June 14, 2011 - Laguna Hills City Council Meeting
All Council Members were present
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SPECIAL ANNOUNCEMENTS - NEW ORANGE COUNTY GRAND JURY REPORT - Compensation Study of Orange County Cities confirms Laguna Hills has highest paid City Manager in the County. http://www.ocgrandjury.org/pdfs/comp-study-oc-cities/Compensation-Study-of-Orange-County-Cities.pdf  

**HELPERS NEEDED FOR THE 3/5 MARINES AT THE CITY'S JULY 4TH EVENT!!
see below under HOW TO SUPPORT THE 3rd BATTALION, 5th MARINE DIVISION - Adopted by the City of Laguna Hills Please call Micki as soon as you can to let her know how you can help on July 4th. at Work 949-582-5652 or Home 949-859-1962

*** See the June and July Line Up for Win-Win-Wednesdays at http://www.winwinwednesdays.com/  See more under - INFORMATION, COMMENTS QUESTIONS and CONCERNS from Watch Dog Readers:

Contact Laguna Hills City Council Members at - ccouncil@ci.laguna-hills.ca.us  

PRESENTATIONS and PROCLAMATIONS – Mayor Songstad presented Lyndsey Kaan, LHHS Student Liaison for the Spring Semester with a Certificate of Recognition for service with dedication and distinction. The City of Laguna Hills established a Student Liaison Program in 1993. The new LHHS Student Liaison for the Fall Semester will be Kylie West and the alternate will be Jeena Bonutto. They took the oaths of office and received certificates of appointment

Dan Meehan, Community Services Superintendent received a 10 year Anniversary Award Certificate of Recognition and gift. Congratulations to Mr. Meehan!

PUBLIC COMMENTS -

Garon Sammi, Laguna Hills resident since 1987 on Califia Dr. (We apologize for the incorrect spelling of this citizens name, he left before we could obtain the correct spelling) spoke about serious parking problems on his street, Califia Dr., and asked about the possibility of extending his driveway to get his 2nd car off the street. He was referred to Vern Jones, Community Development Director.

Bob Dickson, Laguna Hills Resident - Bob gave an update from the Marine Support Committee. He noted 3 e-mails received from the 3/5. From Lt. Col. Morris, Commanding Officer of the City's 3/5 Adopted Marines - Thank you for re-energizing Laguna Hills' support of its battalion and just ask and we will support the committee however we can. We just need some time to plan ahead because Lt. Col. Griffin (the next CO for the 3/5 Marines) is beginning to train the battalion for its next deployment. Please thank the Laguna Hills City Council as well, I sense we are gaining momentum in the relationship and want it to continue. Regarding a static display for the City's July 4th event Col. Morris said I'm sure the battalion can support the committee on the 4th and will let Lt. Col. Griffin know that the details are forthcoming. From Kim Reese the Family Readiness Officer - This is wonderful news and excellent pictures, thank you for sharing and thank the Committee for all their work, dedication and loyalty that is making a tremendous impact on the lives of so many. From Major Bobo, who ran in the race and got all the other Marines to run - I want to thank the committee for the hospitality they extended to the Marines, the hotel rooms, the goodie bags, and the beer, even though everyone declined the beer, it was a first class event. I think all the Marines enjoyed the course, mostly the scenery, not the length. It was enjoyable for my family and the Marines. I look forward to next year's race.

Bob Dickson also noted that Laguna Hills Team Darkhorse will be at the 4th of July celebration with our booth and another static display and we hope our booth can be next to the display this time. Council Member Bressette asked Bob to speak about the popularity of the Memorial Day Static Display from the 3/5 Marines. Bob responded that for everybody and even for him who had never been in a jeep it was really awesome. It was crowded the whole time, the kids and adults loved it and we will be doing the same thing at the 4th of July Celebration. Council Member Bressette added, bringing the Marines to our Memorial Day Event turned a race into a patriotic event. Bob gave a special thanks to Mike Bland who has done so much work for the committee.

Ed Krause, Laguna Hills Resident spoke about the traffic safety problems and problems for small business owners due to the ongoing construction on Santa Maria Blvd. He said he is also a small business owner and the PTA President for San Joaquin Elem. School and said he would like to have a carnival at the school to raise funds but parking is impacted by the construction. He noted that he had talked with Ken Rosenfield, City Engineer and Public Services Director who advised him that some of the parking on Santa Maria will be permanently lost. Mayor Songstad advised him that the construction on that street is being done by Laguna Woods. Council Member Carruth referred him to the Laguna Hills Traffic Commission (that meets only every 2 months) but will be meeting again on July 20 for assistance and for a better overview of this problem, for him and for her as well. Council Member Bressette agreed with getting more information about the problems in this area back to the City Council as soon as possible. Ken Rosenfield, City Engineer and Public Services Director said Ridge Route is planned to be 4 lanes but that could be many years away. Council Member Kogerman agreed with Bressette.

Meg Gorham, Laguna Hills Resident announced the Grad Nite Safe and Sober Preview Event - a sneak peek, for everyone in the community, of the tightly guarded secret theme of this year's Grad Nite 2011 on Monday, June 20th, from 5 - 7:30 pm. The cost of admission is $2 or a returned invitation (that you will receive at the door) with completed contact information. Donations of any size are greatly appreciated. All are invited, the public, local schools, businesses, and community members to tour the venue on the LHHS campus and see first-hand the remarkable transformation from school to extraordinary. LHHS is one of only three south county high schools that continue to do Grad Nite ON campus. Follow signs to the Aux Gym (on the Stadium side of the campus) at LHHS, 25401 Paseo de Valencia. Food samples will be offered by the following Win-Win Wednesdays partners: Mangia Bene (Laguna Niguel), Peppino's (Aliso Viejo), Pizza Store (Laguna Hills), Romeo Cucina (Laguna Niguel) and Villa Roma (Laguna Hills) as well as samples from Costco and It's A Grind Coffeehouse (Laguna Hills). At this Preview Event we will hand out a special "SUPER" flyer with all five of the restaurants highlighted above on one page for June 22's Super Win-Win-Wednesday OR people can download the individual flyers above as we do every week.

