Council_Recaps

                                        COUNCIL MEETING RECAPS

                            FEBRUARY 16, 2010 CITY COUNCIL MEETING

All City Council Meetings are available on-line for viewing. The February 16, 2010 meeting and agenda
items can be found at: http://yorbalinda.granicus.com/MediaPlayer.php?view_id=4&clip_id=181.

BLACK GOLD GOLF COURSE

The City Council voted on a 3-2 vote to spend more than $1,500,000.00 of our city reserves on a turf
replacement program at the Black Gold Golf Course. I was one of the votes against the plan. In my opinion
now is not the time for such extravagant expenditures and use of our much needed financial reserves. This
current expenditure comes on the heels of spending several hundred thousands of our reserve dollars over the
last couple of years for the same purpose.

Black Gold Golf Course was intended to be a money generating enterprise with the planned community of Vista
Del Verde built around it. When the golf course was approved residents were promised that it would generate a
net profit of more than $1,000,000.00 within five years of opening. Unfortunately, those projections were wildly
optimistic. Instead of generating one million dollars in profits the course has become an enormous financial
drain on the Yorba Linda general fund reserves. Over the past few years hundreds of thousands of dollars have
been transferred from the general fund to the course to make up for shortfalls and to finance needed
improvements.

There is an argument that course revenues are down due to poor turf conditions in the summer. But there is no
empirical evidence supporting such an argument. Golf revenues are down throughout the industry. Yorba
Linda is not unique. So while millions of our reserves are being spent on golf course improvements we continue
to furlough our city staff, cut programs. Most troubling about this expenditure is that while it benefits only a
small segment of our population the rest of the city and non-course users are subsidizing the course operations.

It came to the attention of the Parks and Recreation Department a couple of years ago that the rye grass on the
course was failing beyond repair and that a more permanent solution was needed. Originally, the proposed
remedy was to replace the grass with hybrid Bermuda grass sod which would necessitate closing down the course
completely or in two phases during the transition. Worse yet the cost of the proposed solution was
approximately $8,000,000.00. Despite the enormity of the cost, there were two council members publicly
supporting the expense.

I vigorously opposed spending $8,000,000.00 and significant public opposition to the plan arose. Eventually,
after the uproar, the course operators devised a plan to replace the rye grass with kikuyu grass at a cost of only
$300,000.00 to $500,000.00. This example strongly underscores the need for close scrutiny and public oversight
in cases of large city expenditures. The City Council was just one vote away from spending $7,500,000.00 more
than ultimately proved needed once the public became so vocal.

Recently the issue came before the Yorba Linda Audit Committee - a committee which oversees the finances of
the city and makes recommendations to the council to consider as a whole. I sit on the committee as the mayor
along with Councilman Mark Schwing. The proposal came back to the committee as recommending nearly a
$1,700,000.00 project. I voiced my opposition to the amount increasing so dramatically and asked for the
course operators to work on a more modest plan consistent with their initial projections. Of course the
operators are free to present their inflated plan to the whole council. I will not support it.

The City Audit Committee (also called the finance committee) meets before each regularly schedule City
Council meeting. The meetings are open to the public, are noticed well in advance, have agendas posted on the
city website in advance of the meetings, and are memorialized with written minutes. The grass renovation plan
will be coming back to the Audit Committee soon and then will go on to the Council.

Mr. Drummond of the Yorba Linda Star wrote about this topic in his weekly column. The column can be
found at the following link:

http://www.ocregister.com/news/million-229396-linda-course.html

                                 FEBRUARY 2, 2010 CITY COUNCIL MEETING

All City Council meetings are available on-line for viewing. The February 2, 2010, Council meeting and agenda
item reports can be found at: http://www.ci.yorba-linda.ca.us/~ci26/city-services/agendas/city-of-yorba-linda-
streaming-media-archive

I. EXPLORING THE POSSIBILITY OF TRANSFERRING THE SEWER DISTRICT TO THE
YORBA LINDA WATER DISTRICT

The City Council decided on a three to two vote to examine the potential benefits of transferring the East-end
sewer system to the Yorba Linda Water District. I voted in favor of the motion along with Mayor Pro Tem
Nancy Rikel and Councilman Mark Schwing. Councilwoman Jan Horton and Councilman Jim Winder voted
against the motion. I will support the transfer of the system from one governmental agency (Yorba Linda) to
another (Yorba Linda Water District) only if it will save the East-end rate payers money and prevent a future
drain on our general fund reserves. City staff believes that the Yorba Linda Water District can provide the
same level of services for less money. If this is true it makes good business sense to examine the possibility.
The vote was only to look into the possibility not a final vote to transfer.

