HomeMy WebLinkAbout1951 05-08 CC MIN714
National City, California, May 8, 1951.
Regular meeting of the City Council was called to order by Mayor
Clinton D. Matthews at 7:30 P.M. o'clock. Councilman present:
Carrigan, Clarke, Curry, Hart, Matthews. Councilmen absent:
None.
Moved by Clarke, seconded by Hart, that the reading of the
minutes of the regular meeting Of May 1, 1951, and the adjourned
meeting of May 4, 1951, be dispensed with. Carried, all Council-
men present voting aye.
ADMINISTRATIVE OFFICIALS present: Alston, Sullivan, Campbell,
Geutereaux, Vansant.
MOVED BY CLRKE, seconded by Hart, that the Council write a
letter of appreciation to the General Chairman of the Chambor
of Commerce Committee for tho offorts put forth by all who
helped to make the Maytimo Band Roviow such a groat success.
Carried, all Councilmen prosont voting aye.
ATTORNEY CAMPBELL roportod that in tho mattor of tho Beverly
Glen Subdivision, Mr. Gordon has changed plans, and there has
been no presentation of any contract. MAYOR MATTHEWS roquest-
ed this be laid over.
ATTORNEY CAMPBELL stated that in regard to tho tax sale on
Lots 18 do 19 in Block 117, City Plat, it is his recommendation
that this bo laid ovor until tho Council has docidod on the
proeoduro thoy wish to follow regarding tho sale of proporty
on which tho City has an option. MAYOR MATTHEWS ordered tho
mattor laid ovor.
ATTORNEY CAMPBELL roported that tho legal description of the
property to bo sold to the National Sehoel District has set
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boon completed. MLYOR MATTHEWS ordered this mattor laid ovor
awaiting the completion of the legal description.
REQUEST FOR REFUND on businoss liconse by P. L. Fitch, 2341
Highland Avenue, in the amount of $2.50, was read.
Tho roquost
was approvod by CITY TREASURER VLNSLNT. Moved by Hart,
by Curry, that the rofund be grantod.
present voting ayo.
seconded
Carried, ell Councilmon
ATTORNEY CLMPBELL roportod that ho mot with two mombers of tho
Library Board and thoy roquostod en opinion as to their powors
under the Education Coda. Mr. Campbell said ho would like to
report on this at tho noxt mooting.
CITY CLERK ALSTON roportod that
Industrial Accident Commission,
adjustmont of a claim from Ivan
she rocoivod a notice from the
a Notico of Hoaring for tho
Hill against the City of Nat ion"
City, which sho would like to rofor to tho City Attorney. MLYOR
MATTHEWS roquostod that this bo roforrod to tho City Attornoy.
CITY CLERK ALSTON stato'_ that in tho mattor of the easement on
Lot 7, Block 212 which was referred to Mr. Wagnor and Acting Cit:
Enginoor Smith, it is thoir rocommendation that the easement
for alloy purposos bo accoptod.
RESOLUTION NO. 5438 was road, accopting an easement for alley
purposos on Lot 7, Block 212, from Ruth K. Faust to the City
of National City. Movod by Carrigan, socondod by Curry, that
tho Resolution bo adopted. Carried, all Councilmon prosont
voting aye.
CITY CLERK ALSTON statod thoro nro bills to be prosontod which
amount to approximetoly $16,000. and thoro is not sufficiont
money in somo of tho funds to pay them. Thorn is also a payroll
to meet on the 20th and askod if tho Council had any rocommend-
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atlons to make. CITY MANAGER SULLIVAN statod that the mattor of
the City's finances has boon of much discussion and it is im-
portant that the Council reviow tho basis on which thc prosont
budgot is operating and roviow the difforonco in logal opinion
botwoon the presont City Lttornoy and tho past City Attorney.
Either ono could bo corroct. Thoro aro citios in California
that oporato on both kinds of thoory of the law. Your present
budgot was built on ono scrips of intorprotations. Tho presont
City Attorney diffors with somo of thorn, but there will continuo
to bo this difficulty until you go all ono way. At tho present
time you aro operating undor a budgot and a revenue system that
is built on interpretation in part. Tho Resolution which was
presented last Juno had a series of Fund labelling. It was a
joint Rosolution in tho sonso thet it was proparod in ordor to
transfer the thon funds to the basis of tho now budgot. You
have, in offoct, repealod a part of that Rosolution, but you
heve not repealed it all. As long as part of last year's
financial basis is in effect, and logal theory back of it, and
you aro p st way on that and part way on the way that Mr.
Crmpboll holds, we aro going to continuo to bo in difficulty.
