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Home My WebLink AboutJUNE 13,1996 38:0l90 VI'O -';-0 OM,] '16 cL CITY COUNCil. PROCEEDINGS ARE AUDIO AND VIDEO TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY CLERK I MINUTES C1TY COUNCil. OF THE C1TY OF ARCADIA and the ARCADIA REDEVELOPMENT AGENCY ADJOURNED REGULAR MEETING (BUDGET SESSION) JUNE 13. 1996 The City Council and the Arcadia Redevelopment Agency met in an Adjourned Regu1ar Meeting (Budget Session) on Thursday, June 13. 1996, at S:30 p.m. in the City Council Chambers to discuss the FY 1996-97 operating budget and FY 1996-2001 Capital Improvement Program budget. 1. ROLL CALL PRESENT: Council/Agency Members Chang, Harbicht, Lojeski. Young, and Kuhn ABSENT: None 2. SUPPLEMENTAL INFORMA nON FROM STAFF REGARDING AGENDA ITEMS Noqe. 3, AUDIENCE PARTICIPATION I Rav Whitmer. Teamsters Local 911. 3202 East Willow Street, Long Beach, spoke in reference to the City's budget deficit and the Teamsters contract negotiations with the City over the past year. The Teamsters have tried to negotiate in good faith and have not been able to reach an agreement with the City. Mr. Whitmer referred to raises given to other employees. and reclassifications for some employees which would involve saJary increases. while the employees represented by the Teamsters will be cut one and one- half percent (1-1/2%). He pointed out the inequities in health insurance benefits between management and the Teamsters bargaining unit. Mr. Whitmer spoke of the positions Council is cutting from the budget. He emphasized that bargaining in good faith has come to an end... Council's lack of response will lead to a strike in the Teamster's bargaining unit. The !OS employees in this unit are outraged by what has taken place at the bargaining table. Vincent Folev. 320 Cambridge Drive, reminded the Council of the past political campaign in the City when several candidates refuted the notion that the City had financial troubles. He feels the residents of the City signed the initiative petition to prevent development at Santa Anita Race Track property because they believed those candidates. The City needs revenues and to encourage businesses to come into the City. Santa Anita should be encouraged to develop their entertainment center. Mr. Foley urged Council not to cut the Fire and Police budgets and to use City reserve funds instead. 4, MATIERS FROM ELEerED OFFICIALS I CHANG (Leaf blowers) Member Chang mentioned letters from residents urging Council to take action to prohibit leaf blowers in the City. Los Angeles has taken such action. City Manager Kelly noted staff has stUdied this issue, That item is tentatively scheduled for the July 2, 1996 Council agenda. 1 6/13/96 (Code enforce- ment civil remedies) HARBICHT (Reserve funds) 5, FY 19%-98 OPERATING BUDGET & FY 1996.2001 CAPlT AL IMPRV, BUDGET 38: 0 i 9l Member Chang asked thai a discussion of code enforcement civil remedies be placed on an agenda. The City Attorney said staff is collecting information on this issue for an ordinance which will be an agenda item at a July meeting. I Mayor Pro tem Hartlieht. in response to Mr. Foley's comments. stated that. the fact is. Council is going to move equipment replacement reserve funds to the General Fund to finance; City services. AI the June 12. 19% budgel session Council considered revenue enhancements and a lisl of expenditure reductions prepared by each City departmenl inclusive of a 4% reduction in personnel, services and supplies to balance the FY 19%-97 operating budget. The discussion on June 12 began with the budget deficil al $1.02 million and concluded with a budgel surplus of $833,000. As a result of the June 12 meeting, staff prepared an amended list of department budget reductions and revenue enhancements for Council's consideration this dale. June 13. as follows: CJ 3 :) 0 _ sO Beginning Budget Swplus (Shortfall) ($1.022.000) Detl3Itment Exnenditme Reductions City Council City Manager City Clerk City Attorney Administrative Services Fire Police Maintenance Services Development Services Recreation Library 4.000 18.000 44,000 10,000 60.000 221.000 113.000 129,000 74,000 