                                                           BACKGROUND

As a way to make our sewer service more uniform and cost effective our city staff has proposed that we transfer
the East-end sewer system from the city (a governmental body) to the Yorba Linda Water District (another
governmental body). This is what is known as an annexation, is often done in government, and typically does
not involve charging the receiving governmental body. This is so because the constituency - the rate payers -
does not change, just the agency overseeing the service.

According to our staff, “Yorba Linda is in a unique situation where two thirds of the city sewer system is
already maintained by the another governmental agency, the Yorba Linda Water District.” The staff
recommends that the sewer maintenance responsibilities be turned over to the Water District. Such a
consolidation would reduce duplication of effort and provide the public with a more efficiently maintained
sewer system throughout the entire city. Per the staff report on the item, “The consolidation of the sewer
system will also reduce overall costs for administration, maintenance service and oversight.”

Further, the staff accurately points out “that City of Yorba Linda and the Yorba Linda Water District serve the
same constituents. Maintenance of the sewer system should be administered in the most cost effective manner
to the benefit of the constituent, regardless of which agency operates the system. Selling the system to the
Yorba Linda Water District would be placing a financial burden on the same constituents that the city serves.”

I am a fiscal conservative and believe that government MUST live within its means and that cost effective
solutions to budget issues should be sought. Too often government’s solution is to raise “revenues” which is
just shorthand for new taxes instead of seeking cost savings solutions. There is a philosophical split on the
council now: Those who are hesitant to raise any fees in the middle of the greatest recession since the Great
Depression and those who insist that the city collect all possible revenues (i.e., taxes). Some good examples of
this philosophical split have surfaced in our city over the past couple of years.

First, there was the Landscape Maintenance Assessment District vote. When the city was facing increasing costs
the ONLY proposed solution by a majority of the prior council was to propose doubling the rates and putting
the issue to a vote. There were no cost savings plans proposed, but rather just a new money grab. Moreover, to
my way of thinking governmental inefficiency was going to continue, just subsidized to a greater extent by the
residents. Wisely, the residents of Yorba Linda voted three to one against the tax. Now the city is devising ways
to more cost effectively take care of the assessment districts.

Secondly, there was a move to impose a $200 inspection fee against several businesses in Yorba Linda. This fee
was to cover a new state mandated drain inspection that could occur while city inspectors were at the businesses
for other reasons. This was to me a clear example of a new tax and spend scheme.

Finally, the latest example was an attempt to impose a new $60 sewer rate increase on the East-end residents.
The system this year has an effective $30,000 shortfall but the district has $100,000 in reserves. In order to
recapture “costs” in a manner that we have never done before a proposal was floated to increase fees 400% or
to more than $80.00. Councilwoman Horton and Councilman Winder voted to impose the increase.
Councilwoman Rikel, Councilman Schwing and I voted against it.

                                      MISREPRESENTATIONS & INCONSISTENCIES

Unfortunately a number of misrepresentations have been made recently regarding the sewer rate structure.
While I am hesitant to air these publicly I feel I must considering what is already out in the public domain. The
following are just some examples of the controversy that has arisen surrounding this issue.

1. Councilwoman Horton has repeatedly claimed that the council has saddled the West-end with new costs of
nearly $500,000 to subsidize the east end sewer system. Not so. There are no new fees but rather a new way that
she and Councilman Winder want to do accounting. Using the same accounting we have since the beginning of
the system there is only a shortfall around $30,000. For a PowerPoint presentation on this issue please click
here.

2. Councilwoman Horton and Councilman Winder wanted to impose a new tax of nearly $500,000 on East-end
residents. This is over and above the several hundreds of thousands they tried to impose on residents and
businesses for the Landscape Maintenance Districts and businesses for drain inspections. After Mrs. Horton
again said that the council majority on this issue has put the community in the hole $500,000 I again pointed
out that we are talking about an accounting procedure not a new cost. I gave Mrs. Horton the benefit of the
doubt and said that she must be making such false claims out of ignorance on the issue rather than making
intentionally wrong political statements. The fact remains that there is no new $500,000 charged to the west end
but rather no additional $500,000 that Mrs. Horton and Mr. Winder wanted to impose on east enders.