MRS. SULLIVAN said sho would liko to rocommond that inasmuch as
you have "turned back the clock" in part to last July that you
go all the Mays it that Resolution oae of the items was a
trnxsfor from tho &onorol Fund of $750000, to the Capital Rosory
Fund. Tho Capital Resorvo Fund is no way the same, or identical
with tho Capital Outlay Fund. If you had boon on the basis that
Mr. Campbell beliovos in, you would not have boon ablo to make
that transfer bocauso it would bo nocossery for you to havo an
unbudgoted rosorvo balance. Many cities have a very largo un-
approprictod reserve in thoir budgot. Tho purposo of that
reserve is to carry ovor tho "dry period". In your budget, thc
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Manager rccommondod only a $10,000. amount which was all that
was roquirod undor the basis on which you wcro operating. You
have now changed that basis. You will show a vory slight
deficit, if any, on your oxpondituros this fiscal yocr, but you
will be out of money es far as tho General Fund is concerned
continuously clear into July bocauso your budgot is built for
you to spend monoy before you rocoivo it. With tho narrow
margin you have of $10,000. in your reserve you cannot absorb
that "dry period" of waiting for tho money to comp in. For
that reason, it is the City Managor's boliof that you nood to
-'go completely on the basis that Mr. Campbell boliovos in even if
it is necessary to go back to July and do a lot of things ovor
that you did then. MRS. SULLIVI.N said sho rocommonds that tho
Council go back to the Rosolution which is tho basis of tho
budget, repeal the whole thing and put the funds on tho basis
that Mr. Campbell will agroo to as tho way in which you should
spond your monoy. CCUNCILM N CLLRKE said he would like to hear
a discussion from the City Attorney to help clarify this mattor.
ATTORNEY CLMPBELL stated that on Juno 28, 1950 at tho time tho
various transfors woro made thore was a transfor in tho sum of
$75,000. transferred from tho General Fund to the Capital Ro-
sorvo Fund; and that ho has an objoction to the transfor of that
back as it is his contention that it is Capital Outlay regard-
less of the name of the fund, and under the Capital Outlay Act
any monoy that is loft at tho end of tho yoar can be transferred
to a fund to be usod for Capital Outlay purposos. You do not
take that fund into consideration in the properation of your
budgot. whon it is in thoro you can only use it for cortain
proscribed projocts, that is for Capital Outlay oxpondituros,
and in offoct by taking it out now in this fiscal yoar you ere
taking it out for maintenance and operation. CITY MLNL ER
SULLIVLN stated she is sure that Mr. Campbell was convineod that
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it was a Capitol Outlay Fund, which it is not. But supposo ho
is right, then tho part of your budgot which is wrong, accord-
ing to Mr. Campbollts thoory is tho feet that wo havo boon payin:
Capital Outlay money out of the current budget. Mrs. Sullivan
said sho believes in the pay as you go basis in curront budgets.
It is the theory that many cities havo and what sho hoped this
City would havo, is an Equipnont Roplacomont Fund so that you
could continually pay your Capital Outlay bills out of currant
rovonuo. Tho citios that havo so called Capital Outlay Funds
only do that out of tho surplus at the and of tho year, and the
Manager dons not agroo with that thoory of Budgoting. Therefore,
you find in your budgot in practically ovory dopartnent, Capital
Outlay items. You have spent Capital Outlay out of your currant
money. If you hold with Mr. Canpboll's theory then you should
ehargo those back against your Capital Rosorvo Fund, that would
be another way in which you should havo operatod had you boon
advisod by your prosont City Attornoy. Even if you regard your
Capital Reserve Fund as a Capital Outlay Fund, which is was
not intended to be, it was not drawn that way, is not budgeted
that way, is not administered that way, but you decided you aro
going to go that way, then you should transfor out of the Capital
Reservo Fund the money that you spent for Capital Outlay.
COUNCILMAN CLARKE said ho would liko to go back to Juno 28, 1950
and from than to the prosont tino, bocauso throughout this last
year you havo hoard explanations ono way or anothor, but you
havo yot to hoar as to why this prodieanont which tho Council
finds thamsolves in was necessary. Mr. Clarke said ho bolongod
to the school of thought who boliovo in tho right and havo
things sinplo enough so that ho can undorstand then, and if ho
can understand then that he thinks tho average person can
undorstand then, and that ho is vory ouch concornod in having
this straightoned out and put on a basis whereby it will not
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eauso any criticism insido or outside tho Council. What wo
have dono has boon dons in good faith and wo have roliod upon
poopla who we expected to guide us right throughout this
businoas cf running tho City. If that has not boon dono, Mr.
Clarke said that ho did not fool that ho is going to continuo
undor this condition. TOM LEONARD was present, and st^tod that
he has loarnod that thoro is quito a muddle in the City's financo
not from the transforring of funds but of sponding funds, that
is sponding funds for itoms that wo havo dorived no pormnnont
bonofit in National City. Mr. Loonard said ho loernod that et
tho beginning cf tho fiscal year of 1950 thoro was $510,000. in
tho bank, including $115,000. trust fund. You havo a balance,
now of $349,000. MR. LEONARD said you cannot continue to spend
the money in another yoar as it has boon spent this yoar. COUNCI
MLN CLLRKE asked Mr. Leonard if he meant that sum had boon spont
ovor and abcvo what was budgotod to run tho City? MR. LEONARD
said it was just simplo erithnotic, you had $$510,000. and now
havo $349,000. CITY MANAGER SULLIVAN said sho was suro that
Mr, Leonard was sincere but tho official records of the City
that have boon made availa_blo to hor end cortified by tho Auditor
do not agroe with Mr. Loonerd's figures. We bed a balance in ell
funds at tho beginning of the fiscal yoar, Juno 30, 1950,
officially $$476,911.96 that was cortifiod. The $115,000. is
money from tho Gas T^x which cannot bo spont by tho City oxeopt
by an approvod project and it is not in tho budget and never
has boon in the budget, and is not now in tho budgot boeauso
it is an expenditure that is under State control for tho con-
struction of roads. The Council budgotod to spend out of the
Capital Reserve Fund approximatoly $100,000. and como out at
tho end of this year with $100,000. less than thoy had on
Juno 30th. Tho expenditures to deto, end tho anticipa tod re-
venue, sons of which will go undor, somo will bo ovor, will bring
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the budget out Just about where it was anticipated. The increase
in prices nay bring it slightly under, but thot she did not think
this will bo much different from whet it was budgotod. In sub-
tracting from any point tho nonoy on hand from whet was on hand
the boginning of tho fiscal yoar would bo en easy way if you
could do it that way, but you oust wait until all tho nonoy is
in and all tho m..ney is spont os apprttved, beforo you cen teko
any balanco. Ono of Mr. Campbell's rulings on tho nattor of
Sowor Funds, that Mrs. Sullivan wont to the State to got reim-
bursed on the theory that it could bo spent, ho said could not,
so wo hevo had to curtail somo work that should havo boon done
on the sowers and that budget will proba5ly bo in tho deficit.
