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HomeMy WebLinkAboutJUNE 27,1978 CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY CLERK I PLEDGE OF ALLEGIANCE ROLL CALL HEARING BUDGET (CONTINUED) /' I "r .. 23:9563 MINUTES CITY COUNCIL OF THE CITY OF ARCADIA ADJOURNED REGULAR MEETING JUNE 27, 1978 The City Council of the City of Arcadia, California, met in an adjourned regular session on Tuesday, June 27, 1978 at 7 p.m. in the City Hall Council Chamber. City Attorney, Charles Liberto PRESENT: ABSENT: Councilmen Gilb, Margett, Pellegrino', Saelid, Parry None Mayor Parry declared the hearing open on Budget consideration for the fiscal year 1978-79. He said in part that the City Council will adopt a budget within the constraints that it presently has although there are questions as to State Guidelines on wages; that following public testimony the Council will adjourn to an executive session to discuss personnel matters relating to the budget. Mrs. Johanna Hofer, .875 Monte Verde Drive, said in part that it is a known fact that the City Council has some very difficult decisions to make and expressed appreciation for the continuation of the budget hearings. She submitted that in her opinion Proposition 13 benefits mainly the commercial and business interests and asked Council to consider imposing an additional race track parking tax which monies could be used for an auditorium and that this be done prior to July'l. Roy Spiers, 312 W. Palm Drive, expressed the desire that the City Council understands the position of those who have been attending the budget hearings and speaking to items or to the budget itself... that they have told the Council and the entire State for that matter just what they want. That it appears that over the years governmental bodies and the civil employees have come to believe that there is an unlimited supply of money available from the taxpayer and that government functions differently than business. He reiterated his previous suggestion that the police and fire be combined; and asked that the City Council, over the next year, take steps to effectively reduce the cost of government and that an endeavor be made to seek from the State a redistribution of the sales and gas tax funds. Mrs. Sherry Passmore, 1109 Columbia Road, stated in part that what people want is an open government... have all the facts out in the open... where they could be assessed. She felt the proposed budget is not factual.. that it is difficult for citizens if they so desired, to responsibly analyze the Budget and say where they would or would not want to cut. That everything which could have been cut should have been done before any additional revenues were'considered. She referred to trips to meetings which she felt could be attended by one Councilman and one staff member. The Finance Director explained the health, medical plan and retirement and noted that in order to qualify for retirement a Councilman would have to be in office at least five years to qualify. She felt attendance at service clubs should not be paid by the City, as well as the furnishing of transportation. The City Attorney advised in response to a question that Ordinance No. 1639 is only applicable for special purposes such as sewer bonds, lighting and parking districts. She asked that a bare bone budget be ac- complished and then go back to the people about any new taxation; 1'- a . Jeff Dring, 205 Alice Stre~t, referred to an ordinance which was 6-27-78 - 1 - 23:9564 introduced at the last meeting - that of increasing the utility tax by 1% or 2%. It was explained that this was necessary so that the City Council, if it makes a determination to adopt such a tax, had to take that step in order to adopt the ordinance prior to July 1. He asked the Council to fulfill its moral obligation to reduce the budget and not adopt additional taxes. Ted Drew, 440 E. Winnie Way, stated in part that he felt the Federal, State, County and local governments are trying to avoid Proposition 13 by adding taxes which are not now on the books. He questioned the need for some of the projects and referred to the proposed soccer field and the change at th~ First Avenue School. John Joseph, 408 N. First Avenue, felt the City Council should levy taxes which will hurt the least number of residents... he felt the proposed property transfer tax would not hurt anyone. Because the I budget must be adopted by July 1 he felt the City Council, as the people's representatives, should make the decisions which he felt would be the right decisions. Gordon Maddock, 203 E. Duarte Road, President of the Arcadia Board of Realtors, said in response to a press article that the association opposed the property transfer tax because it is outlawed as of July 1, . ... however, its position was that it opposed all forms of additional taxation until after that date... that it should appear clear that the citizens want the concept of the proposition carried out at all levels of government and that the people be allowed to vote on any new taxes. He commended the City Council for listening to hours of public testimony and reiterated his previous suggestion that the association would assist in the implementation of tax reform. Barry Rumbles, 2500 Lee Avenue, commended the City Council for its difficult decision which it had to make - and generously provided H.O.Y. (Help Our Youth) a 50% contribution. He hoped this reduction would only spur interested citizens to volunteering and/or monetarily supporting the needs of HOY. Martha Bermingham, 450 Sharon Road, reinforced what Mr. Rumbles said and noted the communication to the City Council from Carol Libby in which the volunteer problems for HOY were set forth. She also expressed appreciation for the help from the City. Steve Taylor, 1120 Altern, said in talking with SOme residents they are all opposed to any new taxation and urged the City Council to stand by the intent of Proposition 13. Dave Robinson, 144 Alta, said in his opinion the adoption of any tax raising ordinances before July 1 is not what the people want. He said he has heard the words referendum and recall bantered about and he would be sorry to see that, which if it should