Then on Wednesday, June 22nd, those same five restaurants will host a "SUPER" Win-Win Wednesday!! When patrons download a flyer from ANY of these restaurants and return the flyer to the restaurant where they pay for a meal each restaurant will return 15% of the proceeds to LHHS PTSA's Grad Nite! (all flyers are available at www.winwinwednesdays.com ) NEXT we begin working on LHHS PTSA's Grad Nite June 14, 2012. Mark your calendars now!

Rita Rembolt, Laguna Hills Citizen, confirmed Ed Krause's comments about Santa Maria Blvd. where it appears they are creating chaos. She thanked Council Member Kogerman for all of her efforts for Term Limits and Melody Carruth for bringing up Term Limits in the past. She said she was here 2 years ago regarding the budget concerning the Senior Citizen's Center. At that time you had nothing available for the seniors. Since then you have filed for federal funds but the City has not put aside any money from their budget for the Senior Center. Today and going forward the Seniors are the population with the most growth. I read in the paper after I had approached the council for money for the seniors that they refused and learned there was a $30,000 bonus and a $60,000 car given to the City Manager. Playgrounds are being upgraded for 10s of thousands of dollars as well as Sports Complexes, landscaping, etc. She said she is here again to ask the Council to consider their senior population, noting that most of the council members are seniors. She said the Grants don't cover actual services for the seniors who are a growing population of voters in the City.

LHHS STUDENT LIAISON REPORT by Lyndsey Kaan - This is the last report from Lyndsey who will be graduating and going to UC Santa Barbara in the fall majoring in Environmental Studies. She noted that the Elephant Bar is the Win-Win-Wednesday pick for tomorrow and has the best sweet potato fries in town. She said LHHS Students have made a really cool video -"Party Hawk Anthem", that the original band tweeted about and now thousands of people have seen. This has been a great accomplishment for the LHHS film team. Senior Awards were presented last Tuesday for National Honor Society, Valedictorians, and all seniors who have won scholarships. Over $3 million has been awarded in scholorships to the LHHS senior class in total which is substantially more than last year. This Friday the Jazz ensemble is playing at the Spectrum in the courtyard area by the fountain from 6 to 7 pm. Next Tuesday is the last day of school. Senior Picnic is on Friday. She closed with, "This has been the highlight of my Tuesday nights." Everyone laughed with Lyndsey.

Minutes - Recommendation that the City Council Approve the Minutes of the previous City Council Meeting for publication on the city web site. The minutes from tonight's meeting will not be approved for publication until the next city council meeting so there is a long delay for the public related to timely documentation of information from the city.

CONSENT CALENDAR - Warrant Register = $584,820.08

Items of interest from the Warrant Register - Over $6000 paid for program supplies for the 1/2 marathon, 5K Memorial Day event to Ashworth Awards and $1500 to Five Star Tours? (Editor's Note - Maybe instead of billing the Marines who volunteered to run the City should look at cutting some expenses?) $104 for a typewriter repair for administrative Services paid to Newport Office Equipment - (Editor's Note - What??? The City Manager gets a $60,000 car from taxpayers but an employee in City Administration is still using a typewriter

Items of Interest from the Consent Calendar: **Items on the Consent Calendar are placed there by City Staff:
Item 4.3 - Progress payment #3 for Community Center and Sports Complex and Costeau Park Playground Refurbishment and Lighting. $91,528.74
Item 4.4 - Professional Services Agreement with Wolfe Engineering and Design, Inc. located in Tustin for on-call engineering and design and staff support services. This is one of 7 engineering firms under contract with Laguna Hills to provide design, construction administration and technical engineering services as needed. Agreement states this is a 5 year contract. until 2016, and their services should not exceed $150,000 over the 5 year period of the contract unless the City orders extra work beyond that which is specified in this contract
Item 4.5 - Amendment to agreement with State of CA. Dept. of Transportation for La Paz Road widening at I-5. Current agreement expires on June 30, 2011 and work is not expected to be completed for another year. Therefore an extension of this agreement is requested until Dec. 29, 2013 Contract is for "an additional lane Eastbound at I-5/La Paz Re. under crossing, add one additional lane at SB off-ramp to a standard loop ramp." Fiscal Impact to the City? City fails to state a cost in this report, stating only that the cost for these services in included in the FY 2010-2011 Capital Improvement Program Budget. Report does state that the City is willing to fund 100% of all capital outlay and staffing costs, except costs of State's quality assurance of environmental, design and right of way activities. State's funds will not be used to finance any of the capital and support costs for project.
Item 4.6 - Professional Services Agreement with Charles Abbott Assoc. for Building and Safety Services to augment and support existing City Staff to provide approx. 10 hours a month plan check services, back-up inspection and counter services as needed. This agreement includes a cost proposal which allows CAA to retain 65% of the Plan Check fees collected by the City and separate hourly rates for the Building Official, Building Inspector, Counter Technician and other relevant staff on a as-needed basis. The City says tenant improvements and room additions will now be plan checked within 7 working days as opposed to 10-15 working days previously. Fiscal Impact to the City is estimated at $300,000 annually but costs will fluctuate.
Item 4.7 - Consulting Services Agreement with OROS Consulting Services for Computer Desktop and Network Administration Support. 2 year agreement for 2 onsite days a week not to exceed $110,240. OROS has been doing computer consulting services for this city for 9 years to date.

Items Pulled from the Consent Calendar for Discussion - NONE
Vote - the Consent calendar was passed 5-0

PLANNING AGENCY PUBLIC HEARINGS -

Item 5.4.1 - Site Development & Conditional Use Permits for Parking, Master Sign Program (at the Taj Mahal Building) by Nadel Commercial, Inc. for signs and to create joint use of parking for buildings and properties at 23521 Pasel de Valencia and 24181 Ronda del Rossmoor. Property owners of Taj Medical Center and Capital Source Bank are seeking to enclose 6,159 sq. ft of underground parking to create additional office space and to convert offices from business to Medical. To construct a 6,300 sq ft Plaza immediately east of the Taj Medical Center, to construct parking and landscape improvements to both properties to gain 385 parking spaces and to modify parking and striping on the private street Calle de la Plata resulting in 29 parking spaces. They want to create joint use of parking facilities between both properties and establish a sign program for the Taj Medical Center and parking lot areas. The owner will pay fees for public art and for traffic mitigation.
Staff Recommendation - Approve the requested Permits.
VOTE - This passed 5 - 0 with compliments from Council Members.