Actually the budget is not in bad shape but wo aro oporsting on
two legal thoories at the same time, and it dons not work.
COUNC mM;N CURRY said he would like the City Treasurer to give
the Council the figuros on transfers this year in comparison
with previous years. Hes it boon customary in previous yeers to
nsko tho transfers that we aro now raking. CITY TRELSURER VANSAN
said no, not that many by quite a number.
Howevor, there ere
a
lot of transfers made evory year. It is perfectly to gitinate
to borrow from one fund to another one as long as it is paid
back et tho and of the yoar, and money may bo spont more rapidly
in one field than another. MRS. SULLIVAN roforrod to tho differ-
ence of opinions on logalitios, thoro worn funds usod that she
felt wore legitimately usod on which the former City Attorney
gave partial opinion., Thoro was a technic he had of changing
viowpoint on cortain funds, and money had to bo transforrod thon
to repleco thoso funds which Mrs. Alston and ho felt should not
hove boon used that way. We do not know yet whether we ere
right, but the present City Attornoy says that they should bo
replaced. Whon those aro replaced it calls for shifting around
of a nunbor of funds in order to nako nonoy aveilablo for curron
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expenses. We are in a point between now and the 15th or
20th of June when our largest oxpoctod sourco will nntorializo,
our ready eash is quite seareo, that is to bo used for thoso
purposes. Wo have onough Honey in tho bank to pay for our noods
but they are rostrictod. Wo transforrod a good many funds, nak-
few
ing quito a/transfers and thoy had to be rovorsod, and those
funds had to bo retransferrod. Until our books ere closod for
April we cannot know just whoro we do stand on the funds that
have boon transferred in and out, but es the transfors were made
they seemed to bo corroctivo transfors, porfoctly proper and had
to be made. COUNCILMAN CURRY askod Mr. Vansant if it had not
been the practice in the past to carry noro in tho General Fund
so that it could be borrowed from tho General Fund at this time
of your. CITY TREASURER VLNSANT said it was. The General Fund
has carried a heavier ratio to the tax rato. MAYOR MATTHEWS
askod if anyono had any rocommondations that tho City Manager
and City Attorney night agroo on that would carry than over this
next month. ATTORNEY CAMPBELL said ho was afraid there is nono
that they both agree upon. Thore is only ono transfer that ho
knows about which would be about 03,000. or $4t000. out of tho
Sewer► Fund that night be able to bo tranaforrod to tho Gonoral
Fund,,, CITT MANAGER SULLIVAN and ATTORNEY CAMMPBELL discussed a
numbor of transfors but woro not in agroonont. COUNCILMAN CLLRKE
stated that since tho Managor sooms to bo in accord that we
should not do it halfway but go clear back to last year, and
if that is the condition, why was it not done a year ago instead
at this tine. CITY MANAGER SULLIVAN stated that a year ego
Mr. Collurep Mr. Warner and she wont very carofully over what
we thought oould bo done. Wo considered it from Mr. Collura's
professional point of viow, Managor's point of view of manage-
ment and the Attorney's point of view of legal nattors, and they
made this reeomnondation, it oporetod all right until the tino
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tho legal opinion on it was changed. Tho budget is basod on
ono logel opinion and you hevo to go all tho way on that legal
opinion end meko all of tho funds coincido with it or it is
going to bo "half fish and fowl" and will continue to bo in a
Huddle. It is not possible to stay half and half. The Capital
Rosorvo Fund is not a Capital Outlay Fund undor tho Capital
Outlay Let. It is used differently from that, but if Mr.
Campbell boliovos that it should bo the sand as Capital Outlay
that she is willing to go along on that, but if so the budgot
has to bo adjustod so that all of tho Capital Outlay cons out
of it. MLYOR MATTHEWS asked if it would be possible to get th;
Loaguo of California Cities Lttornoy and our Lttornoy togothor
and ascertain whose legal opinion is right. MRS. SULLIVLN said
she would bo glad to. Wo have consulted with the Loaguo of
California Cities on many of those funds. Wo consulted thou
becauso tho Government Code is not specific as to what you can
and cannot do. Tho powers of tho Council ero rathor broad and
discrotionary. M.YOR MLTT'?E WS said that tho bills must be paid
in the next thirty days and wo do not havo time to have a court
sottlo it, We oust oithor make arrangements for a loan for this
thirty days or get together and make one of the transfers on a
permanent basis in order to continue for the balance of this
fiscal year. CITY ATTORNEY CAMPBELL stated that es far as re-
ferring to difference of opinion and the effect it has upon the
budget, on the same transferring on Juno 28th there were trans -
fors from the Harbor Fund to the General Fund, there were trans -
fors to tho Street Fund from tho Gas Tax Fund in addition to tho
one he raisod tho question about. If thoso had been taken into
consideration at tho timo,tho budget would have -boon difforont.