come about would tear the community apart. In response to a question he was advised that the word from State is that the City would take a reducoion of 10.5% revenue loss of about one million dollars but at this point it is unclear. He felt cuts could be made without total disaster. I Rene Topalian, 110 W. Le Roy Avenue, referred to what will happen in the following year when there will be no State surplus.. that the City Council should weigh that possibility very carefully. In response to a question the City Attorney said in part that if the City Council does enact an additional revenue at this meeting that it could not be changed after July 1 without a 2/3 vote of the electorate. Mr. Topalian said that was unfortunate because many of the citizens do not like to see local government restricted. Pearl Scanlon, 461 Palm Drive, said she has talked with many residents and they do not want increased taxation... and referred to the cuts already made in the budget which would bring the budget within about $80,000 of being balanced. Herb Fletcher, 175 W. Lemon Avenue, was advised that on the information 6-27-78 - 2 - ..f~' - .1'",'-:,;"?' ~- .:t;,:,;, ,) ;~. r",'.. 23:9565 the City has been able to obtain, it would receive about $1,087,219 from the State providing the City agrees to' specific conditions; 1) that the City' shows no surplus in the budget greater than 5%, 2) that the City maintain its police and fire services at the 1977-78 levels and 3) that the City grant only those percentage salary increases granted by the State to State employees. He said the local schools will have problems also - that it will probably take several years with a lot of work to get the government where it functions the way the people want it.. He did not think the City Council should cut the budget as severely as is wanted by some of the residents - that when problems begin they won't be here to help. I Francis Fitzgerald, 1718 El Vista Circle, referred to the reduction already made by the City' Council and the possibility of it having to levy new taxes. He was advised that as of June 23 the figure was $94,348 which is the difference needed to balance the budget without any additional increase in revenues. At this point Councilman Saelid submitted that the intent was to ask government to cut its spending wherever it was economically or reasonably feasible without cutting into those services which are vital and necessary. The idea of cutting back on the reduction to match what might be available in terms of funding from the State misses the point in his opinion and that brings up "what happens next year?'" Is the Council going to be doing the same thing next year.. He feels that Council has a responsibility which goes beyond just balancing against what there is available in terms of revenues this year... and if a surplus is established so much the better. Mr. Fitzgerald then responded that if the additional funds are necessary the people would want a vote for the taxes they are willing to pay. Bill Krumm, 1626 Rodeo Road, was adVised in response to his inquiry that Section 5 of Proposition 13 specifically stated that this Article shall take effect July 1. Section 3 relates to the taxing power of the State Legislature and that power was curtailed theoretically but not actually as of June 7 whereas the City's taxing power was allowed to continue until June 30. I Gordon Maddock, submitted in part that perhaps there are more funds than what is being considered at this time and it is his understanding that the 2/3 vote was a mandate not to impose any new tax effective June 7; that the period between JUfle 7 and July 1 was' to. give the jurisdictions time to get theJ!;,d:lo.l!S,e, in order so to speak. . ~ t....-,. ;:;t,1. ' James R. Helms, Jr., 2220 Sewanee ,Lane , neted in part the amount ef work which gees into b~~g~~,p'r~p~~ation and that Ceuncils have, year after year, gene over ,~yerY,tttem,~o make certain that the expenditures have been held within';,~h\'-SeAl.hJ'Sh are reasonable fer a City of the quality of Arcadia. ttj 1I)!l},.l!,pe a quality City for people willing to spend $100,000 fer a hO~a~t sold for $17,000 twenty years ago. He referred to. the amenttfesk~streets are clean, the parks and recreational facilities are witheut par anywhere in this Valley; a Library that is nationally renowned"for'its excellence. He deplored the expenditures and waste that eccur:at,the County level and noted the increase of personnel in that',agency - practically doubled in ten years whereas the City has actual1Yfreduced its personnel. He continued in part that he would be wi~ling to pay his full share of the City property tax to see Council maintain the budget as it has been proposed. Mr. Helms noted the change in the downtown area through redevelopment; it is now a viable, attractive and productive business area... that to tear down the machinery which has been developed would be a great dis- service to the City. He urged Council to use as much power as it has through the representatives on a State level to have the limitations removed which have been plaed on the acceptance of State funds. Sherry Passmore, 1109 Columbia Road, agreed with Mr. Helms that the City is a nice place to live but questioned the economics of the citizens losing money in order for businesses to move into the downtown area; that there is a Chamber of Commerce to bring in business; that 6-27-78 - 3 - EXECUTIVE SESSION DlAL-A-RlDE 1978-79 APPROVED 1311 f; ..' 