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Home My WebLink About2013-02-05 - AGENDAS - JOINT STUDY SESSION (6)CITY OF SANTA CLARITA City Council / Planning Commission Parks, Recreation, and Community Services Commission / Arts Commission Joint Study Session* Tuesday, February 5, 2013 5:30 P.M. Century Room, 1 st Floor, City Hall 23920 Valencia Blvd. Santa Clarita, CA 91355 AGENDA *Study Sessions are for the purpose of allowing the City Council. Commissioners and sta!!to informally discuss and better understand major issues currently before the City, CALL TO ORDER ROLL CALL FLAG SALUTE ITEM 1 FISCAL YEAR 2013-2014 BUDGET — Each year the City goes through a budget process to develop the annual budget. The process is approximately six months, usually beginning in January and culminating in June with the adoption of a balanced annual budget. The budget process involves the City Council, the Executive Team, all City departments, and the community. RECOMMENDED ACTION: Receive the presentation on the state of the budget including the budget message and the City's fiscal status and outlook. ITEM 2 COUNTY REFORM - At the January 22, 2013 regular meeting of the City Council, former Mayor Carl Boyer addressed the issue of County Reform and requested this matter be agenized for further discussion. At the direction of the City Council, staff was directed to research this matter and prepare information for discussion at an upcoming City Council Study Session. RECOMMENDED ACTION: Receive the information on the issue of County Reform and discuss. PUBLIC PARTICIPATION ADJOURNMENT In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office, (661) 255-4391. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28CFR 35.102.104 ADA Title II) CERTIFICATION I, Armind Chaparyan, Interim City Clerk, do hereby certify that I am the duly appointed and qualified City Clerk for the City of Santa Clarita and that on January 31, 2013, between the hours of 9:00 a.m. and 5:00 p.m., the foregoing agenda was posted at City Hall and the Santa Clarita Sheriffs Station. aj)�� -- Arm d Chap an Interim City Clerk Santa Clarita, California S^LR NCIAGM OBWcbruxyS.2013 .d Agenda Item:_ CITY OF SANTA CLARITA INTEROFFICE MEMORANDUM TO: Mayor Kellar and Members of the City Council Chair Eichman and Members of the Planning Commission Chair Fall and Members of the Parks, Recreation & Community Services Commission Chair Dow and Member of the Arts Commission FROM: Kenneth W. Striplin, City Manager & DATE: February 5, 2013 SUBJECT: FISCAL YEAR 2013-2014 BUDGET RECOMMENDED ACTION City Council, Planning Commission, Parks, Recreation & Community Services Commission, and Arts Commission receive the presentation on the state of the budget, including the budget message and the City's fiscal status and outlook. BACKGROUND Each year the City goes through a budget process to develop the annual budget. This process takes approximately six months, typically beginning in January and culminating in June, with the adoption of a balanced annual budget. The budget process involves the members of the City Council, the Executive Team, all City departments, and the community. Information on the budget process is being presented to the Council, the Planning Commission, the Parks, Recreation & Community Services Commission, and the Arts Commission for review and discussion. KWS:TH:cf S WSTARW&dgml Ludy Sesuon memo - 020513 Agenda Item: �>- CITY OF SANTA CLARITA INTEROFFICE MEMORANDUM TO: Mayor Kellar and Councilmembers FROM: Kenneth W. Striplin, City Manage r� DATE: February 5, 2013 SUBJECT: COUNTY REFORM At the January 22, 2013 regular meeting of the City Council, former Mayor Carl Boyer addressed the issue of County Reform and requested this matter be agendized for further discussion. At the direction of the City Council, staff was directed to research this matter and prepare information for discussion at an upcoming City Council Study Session. The County of Los Angeles is one of the original counties of California and was created at the time of statehood in 1850. Los Angeles County maintains 37 departments providing a litany of services to more than 9.8 million residents. Services provided by Los Angeles County include public safety (Sheriff and Fire), animal care, assessor, audit -controller, beaches and harbor, child -support services, consumer affairs, health services, mental health, public health, social services, registrar -recorder, and probation. California is comprised of 58 counties, ranging in population from the smallest, Alpine County, population 1,175, to the largest, Los Angeles County, with a population of more than 9.8 million as of the 2010 Census. With the exception of Imperial County, which was the last new county formed in California in 1907, the remaining 57 counties were all established during the second half of the nineteenth century. Since 1974, there have been eight attempts to create a new county in California, each of which failed to garner voter approval. Four of the eight failed attempts involved Los Angeles County, including two separate attempts by Santa Clarita Valley to form Canyon County during the 1970s. In 1978, on the same ballot as Proposition 13, residents of southwestem Los Angeles County simultaneously