COUNCILMAN CLARKE said it is his contontion that such a condition
wo find ourselves in should not oxist. Wo should have no
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•
difficulty whatsoevor, and when the bills aro submitted,they
should go through the regular procedure and be paid. Mr. Clarko
said tho City Clerk has a groat rosponsibility to the people,
and her position as far as financos is very important, and ho
would liko to know if Mrs. Alston has anything to offer es far
as the procedure during this year and other years aro concornod.
Mr. Clarko said he is trying to find out what can be dono to
resolve this problem. CITY CLERK ALSTON seid she would bo glad
to answer any questions Mr. Clarko might wish to ask. COUNCIL-
MAN CLARKE said ho wished to know how during tho last year her
work as City Clerk compared to previous years, as far as the
finances of the City is concornod. Did you evor run into any-
thing like this that you had to ask the Council whero they aro
going to got the money from to moat the payroll. CITY CLERK
ALSTON said not since the doprossion. During the depression we
had to register warrants. Mrs. Alston said that she is in
accord with the present City Attorney's ruling, that she felt
last June three of the transfers wore illegal, and took it Up
with the then City Attorney; ho did transfor back tho Harbor
Fund from the General Fund but did not see fit to transfer back
to the 1/4 cent Gas Tax Fund nor tho 1946 Sowor Bond Fund,'and
she has felt ever since that it was wrong. Mrs. Alston said she
fools that what the Attornoy is trying to do now is right. MR.
LEONARD asked if ho was correct when he stated that $510,000.
was the fund at tho beginning of tho fiscal your, that included
some of tho gas tax and than thoro was $115,000. from some source.
CITY CLERK ALSTON said sho bolievsd that figure was taken off
from tho Auditor's roport. The balance of tho funds es of June
30th was somewhere in tho noighborhood of $500,000. MR. LEONARD
asked if thorn was something added to that. MRS. ALSTON said
that included a Trust Fund for $115,000. which was for payment
of lateral sewers and was la for dopositod in City funds. MR.
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LEONARD said as of L.pril 30th thoro was $349,000. in all tho
funds, including tho gas tax money. CITY MANAGER SULLIVAN said
that if tho Mayor wanted to rocoss tho mooting sho would bo glad
to go ovor this with Mr. Campbell end son what his rocommcnd-
ations aro and if thoy can coo to a conclusion. If this cannot
bo rosolvod than tho City can propare to rogistor warrants. You
havo tho nonoy and aro gcing to and up in tho "block" for tho
fiscal year. You aro simply in n logal twist that cones betweon
a difforcnco of opinion. ATTORNEY CAMPBELL said ho did not think
that wo can register warrants. CITY MANAGER SULLIVAN asked if
the Attornoy was going to say that with all tho nonoy in tho
bank they cannot spend anything? ATTORNEY CAMPBELL said that
was right. You cannot spond for your mnrintonanco and oporation,
funds that aro tiod up in trust. Mr. Canpboll said ho arrived
at that conclusion but was not satisfied to stop at that point
because of the seriousness of it so ho contactod othor porsons
who havo doolings with such as this and also talkod to Mr. Kollor
of tho Longuo of Municipalities and ho is of tho seno opinion
that wo cannot rogister warrants. MAYOR MATTHEVPS asked what
tho Attornoy suggosts. ATTORNEY CAMPBELL said thorn aro certain
suggestions that can bo made. One is the curtrilnont of all
expense, another ono is tho possibility of increasing rovonuo,
it is a drastic measure. Thoro is tho possibility of increasing
salos tax as an onorgoncy noasurc, it is not subject to re-
ferendum, it can go on within fivo days and thon you have
anticipatod rovonuo again. CITY MANAGER SULLIVAN said if Mr.
Canpboll boliovos that additional rovonuo is the only noans of
noting tho situation, that sho would suggost that you review
tho possibilities of how you can incroaso your rovonuo and not
jump on the salos tax as c quick wry out as it is an unfair
tax to tho citizens of tho community and not at all nocessary.
You have othor moans of incroasing rovonuo if you really want to.
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CITY TREASURER VLNSLNT said that by incroasing tho solos tax
you would not bo incroasing curront income. Your material in-
cono from en incroasod solos tax would not matorializo until tho
and of Juno, you would only bo gotting your monthly sales tax
for May. LTTORNEY CLMPBELL said it would bo anticipatod revenue.
As it is now we havo borrowod about ell wo can under tho anti-
cipation thoory. MAYOR MATTHEWS rocossod tho mooting until
9:10 P.M. in ordor for tho City Manager and City Attornoy to try
and find a way to rosolvo how they can transfer some funds.
MAYOR MATTHEWS. callod the mooting to ordor at 9:10 P.M. CITY
MLNLGER SULLIVAN stated that sho and Attornoy Campbell rosolvod
a fow idoas and tho Attornoy will proparo a Resolution, and if
tho Council so wishos sho will go ahoad with tho City Managor's
report.
