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HomeMy WebLinkAboutFEBRUARY 11,1997 o //0 _ 'S"O 39:0039 O:J/I((" c.... I CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN TIlE OFFICE OF TIlE CITY CLERK MINUTES CITY COUNCIL OF THE CITY OF ARCADIA ADJOURNED REGULAR MEETING (BUDGET SESSION) FEBRUARY II, 1997 The City Council met in an Adjourned Regular Meeting (Budget Session) on Tuesday, February II, 1997, at 6:00 p,m. in the Arcadia Community Center. 1. ROLL CALL PRESENT: Councilmembers Harbicht, Kovacic, Young, and Kuhn ABSENT: Councilmember Chang (arrived at 6:10 p,m.) It was MOVED by Council member Young, seconded by Councilmember Kovacic and CARRIED to EXCUSE the absence of Councilmember Chang. 2, SUPPLEMENT AL INFORMATION FROM STAFF REGARDING AGENDA ITEMS None, I 3, None. 4, QUESTIONS FROM CITY COUNCIL REGARDING AGENDA ITEMS AUDlliNCEPARTICWATION Jerry Selmer, 55 East Arthur Avenue. expressed concern of the Arcadia Public Library. and the insufficiency of revenues to the City which may impact Library operations. Mr. Selmer urged Council to take reasonable steps to raise the funds necessary to continue all City operations as they are presently rendered, The City Library cannot realistically be expected to cut back further and continue operations at the same level of service as the public expects, He noted the Library Foundation has raised funds for Library furnishings that the previous Council did not provide for when they were considering refurbishment of the Library. Mr. Selmer noted when City budget cuts are made, police and fire usually do not get cut... these services are important, however, a city will not be remembered for protection services; history remembers what we have given to the education and culture of our citizens, which binds one generation to another, He believes new City revenue proposals are the right way for the City Council to go, I Vince Folev, Cambridge Drive. agreed with Mr. Selmer. that Council should focus on revenue enhancements rather than cutting expenditures, In reviewing the February 11th staff report, which Council is considering, he has seen nothing about increasing revenue from commercial entities, specifically, Santa Anita Race Track. The citizens of Arcadia want Council to make these kinds of decisions for them. as indicated by the large vote against Measure M on the November 5, 1996 election ballot. Mr. Foley urged that Council actively pursue development at Santa Anita which will bring additional revenue to the City, He also encouraged Council to stay away from cuts in safety services. 1 2/11/97 I I I 5, BUDGET FY 1997-98 () 3.,20 -~o 39:0049 Rav Whitmer. Teamsters Union representing City general employees, supervisory, professional and confidential employees, stated in part, the union and employees realize Council has some tough decisions to make regarding the future of the City and the level of services the City will provide. He believes the citizens of Arcadia expect a high level of services which have been provided in the past. Mr. Whitmer urged the City Council not to reduce these service levels, He proposed that Council put the question of revenue enhancements to a vote of citizens before cutting service levels and educate the electorate of the services which will be affected if revenues are not increased, Drew Krvnicki, 321 Le Roy Avenue. stated in part, that he agrees with the Teamsters representative and urged Council to let the citizens of the City become involved in the City's fiscal process by putting an increase in the utility tax on the ballot. Mr. Krynicki felt that a bond issue for a police facility could be placed on the ballot also, Dave Franta, representing the Arcadia Firefighters Association, stated in part, that while the members of the Association realize the current financial situation is not the fault of this Council, it is not the fault of the Association either. Much is heard about the large amount of City revenue spent on employee services, but there are some services the Council and the citizens rely on in the wake of any type of catastrophe in the City, Arcadia residents have come to expect a high level of services by City employees, Some of the proposals before Council this evening are reductions in staff... this will mean a reduction in services, Mr, Franta briefly reviewed the propoSed budget cuts, and recommendations in the February II th staff report, He pointed out that designated funds for specific purposes listed in the City proposed budget could be sold to meet the City's financial goals. At the January 22, 1997 City Council meeting. staff presented a mid-year budget review outlining financial projections for fiscal year 1997-1998 and beyond, and listing information regarding possible long-term revenue enhancements, Subsequently staff was asked to prepare a follow-up report discussing alternatives for major expenditure reductions, including the impacts these reductions will have on services; a survey of how the municipal services provided by the City compare with those provided by surrounding cities; and additional information regarding