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Study Session Minutes 06/07/11APPROVED BY THE CITY COUNCIL ON JUNE 14, 2011 CITY COUNCIL MINUTES STUDY SESSION ORANGE, CALIFORNIA June 7, 2011 The City Council of the City of Orange, California convened on June 7, 2011 at 3:30 p.m. for a Closed Session in the Council Briefing Room, 300 E. Chapman Avenue, Orange, California. 3:30 P.M. Council Briefing Room CLOSED SESSION - Conference with Labor Negotiator pursuant to Government Code Section 54957.6: City Negotiators: Chief Negotiator Jeffrey Freedman, Assistant City Manager Rick Otto, Human Resources Director Steven Pham, and Assistant Human Resources Director Mike Harary Employee Organizations: Orange City Fire Fighters and all Misc. Bargaining Groups The City Council of the City of Orange, California convened on June 7, 2011 at 5:00 p.m. for an Adjourned Regular Meeting, Study Session in the Council Chambers, 300 E. Chapman Avenue, Orange, California 5:00 P.M. Council Chambers 1. OPENING 1.2 ROLL CALL PRESENT — Whitaker, Smith, Cavecche, Dumitru, Bilodeau ABSENT - None 1.3 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS — None 2. PUBLIC COMMENTS — None 3. CONSENT CALENDAR — None 4. REPORTS FROM MAYOR CAVECCHE — None 5. REPORTS FROM COUNCILMEMBERS — None 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS — None Page 1 CITY COUNCIL MINUTES June 7, 2011 7. ADMINISTRATIVE REPORTS — None 8. REPORTS FROM CITY MANAGER 8.1 Update on the Proposed FY 2011 -12 Budget. Rick Otto, Assistant City Manager, provided a power point presentation, reviewing projected Revenues, Expenditures, and the Fund Balance. Information was also provided relating to several budget policy decisions. Fiinrl Rnlnnre City Manager John Sibley asked for direction on the use of approximately $3 million to $3.5 million in the Fund Balance available towards balancing the budget. The consensus of the Council was to use some of the Fund Balance this year, but less than the $3.5 million, citing the need to reduce expenses even further, be more conservative in projections, and continue to look at the organizational structure. Organizational Assessment Mr. Otto stated the estimated completion date is December 2011. Mayor Cavecche asked that no frozen positions be eliminated in the Police Department until after the assessment is completed. She suggested the budget be revisited in January, along with the organizational assessment, and with an additional look at more savings. Community Services After School Programs Marie Knight, Community Services Director, reported this is a ten month program serving approximately 150 children, and $90 per month /per participant would be full cost recovery. Council discussed the fact that staffing is insufficient even with cost recovery; and other after school programs are provided by the School District and the YMCA. Council discussed a possible partnership with the Friendly Center; and that the CDBG funds used towards this program could possibly be allocated to the Friendly Center allowing them to run the program. The consensus of the Council was that this program could not continue to be subsidized and/or offered. Paize 2 CITY COUNCIL MINUTES June 7, 2011 8. REPORTS FROM CITY MANAGER (Continued) Day Camp at Killefer The majority of the Council agreed this program could not continue to be subsidized. Mayor pro tem Smith stated she would pursue scholarships, through churches and organizations, for the children's programs as she stated they are necessary to protect the health and safety of children in the community. Summer Aquatics Council agreed to maintain the Aquatics program, looking at the possibility of contracting this program out, and possible non - resident fee structure. Community Events Marie Knight, Community Services Director noted the net cost to the city is approximately $45,000 for all events after sponsorships, donations and ticket sales for 3 rd of Jul; are considered; and that staff is hoping to increase sponsorships in the upcoming year. Council agreed to keep the events, but continue to look at ways to reduce costs. Councilmember Dumitru asked for information on costs from other departments for Treats in the Streets, including Public Works, Police and Fire. Mayor pro tem Smith asked to look into using volunteer groups to assist with staffing. Councilmembers Bilodeau and Dumitru suggested that the sale of legal fireworks be re- examined, which could financially benefit both the city and non - profit organizations. Library Council agreed to close the Main Library every Friday, and asked staff to continue to find ways to keep the branch libraries open. Pacie 3 CITY COUNCIL MINUTES June 7, 2011 9. LEGAL AFFAIRS — None 10. ADJOURNMENT The City Council adjourned at 6:50 p.m. to its Regular Meeting of Tuesday, June 14, 2011, at 4:30 p.m. in the Council Chambers. Declaration of City Clerk, Mary E. Murphy, declaring posting of the City Council Agenda of a Study Session on June 7, 2011 at Orange Civic Center kiosk, Police Facility at 1107 North Batavia, and Orange Public Library at 407 N. Chapman; 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 Study Session. U A O YN V. CAVE CHE CITY CLERK MAYOR Paize 4