3. Councilwoman Horton said that the majority of the Council has compromised the health and safety of
Yorba Linda. This is a grossly irresponsible and untrue statement. Even when the falsity of this statement was
pointed by staff she continued to make it. There is NO change in the level of service rendered the East-end.

4. Councilwoman Horton accused those who voted in the majority of engaging in a massive campaign to twist
numbers to avoid doing the right thing. Instead of recognizing there is room for honest disagreement, finger
pointing and inflammatory accusations were hurled toward the other side of this issue. Yet the true deficit of
approximately $30,000 is beyond dispute.

5. Councilwoman Horton initially said we “wasted” $50,000 on a consultant’s report. She was corrected on the
cost at the last council meeting and told that the report cost around $30,000. Mrs. Horton was also informed
that the report can be used for future consideration of rate increases and that a new report would NOT have to
be generated. Yet she again continues to claim that the money was wasted.

6. Councilwoman Horton voted to increase sewer fees by $500,000 to recoup overhead costs and then argues
against transferring the system to Yorba Linda Water District because the Water District would look to recoup
their overhead costs. These are inconsistent positions.

                                                       BUILDING CONSENSUS

I believe it is healthy for the Council to disagree and have thorough debate on issues. Council members come
from all walks of life and have diverse viewpoints. Spirited discussion can bring about consensus. However,
healthy discussion should remain on point and be factual. As your mayor I will do my best to ensure this
happens. Unfortunately the behavior on the council is unbecoming at best. As I have said repeatedly it is
alright and even good for council members to disagree. It is not alright though to behave unprofessionally and
resort to name calling.

                                     JANUARY 19, 2010 CITY COUNCIL MEETING

All City Council meetings are available on-line for viewing. The January 19, 2010, Council meeting agenda
item reports can be found at: http://www.ylonline.org/export/MG72349/AgendaFrame.htm

I. ETHICS ORDINANCE

Yorba Linda’s new ethics ordinance was finally approved. This long awaited ethics ordinance was one of my
campaign promises and something I have vigorously fought for over the last two years. There has been
significant resistance to the ordinance by Councilwoman Jan Horton who in one form or another voted against
the idea of the ordinance or the ordinance itself more than five times. It was finally approved by a 3 to 2 vote.
Councilwoman Nancy Rikel and Councilman Mark Schwing joined me in approving it. Councilwoman Jan
Horton and Councilman Jim Winder voted against it.

The ordinance makes it illegal to:
A. Solicit campaign contributions from city contractors;
B. Vote on a project of someone who contributed $250.00 or more for a period of 12 months following
   the contribution or to accept such a contribution from a person who came before the council for a
   license, permit, contract, or land use entitlement for a period of one year;
C. Solicit the endorsement of city commissioners and contractors in election campaigns;
D. Hold a closed door ad hoc committee meeting;
E. Engage staff in political campaign activities.

The new ordinance also requires that all closed session Council meetings be tape recorded, yearly ethics training
be given for all Council Members, Commissioners, and city executive staff, and formalizes the Council’s intent
to enact a Whistle Blowers’s protection statute and a code of conduct for Council members, Commissioners,
and city staff.

II. FRIENDS CHRISTIAN HIGH SCHOOL POWER POLES

Friends Christian High School asked for the council’s direction on whether it is required to underground high
voltage power lines that run along the southern border of the school site. The item was continued for further
research by the city staff.

III. THE LIBRARY’S 5 YEAR STRATEGIC PLAN WAS PRESENTED

A copy of the plan is available at:

http://www.ylpl.lib.ca.us/strategic_plan.pdf

IV. THE LAW ENFORCEMENT STUDY WAS PRESENTED AND DISCUSSED.

A future workshop will be held to give Yorba Linda residents an opportunity to review the comprehensive
report and consider its recommendations. A copy of the report can be found at:

http://www.ylonline.org/export/MG72349/AS72381/AI72403/DO72435/DO_72435.pdf