CITY MLNLGER SULLIVAN said that Mr. Ernest of tho Lcaguo of
California Citios askod to have the mooting in National City
May 18th instead of La Mosa. Mrs. Sullivan said ho talkod with
Mayor Matthews about it and sho has made arrengononts to have
it in tho Community Building. Mrs. Sullivan said if thero woro
no objections we would bo hosta to the League of California Citioc
Wit Wan LIVhR 'Setae' wie an efisetimP elfttdela too e
tidelands lease, who wants to lease approximately an acre, His -
nano is Mr. Dye and ho is in tho wholosalo lunbor business and
has soloctod the sito. Tho legal description is in tho proeess
of preparation, if it moots with tho Council's approval to loaso
Mr. Dye a percol of 52,500 foot at tho yearly reto of 2¢ a square
foot. This is now the fifth loaso and wo aro gotting close to th(
and of tho bargain rate. If you sec fit tho Attornoy can prepare
the contract as Mr. Dyo is rocdy to inmodiatoly sign. COUNCILMLN
CLERIGLN askod if Mr. Dyo is awaro of tho wator situation that n4
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arise. CITY MANhGER SULLIVLN said theta Is grater to this soction.
the Water Company apparontly aro not foarful of supplying that
north and whore tho lino is already installed. COUNCILMAN
CARRIGAN said ho thought that undor tho prosont circunstancos
we should got a lottor of approval from tho Water Company bo-
ceuso if ovorything is boing hold up now bocauso of this petition
and tho potiticn doos go through it is simply an arbitrary
attituio on their part that would provont this loaso from boing
granted. CITY MLNAGIR SULLIVLN said she bolioved thero would
be no difficulty in gotting e letter from Mr. Poulter, but if
you instruct the City Attorney to prepare the contract on the
promise that a letter from tho Pk -tor Company for water sorvice
can be made available, he can proceed. COUNCILMAN CARRIGAN said
he would like to see further that the letter from the Water
Company be attached to, and made a part of, the contract. Movod
by Carrigan, socondod by Hort, that tho City Attornoy be instruct-
od to draw up a loaso with Mr. Dyo, with tho Wetor Company's
agroomont attached, prior to eny and all signatures. Carriod,
all Councilmen present voting ayo.
CITY ATTORNEY CAMPBELL said thct tho city Managor and ho havo
method an accord in so far as at Toast $29,000.. During tho
fiscal your, boginning July 1, 1950, thoro has boon oxpondod
$29,619.00 for itons that can be classified, and aro classifiod
as Capitol assots. Thoy aro paid out of Gonorr_1 Fund money.
Mr. Canpboll said that ho has proparod a Rosolution in the fora
that if you wish to transfer from Gonoral Fund and chargo this
to tho Capital Resorvo Fund and credit back tho Gonoral Fund tho
Resolution will accomplish that purposo. Tho Rosolution is:
WHEREAS, that subsequent to July 1, 1950, thoro has been ox-
pondod the sun of $29,619.72 for budgeted capital assets, and
WHEREAS, the sun has boon horotoforo paid as funds advanced from
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tho Genoral Fund. NOW, THEREFORE, BE IT RESOLVED, by the City
Council of tho City of Nationaj. City, California, that tho follow-
ing transfors bo made: From tho Crpital Rosorvo Fund to tho
Gonoral Fund $29,619.72. That is the Rosolution, and Mr.
Canpboll said ho had the broakdown if tho Council wishod tho
atoms. COUNCILMt.N CARRIGAN said ho would liko to roconnond that
this particular Resolution bo hold ovor to an adjournod rooting,
that ho is particularly alarnod about tho nunbor of transfors
end resolutions that havo boon mado and would liko to make
certain that we aro corroct in this ono boforo it is mado.
COUNCILMAN CLARKE said ho wondered if it is nocossary to havo any
delay to dotornino whothor or not we aro doing right. Surely
tho Lttornoy knows now as woll as a wook from now whether it is
right or not. MPYCR MATTHEWS said ho folt tho sano wry. We have
takon the Attornoy's word on all the othor transfors, end wo
askod him for a roconnendation to corroct it. COUNCILMAN CLRRIGA
said that is apparontly how thoso othor things happoned, you have
takon the Attorney's word and tho City Manager's word, and wo
found cut lator that ono or tho othor was wrong. The bills do
not havo to bo paid tonight, the chocks don't havo to go out
tomorrow, and that it is about time that tho Council began to
1prim a eampl oto aderstaudimg of the OaaolVAIOS 400y are paasin6
Wore they peas thou. ATTORNEY CAMPBELL statod that ho felt
that this transfer is a propor transfor, howovor, that in fair-
ness to ell nonbors of the Council perhaps tho items could be
gono into and explained whore cortnin figuros woro, what items
woro purchased from Gonoral Funds, which aro in effect capital
assets, it is a matter of policy for oach somber of the Council
to dotornine. MR. CL.MPBELL said ho did not fool that his ruling,
will bo any difforont es to tho logality of the transfor, howovor
it night bo that you wish to Leave out cortnin items in the
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transfer and leave it as p-yncnt from tho Gonoral Fund and per-
haps by an explanation of all tho items it would mako for bottor
clarification of tho reason and procoduro in this transfor.