23:9566 the Redevelopment Agency is not truly reflected in the budget and it is the resident's right to vote on something of this nature... new businesses create more services but there are no new property taxes going into the City's general fund to pay for those new services, She felt all facts and figures should be presented to the residents. Rita Pithey, 1765 Oakwood, asked the City Council not to adopt any new taxation and if it does that it be a tax that is equally distributed to every member of the City. Dave Robinson, 144 Alta Street, noted the possibility of a ballot measure in November which would nullify the application of Proposition 13 to all business, such as residential rental property, hotels, motels, all commerce..... and that should this pass the electorate he would still have to pay the street sweeping, sewer maintenance and utility 'tax if the Council adopts that. He asked that Council consider the ~xclusion from any new taxes for those who may be excluded subsequently from the benefits of 13. ......" I No one else desiring to be heard the hearing was closed on MOTION by Councilman Saelid, seconded by Councilman Pellegrino and carried unanimous ly. ," The City Council adjourned to an executive session at 9:15 p.m. Reconvened at 9:45 p.m. at which time the Assistant City Manager outlined the follewing reductiens which had been determined during the executive session: Eliminate the pesition ef the Administrative Assistant in the City Manager's office; Eliminate the positien of Superintendent ef Building and Safety; Eliminate the Office ef Ecenomic Develepment and transfer the Assistant from the City Manager's positien to. the Planning Department; Eliminate the Administrative Aide in the Redevelopment Agency effice; Eliminate the pesitien ef Directer ef Recreatien. This weuld tetal $88,153 in additienal reductiens ever and above $795,196 previeusly eutlined. This weuld be a $884,349 reductien. It was MOVED by Councilman Saelid, secended by Ceuncilman Pellegrino. and carried en rell call vete as fellews that the eliminations as eutlined be APPROVED. AYES: NOES: ABSENT: Ceuncilmen Gilb, Margett, ,Pellegrino., Saelid, Parry None Nene Councilman Gilb explained that the Superintendent ef Building and Safety is retiring and the position will net be filled. The Adminis- I trative Assistant position is vacant now and will net be filled; the transfer ef redevelopment is merely a transfer and the scepe ef the activities will still be available. The Assistant City Manager explained the status of the Dial-a-Ride pregram which is under censideration fer inclusien in the 1978-79 Budget. It was noted that a request would be made fer Federal Operating Assistance for the fiscal year 1978-79. Staff is requesting $60,000 in the budget which represents the net cost to. the city after fare revenues; that abeut $28,000 is expected from Federal funds which would leave the City with a balance ef $28,000 at the end ef the year. That it sheuld be knewn by about December whether or not the City will receive the federal funds; that if by that time the federal funds are net ferthcoming the contract could be cancelled en a 30-day netice. It was MOVED by Ceunci1man Gilb, secended by Ceuncilman 6-27-78 - 4 - I f: STREET CLOSING APPROVED JUVENILE DIVERSION PROJECT r- 0 ifJ COUNCIL COMMENTS SAELlD I ~y>-...;. .. ,-' - , '-...t--'- ,. . 23:9567 Pellegrino. and carried en rell call vote as fellows that the contract with Dial-a-Ride be renewed for the fiscal year 1978-79: AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Sae1id, Parry Nene Nene It was further MOVED by Councilman Gilb, secended by Ceunci1man Margett and carried on re11 call vote as follows that $57,000 be placed in the General Fund and $3,000 in the Revenue Sharing Fund.. these menies are in anticipatien of receiving funds under Section 5 of the Urban Mass Transportation Act ef 1964 to. reimburse a portien of the costs. AYES: NOES: ABSENT: Councilmen Gi1b, Margett, Pellegrino, Saelid, Parry None None The request ef residents to close Laurel Avenue between Wigwam and Secend Avenue on July 4 between 4 p.m. and 10 p.m. fer the purpose ef having a bleck party in celebration of the heliday was APPROVED en MOTION by Ceunci1man Saelid, seconded by Ceunci1man Margett and carried on roll call vote as follows subject to all conditions set ferth in the staff recommendatien ef June 26. AYES: NOES: ABSENT: Ceuncilmen Gi1b, Margett, Pellegrino., Saelid, Parry None Nene Cemmunicatien from the West San Gabriel Valley Juvenile Diversien Project requesting support in maintaining its eight-city-jeint-power agency in order to be a part ef the netwerk that will be eligible fer AB965 federal dollars this year. It was noted that it intends to operate on a bare benes budget until that time. Its functiens during that time were set forth in the communication dated June 22. The letter indicated a savings to the City ef $11,600. Ceunci1man Sae1id explained that the preject has been effective to some measurable degree; that he hopes the Federal monies will be available as the pregram has shown itself to. be worthwhile. It was MOVED by Ceuncilman Margett, seconded by Councilman Saelid and carried on roll call vote as follews the $5,109 be kept in the budget. AYES: NDES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Sae1id, Parry Nene Nene Individual comments were then made by the City Ceunci1men: "First I weuld like to thank all who have taken the time to ceme de.n and address the Ceuncil regarding the budget at the numereus meetings we have had. It has been important to me to know what Arcadia's peep Ie thought abeut our City government and services - and equally as important what our peeple expect us to do in establishing the City's future directien as a result of the passage ef Propesition 13. "I do not think there has been another issue in the histery ef the City which has eveked more discussion in such a shert period ef time as this ene. The message is clear to me that government at all levels has been directed to. tighten its belt - eliminate services which cannot be fully justified and increase efficiency in these .remaining. "This thrust is not completely new to. Arcadia, as we have ever the years striven to keep eur cests dewn as evidenced by last year's budget increase which was enly 6.4%. Still we have net been 100% pure and this year as a result of,Propesitien 13 we have made substantial reductiens in cest. The sadness I feel is that we are now finding it 6-27-78 - 5 - ,--..... 