possible revenue enhancement programs, Current revenue and expenditure projections show a $1.6 million revenue shortfall for the next fiscal year. . The goal for the budget session this date was to review and discuss the options submitted and to obtain City Council direction as to how to move forward in the preparation of next year's budget. Staff requested definitive direction' in order to initiate the budget preparation process given the present budget deficit. The February 11, 1997 staff report listed a summary of measures taken to balance previous budgets in FY 1992-93, 1993-94, 1994-95, and 1995-96, Fiscal year 1996-97 brought about drastic changes in the budget. Council reduced the supplies and service accounts with department cuts totaling $500,000, employee costs were held steady with most employees going without a raise for another year, and the workforce was reduced by 11.5 positions, In an attempt to balance the fiscal year 1997-98 budget and provide for a financially stable future, the February II, 1997 staff report identifies areas of major program changes and possible sources of long-term revenue, A number of contract services are being proposed. 2 2/11/97 39:0041 I The City would then have less control and a significant loss of flexibility, and an inability to tailor services to the specific and changing needs of Arcadia, also a loss of employees who currently perform more than one function. The City Manager noted that to balance the budget there is a need to either find a permanent source of new revenue or permanently reduce expenditures and potentially lower public services, Supplies and service accounts are currently at a minimal level, consequently, expenditure cuts will have to be in the form of employee cuts of between eighteen (18) and twenty-five (25) persons, and programs, It was noted that the sole purpose of a City is to provide specific services to the public. The first section of the February II staff reportlbooklet centered on department comparisons with neighboring cities; surveys of five adjacent cities, EI Monte, Monrovia, Sierra Madre, San Marino and Pasadena as to square miles, population, staffing, budgets of various departments as related to services provided. The Council examined' each department survey and staff responded to questions. I Section 2 - "Revenue Enhancements," was presented by James Dale, Director of Administrative Services, Staff distributed several charts to the audience; General Fund, Ten Year Revenues based on actual receipts and expenditures for the period ofFY 1991- 92 through 1995-96, and five years based on estimates for FY 1996-97 through 2000- 200 I. Mr. Dale pointed out the City has been running a deficit every year since FY 1992- 93 and staff projects a General Fund deficit yearly up to FY 2000-2001 if new revenue sources cannot be found, Mr. Dale noted, over the first five years depicted on the General Fund Revenue chart. revenues increased an average of approximately 2, I % while expenditures averaged an increase of 4,7%, This was due to long-term contractual agreements with City labor unions, He noted staffs projection for the future suggests that the gap between revenues and expenditures will continue to range from $1.2 million to $1.3 million, assuming that revenues do not increase or expenditures decrease, this based on the Consumer Price Index (CPI) as a projection for expenditures. Revenue estimates were based primarily on historical information and any other miscellaneous information... such as deregulation of utilities and a change in the pattern of consumer spending. Potential development at Santa Anita Race Track was not considered nor revenue from new hotels. Mr. Dale noted the decline of revenue from property tax and utility tax has had a major impact on City revenues, A brief discussion ensued, Mayor Pro tern Harbicht noted the budget sessions last year produced a $700,000 budget surplus for FY 1996-97 in projected revenue and the City now has a $764,000 deficit. Mr, Dale explained in detail the loss in utility tax, property tax and sales taxes, and the City did not impose the 1% increase in the utility tax because of possible passage of Proposition 218, which was ultimately approved by the voters at the November 5, 1997 General Election. Mayor Pro tern Harbicht noted that current expenditures are right on-line, while the projections that were made for revenues did not materialize. I Council discussed a 2% increase in the utility tax which could be placed on the ballot at the April, 1998 municipal election. The 2% increase could generate a a potential $1,360,000 annually in additional revenue. Mayor Pro tern Harbicht commented an increase to a 7% utility tax would basically have been what the City would have been collecting if the utilities had not been deregulated, The City Manager commented some short-term financing would be needed until the April, 1998 election when the tax increase would be voted on. If the increase prevails the funds would begin to come in immediately, 3 2/11/97 39:0042 I In the discussion Mayor Pro tern Harbicht stated it is his opinion