In a preliminary fiscal report on Monday night, Julia James, administrative services director, reported to the City Council that Malibu is fiscally sound.
“We’re doing everything well,” she said.
While the city’s fiscal activities did remain relatively stagnant, with no increase or decrease in revenues for the fiscal year 2000, it managed to aggregate $4.1 million in general funds revenues.
“However, a lot has to do with FEMA (Federal Emergency Management Agency),” said James.
Given the change of leadership in Washington D.C., the city is finishing up with claims for past disasters, said James. They have received the expected funds for all of them, except for the 1998 storm claims.
But FEMA does not pay 100 percent for disaster-related expenditures, explained James.
Malibu disbursed $3.5 million in out-of-pocket expenses for six disasters that occurred in the past 8 years, equaling $584,000 per disaster.
“We need to build more general reserves,” concluded James who will report on the city’s financial health in more detail at the City Council’s quarterly meeting scheduled this month.
“While the $4.1 million is adequate for normal operations, it would be depleted quickly in the event of another disaster,” said James in her report.
Therefore, it is the city’s intention to continue placing all reimbursements from FEMA into the General Fund in an attempt to achieve the council’s goal of $8 million in reserves.
Councilmember Jeff Jennings, said he is not happy with the way FEMA conducts business.
“We did what FEMA told us to do, then they tell us not to do that,” he said of the agency. He said the agency gives contradictory information to Malibu when the city makes claims.
“That comes back and bites us in the audit,” he finished.
In other matters, the council heard a summary presentation about work progressing on Malibu Pier.
If everything goes according to plan, Malibu will regain its centerpiece by Summer 2002.
Hayden Sohm, California State Parks regional representative, said Phase II, currently underway, may even include components that were originally planned for a later time because the contractor, John Meek Co., has worked efficiently and this may save money for the state in the long run.
Phase II is expected to be completed by April of this year unless the work is extended, in which case it would last until May.
Sohm explained that 70 piles were replaced thus far because they were damaged above the low tide line due to exposure to fresh water and the elements.
The state is also working on a request for proposal to find a master concessionaire for the pier.
“Our goal is to have a concessionaire identified by late fall 2001,” said Sohm.
Councilmembers indicated they want to participate in the process of selecting a master concessionaire since Malibu has a vested interest in the pier.
While he summarized the progress of the work, Sohm also spoke about water treatment options for the pier.
“We’ve proposed a package plant to treat the sewer,” he said.
The state is working on two options. One is a secondary treatment plant, where water would be treated and returned to the ocean and the other is a tertiary treatment plant, where water would be recycled completely.
Council emphasized its preference for a tertiary plant.
“It’s an option to showcase state-of-the-art technology,” said Councilmember Sharon Barovsky.
The parking issue, however, will not be solved by the state. However, solutions for traffic flow as cars come in and out of the parking area near the pier is being worked on.
In other business, the council heard a public speaker, Georgianna McBurney, who emphasized the need for a bond measure to purchase some of the land in the Civic Center before it is all developed in a piece-meal fashion.
Councilmember Ken Kearsley concurred with the speaker.
“I’d like to see council address special elections as soon as possible,” he said, hopeful a bond measure will be brought to fruition quickly.
In a final action, Councilmember Jennings appointed Dr. Laura Rosenthal to the Parks and Recreation Commission.