43.000 39.000 I TOTAL $755.000 City-wide hiring freeze $200.000 Paramedic service fees Adjust fees and charges I percent Utility Tax Increase ENDING BUDGET SURPLUS Revenue Enhancements $100,1)00 $200.000 $600 000 $833.000 Tentative Modifications Subiect to Lelrislative and Le2al Analvsis FY 19%.97 Additional Exnenditme ReductionsIRevenue Enhancements 1 1/2 percent P.E.R.S. employee payment Merit increase freeze Tuition reimbwsement $ 98.000 75.000 24.000 $197000 I TOTAL 2 6/13/96 I MOTION I I 38:0192 Staff noted at the June 12th meeting COIII1Ci\ RqUcsted lbat staff also look at other issues such as: use of the City fleet; medical/dental benefits for all employees; and other matters which staff will stUdy and then present to Council. The City Manager reiterated the need for permanent revenue: enhancements and permanent expendinue cuts of some kind. The City Manager noted also that Council bad asked Kent Ross. City Librarian. to consider Library issues such as reduced Library hoon to effect a budget reduction. Mr. Ross then presented an overview of the, procedure if the Library budget is to be reduced. A stUdy would be done followed by a recommendation to the Library Board. The Board would then either approve the recommendation by staff or ask for changes at that time. If one or two employees were to be laid off the Library would then have to reduce hours significantly. It was noted that the Council makes the decision regarding the Library budget and the Library Board determines how the funds are allocated. A brief discussion ensued of the potential loss of revenue: from State Public Library Funds if the Library budget falls below the level of its budget for fY 1995-96 of $1.434 million. State funds, if lost, could be between $16.000 to as much as $3S.000. according to Mr. Ross. Member Lojeski requested that Mr. Ross and the Library Board provide information of the impacts if in fact the Library hours were to be reduced. Following funher discussion, it was MOVED by Mayor Pro tem Hartlieb!. seconded by Member Young (Member Chang withdrew his second) to APPROVE the Expendinue Reductions and Revenue: Enhancements as presented this date; and DIRECT staff to prepare a draft budget incorporating the $7SS.000 in expendinue reductions and $1.100.000 in revenue enhancements. Member Lojeski expressed concern of adjustments to the Fire Depanment budget, in particular. the elimination of two Fire Technicians which would reduce the rescue teams from four to three. [n the discussion this reduction remained. Member Lojeski commented also that he could not SUppaR a 1% Utility Tax increase that is not going to go to a vote of the people. Proposition 62 states that cities must do so. He mentioned also a "watch dog" group who are watching this type of thing. Mayor Pro tem Hartlicht noted the 1% utility tax increase would only run for one year with an automatic sunset at the end of the year. The 1% increase would only cost each bousehold $4 per month, on average. Member Chang questioned the City Attorney of the legality of imposing a I % tax at this point in time because of this recent legislative act. He does not feel he could suppaR the [% utility tax increase. Funher. the City would still have a $233,000 budget surplus with the other revenue enhancements and expendinue cuts. Mayor Pro tem Hartlicbt explained his position that everyone should participate in balahcing the City budgct... the taxpayers are asked to pay an extra $4,00 a month for .ooc year; Council is asking employees to go without salary increases for one year; and the City is cutting back on expenditures. A good faith clfort is sbown on both sides. and the 1 % utility tax is part of this good faith clfort. Mayor Kuhn commented that although she is against raising taxes she will suppoR the [% increase because of the one-year sunset clause. And, she believes the residents will also support it to have their services kept at a decent level. Member Lojeski requested that Council have a second motion on the utility tax increase. He suppons the other City expendinue reductions and revenue: enhancements. Funher discussion ensued of the 1% tax increase. Member Chang felt a vote of the people would aveR problems later on and he withdrew his second to the motion. Member Young then said she would provide the second to the motion. At this point the City Clerk, before roll call on the motion, urged Council to please rethink the $44.000 cut in the budget for her department; which would result in the loss of one staff member, A brief discussion followed and the $44,000 reduction remained. 