Item 5.4.2 - Request from Site Development and Master Sign Program to renovate the Mission Hills Plaza at 25260 La Paz Rd. Corner of La Paz and McIntyre across the street from the Courtyard Center where the Claim Jumper used to be. New building facades, new landscaping and new signs plus improvements to parking lot.
Staff Recommendation - Approve the requested Permits

The Center Identification Sign was a sticking problem for this project because as Mr. Ron Bamburger, retail developer, speaking for the project, explained to the council this small center has tenant vacancies and the tenants are struggling. The new monument signs, would cost the center owners $30,000 to $40,000 to construct. Also this center, with no anchor businesses, has space for 18 small businesses that cannot be seen from the street so visibility and Identity from the street are essential for business success here. City code allows only 2 signs with a maximum of only 4 tenant names on a sign, so the restrictions placed on the signs by the city code make the cost/benefit analysis unworthy. The old sign looks dated but conforms with City Code at the 20 foot height limit so will be left as is unless the City might be willing to look at the possibility of allowing some exceptions for this location. He emphasized that he did not mean to be disrespectful in any way and this was simply an economic reality.

Mayor Songstad and Mayor Pro-Tem Carruth said they were confused and thought the Sign ID for the center was withdrawn from the discussion for tonight. Mr. Bamburger explained they had withdrawn the sign proposal but wanted to this opportunity to ask about an exception. One monument sign with 6 tenant panels is now being proposed. Mayor Songstad said this needs to be re-submitted at another time. Mr. Bamburger said he would do that but wanted to emphasize that the magnitude of the sign issue offering visibility to the tenants affects the viability of the whole project that will cost well over a million dollars. Mayor Pro-Tem Carruth responded with, "I just feel as though that's some kind of threat." I hope that's not the case. Council Member Bressette added it was essential to give the applicant the council member's comments and thoughts about what he has proposed for signage. Mr. Bamburger said he was sorry for all the confusion but is asking the council to approve the project without the signs and he will receive information from the council about their thoughts on the signs tonight and come back with the proposal for the signs another night. Council Member Kogerman said what Mrs. Carruth sees as a threat, I see as a realistic assessment of the cost benefit analysis regarding putting this much money into something when the signage is not going to reflect the improvements made. She said signage is a major issue for merchants throughout this city.
VOTE was 5-0 to approve the project without the proposed new signs and keeping the old sign.

SIGN DISCUSSION with input from City Council Members
Mr. Bamburger then stated he is asking for 2 new center identification monuments signs with 6 tenant panels on the sign that is on La Paz and 2 tenant panels on the 2nd monument sign to be placed diagonally to the 1st sign. He noted that the Courtyard Center across the street has one sign with 4 tenant panels on La Paz and 6 tenant panels on their tower element visible from the 2 main streets. Council Member Lautenschleger said he was concerned that the one sign was very large with a height of 19 feet and he could not support 6 tenant panels on a sign, but had no problem with the other sign. Mr. Bamburger argued that the Courtyard has 10 tenant signs. Council Member Bressette said the old sign that is there now is 20 feet tall and the new proposed sign is about 18 1/2 ft. tall. Staff is recommending 13 1/2 feet for this sign. He continued that he does not object to the height or having the name of the center at the bottom of the sign rather than at the top but wants fewer than 6 tenant panels. Mayor Pro-Tem Carruth offered that to draw attention to the center you need to change to a low profile upscale monument sign. She also suggested changing the name of the center to La Paz Plaza instead of Mission Hills which sounds like Mission Viejo. Mr. Bamburger said his concern was that someone driving West would not see a lower sign. He asked if we use a lower sign would you support 6 tenant panels? Carruth's answer was that people going West would eventually come back driving East and no to the 6 tenants signs which are throw backs to older times. Mayor Songstad suggested the draws in that center are the 2 restaurants so feature them. Sign code here is low profile, modern and upscale. Council Member Kogerman said she doesn't like to debate with someone who has really studied retail and knows how it works and she thinks the original sign proposed looks very good with just the 4 tenants and the other proposed sign looks good to her.

ADMINISTRATIVE REPORTS - **These Items are authored by City Staff

Item 5.5.1 - Capital Improvement Program Conformity with the General Plan. CA. Code sections 65401-402 require that a CIP (Capital Improvement Program be submitted to the City Planning Agency for review and determination of its conformance with the adopted General Plan.
Staff Recommendation - Adopt a Resolution determining that the fiscal year 2011/2012 Capital Improvement Program is consistent with the General Plan
VOTE this passed 5 - 0

CITY COUNCIL PUBLIC HEARINGS –

Item 6.1 - This is the Public Hearing for the adoption of the City's Biennial Budget for 2011-13. The public was referred to the Budget Binder at the City Clerk's desk for information about the budget. City Staff/City Manager are requesting Adoption of the budget although there has been no final report of the findings from the City Employees' Compensation Study. (** Editor's Note - City Staff and Council Commissioned the study as part of this process in a 4 - 1 vote with only Council Member Kogerman voting no because she wanted to address City Salary Policies first.)

The proposed biennial budget consists of Operating Expenditures of $34,290,656, special fund appropriations of $787,930 and debt service appropriations or $3,601,574. 12 Capital projects with estimated total of $3,654,000 for 2011-2013. Recommended total appropriations for the biennial cycle are $42,314,160.

City Staff report says some Major changes are:
1. Defunding the Management Incentive Program (bonuses) for the next 2 years
2. Annual health insurance savings of approx. $187,000 from finding a new health Insurance Vendor. (Editor's Note - According to the staff report this reduced rate vendor has been available since 2003, so a lot of money was lost over the 8 years they waited to make this change after these huge costs were exposed in the Orange County Watchdog in Nov. of 2009 - It's the Health Insurance, Stupid  http://taxdollars.freedomblogging.com/2009/11/05/its-the-health-insurance-stupid/42089/  as part of the Compensation Study done by Barbara Kogerman.)
3. Staff proposes employee Cost of Living Adjustments in 2011-12 of 2% and in 2012-13 of 2.2%
4. Community Development fee based building inspections related to development activity in the next 2 years (+150,000/ +150,000).
5. Community Development fee based planning services in each of the next 2 years (+80,000/ +80,000).

