HomeMy WebLinkAboutMAY 24,1994
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CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY
CLERK
MINUTES
CITY COUNCIL OF THE CITY OF ARCADIA
ADJOURNED REGULAR MEETING (STUDY SESSION)
BUDGET REVIEW
MAY 24, 1994
The Arcadia City Council met i.n an Adjourned Regular Meeting
(Study Session) on Tuesday, May 24, 1994, at 5:30 p, m, in the
City Council Chamber.
ROLL CALL
PRESENT:
ABSENT:
Councilmembers Chang, Kuhn, Lojeski and Young
Councilmember Margett
It was MOVED by Councilmember Lojeski, seconded by Mayor Pro tern
Chang and CARRIED to EXCUSE Councilmember Margett.
1. ORAL COMMUNICATIONS
6/5--0...s0 Dr. Michael Porter, President of the Arcadia Tournament of Roses
Association, stated in pare, that the Tournament of Roses has
requested Council consideration of their request for funding,
For many years the City has funded a portion of the display costs
of the Tournament, This action was discontinued at the request
of the Tournament when their funds were at a high level and City
help was not needed, The financial coffers of the Tournament
have been high due to the hard work of the membership, The
struggle to achieve and maintain this financial status was the
impetus for the request that is now before the Council, Because
of the current financial condition of the City and the prospect
of budget reductions in many areas, the Tournament withdraws
their request for financial support from the City ... they ask
only that the Council continue to give its moral support to the
Tournament and its activities.
Of~-c)- ]50
Ron SinicroDe, President, Arcadia Chamber of Commerce, stated in
part, that the Chamber has been an integral part of the City of
Arcadia for the past 80 years. The Chamber will continue to
share with the City and its businesses in strengthening economic
development and enhancing the City's image of being pro-business.
Ten percent of the Chamber's budget is derived from membership
dues. In the current economy the Chamber is constantly fighting
to maintain the membership base. Twenty-five percent of their
funds come from fund raising, which is an on-going battle. The
annual City contribution of $50,000 is the only part of their
budget that they can depend on to assist the Chamber in carrying
on its vital services to the City. Any reduction in the City's
allocation of funds to the Chamber will adversely affect the
ability of the mission of the Chamber to carry out its services
to the residents and the businesses of the City. Packets of
Chamber information were distributed to the Council and Mr.
Sinicrope asked Council to note the description of Chamber
services and their budget.
Of'>'/) > _,,0
Gordon Maddock, 900 South First Avenue, stated in part, that he
has been a citizen of Arcadia for nearly 50 years, and a
businessman in the City for 25 years. Business has been
suffering the effects of the economy since 1990 ." somewhat
before the City was affected. Because of membership decreases
and fund raising difficulties, etc., they have cut approximately
$20,000 or 10% of their expenses out of the Chamber's budget,
As a consequence of this, their budget for this year is around
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2.
2A.
GENERAL
BUDGET
INFORMA-
TION
(FY 1994-
95)
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$200,000, The Chamber sustains itself by dues from a membership
level of approximately 700 members. The City provides the
Chamber with 25% of its budget. They have several major fund
raising events each year which benefic the City. business persons
and residents of the City, such as the Expo, the Community Fair,
and gol f tournaments, etc, Mr, Maddock pointed out other Chamber
activities as they relate to their budget and stated that any
cuts in their funding would seriously hamper the Chamber's
operation. They have been working hard to trim their budget and
still provide 50% of their services to the City and 50% to their
membership, On behalf of the Chamber, Mr. Maddock reques ted that
the City Council leave the City's budget appropriation to the
Chamber at its present position.