23:9568 necessary to release employees who. have been goed, faithful and dedicated members ef the City staff. Our work dees net stop here, but rather it requires that we continue to. stress efficiency in eur City operations to ensure that the taxpayer receives full value fer each tax dellar collected. "Prepesition 13 dees net tell us to abandon good business principles in fiscal matters, but rather, in recognizing the severe reduction in the preperty tax base, the initiative previded until the end ef this menth for cities to. get their fiscal heuses in shape. Not to do so would be an abregation of nur responsibility to. our citizens and ferce our City's dependency on State funding in years to come. I remain firm in my belief that the mest respensib1e and mest efficient gevernment is that which is closest to. the peeple and we must strive to be independent ef Sacramento contre1s. I "I philesophically enderse the concept of user fees wherever pessible such that these benefitting pay for the service; and furthermore that the user knows the cest of the service performed. I think this should apply to. recreation programs and facilities, to building permits and planning matters, and also to. sewers and street cleaning. Years ago I opposed the utility tax because had this been a property tax, the taxpayer would at least claim credit on his income tax. New with the 1% limit en property tax, this argument disappears. The Preperty Transfer Tax has the advantage that it can be credited against Capital Gains Tax when the preperty is sold, but I am new convinced that the utility tax is more equitable - in that it encompasses a broader base. '~hethought that we should not provide fer eur City's fiscal soundness by activating tax ordinances within the meaning ef Prepositien 13, but rather wait and place such ordinances before the electerate weuld be irrespensible. Nobody would argue with the fact that in the recent election Propositien 13 was the clear choice ef the people by a margin of 3 to. 1 in our City. Yet, if 2/3 ef the qualified electerate had been required (as will be the case with local measures put on the ballot) the initiative weuld have failed. In fact, with 27,132 registered veters, it weuld have taken 18,088 vetes to achieve the 2/3 majority ef the electorate. With the extremely large turn-eut at this last electien ef 21,113 voters the measure weuld have required an 8 to 1 margin to pass. This analysis shews the impracticality of passing any lecal taxing measure by this method. "Arcadians fer the most part have chosen to live in Arcadia because ef its very high living qualities. I am not prepared to. scuttle these qualities ef life fer the purpese as one speaker has suggested - that ef previding an example to other local governments." GILB ,~ have previously said what I felt but fer the benefit ef.some of those who were net here then I want to say that I to.o appreciate the input we have had from the community. The fact is I had kind ef a running battle going with one of the gentlemen who said 'that I had already made up my mind' and I want to. remind him that I left Bakersfield at 4 Saturday morning to come to the hearing and I got back to. Bakersfield I at 2 Sunday morning and flew down here tonight because that is my jeb and I have the responsibility to. take the time to de it. Somebody said 'yeu get paid for it' .... but anyway, I was talking to. a gentleman a little while ago and he said 'teday is today but there are a succession of tomerrows' and I think we have to feel that way also. I think we have to treat the surplus that we have ceming in from the State as just that .. surplus. Perhaps using it on our capital projects in seme way so that next year we will net have to. cut back that $300,000 plus. "I want to say something about the League of Califernia Cities that has been mentioned that we should all run to Sacramento... all the Senaters would epen their doors to. .ee us and that the Governor ceuld hardly wait to talk to us.. I want to say the League has been repre- sented there all aleng with other erganizatiens to try to get relief for the Cities. This City is in a very fertunate position... first . 6-27-78 - 6 - I PELLEqRINO I ,....*q r'.~,"''''-''~ jj~., ., ,,!~.:~,,"'f ..,'.......:~.... 23:9569 because it is a Charter City.. with its own pe1ice and fire departments.. we de not have to. rely on the funding that is forthcoming to the County police and fire departments. We are also in a very fortunate positien where we have a group ef city empleyees who. are second to. nene. Some peep Ie spoke about the employees - that they had seen many of them leaning en shovels in the streets.. it seems like all of a sudden city emp1eyees are becoming nething and I have said and I have to say again I resent that because I think all ef these who serve this City know the work the employees de :. the extra work they do.. the extra work they put in along with many ether things.. "Last Saturday we talked al.)ut eliminating people from their jobs and it got a big hand. I have to. say when you talk abeut eliminating people from their jobs and it gets a big hand... maybe that goes a little beyend what the scope of the jeb is. We have heard that gevernments, like businesses, when you cut back they say well gevernment isn't really a business.. because if gevernment were like businesses you would shoot all the old people who. de net produce and yet you still have to. supply these services to people who de net preduce their ewn revenues. In my business ~ business gets bad we try to. meve forward.. we never stop... we try to. do something to. go ferward because if you stop you become stagnant and that is why I think we have to plan in the City to keep it moving.. whether it is keeping our equipment in geod repair, keeping our streets in good repair instead of waiting until everything gees to. pet '" then try to do it all at the same time. "I am fer some of the increased revenues because I think next year its geing to be needed. I am also. fer a fair salary fer the city employees and I think the pel ice and fire and all the services have to be supplied to a quality city like Arcadia. I do appreciate all those volunteers to work en committees and help us solve these preblems '" I know that in the future there will be many commissions and boards which could use some ef these talents.. and we should be able to. call on some ef them. "I think ene of 1;he things we did not touch on - insurance - nebedy mentioned that. Liability insurance --- there are many carriers who won't even carry a municipality