that an increase in the utility tax would be easier to sell to the citizens because it would be used directly for those services that citizens like, such as police, fire, library... services that impact our lives everyday... than to ask for a similar amount of money for Landscaping and Lighting Districts, which would be assessments. He is in favor of putting a 2% increase in the utility tax before the voters, Staff listed six utilities which would be subject to an increase, or new utility tax: electricity, gas, telephone, cable television and direct television and cellular telephones, It was noted the utility tax could be used for all City services while a special tax for fire, police and library services could ouly be designated toward those particular services, Council member Chang agreed that a 2% increase in the utility tax would be a good way to bring in needed revenues, In reference to imposition of a Retirement Tax, which is possible because the City Charter allows such a tax, the City Attorney stated further analysis would need to be done on this if Council is interested, ' I By general consensus Council agreed they would not be interested in implementing an occupancy and real estate inspection fee". this would be anti-business, Councilmember Kovacic said also he would not be interested in a business license tax or selling off City properties, which would not be long-tenn revenue sources anyway, Mayor Pro tem Harbicht stated he is not interested in increasing the business tax, but he may be interested in selling Fairview Park and putting funds from such a sale in an asset fund. Council member Young was open to selling this park also, to help the budget deficit. Council member Kovacic said he would have to be convinced that Fairview Park is not being utilized by nearby apartment dwellers. Council member Chang said he is not inclined to sell this park, it is an asset to the City. Council detennined to review the staff-suggested Revenue Enhancements and Potential Expenditure Reductions and effects on City services page by page as listed in the FY 1997-1998 ~eportJbooklet. Excerpts of items discussed follows: REVENUE ENHANCEMENTS Returning to the discussion of an increase in the utility tax. Councilmembers Kovacic and Young, and Mayor Kuhn stated they would be in favor of a 3% rather than a 2% increase in the utility tax, It is their collective belief that Arcadia voters would support this, Staff estimates a 2% increase would equate to $1,360,000 in revenue and a 3% increase - $2,040,000 annually, With regard to the creation of a City Water Authority a majority of the Council expressed interest and agreed that this proposal requires additional study. Council requested a rough-<:ut analysis of this proposed revenue enhancement. Staff noted the water system is worth about $100 million. I In reference to a proposal to create a basic life support non~mergency transport service, Fire Chief Lavoie explained this program would require additional Fire Technicians who would be trained to provide transport between hospitals, which is routinely done through private ambulance companies. The Fire Techs would also enhance fire capability of the department. This service would pay for itself and might generate additional revenue as well, Chief Lavoie mentioned the City already owns the vehicles and equipment. Council will study this proposal. 4 2/11/97 39:0043 I Discussion of the proposal to charge or increase Fire Department services, such as roof coverings, water vacuuming, sandbagging, false alarms, etcetera... anything above and beyond an emergency. Staffwill complete a study of such fees and present this to Council at a formal public hearing. POTENTIAL COST REDUCTIONS Proposal - Contract with Los Angeles County for Fire Protection Potential Savings - $Ito $2 million annually Fire Chief Lavoie explained in detail the pros and cons of eliminating the City Fire Department by contracting with the County for fire protection services, In response to Council the Chief replied that some Arcadia Firefighters could lose their jobs, He listed also nearby cities that currently contract out this service to the County: Glendora, Azusa. Baldwin Park, El Monte (in process), Duarte, Temple City, Diamond Bar and Claremont. Mayor Kuhn and Mayor Pro tern Harbicht said they had no serious interest in this proposal. Proposal - Elimination of all Paramedic Services (Loss of 15 firefighters) Potential Savings - $651,000 Fire Chief Lavoie noted that if this proposal was adopted the department would lose firefighting capability since paramedics playa dual role, I Proposal - Remodel Fire Station 3 in lieu of reconstruction Potential Savings - $450,000 (in Facility Construction Fund) Chief Lavoie recommended that the $600,000+ for reconstruction be lowered, and set aside funds for remodeling of this station; put $150,000 into a remodel to get the department through the next ten years at that facility... after which the City should consider new construction of the station. Council accepted this proposal and will determine where these funds ($450,000) will be placed later