposits money that City has in excess
of their current requirements which they invest) mature,
it is good accounting policy to receipt those funds
but the Finance Director didn't know how to receipt
those funds. In the past, Mrs. Duncan had always just
turned them over when they became mature into a new
amount and not receipt them into the City Bank Account
but reissued, a new Warrant to redeposit it. He said
Mr. Fratto thought it would be a good idea to deposit
the funds but didn't know how. because when a time
deposit came in and was receipted it would go as a
debit and a credit awash in the active and we would
still be in the inactive. The money was always in
the bank, either in the active or the inactive, but
was screwed up" on the books. The budget had to be
reworked three times to straighten it up.
Councilman Kitchet asked Mr. Newman to recap some of
the areas where money was lost.
Mr. Newman said Gas Tax money was tost because in
prior years money had been saved to pay Southern
Pacific Railroad for the right of way that the City had
acquired for Ramona Boulevard. Last year something
in excess of $5000 was paid. He clarified that
interest had been saved alt that time so it had
been a great bargain for Baldwin Park as the City
had the right of way and constructed the street
many years ago and the price for that would have
been maybe tripled in 1975 had the price not already been set.
Mr. Newman explained that the Sewer Connection Fund
was a decrease and that through the budgetary process
it reimburses the City, the Public Works Department
and the General Government Department to the amount
of $20,000/year1y for financial and planning services
rendered by the City to this Fund.
He stated the Street Improvement Fund had decreased
almost $28,000 and that his recommendation is to
have a serious took at that Fund. There is a reserve
for assessments receivable for $10,000 and that
reserve is again the assessments made to the property
owner which have not been yet repaid. He said this
was somewhat of a conservative approach and if a
liberal approach was taken and everything was
collected from the property owners there would
stilt be a deficit of $4,000 which the General Fund
would have to make up. It has already loaned that
fund $3800 and he said the Council would have to
take a hard look at the Curb and Gutter program
as to whether they want the General Fund to pay
a certain amount for Curb and Gutter improvements.
continued)
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Adjourned Regular Meeting of the Baldwin Park City Council April 15, 1976
Page 15
Mr. Newman said that under Special Assessment Funds
Street Lighting has decreased by approximately $7500
because of the increased costs and the inability to
raise the tax revenue to pay for it.
Mayor Waldo asked if there had been an investigation
of the investments policies and if the procedures
the City uses are good.
Mr. Newman said he thought they were. and that when
a time deposit becomes mature and is ready to be \
reinvested, bids are taken from 3 local banks and
for the past 2 years Golden State Bank has had the
highest bid. Just recently some of the other banks
have come in with higher bids so the City invests
in those to get the greatest return.
Councilman Btewett inquired if 5.5% was what the
City was getting on time loans and Finance Director Halloway
said he had just reinvested one at 4 3/4% and that
it had been 11%.
Councilman Blewett referred to a list of questions
regarding the 1974-75 Financial Audit that had been
given to the auditors and asked Mr. Newman to address
himself to the ones that had not already been answered.
Mr. Newman referred to Question No. 1 Have assessed
valuations in the City dropped?- He said the Finance
Director had been through a recent study for preparing
this year's budget and could better answer that. He
thought over the past 4 or 5 years assessed valuations
have increased about 5% a year in Baldwin Park and it may
be misleading to look at the Financial Statement
because if you look at just secured tax revenue
it is decreased. He said the reason for that is
that the Homeowner's Exemption has increased so the
Homeowner's Exemption from the state has increased
proportionately so that with the two figures together
the tax revenues have increased.
He referred to Question No. 6 It appears that for the
last two years General Fund expenditures have exceeded
total revenues. If this is true, how long has this
been occurring and what corrective measures should be
implemented? and said he did not understand that,
because when you take total revenues and transfers
from other funds for the past 4 years they have
exceeded revenues and transfers which is another form
of revenue and have exceeded expenditures.
Mr. Newman referred to Question No. 7 Police costs for
the last year were three times the cost of fire services.
Is this normal?- He said Mr. File had already covered
this and that you really can't tell as you are taking
the word of the County and that is just the amount of
revenue collected. He said the only way to get the
actual figures was to get an audit report from the
County.
Councilman Kitchel asked Mr. Newman how the tax delinquency
on property tax in Baldwin Park compares with other cities.