and certainly that is one of the reasens the streets and sidewalks must be kept in geod repair because we are ferever fight~ eff these who. want to. sue the City fer mi11iens.. these have to be defended in ceurt.. That has become a tremendeus preb1em and everyene in business knows that you never know what yeur liability premiums are geing to be for next year.. even if you are going to get it. "I support what Councilman Saelid has said... I have really enjoyed serving this City and if the motiens which we make tenight are geing to cause a recall, like Mr. Rebinsen talked abeut and said it weu1d tear the cemmunity apart, n_ then sebeit." "First I would like to thank my ce1leagues for the crasl, course in City government, but I asked for it because I also voted for Proposition 13. You, the people ef Arcadia, have made this a quality city and because of its calibre this City has a concern to have a fiscal budget. We have sert of a unique city - we have electiens every two years.. we have interest greups which watch every Councilman, City Manager and Department Head.. this City is not in the predicament that other cities are because we have concerned residential and business people. We eliminate a bad apple as soen as pessible. We are trying to. cut the fat but are treating it with caution so. that the effect does not hurt the community it took 75 years to build. Propesition 13, in itself is a cemp1icated amendment, but it did not confuse the voters. We want to control eur meney and reduce our taxes... and time will tell. Since the passage ef the initiative we have been called upon to. decide prierities - with these prierities we are immediately tied in with high pitched emotion, with prejudice and preconceived ideas with which we must deal. It is generally believed that far more decisions, even more important ones, are dictated by human feelings rather made by 6-27-78 - 7 - 23:9570 actual logical reasens. As your elected representatives we on the Council have been leoking up the laws regarding our decisions. When we expend eur energies - directing our activities by emotien - things go. hit and miss - eur efforts run amuck and plans fail. Arcadia is the City it is because we have followed the leadership ef reasen.. We are a Council dedicated to thinking things threugh before acting.... eur energies are directed teward maintaining responsive and responsible leadership. We are aiming toward an ebjective of good stable gevernment for our City." MARGETT "I am in a rather tough positien when most all the areas have been covered.. but let me say th"s.. the initiative precess served California well. Initially it was intended as a toel fer the voter when the desire ef special interest groups was placed ahead ef people.. Of course, it is one thing to. jar government into respensible action, as Jarvis-Gann has apparently done, but it's quite another to tempt the I public with meaningful tax reductien witheut telling the veter hew replacement funds would be provided. This is where we are tenight.. to make funding determinatiens. "You, the voter, threugh hearings and cenversa tiens, let ters and telephene calls and threugh almest every ether way... have expressed yeurselves.. have said that first ef all yeu want to keep the spirit of Jarvis-Gann... no. mere preperty related tax... as voters want seme, degree of choice in paying for government.. let me explain that. If I were to. make a purchase I knew I weuld have to. pay sales tax but I have a choice in purchasing or net purchasing.. Under the previous preperty tax there was just no choice at all.. yeu just had to pay.. I feel the areas ef taxes must be understood and net a mystery to the voters. Then frem what I can derive from what the voters have com- municated to me is that you weuld like to see the City Ceuncil empley austerity, re-evaluate the City's management structure to reflect its revelance to essential needs. "There alee several revenue raising erdinances befere us tenight and I am sure my colleagues have evaluated each measure.... hew it impacts our gevelenment, the taxpayer and the community. Hepeful1y the erdinances will be equitable to. all. In instituting taxation I have to. say we must empley geod taxing principles. Yeu know the city gevernment, mentioned earlier by Councilman Gilb, is not immune to escalating cests and insuleance..... wage increases and expenses fer things like pe1ice cars, gaseline... just seme ef the things it takes to. run this government. We sheuld have a bread tax base I feel and a rate geared to. ecenomic growth.. This is semething we did not have under the preperty tax.. We had to sit fer years between assessed valuations to. be able to. catch up with eur growth in gevernment.. or the inflation in government... Hopefully the tax is econemical to. pay with minimal cests fele the City to. collect and I mean that. I think that if it is as easy to pay, if it is a modest ameunt and you can see the goed that it is doing... I am sure this cemmunity will be willing to. pay it. I feel it should be nen-discriminatory.. pay in prepertion to. the directives. These are uncertain times fer yeur lecal government. Obvieusly we are net merely passing revenue erdinances this evening.. we are determining the directien and the type of City we are going to. I have in the future. My vote tenight will reflect, to. my sense ef values, the protectien ef the homes in the cemmunity.. maintaining and increasing where possible, the quality of living we enjey in Arcadia. PARRY '!wou1d like to. just comment on my appreciation of the public input we have had during the last several days.. I think nobedy else wanted but me. I think I understand why now... It has really been a re- warding experience and it has been an experience where I myself have fluctuated within my thinking 180 degrees back and ferth threugh talking with peeple, through the public hearings, on the street, the te1ephene calls - everybedy had a little bit different idea - different feeling ef expressien of what we sheuld do er should net de. I think there is no. questien that Propositien 13 has created and is a revolution to. seme extent. I'm a hemeowner - we're all hemeowners within