MAYOR MI.TTHEWS eskod if thoro is a chance that other itons might
bo added to that list. ATTORNEY C1MPBELL said it was taken from
the March 30th report os prepared by tho City Clork rs far as
Capital Outlay oxpondituros. There could bo tho possibility of
sono itens since tho first of Lpril. COUNCILMAN HART said ho
thought this was dono vory quickly and we should hold it ovor a
day or two or ovon longor until wo know that it is absolutoly
all right. MLYOR MATTHEWS said this mooting can bo adjournod
until lator in the wook in order that tho Council may study tho
feasibility of this transfor.
CITY MANAGER SULLIVLN stated thrt the City was suceossful in
their protest against Frod Lacarro and Janes Walkup for a
bovorago license on Highland Lvonuo. Tho roforoo roconnondod to
the Board of Equalization that tho City's protest bo sustained.
Wo have not haC time es yet to know whether tho Board of Equal-
ization rulod with tho roforoo, as it was to havo boon boforo
thou on May 7th.
CITY MANAGER SULLIVLN said wo havo a notico of a hearing on tho
Council's protest on tho bovorago license to Bonifaclo Damian
at 2042 McKinley, the hearing is sot for May 18th at 10:00 L.M.
and will bo oithor et tho City Hall or sono oonvoniont location.
CITY MANAGER SULLIVLN said she had a letter from the City of
San Diego of a proposal, as of July ]s t, to increase the cost
of sewage disposal. It is a long letter and will bo put in tho
agenda file for tho noxt mooting.
CITY MANAGER SULLIVLN roportod on tho notice to City officials
for community planning day at tho City of Anaheim this Thursday,
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729
May loth. It is an annual ovont.
CITY MLNLGER SULLIVLN roportod that the Lnorican Public Works
Lssocietion is having a nooting in Los Lngolos en May 17th to
discuss street problems and thoy would bo glr d to havo any City
officials who can to attond. It is to bo hold et the California
Edison Bldg.
CITY MLNLGER SULLIVLN stntod that tho Wator Pollution Control
Beard aro planning a nooting et 3:30 Thursday, May loth and aro
hopoful that nonbors of tho Council or other City officials will
attend to discuss in gonerci tho Motropolitan sewage problon.
It will bo at the Civic Canter. MRS. SULLIVLN said the Council
appointed threo nonbors to tho ldvisory Connittoo of this Board,
CITY MLNLGER SULLIVLN stated that sho would liko to bo reliovod
of tho responsibility of City Manngor as soon as it is conven-
ient for tho Council. Mrs. Sullivan said she has not writton a
formal reslgnctlon, but sho would like to bo roliovod as soon as
the Council find it convoniont, anytin:. from now or tho 15th of
May, or whatevor tine is suitable to tho Council. MRS. SULLIVLN
said sho hos no dosiro to loavo any unfinishod businoss that nay
inconvonionco tho Council, so sho would like to loavo tho date
up to tho Council. MLYOR MLTTHEWS askod tho ploesuro of the
Council, COUNCILM7N CLLRKE stated that sinco wo aro having an
adjourned nooting on Thursday that wo hold this ovor until that
deto. MLYOR MLTTHEWS said this matter would bo takon up at tho
adjourned nooting.
CITY CLERK LLSTON stntod thet sho would like to havo the payroll
approved as thoro is sufficiont noncy to teko ccro of it. Tho
payroll anountod to $20,084.82. Movod by Clarke., socondod by
Hart, that the payroll bo approved. Carriod, by the following
voto to -wit: Lyos: Carrigcn, Clarko, Curry, Hart, Metthows.
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730
Nays: None.
SURETY BOND for Judgo Harbison was prosontod. ATTORNEY CJBELL
approvod the Bond as to form. Moved by Hart, socondod by Clark,-,
that the Bond for Judge Harbison in the amount of $1,000. be
approvod. Carried, by the following vote to -wit: byes:'
Carrigan, Clarke, Curry, Hart, Matthews. Nays: None.
MLYOR MLTTHEWS stetod that Mrs. Janson handed him a copy of
hor bid for tho cantoon and asked that tho lottor bo road. Mrs.
Jenson stated that sho would nc'ko nn offor of 6% on tho gross
take, and that sho has tho nocossary equipment to take carp of
the concession. COUNCILMLN CLRRIGLN asked if tho Rocroation
Commission has brought in any further information which was rc-
quostod of thou. MLYOR MATTHEWS said ho did not know of any.
CITY MANLGER SULLIVAN said sho did not know but no doubt thoy
aro working on it, and that tho Commission does know of Mrs.
Jonson's intorost. COUNCILMAN CLRRIGAN statod tho Rocroation
Commission was spoeifically roquostod to bring in tho ostimatod
eost and tho typo of egroonont that was going to bo used. CITY
MANAGER SULLIVAN said thoy moot tomorrow ovoning. MAYOR MLTTHEWE
asked thet '-he City Manager rot word to than.