Staff Report states the City Council commissioned a comprehensive Compensation Study this past March and at the May 10, 2011 City Council meeting a preliminary presentation from the City's Consultant for the Employee Compensation study was heard. It is staff's assessment that any changes in the City's compensation policies or practices can be accommodated within the proposed budget.

Staff says the purpose of the Compensation Study was to insure the City's compensation policies and practices are "both fair and competitive over the long run." (**Editor's Note - what staff actually said on Jan. 11, 2010 when they requested this study was the purpose of this study was to look at how this City compares with others related to providing reasonable, fair and competitive compensation to its Full Time Employees.) Staff continues,"It is also expected that any changes would be implemented over a reasonable period of time to avoid an undue disruption to the City or its employees. Therefore, the Compensation Study is not expected to have a significant impact in the next 2 years, (**Editor's Note - Staff did not say anything about making changes over a 2 year period when they requested this study) especially since the proposed budget already includes significant savings from the defunding of the MIP (Management Incentive Plan) and the City Council approved change in health insurances." (Editor's Note - This defunding of management bonuses is a temporary measure - proposed for only 2 years and management raises are not excluded here. Management staff has received raises, bonuses and COLAs in the past.) The COLAs of 2 and 2.2% may or may not be evenly applied to employees and must 1st be authorized by the City Council in the Salary and Benefits Resolution to be presented at the July 12, 2011 City Council meeting that will include any other recommended changes to employee compensation.
Staff Recommendation - Adopt the Operating Budget, Capital Improvement Program and other appropriations.

Public Hearing Comments - Bob Dickson, Laguna Hills Citizen and CPA stated he felt the council should not vote on adopting this budget until we hear the results of the City Employee Compensation Study that the council wanted. He added it was great that Bruce Channing got that health insurance savings, but the flip side on that is we've been spending between $100,000 and $300,000 on that for the past 19 years so we overspent in the past.

Mayor Songstad responded that the City has achieved a surplus in the budget for the past 20 years. "So, I don't agree that we've over spent." (**Editor's Note - Following that line of reason, it should not be lost on Mayor Songstad that the City could have achieved much more if they had paid attention to overspending for their own health care premiums and that savings could have been used for services for citizens.) Songstad continued we did have a presentation from the Compensation study that said the compensation was either at or below other targeted cities so we do have information. (**Editor's Note - Songstad is referring to May 10, 2011 when Doug Johnson of Ralph Anderson & Assoc. presented a preliminary incomplete report from the City Employee Compensation Study and stated he looked at only one job, "Administrative Assistant" for this report as a tool to illustrate the use of comparisons with other cities and found this one job seemed to be just under the percentile mark for most of the target cities in the study) Songstad continued that his 2nd point is that unless the council wants to substantially increase salaries, this budget puts a ceiling on it not a floor. (**Editor's Note - We are talking about compensation that is received by management staff in this city in a wide variety of forms, not just salaries, so the 2 years of no bonuses and 2% COLAs are not a ceiling as far as we can see.) Songstad insisted we are not the State we have to adopt a budget.

Council Member Kogerman said the presentation we had focused on the Administrative Assistant position. She said one of the things she was elected to address was Senior Management Compensation and it's doubtful that we'll need to cut compensation for non-management staff, but the serious concerns addressed in the recent Grand Jury report should be addressed in our compensation study. She said the deadline to pass the budget is the 30th of this month so we have another meeting before the deadline and could call a special meeting as well. She also reminded Songstad that the council said they were not going to discuss compensation until they got the compensation report and there is compensation material in this budget. She then made a motion to address specific compensation items and postpone the vote tonight until a special meeting or the next scheduled meeting on June 28. Council Member Bressette seconded Kogerman's motion. Songstad replied the Grand Jury report was looking at 2009 salaries not current ones. Mayor Pro-Tem Carruth asked Kogerman if her objective was to swap out items such as finding a savings in one area and then applying that savings to an item in another area of the budget. Kogerman gave examples explaining one example might be a COLA of 2.2% applied differently by taking that percent of the entire personnel budget and apportioning it evenly among all employees so everyone gets the same amount instead of employees making much higher salaries getting more than those making less. She then asked why we don't have that compensation report tonight, but received no answer.  

Council Member Bressette said the only compensation study report we had to date was incomplete, as the consulted admitted it was. He added this is not the first time we have bulldozed through a financial decision without getting all the information. We are paying for 3 retirement plans in addition to CalPERS and I don't like to vote without all the information. We keep talking about 2% at 60 but we pay more than that into other retirement accounts. Maybe it's customary to pay retirement benefits for management employees that average 20.75% of salary but we don't know that. Mayor Songstad continued to repeat, "This is a ceiling it's not a floor, so I don't see the problem." Mayor Pro-Tem Carruth said from the report we had before we seem to be well within the average, what jumped out at you? (**Editor's Note - the Grand Jury appears to believe that their report should have jumped out at all of us!) Bressette responded there are some things I've heard that I don't think are accurate, but I don't know. I want the spread sheet to see that the conclusions are accurate. It's disingenuous to say our retirement plan of 2% at 60 is the most conservative in the County unless you also include all the other things in the retirement benefits.

Songstad interrupted Bressette with, "Do you have a spread sheet on that Mr. Bressette, so I can look at it?" "How do I know that yours is anymore accurate than anybody elses?" Songstad continued that he didn't like the word disingenuous because it's a synonym for dishonest. (**Editor's Note - disingenuous - not straightforward or candid; giving a false appearance of frankness. Generally, it means "insincere" and often seems to be a synonym of cynical or calculating - from the Free Dictionary by Farlex - on the Internet), Songstad escalated exclaiming that he was being accused of dishonesty, and began talking about unfunded liabilities, etc., in defending the city's retirement system. Songstad ended by stating - It's not disingenuous and if I hear that word again we're gonna take a recess. Bressette continued that our management retirement benefits have been very generous in the past but we may not be able to do that anymore.
(**Editor's Note - Council Member Bressette is correct and we applaud him for bringing those facts to light for citizens. See OC Register - Cities want action on pensions - by Robert Ming, Laguna Niguel City Council Member and President of Association of CA. Cities please click on - http://www.ocregister.com/opinion/cities-304037-pension-support.html  This story reports - "in a recent poll for ACCOC (Assoc. of CA. Cities, Orange County) 83% of OC voters support requiring employees to contribute the same amount as their employers to their pensions" (In Laguna Hills that is not happening with pensions or with health insurance premiums) and "73% support capping the amount a public employee can receive from a pension.")