BUDGET REVIEW
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At the May 10, 1994 City Council Session an overview of the
Fiscal Year 1994-95 budget was presented. As initially drafted,
the General fund Budget was $2,255 million out of balance. At
the May 17, 1994 Council meeting, staff provided Council with an
overview of revenue enhancement programs which would provide $1
million dollars. Most of these programs were considered long
term revenue sources, not one year stop gaps. ... Staff also gave
the Council cost reduction programs, equaling about half a
million dollars. With both the cost enhancements and cost
reductions, staff also provided alternatives for Council's
consideration. To balance the budget staff has suggested using
$712,500 of reserve, funds. Staff also suggests that the City
adopt a multi-year budget philosophy and consider long term
revenue sources and long term budget costs or changes and be
proactive and not reactive, The goal of this meeting was to go
through the revenue enhancement and cost reduction programs and
discuss them one by one and try to balance the budget with these
programs,
2B(1) The Finance Director, Jim Dale, then presented the revenue
BUDGET RE- enhancement and cost reduction programs for discussion and
VIEW & CON-direction. Said programs are listed in detail in the May 18,
SIDERATION 1994 staff report,
03,;)0-';:0
REVENUE ENHANCEMENTS To provide long term solutions by
generating needed resources on an on-going basis rather than
short term or one time revenue sources.
1. Implement 5% Franchise Fee on Residential Refuse Collection -
$115,000.
Councilmember Lojeski felt this proposed franchise fee was just
another way of taxing the citizens of Arcadia. He is strongly
opposed to imposing any new transfer taxes on the residents, and
will not vote for something like this. Mayor Pro tern Chang
agreed with Councilmember Lojeski ... no franchise fee on trash
collection.
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By general consent the Council agreed that Revenue Enhancement
Proposal No.1 was NOT APPROVED,
2. Arcadia Redevelopment Agency to pay City of Arcadia annual
interest on outstanding City loans and transfer all revenue
earned from Capital Improvement Fund to General Fund - $300,000.
In the discussion, the Finance Director responded to Mayor Young
that if the interest the Agency owed the City was to be
retroactive and had to be paid, it would impact the projects the
Agency is working on. Staff will present an Agency goals and
objectives for future years at a study session later on, Staff
also affirmed that the Agency has the $300,000 available to pay
to the City, The Finance Director noted that if the City had
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invested the monies loaned to the Agency, interest revenue to the
City would have been gained yearly,
The Council agreed that Proposal No, 2 required FURTHER STUDY,
3, Conduct study of fees and charges and implement said fee
adjustments - $100,000,
Councilmember Lojeski suggested that every City department look
at the services they provide and see if there are places where
a fee could be raised or applied,
By consensus the Council APPROVED THE STUDY AND FEE ADJUSTMENTS -
Proposal No.3.
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4. Impose penalty assessments for Code Enforcement Violations -
$10,000.
The City Attorney commented that penalty assessments could be
applied to a whole range of municipal code violations, such as
building codes; fire codes; items that have to be filed in the
Municipal Court, and nuisance abatement actions. This would give
the City the means to recoup more of the City's costs.
By consensus the Council APPROVED Proposal No, 4,
5. Implement a program for park maintenance by private industry
or contract maintenance services - $270,000.
The City owns and operates some eighteen (18) parks. This item
would solicit donations from the private sector to pay for the
maintenance and operation of City parks and would be similar to
the "Adopt a Highway Program" implemented by CALTRANS. Also
included in this item is contracting for maintenance at
Eisenhower and Wilderness Parks and contracting for tree
trimming.
Council requested additional information on this item.
By consensus Council APPROVED Proposal No. 5 with NO EMPLOYEE
LAY-OFFS. (This proposal requires "Meet and Confer" with City
bargaining groups.)
6. Implement Emergency Medical Subscription Program. $200,000,
Staff advised that there will be a special presentation on this
program if the City Council decides to move forward on this. In
the discussion, it was noted that the program has proved to be
cost effective for other cities as well as their residents. In
response to Council's questions, staff noted that the program
could cost about $42 annually to each residence for unlimited use
per year, Also, in addition to the $42 annual cost, the City
would bill the insurance company. Currently the average
ambulance/paramedic bill is $315.
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By consensus Council APPROVED Proposal No.6.