on, Proposal - Eliminate PolicelFire 911 Dispatch Center (Fire will contract dispatch services from Verdugo Fire Communications Center al)d Police will establish their own Dispatch Center) Potential Savings - $270,000 (Would require a one-time Police start-up cost of $57,000 and some Fire conversion costs) I Chief Lavoie noted the City's current dispatchers provide a very professional service, however, police and fire are almost separate responsibilities and languages. Fire Chief Lavoie and Police Chief Gamer have discussed this possibility at length. Regionalization of fire dispatch is taking place rapidly because fire departments rely on each other, more so than police departments. The Verdugo Fire Communications Center is now dispatching for Pasadena, Burbank, Glendale, South Pasadena and San Marino, They have organized a very proFessional fire dispatch capability. The combined Police Department and Fire Department dispatch services cost the City close to $1 million a year, Verdugo could dispatch Arcadia fire for about $142,000 per year, not including first year start-up costs, Arcadia would join the network along the foothills. If the City dispatches police only, this would produce a $270,000 per year savings for Arcadia, There would be a one-year upfront cost for fire to join the foothill network for conversion of radio equipment. Safety issues for fire would improve, Nine dispatchers would be required for the Police Department dispatch center and there is a good chance that Verdugo would pick up the remaining Arcadia dispatchers... this could be negotiated, ChieF Lavoie 5 2/11/97 39:0044 I thought the Verdugo Dispatch Center proposal to be a viable alternative to Arcadia's dispatch, Council agreed this proposal would be seriously considered. Police Chief Garner felt that his department could absorb a new uniL they could manage a dispatch center with current personnel. Chief Lavoie said the department will provide some hard figures for this proposal in a month, ' Proposal- Eliminate three (3) Police Officers (Loss ofD.A.RE. and P.A.C,E, Programs) Potential Savings - $219, III In response to Council's question of the cost for these programs, Chief Garner replied office space in the Santa Anita Mall and utilities are paid by the Mall, He noted there are four (4) Police Department employees involved in these programs. The salaries of the two officers in the D.A.R.E, Program are approximately $150,000 a year; the cost for books and materials is approximately $15,000 per year. Council agreed they would continue these programs. ' In regard to other potential cost reductions proposed in the reportlbooklet for Fire Department personnel, Chief Lavoie recommended against these cuts which would affect fire service delivery, I Police Chief Garner did not recommend any of the proposed reductions in police personnel, with the exception of the School Crossing Guard Programs which the School District could possibly take over, Council member Chang said the City should talk with the School District about sharing the cost for this program, Council members Kovacic and Young agreed, Proposal - Contract Human Resources Potential Savings - Unknown (possible cost savings) Staff noted some of this service would still have to be handled in-house. Also, the personal contact for employees would be lost. The City would lose control. The question of contracting out the City's payroll function came up, Administrative Services Director Dale said that certain finance operations such as payroll, benefits, etcetera, are not contracted ouL this would not save the City money, In response Councilmember Kovacic noted that the private sector contracts out many of these types of services... the City could learn from this. Director Dale explained why he fell this would not be feasible, Proposal - Contract Management Information Services (Data Processing) Potential Savings. Unknown (possible cost savings) Treasurer Parker noted contracting out this service would cost the City money to have the same service, He outlined the current responsibilities and services provided by the two staff personnel in Data Processing, Staff will prepare a detailed report on this subject at Council's request. Proposal - Form Joint Powers Authority (JPA) for Police Services Potential Savings. Unknown (possible cost savings) I City Manager Kelly noted the concept would be to coordinate with Monrovia for a joint police department and with El Monte. This would be an extension of Arcadia's police department to provide services to these other communities, This would require a lot of study, Mayor Pro tern Harbicht felt all of Arcadia officers would be down in El Monte responding to calls. Mayor Kuhn agreed and said she is more interested in servicing Arcadia only, 6 2/11/97 39: 004'1. I Proposal - Eliminate Field Services and General Services Manager positions Potential Savings - $66,495 and $63,140 for a Public Works Inspector The City Manager asked Council to consider holding the Field Services Manager position and the Public Works Inspector position vacant and filling the position of General