Council Member Lautenschleger contributed that the compensation study is not just for this year, it's for the future. I don't buy the reasoning that we need this compensation study. We have a surplus so if you want to make adjustment upward you can do that (**Editor's Note - Songstad doesn't appear to agree related to his frequently repeated "Ceiling" comments regarding this budget?) He continued with the Grand Jury didn't say anything was "abusive" about us, It asked us to do a compensation study which we've already done. Kogerman said, again, the incomplete report we had on the Compensation Study was on one relatively low level position only, the question is what's the rush tonight we have another meeting before the deadline to make and informed decision. Kogerman added we have not been conservative with management as the Grand Jury report shows. Songstad continued to state, "We cannot wait on the budget" and if what you're suggesting is a contract modification that is a whole different procedure with 2 employees (City Manager and Assistant City Manager) and a confidential memo as to what those 2 contracts said. Songstad continued to argue with Council Member Kogerman about voting now to adopt the budget. Kogerman asked why can we not wait until the next meeting and Songstad replied, "There's no point in waiting till the next meeting." Songstad finally said, What if we don't get it (referring to the Compensation Study Report). Kogerman asked why would we not get the report and Songstad answered I don't have the answer to that. (Editor's Note - Mayor Songstad The looming question is why don't you or the City Manager know why the results of the City Employees Compensation Study are not being reported tonight as promised?  According to the Agenda Report of Feb. 22, 2011 addressing "Award of Contract for Comprehensive Compensation Study", the total estimated cost to taxpayers for the study is $24,500. According to the report from the Assistant City Manager on 4-19-2011, 27% of the City's Annual Operating Budget is for personnel costs with 27 full time employees and 36% to 41% of that amount is for management staff, so why is no one checking on the reason the results of this study were not reported on time?  It is understandably suspicious that neither the Mayor nor the City Manager offered any explanation for why the results of this study were not presented on time, especially in view of the strong push from the Mayor to get this budget approved before the results of the study were reported and in view of the negative findings of the new and completely independent Grand Jury City Compensation Report.)
1st VOTE - was 2 in favor and 3 against Kogerman's motion to wait for the City's Compensation Report findings so that motion failed. The 3 NO votes were Songstad, Lautenschleger and Carruth.
2nd VOTE - was 3 in favor and 2 against adopting the budget tonight and that passed. The 2 NO votes were Kogerman and Bressette.

ADMINISTRATIVE REPORTS (again) - Item 7.2.1 - City of Laguna Hills 20 year Anniversary - A work program in the next 2 year budget is to advertise and celebrate the City of Laguna Hills 20th Anniversary. Staff is developing a timeline exhibit to display at the information booth at the City's July 4th Event displaying the major accomplishments of the City over the last 20 years. Staff is also considering ordering pins to be passed out to promote the theme of the City's anniversary. Staff also suggests a ceremony at a City Council Meeting on Dec. 13. Parks and Rec. Committee suggested Installing banners on light poles and at entrances to the community and one at the Community Center to advertise the 20th Anniversary, and offer glasses/mugs with proceeds to charitable donations. There is a $7000 budget for the promotion of the City's 20th Anniversary.
Staff Recommendation - Provide ideas related to how to celebrate the City's 20th Anniversary. After discussion council members gave ideas such as hanging banners and agreed to spend very little money on something like this in this economy

OTHER BUSINESS - **These Items are authored by Council Members - None

MATTERS PESENTED by MAYOR & CITY COUNCIL MEMBERS -

Council Member Bressette thanked David Reynolds Community Services Director and Dan Meehan Community Services Superintendent for their great work on the Memorial Day Event. He added that the Marines enjoyed our hospitality and the community enjoyed having the Marines.

Council Member Kogerman thanked Mav Bressette for all she did being Grandmother to the Marines' children and getting the teams mobilized. Kogerman also noted the recent Grand Jury Report on their Compensation Study of Orange County Cities. She asked the City Attorney how the City is going to respond to the recommendations from the Grand Jury that were specifically to the City of Laguna Hills. City Attorney, Greg Simonian responded the City is familiar with the process, traditionally the Administrative staff prepares the responses and brings them to council for approval.  

Council Member Carruth asked, "Is it ever possible for us to determine who the Grand Jury brought in a witnesses, where they got the information." Greg Simonian responded he would have to research the question of an interested member of the public being able to get that information.

Mayor Songstad injected that Laguna Hills was requested to do a compensation study so we have that covered. Council Member Bressette added that the Grand Jury recommendations call for Laguna Hills to conduct a Compensation Study of Top Officials, and he understands that our compensation study did not focus just on top officials. (**Editor's Note - On May 10, 2011 Doug Johnson of Ralph Anderson & Assoc. presented a preliminary incomplete report from the City Employee Compensation Study and stated he would break the report into management and non-management to see different trends and needed further analysis of the benefits for management including autos, etc. He concluded that the final report should be in about 2 weeks but the City Manager said that report could not be brought back until the 1st meeting in June which is tonight - June 14.)

Council Member Kogerman also noted the average to poor ratings, from the Grand Jury, of the online Compensation Report for the City of Laguna Hills and she noted the need for review of the senior management contract excesses.

(Editor's Note - Synopsis of the 6-9-11 Grand Jury Compensation Study of Orange County Cities stated on page 1 of their report they did a comprehensive review of information submitted from cities because compensation of public officials and employees has long been a subject of concern and recent allegations of gross abuses have created a firestorm of media, governmental and prosecutorial attention and recent revelations from cities outside of OC have led to charges of lavish salaries and benefits at taxpayer expense.