the City ef Arcadia and I will be saving $1,000 or so. on my property taxes as a consequence - assuming it isn't geing to. be 6-27-78 - 8 - I I ORDINANCE NO. 1635 ADOPTED Admissiens Tax 23:9571 declared uncenstitutiona1 which I den't think any Supreme Court weuld have the guts to de. Prepesitien 13 is certainly spreading througheut the Ceuntry. The idea, cencept and phi10sephy, I think is excellent. At the same time we have a combination of a duty, a duty to try to find and implement to the best of eur ability, Proposition 13, since unfortunately the language itself and the State Legislature did not clearly say hew the City continues to. exist within reasen. We have an ob1igatien, no. question abeut the cut - the cut from our budget. We have made cuts and some which have hurt peep1e - approximately $900,000 at this time. We've cut jebs ef people who. have been deing in mest instances an excel:ent job in the City. We've decided net to fill certain vacancies - we declared a hiring freeze en city empleyees. I think we still have the continuing obligatien to scrutinize city gevernment and try to. leok censtantly on a daily basis of where we can make further cuts in the future - trying to. consolidate as far as departments are cencerned - trying to censelidate jebs. The public hearing testimony has given us substantial input as to. what the public sees and what the public's cencept is ef the visible Arcadia city government. I hepe mere of yeu will continue ceming here to seme ef these meetings and give us input - don't step now, regardless of what happens. At the same time, unfortunately to me, the detrimental effects ef Propositien 13 have been to. some extent a less ef some local centrol which I think peep Ie in Arcadia do not want to. happen. We are new en eur knees, in a sense, begging the State to. give us money. The State Legislature has determined what the law is for the implementatien ef Propesitieu 13. The State is now trying to tell us with relation to the funds what to. de--- we'll have to decide after a while whether to. accept er reject - what we can do with these funds as far as what wages we can give to. eur firemen and pelicemen and to. eur other city empleyees. These are factors I don't like - I think its just another eresien ef lecal centrol. "In substance I think we de have an obligation to try to. continue the financing of the City and realizing that we have the duty as City Ceuncilmen to. continue to. cut eut the fat whatever the fat is. There are different definitions and determinations of what the fat is. I think we've gotten the message of peep Ie saying slightly different things but I think everybody is saying we want the cut and everybody is saying we want to centinue with an austere government. I think the difference here is actually what we can do or cannet do to try to. centinue the City of Arcadia as a quality city and it is a quality city. You leek areund seme of the cities beside us - we have a lot ef things here that make the difference and why we all live here. So. I de think we have some additional obligations, at least temporarily, to find some additiena1 sources ef revenue, but I myself, weuld look into. the areas where the homeowner would net be directly affected. For example, admissien tax - the admissien is a tax that dees not directly affect any single resident ef Arcadia--- at the same time it dees bring revenue in - not to. only help pay for the cest ef the traffic contrel as well perhaps as psychelegical1y to appease the citizen who. finds himself caught in a traffic jam or th~ pollution er the quality of the environment being deteriorated to. some extent. "In cenclusion, I think whether you realize it or net, er agree with whatever the cenglemerate decisien will be en some ef these things - - the decision ef at least three ef us en each of these erdinances\ I assure you will be an henest decisien - and a decisien that we are making in good faith. I hepe yeu realize this. This is a teugh decision we are going to. make tonight.... in fact in just a few minutes. Thank yeu." I J Mayer Parry announced that the ordinances which will new be presented have been introduced but not adepted as yet. Whereupon the City Atterney presented for the secend time, explained the content and read the title ef Ordinance No.. 1635, entitled: "AN ORDINANCE OF THE CITY OF ARCADIA AMENDING SECTIONS 2622.1 AND 2622.2 OF THE ARCADIA MUNICIPAL CODE BY LEVYING AN ADMISSION TAX ON HORSE RACING AND HARNESS HORSE RACING AND OTHER EVENTS FOR USUAL CURRENT EXPENSES OF THE CITY OF ARCADIA." 6-27-78 - 9 - ORDINANCE NO. 1636 NOT ADOPTED (Occupancy Tax) ORDINANCE NO. 1638 NOT ADOPTED (Business License Fees) / 23:9572 It was MOVED by Councilman Saelid, secended by Councilman Gi1b and carried on rell call vote as follews that the further reading ef the full text be waived and that the same be ADOPTED. AYES: NOES: ABSENT: Ceuncilmen Gilb, Margett, Pellegrino, Saelid, Parry None Nene J The City Attorney presented for the secend time, explained the centent and read the title of Ordinance No.. 1636, entitled: "AN ORDINANCE OF THE CITY OF ARCADIA AMENDI.,G SECTION 2662 OF THE ARCADIA MUNICIPAL CODE BY LEVYING A UNIFORM TRANSIENT OCCUPANCY TAX FOR USUAL CURRENT EXPENSES OF THE CITY OF ARCADIA." It was MOVED by Ceuncilman Saelid, seconded by Ceunci1man Pellegrino and carried on roll call vete as follows that the reading ef the full text be waived: I AYES: NOES: ABSENT: Ceunci1men Gilb, Margett, Pellegrino, Saelid, Parry None Nene MOTION was then made by Councilman Margett that Ordinance No. 1636 be adopted. DIED FOR LACK OF A SECOND TO THE MOTION. The City Attorney presented fer the secend time, explained the content and read the title of Ordinance No. 1638, entitled: "AN ORDINANCE OF THE CITY OF ARCADIA AMENDING PART 2 OF CHAPTER 2 OF ARTICLE VI OF THE ARCADIA MUNICIPAL CODE LEVYING BUSINESS LICENSE FEES FOR USUAL CURRENT EXPENSES OF THE CITY OF ARCADIA." It was MOVED by Councilman Saelid, secended by Ceuncilman Margett and carried on roll call vote as fo11ews that the reading of the full text be waived: AYES: NOES: ABSENT: Ceuncilmen Gilb, Margett, Pellegrino, Saelid, Parry Nene Nene Councilman Saelid