7. Use of reserves - $712,500.
The Acting City Manager suggested that a decision on this item
could be held off until decisions are reached on the other
revenue enhancement proposals.
ALTERNATE REVENUE ENHANCEMENTS
03;l.()-SO A-1. Increase Transient Occupancy Tax. Each percent equals
$95,000 -$95,000. Presently, Arcadia is at 10%, Monrovia, 10%,
and Pasadena, 11,3%,
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Councilmember Lojeski believes the City 'would be doing a real
disservice to the hotels in Arcadia by adding another percentage
point increase so soon after the City has raised the tax by 2%,
A-2, Implement City-wide 1972 Lighting and Landscape Assessment
District - $1,800,000,
The Finance Director advised that the Capital Improvement Program
(CIP) for this year includes funds for a consultant to study this
item, Currently the City has lighting districts under the 1919
Act. A tax is assessed on the properties to primarily pay for
the power and maintenance of those lighting districts, The 1972
Act expanded that to not only lighting, but would allow the City
to recover costs for landscaping and parks, and also allow for
the purchase of park land.
Staff advised that this kind of an assessment district would
require a 2/3 vote of approval by the residents. Councilmember
Lojeski commented that this would impose a bonded indebtedness,
and he will not support any sort of bonded indebtedness.
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A- 3, Implement Library Assessment Dis tric t Operating
$1,500,000, Remodel/Expand Library - $5,000,000.
Councilmember Lojeski stated that he is not in favor of any of
the alternative revenue enhancements.
Mayor Young said Council could wait on these alternative items
and, if necessary, they could be considered later,
Councilmember Kuhn stated that they should be used only as a last
resort.
Mayor Pro tern Chang agreed with Councilmember Kuhn,
COST REDUCTIONS
0.3" f} _ ~ 0 1. Eliminate proposed contribution to Tournament of Roses
Association - $13,500.
WITHDRAWN by Dr, Porter, President of the Arcadia T of R
Association.
2, Implement flex hours of operation for City Hall (9-80/4-10)
- $15,000 to $30,000.
Staff commented that the South Coast Air Quality Management
District, in an effort to meet federal auto emission standards,
adopted rules mandating that employers adopt measures to reduce
the number of vehicle trips to the work place. Implementation
of flex work schedule hours would substantially increase the
City's compliance with this mandate and reduce City operating
costs. The City Manager noted that there are about thirteen (13)
cities surrounding Arcadia that have implemented similar plans.
3. Work furlough for all City employees, 1 day - $60,000, - 5
days - $300,000. (Requires "Meet and Confer" with City bargaining
groups. )
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Under the proposed work furlough, each employee would be required
to take 5 days off this fiscal year without pay. Safety
personnel under constant manning constraints could substitute
vacation payor other approved alternatives. This program would
mean a reduction in take home pay for employees, but would not
be permanent.
Considerable discussion ensued. ... Alternative Cost Reductions
A-l, A-2 and A-3 were reviewed by staff". all complex issues,
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Mayor Young commented that Council should implement some of the
other proposals first before going into salary cuts or days off
to see what else will work.
4. Implement 2% at 55 for all non-sworn employees (assumes that
the employee pays cost to implement) - $150,000, (Requires "Meet
and Confer" with City bargaining groups)
Mayor Young commented that Council would delay taking any action
on this item at this time,
5, Eliminate selling back of vacation time (Management only) -
$30,000. (Requires "Meet and Confer" with City bargaining
groups.)
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Staff noted that this would still be a reduction in pay for the
employee.
6. Reduce funding of Chamber of Commerce - $15,000,
Proposal No, 6 NOT APPROVED by consensus of Council.
7, Eliminate employee support programs - $19,000.
Proposal No. 7 NOT APPROVED by general consent.
8. Eliminate Arcadia Band Review - $5,000.
The Police Department provides services for this event at City
cost.
Proposal No. 8 NOT APPROVED by general consent.
ALTERNATE COST REDUCTIONS
t;J3.:l,O-;-O A-l. Postpone/Freeze filling vacant positions (each position -
$50,000) $100,000 to $500,000.
