4/20/2004 - Council Minutes - CC Minutes Adj
APPROVED BY THE CITY COUNCIL ON APRIL 27,2004
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF AN ADJOURNED REGULAR MEETING April 20, 2004
The City Council of the City of Orange, California convened an Adjourned Regular Meeting on
April 20, 2004 at 5:00 p.m. in the Weimer Room, 300 E. Chapman Avenue, Orange, California.
5:00 P.M. STUDY SESSION
1. OPENING
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Mayor Murphy
1.3 ROLL CALL
PRESENT - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
ABSENT - None
1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS - None.
2. PUBLIC COMMENTS - None.
3. CONSENT CALENDAR
All items on the Consent Calendar are considered routine and are enacted by one motion
approving the recommended action listed on the Agenda. Any member of the City
Council, staff or the public may request an item be removed from the Consent Calendar
for discussion or separate action. Unless otherwise specified in the request to remove an
item from the Consent Calendar, all items removed shall be considered immediately
following action on the remaining items on the Consent Calendar.
3.1 Declaration of City Clerk, Mary E. Murphy, declaring posting of the City Council
Agenda of an Adjourned Regular Meeting of April 20, 2004 at Orange Civic Center
in the north facing kiosk, Police Facility at 1107 North Batavia, and Shaffer Park;
all of said locations being in the City of Orange and freely accessible to members of
the public at least 72 hours before commencement of said Adjourned Regular
Meeting; and also available at the City Clerk's Office and Main Library at 101 N.
Center Street.
ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a
public record in the Office of the City Clerk.
MOTION - Cavecche
SECOND. Coontz
AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche
The Consent Calendar was approved as recommended.
PAGE 1
CITY COUNCIL MINUTES
April 20, 2004
END OF CONSENT CALENDAR
4. REPORTS FROM MAYOR MURPHY - None.
5. REPORTS FROM COUNCIL MEMBERS - None.
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None.
7. ADMINISTRATIVE REPORTS - None.
8. REPORTS FROM CITY MANAGER
8.1 Report on the proposed Fiscal Year 2004-05 Budget including a summary of
projected revenues and recommended expenditures.
David Rudat, City Manager, provided introductory remarks, noting staff is presenting a balanced
budget to the City Council.
John Sibley, Assistant City Manager, reported the City is pursuing policies of excellence, while
still facing economic challenges, the biggest impact being the increased cost to fund the
retirement system.
Barbara Messick, Sr. Assistant to the City Manager, reviewed a power point presentation. She
reviewed strategies to balance the proposed budget, including programmed savings plan,
amortization of PERS safety rates over 25 years, planned use of reserves, and a reduction in
funding of special workers comp safety allocation. She reviewed General Fund Expenditures by
category and department, which total $74,745,895 and which is a 7.2% increase over FY 03-04.
She reviewed recommended staffing changes, which result in a net change of 4 additional
employees.
Rich Jacobs, Interim Finance Director, reviewed General Fund Revenue sources, which total
$69,445,438, an increase of 2.2% over FY 03-04. He reviewed budget reserves and
designations. Reservations total $16,603,607 and are comprised of Contingencies of
$15,573,607 and a debt service of $1,030,000. Department line item budget summaries were
provided to the Council.
Mr. Sibley reviewed budgetary concerns, which include the Triple Flip Impact, the backfill of
Vehicle License Fees, the state and national economies and PERS costs in future years. He
noted retirement costs have risen from $625,000 in FY 0203 to $6.3 million in FY 04-05; and
these costs will not begin to stabilize until FY 06.07.
Council Ouestions
Councilmember Coontz asked about the $3.15 million shortfall in the Water Fund and if this will
cause an increase in rates in the future.
PAGE 2
CITY COUNCIL MINUTES
April 20, 2004
8. REPORTS FROM CITY MANAGER (Continued)
Mr. Jacobs explained there have been large increases in costs in the Water Fund, including
additional CIP projects, ground water replenishment fees and an additional staff person. Staff
will be bringing back a report to the Council on proposed rate increases.
Councilmember Coontz asked about the emergency transport program and if fees will be raised
for this program; and if the State Workers Comp reform will impact the City.
The City Manager reported staff is reviewing the emergency transport program and will be
providing a report to Council. It is also too early to determine what affect the State Workers
Comp reform will have on cities.
Councilmember Coontz noted she would be asking separately for clarification on vanous
terminology.
Councilmember Alvarez spoke on the City's reserves which are 25% of the General Fund annual
operating costs; and reiterated the need for a report on the emergency transport system.
Mayor pro tern Cavecche asked for clarification on the amount of the General Operating
Reserves, as she wanted to ensure it was $3.4 million.
Mr. Jacobs explained that $2.4 million of the reserves is being carried forward to FY 05-06; and
in response to further questions by Mayor pro tern Cavecche, he explained the proposed
$216,699 decrease in anticipated FY 04.05 earnings includes the estimated $120,000 loss of
interest.
Mayor pro tern Cavecche requested a survey of every city III Orange County, including
population, budget and each city's catastrophic budget reserve.
Councilmember Coontz asked about the Internal Auditor position. Staff indicated that was one
individual.
Councilmember Alvarez asked if the CIP projects would have to be reviewed to possibly push
some of them out into the future.
The City Manager explained CIP projects are always subject to review when it comes time to
appropriate money; and the proj ects have already been scrutinized very carefully.
Mayor Murphy thanked staff for a great job in preparing the proposed budget and thanked all
staff for their efforts, especially in challenging economic times.
The City Manager pointed out that as new projects are approved, it is hopeful that the City will
see additional revenue and an improved economy.
PAGE 3
1
CITY COUNCIL MINUTES
9. LEGAL AFFAIRS - None.
10. ADJOURNMENT
The City Council adjourned at 5:50 p.m.
7i
L--
M 'RPHY
TYCLERK
April 20, 2004
PAGE 4