On pages 17-18 the report notes that it was done to determine if there were any compensation abuses in Orange County. It explained that the term "abuse" is highly subjective. The report quotes the CA. Attorney General's announcement that he would look into any city official's salary that exceeds $300,000, then states, "Based on the data submitted to the Grand Jury of all 34 Orange County cities, the highest paid city employee or official of the 1,847 positions so reported is the Laguna Hills City Manager, with a base salary of $233,592 and total compensation of $378,427. (It is important to note that this compensation amount reported by the Grand Jury does NOT include the $60,000 car taxpayers bought for the City Manager in 2009 because there is NOTHING mentioned about the cost of the car, or any car allowance in the City Manger's Compensation Report from the City. We wanted to know why the car was not reported in the City's online Compensation Report for the City Manager and we learned at the April 19, 2011 City Council Meeting that the City Manager's car is not considered a personnel cost so its cost, according to the Assistant City Manager, is budgeted under "Capital Outlay" as an asset of the City although the paper work for the car states it is for the personal use of the City Manager. In our opinion the car was buried in the budget where it would not be found so it would not show up in the City Manager's Compensation Report.) The Grand Jury Report continues, "It is clear that this is a substantial compensation level. As a point of reference in that regard, the Chief Executive Officer for the County of Orange received total compensation of $324,535, according to the State Controller website."

The report notes in a chart on page 17 the $296,769 compensation for the Laguna Hills "Finance" postion (which is the Assistant City Manager) and states, "In this comparison, Laguna Hills is far higher for the City Manager and the Finance positions" and "also on the high side for other positions compared."

Under FINDINGS the Grand Jury report states on page 26, "The compensation of the City Manager and Assistant City Manager/Finance Director in the City of Laguna Hills exceeds levels in other comparably sized cities both inside and outside of Orange County," and under RECOMMENDATIONS R.4: Compensation Levels - The City of Laguna Hills conduct a compensation review of top officials."

Last on pages 21 and 22 the report rated Laguna Hills Online Compensation Report on the City web site as "C-Average" for Content, "D-Poor" for Clarity and "B-Good" for accessibility - so you can find information but the information you find is average to poor which we have all, including citizens and Council Members Bressette and Kogerman, repeatedly told the City Manager, Mayor Songstad and Council Member Lautenschleger who have refused to make additional changes. To see the entire report click on http://www.ocgrandjury.org/pdfs/comp-study-oc-cities/Compensation-Study-of-Orange-County-Cities.pdf )

Don White, Assistant City Manager/Finance Director - reported last month he attended the International Council of Shopping Centers Recon Convention in Las Vegas cosponsored by the City and Oakbrook Village. Largest retail convention in the country attended by developers, shopping center owners, brokers, etc. Laguna Hills had a booth and met with some of the major property owners in town and marketed brochures from centers in town who have spaces they are trying to lease out. There is also a San Diejo Convention in Sept. they plan to attend.

CLOSED SESSION – With legal counsel re. anticipated litigation and conference with real property negotiator for leases on offices at City Hall.

Next regular City Council Meeting is Tuesday June 28, 7 pm, at City Hall. The City Council is take a recess on July 26 and August 9. Contact Laguna Hills City Council Members at - ccouncil@ci.laguna-hills.ca.us  
================================

City Council & City Manager Report Card - Categories - (T) Transparency for Citizens, (A) Accountability to Citizens, (CI) Championing Citizen Related Issue, (AG) Achieving Citizen Related Goal Grades - (P) Pass, (A) for Authoring a Citizen Friendly Item, (F) Fail, (A+) Extra Credit. City Manager will be scored related to online and agendized Staff Reports and Requests.

Bressette - A - for Voting for the Citizen Friendly Motion to delay Adoption of the City's Biennial Budget until the next Council Meeting when results of City Employee Compensation Study should be available.  A - for voting against adoption of the City's biennial Budget without the results of the City Employee Compensation Study.

Carruth - F - for Voting against a Citizen Friendly Motion to Delay Adoption of City's Biennial Budget until the next Council Meeting when results of City Employee Compensation Study should be available. F - for voting for adoption of the City's Biennial Budget without the results of the City Employee Compensation Study.

Kogerman - A - for Voting for the Citizen Friendly Motion to delay Adoption of the City's Biennial Budget until the next Council Meeting when results of City Employee Compensation Study should be available. A - for voting against adoption of the City's biennial Budget without the results of the City Employee Compensation Study.

Lautenschleger - F - for Voting against Citizen Friendly Motion to Delay Adoption of City's Biennial Budget until the next Council Meeting when results of City Employee Compensation Study should be available. F - for voting for adoption of the City's biennial Budget without the results of the City Employee Compensation Study.

Songstad - F - for Voting against Citizen Friendly Motion to Delay Adoption of City's Biennial Budget until the next Council Meeting when results of City Employee Compensation Study should be available. F - for voting for adoption of the City's biennial Budget without the results of the City Employee Compensation Study and, as Mayor not reporting why the results of that study were not back as promised.

City Manager - F - for requesting a Vote to Adopt the City's Biennial Budget without results of City Employee Compensation Study and  F - for not presenting any information regarding when the results of that Study will be available or why they were not presented tonight as he has stated they would be. Who is monitoring this Compensation Study that was requested by City Staff?

INFORMATION, COMMENTS QUESTIONS and CONCERNS from Watch Dog Readers:

NEW GRAND JURY REPORT - COMPENSATION STUDY OF ORANGE COUNTY CITIES
6-9-11 - Confirms that Laguna Hills City Manager is the highest paid in Orange County and singles out Laguna Hills from 34 cities for special findings and recommendations.
Click here to see the new Orange County Grand Jury Report:
http://www.ocgrandjury.org/pdfs/comp-study-oc-cities/Compensation-Study-of-Orange-County-Cities.pdf  
p.17 of the report states, "Based the data submitted to the Grand Jury by all 34 Orange County cities, the highest paid city employee or official of the 1,847 positions so reported is the Laguna Hills City Manager, with a base salary of $233,592 and a total compensation of $378,427. It is clear that this is a substantial compensation level. As a point of reference in that regard, the Chief Executive Officer for the County of Orange received total compensation of $324,535 according tot the State Controller website."

