Budget Dominates Council Review

• Baykeeper Litigation Could Cost City $1.6 Million

BY BILL KOENEKER

The Malibu City Council got is first look at the proposed budget for fiscal year 2009-2010 at a special quarterly meeting last week. Though there was no discussion about it at the meeting last Wednesday night, the document reveals what kind of war chest is planned to defend against three lawsuits that have been filed against the city by the Santa Monica Baykeeper over alleged violations of water quality standards, approval of permits and entitlements for the La Paz shopping center and office complex and city approval of permits for Legacy Park.
It is projected that the city will spend $750,000 this fiscal year in litigation expenses associated with the Natural Resources Defense Council and the Santa Monica Baykeeper’s lawsuit against the city. An additional $400,000 is budgeted in the proposed budget for FY 2009-2010. “If the city does not prevail, an additional $500,000 could be expended for a total litigation cost of over $1.5 million,” wrote Administrative Services Director Reva Feldman, in a staff report.
The council also learned that, despite the Baykeeper lawsuit, the city is proceeding with a construction bid for Legacy Park.
“It is going out to bid in two weeks. It is a good time to put it out because of the economic climate,” said City Manager Jim Thorsen. The awarding of the bid is expected in July 2009.
During a brief discussion of other budget issues, the council learned that currently there is only $258,725 earmarked for funding for Trancas Park.
Some council members seemed taken aback. “It is the only funding we have obtained,” said Feldman, who noted the staff would come back to the council about additional funding. Members were told at the present time no more grant money has been captured. “In the budget item, that is what we recommend,” added Feldman.
Thorsen said the council always has the option to finance the $3 million plus cost of the park by utilizing certificates of participation, the financing used to purchase Legacy Park. “There are COPs, if we are short of new grants,” Thorsen added.
Members were also told that the city owes $1.1 million for a special city employee retirement account.
The federal government is requiring that cities calculate and fund the amount of other post-employment benefits, such as retiree health care costs and to fund these ongoing costs as well as any other incurred liability. The city’s current liability is $1.1 million. The city’s annual ongoing expense will be about $275,000 a year, which includes approximately $200,000 to remain current with retiree benefits for existing employees and $75,000 toward the accrued liability of $1.1 million. A trust can be established with CalPers.
On the revenue side, the council was informed Malibu issued 58 still photo permits and 72 motion picture permits during the third quarter of the fiscal year resulting in $55,000 in revenue. Annually, the city collects approximately $300,000 in revenue generated from the film permits, according to Feldman.
A program that does not make money for the city, but also does not incur costs directly is Dial-a-Ride, a cab service for seniors and the disabled. The cab fare is one dollar and is subsidized by a grant from the Metropolitan Transportation Authority Prop A money. During the third quarter, the program provided 806 rides to registered riders. Annually, the city allocates $125,000 of Prop A funding for the program.
Municipal officials say the economic downturn is being felt by the planning department. Code complaint activities are on the rise, a common occurrence during hard times. The code enforcement activities have increased in both the area of complaints and in those areas where the city is proactive, according to Vic Peterson, who heads up the building and planning departments.
“Some property owners are turning garages into rentals, we are experiencing more construction projects without permits, and there is an increase in properties being rented out for unpermitted units,” Peterson wrote in his staff report.
Also impacting his department were a number of city-generated public works projects during the last two fiscal quarters. No fees were assessed or collected for such services as processing, reviewing and permitting of city projects, including Trancas Park, Legacy Park and phase one and two of Las Flores Park, “resulting in a significant imbalance of revenues versus expenditures in several categories,” according to Peterson.
The council did not discuss either matter.
The council also learned City Clerk Lisa Pope was sworn in as the first vice president of the City Clerks Association of California and City Clerk’s Department of the League of California Cities.