3 6/13/96 ROLL CALL VOTE ON DiE MOTION CAPITAL lMPRV. PROGRAM ()J oRl'J -.) <) 6. CLOSED SESSION O/f-f] _ ,if) 38:0[93 AMENDED AYES: CounciV Agency Members Hartlicbl, Young and Kuhn NOES: CounciV Agency Members Chang (for reasons so stated) and Lojeski (because of his philosophical opposition to the 1% utility tax increase being included. He is in favor of the rest of the motion.) I The Council then considered the Additional Expenditure Reductions. I 1/2% P.E,RS. employee payment Merit increase freeze Tuition reimbursement $9g.000 75,000 24.000 $197,000 TOTAL By consensus the City Council decided to bold these items in abeyance because of "Meet and Confer" issues, etcetera. Pending completion of the bargaining, staff recommended these items be carried over for funher discussion at a later time. The budget discussion continued, and in consideration of Council's tentative direction to staff to reduce the Equipment Replacement Fund by $400.000 for FY 1996-97 staff had reviewed these projects and reduced this fund by $3&1,000 with cuts to Police communications; Maintenance Services vehicles; Fire Department paramedic unit squad; Battalion Chief vehicle; Fire safety equipment; computers, vehicles. and more. Mayor Pro tern Hartlicbt felt the $3&1.000 cuts mentioned by the City Manager are close enough to the $400.000 Council asked for. Council concurred that the $3&1,000 in reductions are accepted. I In reference to $10&,000 for Library furniture and fixtures for staff offices listed in the Capital Improvement Budget for FY 1996-97, Mayor Pro tern Hartlicht felt the City should pay for this staff furniture rather than the Library Foundation and the purchase should be put off for one year. Mayor Pro tern Harbicht MOVED and Member Lojeski seconded the MOTION to put off the expenditure for furniture for the Library staff to FY 1997-9& for purchase by the City. seconded by Councilmember Lojeski and CARRIED on roll call vote as follows: AYES: NOES: ABSENT: CounciV Agency Members Chang, Harbichl, Lojeski. Young and Kuhn None None The City Manager noted that staff recently briefed Council on the Capital Improvement Program. The first year of the five-year program is a significant ponion of City expenditures in FY 1996-97, The first year expenditures include $2.25 million for acquisition of land for relocation of the SI, Joseph reservoir and other water operations. A discussion ensued of the funding for undergrounding utilities which project will be moved to FY 1997-98 budget. Council concurred this project did not need priority status. The City Manager noted that funds for this project, which are accumulated over time. will come from the Edison Company under state law. The discussion continued of projects such as handicapped ramps; the feasibility study for Fire Station No. I; fire hydrant installations; and the constrUction of an auxiliary maintenance and storage facility on Orange Grove Avenue. I Pursuant to Government, Code Section 54957,6 for conference with labor negotiator Gary Rogers regarding Teamsters Loca1 911, AFSCME. management and non- represented employees. 4 6/13/96 I 0110. '10 1. CLOSED SESSION ADJOURN- MENT ATTEST: , . 38:0194 Pursuant to Go\'ernment Code Scction 5~957 - Public employee performance evaluation - City Manager, Mayor Kuhn announced thm she \\mild Illeet \lIth the City Council only in closed session prior to the scheduled closed seSSions, . At 8.25 P,nJ, the Cit\' Council ENTERED the CLOSED SESSIONS; RECONVENED the Adjourned Regular Meeting lBudget Sesslo111 :111d ADJOURNED at 10:45 p,m. to Tuesday. June 18, 19% at 700 P,nJ in the Cll\ Hall Council Chambers for a regular meeting of the Cil) Council and the Rcde\'eloplllel1t Age11C\, ~~..~ #'6:,,",,. Ju I I 5 6/13/96