The Orange County Grand Jury replicated the study done by Council Member Barbara Kogerman and proved she was right. When you consider the size of the city, this is quite disgusting. While the Grand Jury could not call it abuse, because it does not meet the legal definition, it clearly is taxpayer abuse. The smoking gun can be found on pages 17 and on 19. And look at not just the finding but the recommendation which specifically recommends that compensation disclosure for the City of Laguna Hills should be made because right now it does not pass the smell test, my words. When the Grand Jury is looking at 34 cities and Laguna Hills is coming out far and away too high as compared to 33 other cities, and this city is named by the Grand Jury throughout this report, how could any reasonable intelligent person not see this as anything but outrageous? Since so many of the council members have been on the council for the better part of 20 years and they were the ones approving this salary and compensation, they should be very ashamed and all of us who are taxpayers in Laguna Hills should be very upset. We have had to listen to ridiculous denials about this from city council members and the City Manager for way too long. Way to go Grand Jury! Thank goodness there are still some honest people left who will take a stand on abuses like this and clarify them for the public. It takes courage to stand up in the face of opposition from the council and the City Manager.  Good for Council Member Barbara Kogerman and the Grand Jury for doing that. Great job!  Kathryn

My comment on the Grand Jury Report - While they were filling your potholes they were filling their pockets. Tom

1. How does the City of Laguna Hills 2011-2013 budget compare to the 2009-2011? It would be interesting to know how the LH budget compares to similar cities in OC, especially given the report you cited regarding overall salaries for LH management, etc. Does it really cost approximately $21+ million annually to manage what is essentially a bedroom community of just 31,000?
2. I found the comments from the City Staff regarding salaries that are "fair" and "competitive over the long run" to be absurd. Do these people really think they would get a better offer elsewhere? Don't think so...are they so unaware of the major layoffs throughout the state, counties and cities over the last six months and those projected for the next year?
3. You referenced the staff's concern regarding "a disruption" if changes are not gradual. I would posit that such a disruption could be, in fact, a benefit. Thrifty Laguna Hills Citizen

Dear Mayor Songstad, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous, Disingenuous.
Is it time for recess yet?    A Voter who listened to the City's audio tape of the June 14, Council Meeting re. the Adoption of the Biennial Budget and strongly recommends that others do the same.


COUNCIL MEMBER KOGERMAN REFUSES NEW HEALTH INSURANCE PLAN
While gratified that the City has finally selected a reasonably-priced insurance program, for all our employees, I’m opposed to the City providing and paying 100 per cent of the health insurance premium for part-time City Council members and their dependents, I will not participate in any city-provided medical insurance plan until the City requires its part-time City Council members and full-time employees to pay a fair share of their insurance premiums. The city pays 100% of the CalPERS retirement contributions for employees, a practice I also oppose. When I think of how much money the city could have saved over the years if they had been sensitive to these expenses, I decry the lack of services we could have provided our residents that most Orange County cities provide. Laguna Hills City Council Member Barbara Kogerman

ABOUT THE 3/5 MARINES AT THE CITY's MEMORIAL DAY EVENT
Team Darkhorse needs YOU!! Laguna Hills' July 4th Celebration will be graced this year with the presence the United States Marines! Battalion 3/5 will be on hand at our city's festivities, giving our citizens a unique opportunity to mingle, meet and speak with Heroes who protect our Nation. What better way to celebrate our Nation's Birth? How can you help? Team Darkhorse will be on hand to raise funds to benefit the Marines/Sailors and their families. When our country is at War, it is these Heroes who stand and fight. Be part of those who show their support and appreciation this July 4th! Come help support our troops!     Laguna Hills Marine Supporter

God bless these men and women! They are awesome and an inspiration to us all! Cynthia

Memorial Day was so much more meaningful with the Marines there. I think the static display was just great. It seemed like the public really enjoyed it too. If they can come next year, maybe we can have the booth closer to the static display to connect the two. DD

WIN WIN Wednesday! - Make it a habit!
Here's the lineup for - WWW Global Cuisine - Please Download your flyers to give to each restaurant to get the 20% for Win-Win-Wednesday's Safe & Sane Grad Night for LHHS at http://www.winwinwednesdays.com/  

June - Saluting Seniors 2011
Everyday through June - GOLDEN BAKED HAMS (Laguna Hills on Alicia Pkwy behind the Chevron Car Wash)
June 20 LHHS PTSA's Grad Nite Preview Night Event at Laguna Hills High School
June 22 Special SUPER WWW with 5 ITALIAN FOOD VENDORS - Mangia Bene (Laguna Niguel), Peppino's (Aliso Viejo), The Pizza Store (Laguna Hills), Romeo Cucina (Laguna Niguel), Villa Rom (Laguna Hills)
June 29 Deemer's American Grill (LN) La Paz and Pacific Park

July - Summer's Theme
July 6 - Flamingo's Mexican (LH) on McIntyre at La Paz
July 13 - Cafe Rio (LF) El Toro and Rockfield
July 20 - Subway (LH) at McIntyre/La Paz
July 27 - Genghis Khan Mongolian BBQ (LF) El Toro Rd.


HOW TO SUPPORT THE 3rd BATTALION, 5th MARINE DIVISION - Adopted by the City of Laguna Hills

***Special Request for helpers at the City's July 4th Event for the 3/5 Marines Support Committee's Booth - Team Dark Horse.


Team Dark Horse Committee NEEDs LOTS OF HELPERS TO STAFF THEIR BOOTH with the 3/5 Marines at the City's July 4th Celebration!!  We will be collecting for donations for shirts, hats, flags and new items to help raise funds to support the City's 3/5 Adopted Marines. The 3/5 Marines will again have a display like the one the public enjoyed so much on Memorial Day, but so many people are on vacation or gone for the day on the 4th that there aren't enough helpers to staff the booth. The celebration starts at 4:00 pm with carnival rides, activities, music, food, other booths and the Marine's Support booth located at the 3/5 Marine's display. Fireworks start at 9:10 pm. Lots of helpers are needed to hand out the "I love the 3/5" stickers and to collect donations for the items in the booth. Team Dark Horse Committee member, Micki Zettel, will head up the activities and work with volunteers on assignments and times you will be needed. Please come out on the 4th to help make this a success not just for the committee but for the 3/5 Marines. It will be a lot of fun to hang out with the Marines and a great way to say thank you to them!

Team Dark Horse Committee will also have a meeting at the Laguna Hills Community Center on Monday, June 27th, at 7:00 pm to finalize all the details.

