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HomeMy WebLinkAboutMAY 24,1994 I 1 0110 - ~-() as" ,/~ ,/ 36:0164 0/ r 'tr- ee 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 1 5/24/94 2. 2A. GENERAL BUDGET INFORMA- TION (FY 1994- 95) O:J.~IC..... ,J 36:0165 $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 1 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. 1 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 2 5/24/94 36:0166 I 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. I 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. 1 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%, 3 5/24/94 36:0167 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. 1 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. ) 1 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, 4 5/24/94 36:0168 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.) I 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 1 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, 5 5/24/94 3. POTENTIAL CLOSED SESSION (:)111). </0 10 3 0 -,~ 0 Cl...r,Cl 36:0169 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. 1 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 1 6 5/24/94 36:0170 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. I 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 1 /<!).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. 7 5/24/94 ADJOUR1IMENT ATTEST: Alford, 36:0171 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 ~ 8 5/24/94 I 1