Charter Review 2013/10/24ij "E1Al
ANAHEIM CHARTER REVIEW COMMITTEE
Thursday, October 24th, 2013
6:00 p.m.
!DE'D Anaheim City Council Chambers
200 Anaheim Blvd, Anaheim 92805
The meeting notice, agenda and related materials were duly posted on October 21, 2013.
PRESENT: Chair, Todd Ament; Committee Members: Amanda Edinger, Craig Farrow, Ernesto
Medrano, Gloria Ma'ae, Keith Olesen, and Member Dunn joined the dais at 6:13 p.m.
STAFF: City Manager's Office: Paul Emery, Assistant City Manager and Margie Otto, Senior
Analyst; Linda Andal, City Clerk; Michael Houston, City Attorney; Raphael Sonenshein,
Consultant.
1. Call meeting to order. The meeting of the Charter Review Committee of October 24,
2013 was called to order 6:01 p.m. in the Council Chambers of Anaheim City Hall
located at 200 S. Anaheim Blvd.
2. Public Comments.
Ron Bengochea, resident, expressed his support for the Committee's previous action relating to
Article IX (Appointive Boards and Commissions) and asked that the Committee continue to
allow public input relating to items on today's agenda, specifically Articles VII and XII.
3. Article VII- Officers and Employees
Debbie Moreno, Finance Director provided a brief presentation relating to the positions of the
Finance Director and City Treasurer and recommended that the Committee consider removing
the language that would restrict the City Treasurer and Director of Finance from being the same
person. She added that sufficient controls could be implemented to ensure proper segregation
of duties, such as ensuring that the same person would not have the ability to make an
investment and then record and reconcile it. She added that removing the restriction provided
more flexibility in the future to combine departments and would allow for savings in personnel
costs of up to $300,000, annually.
Member Olesen stated he believed the separation of positions provided for checks and
balances and asked what prompted the recommendation with Mr. Emery advising that the
recommended action would provide City Council with greater flexibility in terms of organizational
structure. Member Farrow asked what the assumption of the $300,000 savings was based from
and Mr. Emery stated that it identified a potential savings opportunity. He added that at this
time, there were no plans to combine duties or amend classifications; this item would just
provide the opportunity for the city to streamline in the future.
Meeting of the Charter Review Committee
October 24, 2013
Page 2 of 4
Chair Ament spoke to the flexibility of Council and supported providing them with discretion to
make a determination to combine the offices. Member Edinger asked how the decision would
be made to combine the position in the future. Mr. Emery responded that it would be based on
the recommendation of the city manager to the city council and City Attorney, Michael Houston
added that the City Treasurer position would remain an appointment of the Council. Mr. Dunn
expressed his support to combine the position and allow council to make decisions from term to
term. Chair Ament moved to accept staff's recommendation, seconded by Member Olesen
(AYES — 7, NOES — 0). Motion approved.
4. Article XII- Fiscal Administration.
Finance Director, Debbie Moreno provided a presentation on various sections of Article XII,
specifically Section 1204, 1205, 1219 and 1222.
Section 1204, Budget and Further Consideration and Adoption. Ms. Moreno explained that
the current charter requires the budget to be printed in hard copy format. She explained that the
city had no intention of discontinuing the practice; however, through advanced technology the
city could disseminate the budget in various formats to reduce cost and provide greater
efficiency. Staff recommended the Committee modify the language that required the budget to
be delivered in printed hard copy. Member Dunn moved to amend Section 1204 as
recommended by staff, seconded by Member Ma'ae. (AYES - 7, NOES — 0). Motion approved.