COUNCILMAN CLRitIGLN said that Mr. Poultor promised him ttodey
that he would attend the mooting tonight to unable us to clarify
tho 16th Stroot problo m end that ho is still hunting for tho
answer. ACTING CITY ENGINEER SMITH statod that the problon of
that portion of 16th Stroot oponing which is undor eonsidorrtion,
betwoon "L" and Pala Avonuo, thoro is an inpossiblo situation as
far as satisfying all tho dosirablo conpononts, ono is thoro is
a difforonco in olovation betwoon tho contor lino of "L" Avenue
and the contor lino of "M" Lvonuo of 40 foot, and in order to g(
tho grado down to accomnodato "M" Avenue it would roquiro appro;
5/8
731
imatoly 15% which is far in oxedss of any safo grade on a
through major street. If that 15% grad() was put in thoro it
would give access to "Mn l.vonuo and to tho proporty adjoining
16th on tho south. An altornato solution would bo to block
"M" Lvonuo, put n high fill in thoro and roduco tho grade about
6% which is approximately what tho State Highwry will approvo
on that type of a street. In thrt caso nM" .,vonuo would havo
no access from 16th Street, tho proporty on tho south side of
16th Stroct would havo no access to 16th Strout because thoro
would bo about 16 or 18 foot of fill. Tho third possibility
is to put in an ovorpess structuro pest "M" Lvonuo undornoath
16th Strout which might cost 0400000. or 150,000. and it is
doubtful that 16th Street is important enough to justify such
en oxpondituro. Lnothor possibility is an attempt to opan "M"
Lvenuo from 16th Street north to possibly 14th Stroot and drop
down to "M" Lvonue thereby accomplishing tho closing of "M"
Lvenuo without destroying nccoss to that valloy land north of
l6th Stroct. Thero hes boon some criticism of tho Wetor Company
because thoy havo not supposodly cooporetcd, which Mr. Smith
said ho did not boliovo was justifiod. Tho problon, Mr. Smith
stated, is that ho has not boon able to ostrblish a gredo for
then that will satisfy all tho moods, and th^t ho did not soo
how it could bo dono. There aro othor possibilities and porhaps
it might bo woll to not considor that portion of 16th Street
between "L" and "Mn as a major street but divort tho major
outlet down "M" Lvonuo and rround tho hill and cono into Highland
!.venue et epproxinatcly 12th Street, or perhaps abandon tho idea
of 16th Stroot es n major street rt all in that aroa and run
enothor street through tho v^lloy and approach l6th Street in
tho vicinity of 0rango Lvonuo. Mr. Smith said ho would bo glad
to go over this in doteil and tho sooner tho bottor bocausc ho
cannot solve tho prob]o m to moot ovary domand as it now stands.
5/8
732
COUNCILbL.N CLRRIG.,N said ho undorstood that wo had approval of
the State Highway once, that tho grados woro correct and thoy
woro going ahead with tho road. Tho Wator Company haulod their
pipo out and wo hed e mooting in the Manager's offico bofore
Mr. McClure loft and it was going to bo a nattor of two weeks
boforo thoy started. MR. SMITH said that to tho bust of his
knowlodgo tho Stato Highway novor approvod tho plan. Thoy
approvod tho provision of funds in tho proposed budget lest year
of ?8570. for that soction and also tho soction from Orange to
Lanoitan. COUNCILMLN CLRRIGLN asked if they aro in tho habit
of approving funds for a particular projoct without having tho
onginooring date. MR. SMITH said tho proposed ges tax projocts
ore approvod ahead of time, it is a tentative approvel and there
is no final approval for the oxpenditurc of funds until tho plans
ere definitely before thou and in case of contract work they
roquiro plans, spocificctions and ostinatos of tho caso boforo
thoy approve tho oxpondituro. COUNCILMLN CLRRIGLN said Mr.
Poultor told him today that thoy aro already to lay the pipe
1f thoy know whore to lay it, end nobody can docide whore tho
polos aro to bo novod. MR. SMITH said ho believes that can bo
resolved. Ls far es tho polos aro concornod, tho Water Company
occupios an o^sonont for stroot purpcsos and thoy hed intondod,
and it probebly would bo bottor for thoir nodo of operation to
novo sonowhat ncrth which would put thou closor to tho proposed
curb, howovor they can occupy tho sano assonant thoy aro now
occupying which wculd put thou near tho cantor of tho stroot and
procood without waiting for tho Powor Company. COUNCILMLN
CLRRIGLN asked tho City Manager if the former Engineor did not
have this job complotod boforo ho loft. CITY MLNLGER SULLIVLN
stctod that tho City Men-gor's offico novor rocoivad a con-
plotod plan. Mr. McCluro furnished tho Water Company with
some date and it was her undorstanding from Mr. McClure that ho
5/8
733
had conplotod it. COUNCILMLN CARRIGAN askod how tho Wator
Company is going to get wetor linos in thoro so that thoro will
bo no moro leaks. MR. SMITH said that it is a matter of policy,
ho cannot stato that tho Stato Highway will not approve this
plan, they do not liko it, but thoy might approves it if it woro
subnittod and roquostod. Mr. Smith said tho plans ho has in
his hands show about a 10% grade on the wost slope of tho valley
with approximately e 12 foot fill in front of tho proporty which
is in tho bottom of tho volley, which is opposito the end of
"M" Avenue. "M" Avonuo runs north only from 16th Streot, and it
would also bo 12 foot above "M" Lvonuo. If "M" Lvonuo is to bo
usod it would require a ramp somo 250 foot long to approach
"M" !_venue, and "M" Avonuo intorsoction would bo at tho foot of
a stoop hill, rather a dangerous situation, and tho "L" Avenue
intorsoction would bo at tho top of tho sano stoop hill which is
also clangorous. If you want to continuo to open 16th Streot es
a major oast-wost ertory it will raquiro somo docision on
whothor wo will try to fight through tho Stato Highway and got
approval of tho stoop grados or whothor wo spond noro nonoy and
put a bridge in thcro, or whothor wo want to try to block "M"
Lvonuo and use somo othor outlot for that valloy. COUNCILMLN
CLARKE asked which way is tho run-off, is it inclinod to go
south? MR. SMITH said generally north. COUNCILMAN CLARKE
asked, would not the proporty innedi^toly south of the fill bo
liko a lake? MR. SMITH said ho had planned a. 36 inch culvort
to tako care of tho water. COUNCILMAN CARRIG N said supposo
the street never goes through, what is necessary to onoblo tho
Water Company to got now linos in thoro? MR. SMITH said if
tho road is never to go through thoy can start tomorrow. If it
is docidod that somo othor pattorn bo usod, such as cassibly
coning down 16th end turning on nM" Avonuo north, that design
can bo nado without much difficulty. COUNCILM.LN CLRRIGAN askod
5/8
734
If tho Wator Company is aware of all thoso problems? This still
would not nrovont thou from putting in a by-pass lino and
eliminating all those to aks. MR. SMITH said it would in this
rospoct, if tho high fill is to go in with tho bridge approxi-
natoly 20 foot, thoir by-pass would havo to bo 200 or 300 foot
longer than it is now planned. If it is graded down to 15%
grade coning down to tho foot of the prosont valley thoy would
not nood to put in a by-pass at all. Thoy aro hold up on
account of design, it is not thoir own dosiro to hold it up.
