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On The City Council Agenda, May 21, 2013

VHS-tapeThe city apparently fixed the video problem they had with the May 7th meeting and the video is finally up for viewing. We’ll let you know if we find anything interesting that we haven’t already reported on. We are wondering if the issues had to do with their recent changeover to allow direct downloading of the video, something we applaud as a step toward a more open government.

May 21st could be a busy day for the city council. The Closed Session, which begins at 5:30 pm, makes no mention of labor contracts. Negotiations have been in progress for the past couple of weeks. Most of the employees in the city are represented by the Orange County Employees Association. The grapevine tells me the city may be looking for increased pension payments as they are in a hurry to catch up the unfunded liability. City employees belong to CalPERS, not the County pension system, OCERS. Too bad. OCERS is doing quite well at this time, even though the OC Board of Supervisors would like the voters to think otherwise.

Most of the Closed Session will discuss property negotiations on the MCAS base. The fact they are discussing terms is a good sign the development of the base is finally picking up. As we said before, the best thing the last city council could do was to make the city its own master developer for purposes of developing and selling the property. It seems when that occurred, development picked up drastically.

The Open Session begins with presentations to Hewes Kids, OCFA Fire Chief Keith Richter and the National Student Leadership Council of SADD. Chief Richter was recently awarded the Fire Chief of the Year Award by the Metropolitan “Metro” Fire Chiefs Association. Undoubtedly, the city council will bestow a certificate or two on him as well.

Two items on the Consent Calendar deserve discussion. The first is the contract with the Orange County District Attorney to prosecute violations of city code. The DA provides prosecution for the city for any violation of state law without cost (the people vs. etc. etc…). Violations of city ordinances, on the other hand, must either be handled by the city attorney or the district attorney under contract. Now, I could really slam the ineptness of the city attorney here but his law firms expertise is in government not criminal law. So, he is off the hook.

The DA has proposed a contract with a reasonable rate increase ($150 p/hr Attorney & ($84 p/hr Clerical) that we doubt the city could find elsewhere. The indication is the OCDA’s services are rarely needed and the contract is based on use rather than time. It is interesting to note the burden of deciding prosecution remains with the DA rather than the city. This is the same as it would be for any felony prosecution.

Item 4, Asset Capitalization Threshold, should also be pulled for discussion. There is a (very) brief discussion on the issue in the staff report that outlines the issue. The economy has outgrown the previous amounts used for capitalization of short and long term assets. City staff are proposing new thresholds but, we question how they came up with those numbers. In fact, judging the economy from a consumer standpoint, we wonder if the new thresholds may be too low considering the skyrocketing cost of infrastructure constructions nowadays.

The final item on the consent calendar is the Quarterly Investment Report. Since the passing of George Jeffries, responsibility for investment of city funds has been delegated to Finance Director, Pamela Arends-King. We’ll reserve judgment as this is her first time out. Suffice it to say the funds are intact.

While most of the Regular Calendar consists of Second Readings of various ordinances affecting MCAS property, one item stands out as a bit of good news for homeowners.

The Approval of Issuance of Special Tax Refunding Bonds should be good news for some homeowners in the Tustin Legacy. About 563 homeowners will see their Mello-Roos lowered by a tax refunding bond. If you are a glutton for punishment, read the 232 page staff report that details the background and refunding of the money. Of course, all of this assumes the economy will continue to improve, a hedgy bet at best.

A second reading will also be heard on amending an ordinance to allow city commissioners to remain on their commissions until such time as they are elected to city office or replaced by the city council. This change will not only bring the city in line with most other cities policies in Orange County, it actually makes sense. One item of contention at the March meeting when this was first discussed was commissioner compensation. If we had to guess, we would say the current city council is not happy with the way the previous council screwed them in regard to compensation.

When Jerry Amante first proposed the voters have a say in compensation, it was clearly a tactic to hurt Councilwoman Deborah Gavello, whom he considered his arch nemesis. That he could care less about the city and future councilmembers, who largely foot the bill for their own expenses, was obvious. By shaming them into compliance, he convinced John Nielsen and Al Murray, both of whom were on the council at the time, into voting to place an ill-conceived ballot measure before the voters that eliminated compensation for city councilmembers. This has placed an undue financial burden on all of them and could hurt the city when it comes time to find otherwise qualified candidates for office.

Seeing the damage it has done so far has apparently caused the Gang of Four to reconsider compensation and not do the same thing to city commissioners. This makes the city commission seats, as influential as they are, a more palatable choice for those who choose to serve the city in a volunteer basis.

The final item, as usual, is the Legislative Report. Staff are recommending support for several bills in Sacramento.

The first, AB229, is specifically geared toward creating tax districts and, in Tustin’s case, on former military base property. Essentially, when redevelopment agencies went away last year, it left Tustin in limbo regarding financing of infrastructure on base property. They joined other government entities who had former base properties in legislation that would allow them to continue to operate similarly structured enterprises. This is, of course, an end run around the demise of redevelopment agencies and is actually RDAs on steroids. We have to wonder why Democrats continue to give gifts of bad public policy to the Republicans.

We do agree with the city’s opposition to AB667 which would require an Economic Impact Report in “economic assistance areas”. This is essentially a “rent control” for businesses that would require a superstore, such as Wal-mart, to study the economic impact on small businesses in a city before they would be allowed to build a superstore. On its face this is protectionism at its worst and should be defeated. What makes this bill even more ominous is the fact the city could be allowed to conduct the so-called study itself, leaving business development even more prone to corruption than it already is. The fact is, there are already enough impediments to business, big and small, that no more should be required by law. Two previous bills like 667 were vetoed by the governor. Support and opposition are typically aligned with unions and business.

Likewise, we agree with the city in their opposition to SB323 which would exclude tax exemptions for private non-profit organizations whose membership requirements exclude certain classes of citizens. SB323 is clearly aimed at the Boy Scouts who continue to exclude gays from their organization. In doing so, the author of the bill, Assembly Speaker John Perez, who is openly gay, is willing to chance the disbanding of other organizations that cannot meet the strict definitions of membership in their organization. This is nanny state government at its worst. Better the BSA debate should remain in the public opinion arena rather than rely on implementation of socialist laws that serve a narrow purpose.

That’s it for the week. If you attend the meeting this week, drop me a line and give me your thoughts.