observed in part that with relation to. this business license fee he weuld like to see a policy in which the City becemes more of a help to the businessman, when he first comes in and wants to establish his business within the City, by identifying these parts of the Municipal Code which apply to his line of business. Ceuncilman Margett agreed that was a point to consider... he continued in part that the City is reducing the Chamber of Commerce's contri- bution and it will prebably have to. increase its rates... and then to. ask the businessman fer anether 50% increase. He noted that Council is considering this increase en staff's recommendatien. Ceuncilman Gilb was advised on the business license fee - $25 plus $5 I fer each empleyee (per year).. and what ether cities charge... that most cities base it on a gross receipt percentage... Arcadia is still on the lew side. Ceuncilman Pellegrino. felt that an increase in this and the Chamber ef Commerce dues would place a hardship en the businessman.... he mentiened ether dues which a businessman must pay.. Mayor Parry felt it was net an unreasenable fee but it might discourage business and that if it is a fee and nx a tax it can always be cen- sidered subsequent to. July 1. ROLL CALL VOTE WAS THEN CALLED ON THE MOTION BY COUNCILMEN SAELID AND GILB TO ADOPT. AYES: NOES: ABSENT: Councilmen Gilb and Sae1id Councilmen Margett, Pellegrino, Parry None ORDINANCE NOT ADOPTED. 6-27-78 - 10 - ORDINANCE NO. 1639 ADOPTED (Fixed rates of taxes & levying taxes for 1978-79) /3 -I ORDINANCE NO. 1640 ADOPTED (Sewer Service Charge) )) Note: This vote omitted in previous minutes. ORDINANCE NO. 1641 , NOT ADOPTED I' (Property Transfer Tax) /3 23:9573 The City Attorney presented fer the secend time, explained the centent and read the title of Ordinance No, 1639 entitled: "AN ORDINANCE OF THE CITY OF ARCADIA FIXING THE RATES OF TAXES AND LEVYING TAXES FOR THE FISCAL YEAR 1978-1979 FOR THE USUAL CURRENT EXPENSES OF THE CITY OF ARCADIA. 11 It was' MOVED by 'Councilman Gilb, seconded by Councilman' Pellegrino. and carried en roll call vote as fellows that the reading ef the full text be waived and that the same be ADOPTED, AYES: NOES: ABSENT: Ceunci1men Gi1b, Margett, Pellegrino, Saelid, Parry None Nene During this censideratien it was pointed eut that the bonded indebtedness ef the City is appreximately $40,000. The City Ceuncil agreed the City is fortunate to keep that so. low. The City Attorney presented fer the second time, explained the content and read the title of Ordinance No.. 1640 entitled: "AN ORDINANCE OF THE CITY OF ARCADIA ADDING TO CHAPTER 6 OF ARTICLE II OF THE ARCADIA MUNIC IPAL CODE A NEW PART 9.6 ENTITLED SEWER SERVICE CHARGE FOR USUAL CURRENT EXPENSES OF THE CITY OF ARCADIA." During this consideration the Directer of Public Works explained that the sewer system built in the mid 40's is appreximately 142 miles in length and based on today's construction cost its replacement value weuld be between 15 and 20 million dollars.. Up to. new the City has not set aside any special funds to take care ef installation, replacement or relief lines, majer repair" and no special charges to pay the cost of the ongoing maintenance of the main line sewer system. This ordinance, if adopted, would pay the ongoing maintenance charges and provide a slight surplus to take care of sewer replacement and accumulate seme funds for major repairs. The funds ceuld only be used for sewer systems. It was MOVED by Councilman Margett, seconded by Councilman Gilb and carried en rell call vote as follews that the reading ef the full text of Ordinance No, 1640 be WAIVED, AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry Nene None It was further MOV~D by Councilman Hargett, seconded by Councilman Gilb and carried on roll call vote as follows that Ordinance No. 1640 be ADOPTED. AYES: NOES: ABSENT: Councilmen Councilman None ... Gilb, Margett, Pellegrino., Saelid Parry The City Atterney presented fer the secend time, explained the content and read the title ef Ordinance No. 1641 entitled: "AN ORDINANCE OF THE CITY OF ARCADIA AMENDING CHAPTER 6 OF ARTICLE II OF THE ARCADIA MUNICIPAL CODE BY ADDING THERETO PART 9.2 ENTITLED REAL PROPERTY TRANSFER TAX AND BY SUSPENDING THE PROVISIONS OF PART 8 AND PART 9 THEREOF," It was MOVED by Ceuncilman Gilb, seconded by Councilman Margett and carried on roll call vete as follows that the reading of the full text ef Ordinance No, 1641 be waived: AYES: NOES: ABSENT: Ceuncilmen Gilb, Margett, Pellegrino., Saelid, Parry None Nene Councilman Saelid stated in part that there is an extraerdinarily high percentage of residents who sell their homes but move within the City.,. but felt that it really places an inerdinate burden on the hemeewner - the businesses de not transfer that often. He could not support it as there is a mere equitable and breader base on which to base a tax.. Ceuncilman Gilb explored the way this erdinance came about... during 6-27-78 - 11 - ORDINANCE NO. 1642 ADOPTED (Street Sweep ing) 13 ORDINANCE NO. 1644 ADOPTED (Overnight Parking) /3 23:9574 lengthy hearings the City Council was looking for some type of tax and this came up and no. one objected at that time. In talking with some realtors in another City (Newpert Beach) they said they could see nothing wreng with it and said there was such a tax in that City... that now' peeple' are telling him he had better vote fer it or he would just be muscling under to the local realters.... However, he is net voting fer it, because the City does not need the amount ef money it weu1d bring in. Councilman Margett said he could not suppert the ordinance.. that there are both advantages and disadvantages.. it would permit the City to share in the prefits from tne sale of properties... he ceuld not agree with the realters that it weuld affect sales.... that for instance with a $100,000 property the City would only receive $500 frem the property transfer tax and that with a sale of that amount the seller or the realtor would yield, so. that did net cencern him. The disadvantage I would be the large parcels which would never be sold - the schoels, hespital, racetrack, arboretum, parks etc... and agreed with