MAYOR MATTHEWS asked Mr. Smith if ho had made an approximato
cost on those two or throe different plans to prosont to the
Council and tako thou out thoro and go ovor this idoa and find
out whothor it is foasiblo to continuo or not. MR. SMITH said
he did not havo any approximate costs es yet. COUNCILMAN CARRIGA
said if this is going to bo an oxponsivo proposition that wo got
togothor with Mr. Smith and Mr. Bouthol and if this is not feas-
ible forget it, and got tho wetor lino in now. CITY MANAGER
SULLIVAN said sho thought tho Council would find it intorosting
to go on a field trip with Mr. Smith, and that you havo boon
quito intorostod on tho oponing of 12th Stroot and this would
not only solve 16th, this alternate plan coning up tho valley and
coning into Highland, but it would partially solve the 12th
Street problem as woll. MAYOR MATTHEWS asked that tho Council
moot about 5:15 P.M. tomorrow at tho City Hall and go ovor this
with Mr. Smith and also make a fiold trip.
LETTER OF RESIGNATION FROM MAYOR MATTHEWS was road. Mayor
Matthows said ho finds that he can no longer sparo tho necessary
tino to sorvo on the City Council and asks that his resignation bo
offoctivo as of May 8th. MAYOR MATTHEWS said that tho tolovisiox
businosa is gotting a littlo rough and it is going to tako all of
his time to oporeto his business, and that ho regrets that he
5/8
735
cannot finish out his year, Movod by Hart, seconded by Carrigan,
that Mnyor Matthews' rosignation bo accoptod. COUNCILMAN CL&RKE
said ho was vory sorry to soo that this stop is nocossary, and
it is with regret that ho will voto on tho motion. COUNCILMAN
HART said it has boon a ploasuro to work with Mayor Mntthows
tho past yoar and is sorry to soo him cosign. MRS. THELMA
HOLLINGSWORTH was prosont and statod that as a citizon and a
taxpayor sho would liko to sec tho Council not accopt Mayor
Matthews' rosignatir. Right at this tiro it is vory important
that all of you pull togothor. If all of you work togothor and
assume some of the rosponsibilitios that our Mayor has had to
nako by ettonding daytimo nootings, porhaps ho night bo ablo to
continuo. Also that sho would liko to soo the Council not
accopt tho City Manager's resignation. MAYOR MLTTHEWS said that
it is a vory sorious stop but ho finds that ho cannot sparo any
more tino away from his business, end ho is sure that tho four
Councilron will bo able to appoint sonoono who will servo with
than for tho best intorosts of tho City. COUNCILMAN CLARKE said
ho felt that porhaps Mrs. Hollingsworth is ontitlod to a little
oxplanation as to tho fooling sho probably has regarding tho City
Council working togothor. MR. CL.RKE said ho has always boon
willing to cooporato 100 portent whonevor and whorevor ho could,
and ho is sure tho othor mambo?* of tho Council have folt the
samo way. MR. E. J. CHRISTM:N was prosont, and stated that the
Planning Commission would not like to soo thoso two rosignations
eccoptod, but that ho is not solfish enough to ask the Mayor to
continuo if his business is in jooperdy. Mr. Christman said
that if tho Moyer rosigns it is with rogrot that wo soo him
loavo. As far as tho City Mtncgor is concornod he did not
think thct tho Council, at this time, should accopt tho rosig-
nation. Corriod, all Councilmen present voting aye.
5/8
736
VICE -MAYOR CURRY statod thet ell of tho Council rogrot the
loss of Mr. Matthews.
COUNCILMAN CLARKE said ho wantcd to piodgo to Vice -Mayor Curry
his full cooporation and support.
VICE -MAYOR CURRY suggested this mooting bo adjournod until
7:30 P.M. Thursday, May 10, 1951.
Moved by Clarke, secondod by Hart, that tho rooting bo adjournod
until Thursday, May 10, 1951, et 7:30 P.M. o'clock. Carried,
all Councilmen present voting aye.
ATTEST:
CITY CLERK
5�,i� 4
VICE-MAjtI•, t.ITY OF ONLL CITY, CALIFORNIA.
5/8