tried to form two new counties. All four measures were passed by the voters in the proposed counties but failed to get voter -approval from a majority of the voters in the rest of the County. As the City Council is aware, the process associated with County Reform is administered by the State of California. The process associated with County Reform is referenced in Title 3 of the Government code (Government of Counties), Chapter 3, Creation of New Counties. Based on the current Government Code, the process of County Reform entails the following steps: COUNTY REFORM February 5, 2013 Page 2 1. Proceedings for the creation of a proposed county shall be initiated by petition. The petition must include the following: • An accurate description of the boundaries of the proposed county. • An estimate of the population of the proposed county, as near as may be determined. • An estimate of the population which will remain in the affected county. • An estimate of area in square miles which will remain in the affected county. 2. A proposal to create a new county from Los Angeles County could occur if it survived current laws initial petition requirements. • Where the population of the proposed county is less than 5 percent of the total population of the affected county, a petition shall be signed by not less than 25 percent of registered voters residing within the proposed county, and by not less than 10 percent of registered voters within the balance of Los Angeles County. • Where the population of the proposed county is greater than 5 percent of the total population of the affected county, a petition shall be signed by registered voters residing within proposed county equaling in number not less than 25 percent of the number of registered voters within the proposed county. • All petition signatures must be secured within six months from the date of the first signature. In reviewing amendments to the government code which became effective in 1978, staff has determined that the changes referenced by Mr. Boyer relate to petition requirements associated with the creation of a new county. Senate Bill 700, enacted in 1977, modified Government Code Section 23321 (a) to require the additional collection of petition signatures from at least 10% of the registered voters within the existing county. 3. After a petition is signed, the Governor appoints a five -person County Formation Review Commission. The Commission will evaluate issues including: • The equitable distribution of indebtedness between the counties. • The fiscal impact the proposed county places on the affected county. • The economic viability of the proposed county. • Final boundaries and the process for orderly and timely transition of services. • Payment of an amount of money by the proposed county for the acquisition or transfer of any part of the property owned by the affected county. • Additionally, members of the commission shall receive as compensation and should the proposed county be created, all expenses of the commission shall be bome by the new county. • The commission may borrow those moneys as may be necessary to meet its expenses until the costs of the commission have been determined. • Loans made may not exceed a total of $400,000. W15 COUNTY REFORM February 5, 2013 Page 3 4. To take effect, Article XI, Section 1 (a) of the Constitution requires that the proposal pass by a majority vote within the proposed new county and the affected county. All costs of an election shall be paid by the principal county if the creation of the proposed county is defeated, or by the proposed county if the proposal is successful. In 1997, State Senator George Runner authored Assembly Bill (AB) 303 to research the current fiscal health and service delivery capability of the County of Los Angeles. This bill provided for the creation of the Los Angeles County Division Commission, which was to be funded by the participating cities and the County to evaluate and report on several issues including: A comprehensive analysis of the fiscal health of Los Angeles County. A comprehensive analysis of the capability and efficiency of service delivery by the County. Whether or not the division of the County into two or more smaller counties would be detrimental to the fiscal health and efficiency of service delivery to any territory affected by the division. Cities identified as supporting AB 303 at the time of its approval included Duarte, Irwindale, La Habra Heights, Lancaster, Lynwood, South El Monte, Temple City, and Santa Clarita. To form such a Commission, AB 303 indicated that any city within Los Angeles County and the County could adopt a resolution declaring its intention to form the Commission. The Commission would be formed when the County Clerk received resolutions from Los Angeles County or one or more cities with an aggregate population of 2,000,000 or more people. Once formed, the Commission was required to report to the Los Angeles County Board of Supervisors, the State Legislature, and the Governor by January 1, 2001. Based on staff s research, it appears the State Legislature's efforts to form a Commission were not successful. Staff has been unable to find any documentation that a Commission was ever formed. Additionally, the Clerk of Assembly