Services Manager in the Maintenance Services Department. Council agreed. Elimination of various staff positions. The City Manager advised Council that pages 30 through 34 in the reportlbooklet deal with a lower level of services because staff positions are involved, Council must decide what is an acceptable level of service to the public. Councilmember Young stated that Council should hold off on position reductions until other alternatives are considered, Mayor Kuhn agreed. Proposal - Eliminate the quarterly City Newsletter and charge for Agenda distribution Potential Savings (Newsletter) - $25,460. (Agenda) $5.000 (expenditure estimate) I Council member Young said she is against eliminating the City Newsletter because it is the only source for reaching every resident in the City. Staff noted the potential savings does not include staff time. Mayor Kuhn is against this reduction also, Councilmember Kovacic suggested publishing the newsletter three (3) times a year rather than four (4). Council suggested charging a $20 per year fee for persons requesting a mailed agenda, Mayor Pro tern Harbicht suggested Council review the last four (4) issues of the City Newsletter for content. Staff to provide the Newsletters, Proposal - Contract for Street Light Maintenance (Eliminates ,5 of a position) Potential Savings - $27.000 Council member Young said she is against this proposed reduction, The City has been sued in the past over streetlight related accidents. Councilmember Chang agreed, Proposal - Contract for Street Sweeping (Eliminates 2,5 positions) Potential Savings - $23,574 The Director of Maintenance Services, Pat Malloy, explained the superior service provided by City crews for this service as opposed to contract services, Last year the Council reduced street sweeping to twice a month for a savings of $75,000 a year. Council member Chang recommended that the City go back to the original weekly schedule, if possible, He noted he has received a lot of complaints about the street sweeping program since service was reduced. Director Malloy advised that late fall and early winter the streets are swept every week. The Council did not want to go to contract service, Proposal - Reorganization of Engineering Division by eliminating four (4) positions and increasing contract services Potential Savings - $20,000 I Council member Young stated in part, that she would like to postpone consideration of this proposed reduction, Proposal - Eliminate .5 Typist Clerk" position Potential Savings - $19.830 7 2/11/97 39:0046 I The City Clerk explained that this proposal was not her recommendation but a quick response to the requirement to reduce the office budget by 6%. Loss of personnel in this office would result in an inability to properly comply with legal responsibilities required of a City Clerk. The City Council reduced her office budget by 16%+ last year, which resulted in the loss of one employee. Last year Council felt the Clerk should have agenda preparation in her office. This could be absoIbed by putting off other processes related to CIlmputerizing past legislative history records. In response to Councilmember Kovacic, the City Manager said he wished to retain agenda preparation in his office at this time, The City Clerk responded to Council's questions about other operations in her office in comparison to City Clerk offices in other cities, She has similar legal responsibilities, while other functions differ, Proposal - Reduction of legal support/services Potential Savings - $14,490 The City Attorney explained this service was established years ago to assist in the immediate procurement of specialized ]egal services on an as-needed basis, Le" expenses for hearing officers; legal services in the absence of the City Attorney, independent counsel to conduct investigations of harassment complaints, and other needs of a law office. The $14,490 proposed reduction represents 6% of the City Attorney's entire budget and if removed from his budget he would have to come back to Council if a need should arise for additional funds for such legal support services. I Proposal - Eliminate Parks and Ground Superintendent and replace with a contract administrator at a lower salary rate Potential Savings - $] 2.000 Maintenance Services Director Malloy explained that this employee administers the tree trimming contract and the City's landscape maintenance contract. There would be a severe deterioration of the City's double landscaping that is provided in the City if someone did not monitor the service, Mr. Malloy recommended this change from City personnel to a contract administrator at a $ ]2,000 per year reduction to the Genera] Fund. Proposal - Eliminate Police support for the Arcadia Band Review Potential Savings - $5,000 The City Manager advised that one alternative to this proposal would be to talk with the School District or its foundation for public/private participation. Council decided to remove this item from the potential cost reduction list. Proposals: Eliminate all employee activities and events - $8,000 Eliminate Annual Commissioners Dinner - $5,000 Eliminate Reserve Officer Recognition Dinner - $4,000 Council member Kovacic asked if there was a way to cut some of these costs by combining dinners or having joint recognitions. The City Manager explained each one of these events has a specific purpose, although the Reserve Officer and Commissioners dinners might be combined, Staff will take another look at these events to see how the costs can be reduced, By general consent Council agreed that the dinners be held in the City. I Proposal - Reduce City Council official meetings budget Potential Savings - $2,870 8 2/11/97 39:0047 I Proposal - Do not renew City membership in the National League of Cities Potential Savings - $2,576 Mayor Kuhn, Mayor Pro tern Harbicht and Councilmember Young were in favor of reducing these two budget items, Proposal - Shut off County Park Fountain Potential Savings - $2,500 Council member Kovacic suggested asking a service club to pick up this cost as a public activity. Staff will send out letters to such clubs, Maintenance Services Director Malloy requested the clubs be asked for funds rather than maintenance of the fountain because it is not an easy piece of equipment to work on, Proposal - Eliminate the Mayor's Public Relations Account Potential Savings - $2,350 In reference to the Mayor's Prayer Breakfast, Mayor Pro tern Harbicht commented that this is a nice community event; it would remain so even if it was not an event to raise funds for charities. Most of the prayer breakfasts do not make money and the , contributions to charities comes out of this account. Following a brief discussion. Council determined to leave fun.ds in this account for the Mayor's discretionary use. I COST REDUCTIONS SUBJECT TO "MEET AND CONFER" wrrn EMPLOYEE ASSOCIATION Proposal - Temporarily freeze step increases for employees Potential Savings - $60,000 (postponement of expenditure versus savings) Mayor Pro tern Harbicht is in favor of reviewing the entire step increase program for employees.., he believes it is too rapid. Mayor Kuhn and Council member Young agreed, Proposal - Eliminate Medical "Cash-back" contributions for future employees Potential Savings - Unknown James Dale, Administrative Services Director, explained this program to the Council, The piau was developed to provide every employee with the same amount of basic benefits in dollar value, By eliminating the "cash back," on a benefit basis, one employee would receive more benefits than another by virtue of their marital status or dependent status. Human Resources Manager Rogers explained this is a very complex issue when dealing with City labor associations, He noted also that employees are required to take the City's insurance coverage, I Council member Kovacic noted the City has spent a lot of money in the past on some significant projects: Fire Station No, 2, the Library, Downtown 2000, he does not think the employees should have to shoulder the full responsibility of those decisions, However, compared to other cities, it does appear that Arcadia's employees, in general, are towards the top of the list in salaries, Benefits appear to be at the top also. Council should look at . the whole employee package to see if Arcadia is compatible with other cities. The City Manager advised these matters are "Meet and Confer" issues in Closed Session, 9 2/11/97 I I CLOSED SESSION OttO - ,-/0 ADJOURN, MENT I 39:0048 Mayor Pro Iem Halbichl """iMod CauuciI thai the LibraJy exp8IlSion project funds came oul of Capilal ImpI'Cl\'ClllClll FUlId8, not from the 0cacnII FWId... the Community CcnIcr also. 1'hese expendilDr\ll did DOl have 811)' effi:d on the employees. The Cleoeml Fund is the income and ouI8O ftmd for the year. The following altema1Ms for budget raluc;d01ll MJ'C JCYicwcd by staff and delermincd not 10 be cost dfecIive at !his time: - CollIracIin& all h..lldi", inspeclion services. - CollIracIin& Ihe pun:hasing operaIion. . CollIracIin& all printiDg services. . CollIracIin& payroll 8DdIor billing opc:raIions. . CoDlnlcting poIiI:e servioes 10 the Los Angeb County Sherif[ City Manager Kel1y noted the cost reducticma decided by the City Council !his dale 8JDOUJII 10 approxImaldy $834,000 in 1IllaI. swr will pIqllIR other slDdies that c:ouId produce additional revenue or savings 10 prodw:c S I million in cost RlducIioIll for Council consideration. AI !he conclusion of !he budget review Council cxpIeSSCId appreciatiOll for the budget booklcl provided by slaIf. Councilmcmber Ywng commented thai il made Council's job easier. Closed Session JlIIISlI8IIIIo Governmenl Code Seclion 54957.6 to confer with City labor negotialors ~garding negoliatiolll with repraentcd and ~ employees. AI 10:05 p,m. the City Council entered the CLOSED SESSION, RECONVENED the Adjourned RcguIar Meeting (Budget Session) and ADJOURNED at 12:20 p,m. 10 Tuesday, FcbruaJy 18, 1m at 6:00 p,m. in the Conference Room of the Council Chambers 10 conduct !he busilleSS of the City Council and An:aclia RedeYdopment Ageot:'J, and any ClO6cd Scssion IleQCSSlIIy 10 discuss persontlCl, litigation matters and evaluation of propcrIics, . ATTEST: 10 2/11/97