A-2. Reduce staffing (each position = $50,000)
A-3. Wage reduction every employee - 1% - $150,000
2% - 300,000
3% 450,000
4% - 600,000
5% - 750,000
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Councilmember Loj eski posed the question to the Council of
consideration of programs that would generate new monies. For
example, other communities license animals other than dogs.
Council should consider licensing horses, in particular, those
horses that are transported in big trucks off of the freeway and
over Arcadia streets to the race track. Further, the Public
Works Department ... are there free services that Public Works
employees provide to the community which could generate income
to the City? For example: crews remove and clean up fallen City
trees ... could the logs from such trees be sold to the public?
Could the wood chips be sold also? Also, are there certain
departments at City Hall that could be restructured or
consolidated. Are there departments where equipment is purchased
and sitting unused? Are departments over-staffed? The Council
should look at every entity and trim as much as possible. Mayor
Young agreed.
Councilmember Lojeski reiterated that his reaction to the
proposed revenue enhancements is ... he is literally against any
new taxes to Arcadia residents. He is not interested in reducing
the employee forces ... if an employee can be transferred within
the City and possibly retrained ... this could be worked out,
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3.
POTENTIAL
CLOSED
SESSION
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Further, he is not interested in putting a franchise fee on
refuse collection. Also, the Redevelopment Agency paying
interest to the City is simply a transfer of money,
Councilmember Kuhn agreed with Councilmember Lojeski ... no taxes
or bond issues at this point in time.
The Acting City Manager, Bill Kelly commented that staff would
bring back additional information more numbers and some
additional cost factors to keep trying to close the gap between
revenues and expenditures.
Mayor Young commented that she did not think that Council should
consider any of the alternate cost reductions until Council has
really put the budget together. But she would like to see the
budget put together without using any reserves, because Council
does not know what the state is going to do, and we may need that
money later if they take away more of the City's tax money.
Councilmember Kuhn agreed.
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POTENTIAL CLOSED SESSION
Potential Closed Sess ion pursuant to Government Code See tion
54956.9 regarding: in the Matter of the Contested Election of
Sheng H. Chang, for the Office of Member of the City Council of
the Ci ty of Arcadia - Geraldine Faching, Shag Hua wen, Mary
Gaines and Carmie M, Falabrino, contestants, vs, Sheng H, Chang,
defendant.
With reference to the (potential) Closed Session on the agenda,
the City Attorney explained that, "last week we became aware of
the possibility of an election contest suit. At that point, I
had not seen the suit, I did not see it until Monday, Because
the suit could have very well named the City as a party, in view
of the open meeting law, it was placed on the agenda to enable
the Council to discuss it in Closed Session tonight in case that
was necessary ... so we had no choice but to do that last week
under the Brown Act, However, on Monday the suit was delivered,
and I was able to review it, meanwhile I did prepare a memorandum
to the City Council which went out yesterday, As you know, the
law suit does not name the City, and the City is not in any way
a party. Dr Chang, I believe does have his own representation
on that particular case. And the only recommendation I make, if
you recall in the memorandum, was (inaudible) for the City
Council to give the City Attorney the authority to exercise
discretion with regard to possibly intervening in the suit,
should it become necessary. I also indicated that these type of
hearings are scheduled in short order, and these cases tend to
change, in essence, tend to change rather quickly. There may
become a situation where the City's voice in the proceedings
would help... and inform the court as to what the court has to
know with reference to City procedures or something of that sort,
protection of City costs and items related to that. So, it was
my desire to at least have the Council authorize discretion to
the City Attorney to intervene, if necessary. Of course, as time
permits, I will reconsult with the Council. So, even though we
will not be a party to the suit as a captive party or litigant,
I believe in order to protect the City's interest, if that should
become necessary, I would like, this evening, to get the
authority to exercise discretion to intervene in the lawsuit.