has been unable to locate any record of a report generated to the Governor or Legislature. If you have any questions, please contact me at ext. 4905. KWS:KT:hds Mm aCounul-County Rd.. 13 PREPARED FOR THE STUDY SESSION OF THE SANTA CLARITA CITY COUNCIL February 5, 2013, by Carl Boyer Los Angeles County is larger than forty-two of our states, and more than half of the sovereign nations of the world. It is governed by five supervisors who serve until they are termed out. The 101,000 staff in thirty-seven departments need to work in an organization small enough to allow them the satisfaction of being more responsive to the public. County government has been fossilized since 1907, when the last new county was formed. It is imperative that responsible leadership solve this situation. I would suggest that in an ideal world the Board of Supervisors, at the request of the cities of Los Angeles County, would convene a convention of all stakeholders to draw up a ballot measure which would fundamentally reform Los Angeles County. Such reform might likely include the creation of a number of new counties while preserving the Los Angeles County Fire Protection District, the Sheriffs Department and perhaps one or two other departments which might operate in a regional fashion. The City of Santa Clarita can provide significant leadership at little cost and effort. Staff can provide letters to all the cities in Los Angeles County asking for feedback, and council members can raise the issue in the meetings they attend of the Los Angeles County Division of the League of California Cities, the California Contract Cities Association and the Independent Cities Association. If a positive response is lacking, and it might well be, staff can be asked to discuss the issue with staff of the cities of Lancaster and Palmdale, prior to a meeting of the Mayors, followed perhaps by a meeting of the city councils. Supervisor Antonovich has already stated he supports the wishes of the people. The three cities of the north county can then ask the legislature for enabling legislation. The legislature has passed laws previously to allow Canyon County formation. You know you cannot get a Supervisor on the phone. You may not know that there are three county clerk offices, and that the one handling Santa Clarita is further away than Los Angeles, or that during a time of budget cuts the public windows were open two hours a day. I have personal experience, as a foster father, with the Department of Children and Family Services. A understaffed department carries the burden of huge mileage costs because some offices are more than fifty miles away from other parts of the county, and time spent driving is not spent solving problems. Moreover, they do not even have a central database, so that each time a social worker handles a case needing fostering, they call everyone on their list until they find help. I do not expect our city council to make a quick decision. All I ask is reasonable direction which could lead to a responsible solution to the problem which is fair to all. I will be glad to be a part of the solution, and to answer any questions you may have. Fiscal Year 2013-2014 Joint Budget Study Session City Council Planning Commission Parks, Recreation and Community Services Commission Arts Commission Tuesday, February 5, 2013 Meeting Purpose Introduce the Fiscal Year 2013-2014 budget strategy Discuss state of the economy and its impact to the City's budget Review estimated General Fund Revenues and Base Budget Review the budget calendar 1 State of the Economy and City Budget General Fund Revenue 7.3% less pre -recession levels State deficit: $1.9 billion Delay of the "Fiscal Cliff" Online Sales General Fund Revenue and Expen0lture history $1000 _..�.... ...._.—__.._.. ___._ 5900 --- I Sd00 -, -. aevenuez.. EnpvMlu_I E -5 S70.0 se0.0 MT. 2006. 2009 2010 2011 2012 2013. Me 2009 2010 Fk20 2012 2013 2010 c l Year 2 J Future Funding Challenges Improvement of Canyon Country and Newhall Enhanced services within the new annexation areas Ongoing operating costs: ■ Central Park Expansion ■ Permanent Canyon Country Community Center ■ Expansion of library services Whittaker Bermite Public Safety Cemex New Annexations L _ r - - - -- 3 The Arts Santa Clarita's Budget Philosophy The decisions made in good times are more important than decisions made during bad times Always live below your means Run a lean organization Use conservative 5 -year projections Employ full cost recovery when setting fees Diversify revenue Use one-time money only for one-time expenses When in doubt, contract out 12 Estimated General Fund Revenues General Fund Revenues 335.000.000 530.000.000 525.000,000 Si0.000.000 $15.000000 $10100.000 $5.000100 5- p p Opl}251a •AO]1005 General Fund Base Budget Public Sabp y. Parb.nd Rac - Public Worb e Nc Tramfera Ou Adminiabativa Sarvmea Contingency City AllOI m'.. City Miin Community Oevalopmem OfOce Office Debt Sorvlcoa 5 General Fund Operating Re erves 20% 20 19 18 17 16 15 1p 'PN Lti�1y ti b Next Step Subcommittee Meeting: April 30 Joint Budget Study Session: May 7 Subcommittee Meeting: May 17 Planning Commission Meeting: June 4 City Council Budget Hearing: June 11 City Council Budget Adoption: June 25 0 County Separation