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Home My WebLink AboutJUNE 12,1996 38:0186 OIIO.~o OG/~ i6 ~(. I CITY COUNCil. PROCEEDINGS ARE AUDIO AND VIDEO TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY CLERK MINUTES CITY COUNCil. OF THE CITY OF ARCADIA and the ARCADIA REDEVELOPMENT AGENCY ADJOURNED REGULAR MEETING (BUDGET SESSION) JUNE 12, 1996 The City Council and the Arcadia Redevelopmenl Agency met in an Adjourned RcguIar Meeting, Budget Session, on Wednesday, June 12, 1996, at S:30 p.rn. in the Artadia City Hall Council Chambers for the primary pwpose of reviewing the City Operating Budget, Fiscal Years 1996-98, and the Capital Improvement Program for Fiscal Years 1996-1997102000-2001. 1. ROll CALL PRESENT: Council/ Agency Members Chang, Hartlieh!, Young, and Kuhn ABSENT: Council/Agency Member Lojeski (arrived at S:41 p.rn.) II was MOVED by Member Young, seconded by Member Chang and CARRIED to EXCUSE the absence of Member Lojeski. I 2. SUPPLEMENTAL lNFORMA TION FROM STAFF REGARDING AGENDA ITEMS The City Manager requested and received Council's authority to arrange for a joint City Council/School Board meeting 10 talk about youth activities and publie safetY issues in the City. 3. TIME RESERVED FOR THOSE IN THE AUDIENCE WHO WISH TO ADDRESS THE CITY COUNCil. Julie Clift. City employee and Teamster Union member, spoke in part regarding the impasse in Teamster Union labor negotiations, necessitating the bringing in of a mediator. She listed salary increases, bonuses, and increases in benefits which have been given to other City labor union employees. She asked thaI Teamster employees be treated equa1Iy and fairly. 4. MA TIERS FROM ELECTED OFFICIALS CHANG Member Chang suggested thaI the work program for 1996 with regard to the calnomie (Work program) developmenl issue be moved up to July of this year rather than waiting until D-em\ler, since the Downtown 2000 project is finished. I (Promotion of City's Business District) He also recommended formation of a committee composed of City stalf, Chamber of Commerce people, the Arcadia Business Association, and the Downtown Business Association 10 work logether 10 promole business in various disUicts of the City. (Comparative Member Chang staled he has nol yet received the companltive saIary schedule of City saIary schedule) employees in the San Gabriel Valley. 1 . 6/12/96 KUHN (Earthquake insurance) (Use of trans- portation funds for bridge retrofitting) (passing of Walter "Bud" Baird) 5. O.J~()..'; .' ():J~() f 0 38:0l87 Mayor Kuhn stated that she was in Sacramento last week for the California Association of Realtors (CAR) as a State Director. Ever since the Northridge earthquake, many insurance companies have stopped writing earthquake insurance for Cilifornia propenies. Other companies are not renewing policies, The CAR is strongly supporting formation of a California Eanhquake Authority which would establish a pool that would spread the risk and encourage insurance companies to fund in the Slate. I Mayor Kuhn also stated that there is pending legislation which potentially includes taking approximately $400,000,000 from Southern California transportation funds to retrofit toll bridges in the San Francisco Bay area. Mayor Kuhn has written a letter to the Budget Conference Comrninee in strong suppon of Assemblyman Gary Miller's amendment to AB 2049 which would allow the $400.000,000 to come from other state funds and leave our transportation funds intact. Mayor Kuhn announced the passing of Walter "Bud" Baird, the husband of Helen Baird, who was with the Chamber of Commerce for over thirty years. PRESENTATION. DISCUSSION AND RECOMMENDATION TO PROVIDE DIRECfION REGARDING lliE CITY'S FISCAL YEAR 1996-1998 OPERATING BUDGET AND lliE FISCAL YEAR 1996-200 I CAPITAL iMPROVEMENT BUDGET Consideration of recommendations for balancing the City's $1,022.000 budget deficit, including revenue enhancements and expenditure reductions. Council went through each department's suggested cost cuts and removed those which they wished to discuss further. I The City Manager noted that the City Council will have the option of reversing cutbacks at such time as there is an increase in revenue. He stated Council may have additional ideas for further staff review. Member Lojeski offered the suggestion of possibly closing the Library for a few hours every week or every other week. As to the suggestion of closing in the morning, the City Librarian stated that the biggest cost savings would occur by closing for a full day, If the Library were closed only in the morning, staff would still have to work for a ponion of the day, The City Librarian answered questions from Council. The City Manager offered as another alternative for discussion, holding the position of Deputy City ManagerlDevelopment Services Director vacant for a period of six months, resulting in a savings to the General Fund budget ofSI3,OOO (only 20% of this salary is charged to the General Fund), Mayor Pro tern Harbicht proposed that there be a City- wide hiring frecz.. of all positions which come open, unless Council specifically authorizes filling the position. He stated that although he agrees that some City employees have not been treated equally when compared to other employee groups in the City, they have still fared bener when compared with employees in other cities and in the private sector. In addition to a hiring freeze. Mayor Pro tem Harbicht proposed implementing a salary freeze and a step-increase freeze. He also suggested: eliminating a 1.5% increase for employees' PERS costs. which the employee would pay; e1iminatiilg tuition reimbursement; instituting a car allowance for employees who have City cars, rather than replacing the cars; and reducing the Equipment Replacement Fund by $400,000. Mayor Pro tern Harbicht also proposed that Council consider a shon-term increase in the City utility-users tax; a one-time. one-year-<lnly 1% increase. Such increase would bring approximately $775.000 of revenue into the City. The average household would pay an additional $4 per month. Member Young added that the water fee should be increased, I 2 6/12/96 , l" ~ f ;. ;. 