Please call Micki as soon as you can to let her know how you can help on July 4th.  Micki's numbers are:  Work 949-582-5652  Home 949-859-1962

Any donation checks can be made specifically to "Laguna Hills Team Dark Horse" and mailed to - Team Dark Horse, 27251 Lost Colt Dr., Laguna Hills, CA. 92653. The Non-profit Corporation 501 (C) (3) status has been approved so all donations are tax deductible. E-mail Mike Bland at 35bland@gmail.com  with questions, suggestions, for information, or about donations, etc. The city e-mail for the 3/5 is 3/5-support@ci.laguna-hills.ca.us  The City Clerk Peggy Johns is the City Liaison to the 3/5 Support Committee. Go to the City web site by clicking on this link - http://www.ci.laguna-hills.ca.us/  

Please see the Laguna Hills 3/5 Adopted Marines Facebook page by clicking on this link - http://www.facebook.com/pages/Laguna-Hills-Team-Darkhorse/132765660119128  and share it with your friends!!


NEWS STORIES AND BLOGS ABOUT LAGUNA HILLS: Click on the links below to see the stories.

The NEW ORANGE COUNTY GRAND JURY REPORT - Compensation Study of Orange County Cities  http://www.ocgrandjury.org/pdfs/comp-study-oc-cities/Compensation-Study-of-Orange-County-Cities.pdf

NEW STORY - OCREGISTER: City manager says compensation is fair
http://www.ocregister.com/news/city-303264-channing-compensation.html

NEW STORY - OCREGISTER: Political rebel faces an uphill battle http://www.ocregister.com/news/city-303262-kogerman-channing.html

Councilwoman: Public pay report inaccurate, self serving
http://www.ocregister.com/news/city-299908-report-council.html  

OC Watchdog Lavish health benefits slashed in Laguna Hills, Tustin http://taxdollars.ocregister.com/2011/05/12/lavish-health-benefits-slashed-in-laguna-hills-tustin/82833/  

After attacks, city-manager-compensation sleuths win state award March 21st, 2011, posted by Teri Sforza, Register staff writer
http://taxdollars.ocregister.com/2011/03/21/after-attacks-city-manager-compensation-sleuths-win-state-award/78545/#comment-139633   Click on http://www.publicceo.com/  for more of this story.  

No more $60,000 SUVs for city manager?
http://taxdollars.ocregister.com/2011/02/09/no-more-60000-suvs-for-city-manager/75030/  

Gold-plated benefits? New councilwoman just says ‘no’ http://taxdollars.ocregister.com/2011/01/18/gold-plated-benefits-new-councilwoman-just-says-no/72532/  

OCREGISTER: Laguna Hills councilwoman says no to health benefits http://www.ocregister.com/news/city-282972-benefits-council.html  

O.C. cities lavished health benefits on council members
http://taxdollars.ocregister.com/2010/12/06/oc-cities-lavished-health-benefits-on-council-members/69544/

Who has the best-paid city council in California? (updated) http://taxdollars.ocregister.com/2010/12/02/who-has-the-best-paid-city-council-incalifornia/69418/
In Laguna Hills the Taxpayers pay the entire cost of heath care premiums for the elected part time city council members and their families. In addition, the City Manager's contract states "To the extent that payment of all or any portion of the dependent rate of premium, is not approved by the city council for all city employees, Channing shall be entitled to a salary increase or cash payment sufficient to cover the amount of premium or rate for dependent coverage not provided by the City plus applicable income taxes on that amount."

OCREGISTER: Kenneth Frank: In defense of city managers http://www.ocregister.com/opinion/city-277030-manager-laguna.html  "Citizens, in turn, must do their part to foster civic pride. They should demand that city council and planning meetings be televised and streamed online. And they need to become involved. In Laguna Beach, we have numerous homeowners associations and environmental, business and labor groups that encourage the exchange of ideas and enhance the interactivity between residents and elected officials.

OCREGISTER: Chris Norby: Local officials susceptible to 'Bell syndrome http://www.ocregister.com/opinion/elected-276253-city-syndrome.html  "Bell syndrome thrives where elected boards vote in lockstep, where groupthink is elevated, and skeptics are ostracized, and where top staff are seen as irreplaceable experts – with rubber-stamped salaries to prove it. Bell syndrome thrives when self-congratulation trumps self-examination."

OC has two of state’s best-paid city managers
http://taxdollars.ocregister.com/2010/09/17/oc-has-two-of-states-best-paid-city-managers/64492/  




CITY COUNCIL MEMBERS SAY the DARNDEST THINGS IN PUBLIC?  Memorable and surprising Public Quotes from City Council Members

June 10, 2008 - Mayor Allan Songstad said "We have to go through a bidding process and sometimes the low bidder is not always the best contractor, but sometimes that's what we're stuck with."
Thank you Mayor Songstad, that is exactly what we have been trying to tell you about the Laguna Hills City Council "sticking " the residents with the same bad vendor - The Orange County Animal Shelter for the past 19 years.

October 25, 2005 - Mayor Allan Songstad, speaking about the Laguna Hills City Council said, "When you've been doing business in a certain way for 13 years you're not likely to change that."
So true, Allan, so unfortunately true unless you change members of the city council.

August 19, 1994 - LHCC Member Allan Songstad - From the Los Angeles Times Newspaper Article Collections - Orange County Focus - August 19, 1994 LYNN FRANEY - Laguna Hills Councilman Declines to Run for Reelection With Councilman L. Allan Songstad Jr. declining to run for reelection, at least one newcomer will gain a seat on the City Council this fall. Songstad said he never intended to run for a second council term and that he is not a "career politician." That leaves space for at least one of the challengers, Cindy Greengold, Saeid Hariri, Grant R. Marcus or Charmane Riggs.

Now, in 2011 with 18 years on the Laguna Hills City Council we are guessing Council Member Songstad has changed his mind about being not being a "career politician."


CRIME IN YOUR NEIGHBORHOOD
For a roundup of Laguna Hills police calls - published May 11, 2011 click on:
http://www.ocregister.com/news/block-300013-disturbance-drive.html  and go to - www.ocregister.com/saddleback  for more.


WRITE A LETTER TO THE EDITOR of the Orange County Register
Letters to the Editor: E-mail to letters@ocregister.com  Please provide your name, city and telephone number (telephone numbers will not be published). Letters of about 200 words will be given preference. Letters will be edited for length, grammar and clarity.