And, along with that, only if necessary, and only in a limited
situation, to retain Mr. Fred Woocher, who is an attorney that
I have consulted with on election contests, who would be a
benefit to the City, should the need arise. So, with that, that
action can be taken right now, ,. if the Council wants to go into
a Closed Session, you have that opportunity because this does
qualify under Subsection C of 54956.9 to consider the initiation
to intervention into the lawsuit, however, you don't have to
and with that, it would be my recommendation that you approve the
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authority to intervene only if necessary and, if possible, after
recommunication with the Council, and... so that we may retain
Mr. Woocher just in case we need his services again just to make
sure that the City procedures are recognized by the court, if
necessary. That is my recommendation. I will be happy to answer
any questions."
In answer to Mayor Young's question, the City Attorney responded
that the City may not pay Mr, Woocher anything at all,.. or we
may pay him a very limited amount. We're only going to have him
on an as needed basis, ... so therefore we would not have to pay
anything else.
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In answer to Councilmember Lojeski's question, the City Attorney
responded that the matter would be brought back to Counc il.
Councilmember Lojeski stated that he is not in~erested in
spending one dime of the taxpayers' money to get into this
fracas, This is not a suit against the City of Arcadia and does
not involve the City Council, It involves a potential problem
about potential action prior to someone even getting on this
Council. He has a problem with even potentially spending funds
for this, even in the amount of $2,500,
The City Attorney reiterated that the money would only be spent
if the Council's interest was directly involved. He cannot be
present at City Hall and at the court house simultaneously. He
can appear at court, on a limited basis, if necessary. He gave
some potential examples which might involve City procedures,
Councilmember Lojeski does not want taxpayer money spent on this
matter, unless the City itself becomes involved,
I03.tJ . ...() lt was MOVED by Councilmember Kuhn, seconded by Councilmember
Lojeski and CARRIED on roll call vote as follows to AUTHORIZE
funds in the amount of $2,500 to be utilized only in the event
and at the discretion of the City Attorney, should it become
necessary, in order to protect the interests of the City as they
pertain to the election contest suit, to APPROVE use of the
services of Attorney Waacher subject to the limitations expressed
by CounciL
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmembers Kuhn, Lojeski and Young
None
Councilmember Margett
Mayor Pro tern Chang
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/<!).1 (J _ ..2- 0 Mayor Pro tern Chang stated that he had run a clean campaign and
won the election fair and square. His vote was approximately
more than 400 more than George Fasching's. Mrs. Fasching has
gone into the street, and is telling people of her accusations,
He would sue her for slander, but instead she has filed in the
court, and is under privilege and he cannot sue her, Mayor Pro
tern Chang said that he ran a campaign on a major issue against
the past Council's wasting of the City's money. He has his own
attorney. Because of Mrs. Fasching's action, the taxpayer is
going to pay the fee of the court and anything related to that.
There is a large possibility that this also will involve the
City, too. He feels sorry that she took this kind of cheap
action.
CLOSED
SESSION
(}//()- Vi)
Councilmember Lojeski requested that a Closed Session be held
before adjournment this evening. The City Attorney gave
instruction regarding the appropriate motion required because
this closed session was not on the agenda, and, it was MOVED by
Councilmember Lojeski, seconded by Mayor Young and CARRIED on
roll call vote as follows that the need to take action arose
after the agenda was printed and that the Council must meet in
Closed Session.
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ADJOUR1IMENT
ATTEST:
Alford,
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AYES:
NOES:
ABSENT:
Councilmembers Chang, Kuhn, Lojeski and Young
None
Councilmember Margett
At 7:15 p, m. the City Council, City Attorney and City Manager
entered the CLOSED SESSION, RECONVENED and ADJOURNED the Study
Session at 7:21 p, m, to Tuesday, March 31, 1994 at 5:30 p, m.
for an Adjourned Regular Meeting (Study Session) to conduct the
business of the Council and the Arcadia Redevelopment Agency and
any Closed Session necessary to discuss personnel, litigation
matters and evaluation of properties.
?7l"-':f"4 :V:f<y
Mary B. oung, or
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