38:0188 I because that is a service which should be able to pay for itself. Mayor Kuhn questioned whether a one-year tax increase would be sufficient to "get the job done." Mayor Pro tem Harbicht commented that, if necessary, after a year another one-year tax incteasc could be considered. In this way. the citizens are part of the process by making a smaII sacrifice to keep the services which they want. Member Lojeski agrted that putting a one-year time limit on the utility tax forces Council to look at other sources of revenuc. Member Young recalled that when the utility tax first went in it was 7% and was later reduced because of the economic situation; raising it is still the economics of it. Member Chang expressed regret that employees must be laid off, but hopes that when the financial situation improves these positions may be restored. He is not comfonable with the increase in utility tax. but it will be a way for everyone to participate in solving the City's fiscal problems. Discussion continued with regard to budget cuts. Mayor Kuhn asked that the issue of safety-for the community, the employees. and safety programs such as DAR.E. for school children-be kept in mind. There is a strong need for economic development, which will help the City to raise revenue, because budget cuts, statf reductions, and hiring freezes are not enough. Member Lojeski commented on a common misconception the public has. and that is how projects are funded. sjJecifically, street improvements in the downtown area were not funded by the General Fund. as some people believe, but by redevelopment monies for that purpose. Member Lojeski stated that he would like to see the City of Arcadia take a strong leadellihip position, whether that be through the League of California Cities or the California Organization of Governments. and appeal to the State of California for the $2,000,000 they took ftom the City. He does not like going to the ta'<)layers for help by raising their utility tax. I The City Manager stated that Senator Mountjoy has authored sa 1977, which would provide a reallocation of one cent of sales tax to the cities. Senator Mounijoy fee1s that if 300 cities statewide back the bill. that should be enough to convince the Senate, the Assembly, and the Governor to pass it. Mayor Pro tern Harbicht agrted with Member Lojeski that this is the kind of thing the City of Arcadia should take a leadership role in pushing for. Council concurred. The City Manager stated that the proposed 5% water rate increase must be voted on formally by Council on June 18. Mayor Pro tern Harbicht said he would like to look at a utility tax increase in addition to all possible budget cuts, and turn the $1,000.000 deficit into a $300,000 surplus. The City Manager commented that the proposed 1% utility tax increase is an item which must be formally agendized for a public hearing. Because Arcadia is a chaner city, the Jarvis initiative which is pending in November may have a legal impact on the tax increase. Council reviewed the budget items they selected for discussion, and asked questions of the department heads. With regard to suggested cutbacks in the Fire Department, Member Lojeski wished to go on record as being against eliminating the two Fire Technician positions. The City Manager stated that if a person's job is eliminated, there is a "bumping" right that the City must allow. in accordance with State and Federa1law and the City's MOU's and personnel rules. He will check with the City Attorney and Human Resources Director as to how these rights would apply to someone in an unclassified position, such as in the City Clerk's office. The City must "meet and confer" regarding the bumping issues. I Council discussed a possible hiring freeze of positions coming open. They would be held in the budget but remain unfilled until authorized by Council. Mayor Pro tern Harbicht suggested the position of Deputy City ManagerlDevelopment Services Director be one of those frozen and left vacant for a while. 3 6/12/96 O.:J~o-n) NO~ ''J,r _~.} ;/. :,> ~IIO - '-10 1'1\'1 ' 6. CLOSED SESSION ADJOURN- MENT 38:0l89 Following discussion, the items remaining on the list of proposed budget reductions I were as follow: DeDartment Reduction Administrative Services City Attorney City Clerk City Clerk City Council City Manager Development Services Development Services Fire Fire Fire Fire Fire Library Library Library Library Library Maintenance Services Maintenance Services Maintenance Services , Police Police Police Police Police Recreation Recreation Management Analyst Legal support services Clerical Position Supplies Part-time Typist-Clerk Newsletter Senior Engineering Aide Contract Building Inspector Dispatcher II Part-time Fire lnspector Constant staffing overtime 2 Fire Technicians Reorganize department staffing Official meetings Library Aides Part-time Typist-Clerk Library materials Supplies Street sweeping Custodian , Tree trimming SART traffic control Field overtime 2 Secretaries Planning Research Officer Court Liaison Officer Part-time Typist-Clerk II Resident Camp Program TOTAL Net Savinl!S $ 60,000 10.000 40.000 4.000 4.000 18,000 68,000 6,000 45.000 23,000 53,000 84,000 16,000 2,000 17,000 12.000 7,000 1,000 75,000 10,000 44,000 20,000 10,000 47.000 18,000 18,000 22,800 20.200 I $755,000 It was the consensus of Council to meet tomorrow, June 13th, to review a SUIIIIII3IY of the revenue enhancements and budget reductions made at tonight's meeting. The City Clerk commented that by eliminating a position in her department, Council is cutting her budget by 16%. Other departments were asked to cut their budget by 4%. She urged Council to consider a cut of one.half position. Closed Session pursuant to Government Code Section 54957.6 for conference with labor negotiator Gary Rogers regarding Teamsters Local 911, AFSCME, Management and non-represented employees. At 9:58 p.m. the Adjourned Regular Meeting, Budget Session, ADJOURNED to Wednesday, June 13, 19%. at 5:30 p.m. in the City Council Chambers for an Adjourned Regular Meeting, Budget Session. I ATTEST: D . .(~~,..x ~Flf~r City Cle.rk