Mr. Newman said the percentage is a little higher in
Baldwin Park than in other cities he has been involved in.
continued)
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Adjourned Regular Meeting of the Baldwin Park City Council
April 15, 1976
Page 16
Mayor Waldo asked if the increase in sales tax that Mr.
File mentioned was due to inflation.
Mr. Newman responded that there would be another increase
this year, too, and that it was mainly due to inflation
and also due to increased businesses within the City.
Mayor Waldo thanked the auditors for coming and said it
was too bad the Council had not had the benefit of
this talk in June and that it was good to know the
offer was open at any time.
00-
Discussion followed among the Council regarding setting
a meeting with the Agencies and Commissions. Councilman
Blewett suggested taking a room at Morgan Park for this
meeting as it would be in a more informal setting than
in Council Chambers. It was decided to establish the
date of the meeting at the next regular Council Meeting.
Mayor Waldo said the Hous-inq Committee had requested
moving their meeting place to Council Chambers. Council con-
curred with their request.
DISCUSSION MTG.
WITH AGENCIES &
COMMISSIONS
HOUSING & COMMUN.
DEV. COMMITTEE
WILL MEET IN
COUNCIL CHAMBERS
00-
AT 9:30 P.M. THE MEETING ADJOURNED.
AGUILAR. There were no objections.
00-
M/S/C: BLEWETT/
9:30 P.M.
MEETING ADJOURNED
APPROVED: y'(XM 1976
Date of Distribution to City Council: April 30, 1976
Date of Distribution to Departments: April 30, 1976
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Adjourned Regular Meeting of the Baldwin Park City Council
April 15, 1976
Page 11
galtonage went down and therefore the gasoline tax went
down. Because it is a fixed amount on a gallon of gasoline
it does not keep pace with inflation and since the cost
of street work does keep pace with inflation both CAL TRANS
and the City of Baldwin Park are going to find it difficult
to do all their street work out of the State Gasoline Tax
Fund.
He said the County Gasoline Tax Fund was a rather small fund
most of the time, but occasionally a lot of money comes from
the County. The Aid to Cities program gives each City with-
in the County a certain amount of money every year to spend
on street work and the Highways Through Cities program has
a supervisor who distributes a certain amount of money to
the cities in his district to do particular projects. In
1974 the City received $200,000 under the Highways Through
Cities program but did not get anything in 1975. He
referred to a proposed Resolution to do away with the
Aid to Cities annual allotment and have a11 the County's
gas tax money to give to cities go through the Highways
Through Cities program, saying the City may not be able
to count on the $70,000 they get every year from the County.
The State and Federal Grant Funds are practically over
for Baldwin Park unless there are new ones coming in.
The largest grant was the EVIS grant. Baldwin Park has
done relatively well in the grant area, but Mr. File
said he did not know of any others coming along.
He said the Traffic Safety Fund is the money received
from code fines and forfeitures for vehicle code violations
and can only be spent for traffic safety purposes.
It amounted to over $200,000 last year.
The Sewer Connection Fund was set up to provide for future
sanitary sewer maintenance and replacement and produces revenue
from sewer connection fees and assesment fees that are issued
by the City and last year it spent $25,000 more than it
took in but there is stilt $27,000 in there. Mr. File
said he thought that someday the sanitary sewer re-
placement may become quite a problem for all
cities.
He said the Street Improvement Fund is a small fund that
was set up to provide for curbs and gutters and that the
City contributes toward the construction of street improve-
ments and receives a certain amount of revenue and service
charges on street Improvements. This fund is a deficit fund
balance which means that more funds were expended for
this type of street improvement than were in this
fund and therefore the General Fund lends money to
this fund to enable it to do its work. He thought
that perhaps here is an area to consider raising the
fees or whether there should be a change in policy in the
City's activity in the curb and gutter area.
He referred to the Local Transportation Fund under SB 821
and said $8,728 had been received for a particular
project and at the end of the year none of it had
been spent so it wilt be available for this year's budget.
Mr. File said we ran out of Special Revenue Funds and
referred to the Special Assessment Funds, saying they
are comprised from monies obtained from assessments
continued)
STATEMENT 9
STATEMENT 10
STATEMENT 12
STATEMENT 14
STATEMENT 15
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