At the January 22, 2013, regular meeting of the City Council, former Mayor Carl Boyer addressed the issue of County Separation and requested this matter be agenized for further discussion. Background and History • Los Angeles County is one of the original counties of California and was created at the time of statehood in 1850 • Los Angeles County serves more than 9.8 million residents • With the exception of Imperial County, which was formed in 1907, the remaining 57 counties in California were created in the 19th century • California comprises a total of 58 counties, with Los Angeles being the largest in terms of population Background and History (cont.) • Since 1974, there have been eight attempts to create a new county in California • Two of these attempts took place in the 1970s by residents in the Santa Clarita Valley trying to form Canyon County • This process was created with the intent to have it administered by the State of California, unlike the formation of municipalities which is administered by LAFCO 2 County Separation Process • Based on the current Government Code, the process of County Secession entails the following steps: Step 1: Petition Step 2: County Formation Review Commission Step 3: Countywide Vote Petition The petition proceedings are outlined by state law • Less than 5 percent of Los Angeles County's total population • More than 5 percent of Los Angeles County's total population • All petition signatures must be secured within six months from the date of the first signature 3 MI Petition (cont.) • At the January 22nd Council meeting, former Mayor Boyer made reference to changes to the government code which became effective in 1978 • Staff determined these changes relate to petition requirements associated with the creation of a new county • Senate Bill 700 requires additional signatures to be garnered in the existing county Petition (cont.) • Staff estimates the range to be anywhere between 450,000 and 550,000 signatures • The responsibility for verifying signatures rests with the Los Angeles County Registrar -Recorder / County Clerk CI Governor's Commission • Pending a successful petition drive, the Governor would then appoint a five person County Formation Review Commission. • The Commission determines: 1. The economic viability of the proposed county 2. The equitable distribution of indebtedness between the county's unfunded liability of the retirement system 3. Payment of an amount of money by the proposed county for the acquisition or transfer of any part of the property owned by the county 4. The appropriation limit for the proposed county Election • Finally, the creation of the proposed county requires an election process which is approved by a majority vote within the proposed new county and Los Angeles County 5 Recent History Assembly Bill 303, authored by Senator Runner, provides for the creation of the Los Angeles County Division Commission The City made a formal decision to support Assembly Bill 303 in 1997 and adopted a Resolution indicating the City's willingness to serve as a member of the proposed County Division Commission • No record of the Commission being formed M Fiscal Year 2013-2014 Joint Budget Study Session City Council Planning Commission Parks, Recreation and Community Services Commission Arts Commission Tuesday, February 5, 2013 Meeting Purpose Introduce the Fiscal Year 2013-2014 budget strategy Discuss state of the economy and its impact to the City's budget e Review estimated General Fund Revenues and Base Budget L Review the budget calendar -*Sig: 5s_� .. State of the Economy and City Budget General Fund Revenue 7.3% less pre -recession levels ❑ State deficit: $1.9 billion * Delay of the "Fiscal Cliff" ❑ Online Sales $100.0 $90.0 c $80.0 E c $70.0 General Fund Revenue and Expenditure History 2007- 2008- 2009- 20101- 2011- 2012- 2013- 2008 2009 2010 Fls 0 Year2012 2013 2014 o Revenues r, Ex enddures Future Funding Challenges Improvement of Canyon Country and Newhall ❑ Enhanced services within the new annexation areas u Ongoing operating costs: ■ Central Park Expansion ■ Permanent Canyon Country Community Center ■ Expansion of library services ❑ Whittaker Bermite r. Public Safety ❑ Cemex 0 D -44 The Arts M Santa Clarita's Budget Philosophy The decisions made in good times are more important than decisions made during bad times Always live below your means Run a lean organization Use conservative 5 -year projections Employ full cost recovery when setting fees r- Diversify revenue Use one-time money only for one-time expenses When in doubt, contract out Estimated General Fund Revenues General Fund Revenues $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 ■ 2013-2014 ■ $10,000,000 2007-2008 $5,000,000 y $- ° 34` ° & 8 v a General Fund Base Budget Public Safety Parks and Rec Public Works Transfers Ou Administrative Services Contingency Attorney's Ci Manager's Community City Y � g Development Office Debt Services Office General Fund Operating,,Re§erves 20% all 19 i ----- --- -,-Jr-y 18 i- 17 16 ,LO IV e6;y Next Step ❑ Subcommittee Meeting: April 30 a Joint Budget Study Session: May 7 r Subcommittee Meeting: May 17 u Planning Commission Meeting: June 4 ❑ City Council Budget Hearing: June 11 r City Council Budget Adoption: June 25