Ceunci1man Saelid in that people de change lecations but rarely meve out of the City... and that is what is desired --- to keep peeple here and participating. Councilman Pellegrino agreed in part with Ceuncilman Gilb -- that at first it was a geod idea to raise money.. that the opinions expressed by the audience had a let to de with swaying their opiniens.... The City dees not need that much money and he weuld not suppert the tax. Mayor Parry was not in favor ef the erdinance primarily because he felt it should be at 1/4% instead of 1/2%. DUE TO THE LACK OF A MOTION TO ADOPT THIS ORDINANCE WAS NOT ADOPTED. The City Attorney presented for the secend time, explained the content and read the title of Ordinance No.. 1642 entitled: "AN ORDINANCE OF THE CITY OF ARCADIA AMENDING THE ARCADIA MUNICIPAL CODE BY ADDING TO CHAPTER 6 OF ARTICLE II THEREOF, A NEW PART 9.4 ENTITLED STREET SWEEPING CHARGES FOR USUAL CURRENT EXPENSES OF THE CITY OF ARCADIA." It was MOVED by Ceuncilman Gilb, seconded by Councilman Pellegrino and carried on roll call vote as follows that the further reading of the full text be waived. AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Saelid, Parry None None Councilman Gilb further MOVED that Ordinance No. 1642 be ADOPTED. Motion seconded by Councilman Margett and carried on roll call vete as fellews: AYES: NOES: ABSENT : Councilmen Gilb, Margett, Pellegrino., Saelid Ceuncilman Parry None I ,The City Attorney presented fer the secend time, explained the content and read tht title ef Ordinance No. 1644, entitled: "AN ORDINANCE OF THE CITY OF ARCADIA AMENDING SECTION 3214.4 OF THE ARCADIA MUNICIPAL CODE AMENDING SECTION 11.12 OF THE UNIFORJol TRAFFIC ORDINANCE BY INCREASING THE APPLICATION FEE FOR AN OVERNIGHT PARKING PERMIT FROM $12 TO $24." It was MOVED by Councilman Gilb, seconded by Councilman Margett and carried on roll call vote as fellows that the further reading of the full text be waived and that the same be ADOPTED. AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Sae1id, Parry None Nene 6-27-78 - 12 - I I RESOLUTION NO. 4755' ADOPTED (Ambulance Ra tes) " ,,' I~ 'RESOLUTION NO. 4760 (Appreciatien Chastain) vi BUDGEt ADOPTION /i: I) UTILI'l'Y TAX o 1.5 23:9575 The City Atterney,presented, explained the content and read the title of Reselutien No. 4755, entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA ESTABLISHING RATES FOR THE CITY AMBULANCE SERVICE AND REPEALING RESOLUTIONS NO. 4277 AND 4586." It was MOVED by Ceunci1man Margett, seconded by Ceuncilman Pellegrino and carried en rell call vote as follows that the further reading of the full text be waived and that the same be ADOPTED. AYES: NOES: ABSENT: Councilmen Gi1b, Margett, Pellegrino., Saelid, Parry None None The City Atterney presented, explained the content and read the title ef Reselution No.. 4760 entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA EXPRESSING APPRECIATION TO EDWARD G. CHASTAIN FOR HIS SERVICE TO THE COMMUNITY DURING HIS TENURE AS BUILDING INSPECTOR AND SUPERINTENDENT OF BUILDING AND SAFETY." It was MOVED by Councilman Gi1b, seconded by Councilman Saelid and carried en roll call vote as fe11ews that the further reading of the full text be waived and that the same be ADOPTED. AYES: NOES: ABSENT: Councilmen Gilb, Margett, Pellegrino, Sae1id, Parry None Nene It waS MOVED by Councilman Saelid, seconded by Councilman Gilb and carried on roll call vote as fellows that Mr. Chastain be presented with an appropriate plaque indicating his service, to, the City. It was then MOVED by Councilman Gilb, seconded by Councilman Sae1id and carried en roll call vete as fellows that the City Ceuncil autherize an appropriatien of $200,000 frem the General Fund Surplus to the Equipment Reserve Fund and that the propesed budget for 1978-79, minus the reductions as centained in the memorandum ef June 23 including those which have been ferma11y acted upon at this meeting in the amount of $88,153 in additien to the $795,196 be APPROVED. AYES: NOES: ABSENT: Councilmen Gi1b, Margett, Pellegrino, Saelid, Parry Nene Nene , Discussien ensued en the preposed increase to the utility tax ef 5%. Mayor Parry ebserved in part that this tax will be discussed June 30 unless three members of the City Ceunci1 indicate they do not favor such a tax at this meeting. The City Manager said in part that 1% increase weu1d bring in roughly $181,000 and 2% roughly $360,000. Councilman Saelid stated in part that he is afraid the City Ceunci1 will box itself in if it deesn't provide for future revenues; he weuld net like to leave a legacy to. the peep1e for having to. go to the State to run the City. He submitted that the ordinance ceuld ~ always be rescinded by a 3 member vote of ,the Council. That the City is no longer placing in the Capital preject Acceunt the admission taxes which has always been the pelicy... that if additional revenue is derived from the utility tax it should be used for capital projects. He would support 2% increase.v' Councilman Margett said he could support the additienal tax. Also Councilman Gilb because there is a built-in exemption for certain categories. Councilman Pellegrino said he ceuld net suppert a motien to increase the utility ,tax. Mayor Parry observed in part that at this time he could net support an increase of any percentage and felt that threugh some type of pressure en a State level some way will be feund to finance cities.. that the law wi11'be changed. 6- 27-78 - 13 - , /J; \ c' ADJOURNMENT 23:9576 Prior to adjeurnment Ceuncilman Saelid responded to comments made by Mrs. Passmore concerning the fermat of the budget. He felt the budget could be prepared in a way which weu1d be more intelligible to the citizen who wants to. ceme down and participate in the budget review and knew what the impact ef what he wants would be. He was speaking abeut programs within departments... he weuld like to. discuss this with staff. It was also noted that additienal study is to. be made to. see what recreation and planning department programs may be self-sustaining. At 11:35 p.m. the meeting adjeurned to. 6 p.m. June 30, 1978 in the Council Chamber. ~9, ATTEST: d, ~~ "4~.1 City Clerk 6- 27 - 7 8 - 14 - '0 I I