Section 1205, Budget. Appropriations. Ms. Moreno explained that the current charter
granted the City Manager authority to transfer budgets from one purpose to another, within the
same department. She advised that it was staff's recommendation to modify the charter to
allow the City Manager to transfer appropriations between departments, for those like projects
and consistent with Council intent, provided the total budget was not impacted, adding that this
would allow greater flexibility and reduce the need for budget amendments. Member Dunn
expressed his concern that council would not be cognizant of budget changes if the changes
were done internally and that it would lend to reduced controls. Ms. Moreno responded that the
transfer authority would only be granted for similar purpose projects providing the example of
tree trimming where responsibilities transferred from one department to another. Member
Edinger stated she was comfortable and liked the flexibility that each department had over their
own budget, however she preferred that Council have approval over interdepartmental budget
transfers since budgets were allocated to departments for certain purposes. Discussion ensued
regarding individual department budget control, appropriations, and types of transfers.
Member Ma'ae moved to allow interdepartmental transfers provided there would be no increase
in the total approved budget for programs or activities of a similar nature or intended use or
purpose, seconded by Member Medrano (AYES — 5: Chair Ament and Members: Farrow,
Medrano, Ma'ae, Olesen; NOES - 2: Members Edinger, Dunn). Motion approved.
Meeting of the Charter Review Committee
October 24, 2013
Page 3 of 4
Section 1219, Independent Audit. Ms. Moreno presented Article XII Section 1219 stating the
current charter required that a copy of the year -end financial statement to be published in the
newspaper. Staff recommended the Committee amend section 1219 to remove the requirement
to publish in the newspaper. She added that public transparency would remain a priority and
availability of the report would continued to be made available through alternative means,
resulting in a $10,000 savings. Member Dunn moved to accept staff's recommendation,
seconded by Member Medrano. (AYES — 7, NOES — 0). Motion approved.
Section 1222, Sale of Municipal Property. Ms. Moreno explained the process of selling
municipal property, stating it was expensive and inefficient. Staff recommended that the
Committee amend section 1222 to require Council approval, by ordinance, of the criteria for the
sale of surplus municipal property. Member Dunn moved to approve staff's recommendation,
seconded by Member Medrano. (AYES — 7, NOES — 0). Motion approved.
Section 1221, Utility Rates. Dukku Lee, Assistant General Manager, Electric Services
provided a general background about the Utility business and the structure of the utility model i)
Municipal Model, represented by Anaheim Utility, not - for - profit and ii) Investor Owned Utility
Model, a for - profit model. Mr. Dukku provided four recommendations for Committee approval,
adding that the recommendations were not rate increases, strictly administrative clarifications:
1) amend the financial reserve language of section 1221 to clarify that operational contingencies
are included, 2) amend section 1221 to provide flexibility in rate options to customers, 3) amend
the customer assistance language to include non - residential customers, and 4) amend section
1221 to clarify which revenue streams are subject to transfer. Member Olesen moved to accept
staff's recommendation, seconded by Member Dunn (AYES — 7, NOES 0). Motion approved.
City Attorney, Michael Houston, suggested the Committee eliminate the third paragraph of
section 1210 as it related to revenue bonds relating to the San Onofre power plant. Member
Medrano moved to delete the third paragraph of section 1210, seconded by Member Farrow
(AYES — 7, NOES — 0). Motion approved.
5. Article XIV - Franchises.
Assistant City Manager, Paul Emery, advised that after internal review, staff had no
recommendation at this time. No action taken.
6. Consideration of additional meeting dates and /or review of next committee
meeting schedule.
Member Dunn requested creating a new section, Section 1214, to authorize the use and sale of
fireworks in Anaheim. He believed this would benefit the city financially.
Member Farrow advised the committee he would be unable to attend the November 21 meeting,
due to a work conflict, and Member Dunn also shared, due to a work conflict, that he would be
out from November 1 — 9 and therefore unable to attend the November 7 meeting. Chair Ament
Meeting of the Charter Review Committee
October 24, 2013
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expressed his wish to have all in attendance at the November 21 wrap -up meeting and asked
staff to facilitate rescheduling meetings.
7. Committee comments/ Staff comments.
No Comments
8. Adjournment. At 7:19 P.M. Chair Ament adjourned the October 24, 2013 meeting.
R pe ully submitted,
Linda N. Andal, CIVIC
City Clerk