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01-26-1993 Council MinutesCITY COUNCIL MINUTES OF A REGULAR MEETING ORANGE, CALIFORNIA January 26, 1993 The City Council of the City of Orange, California convened on January 26, 1993 at 3:00 P.M. in a Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California. 3:00 P.M. SESSION 1. OPENING 1.2 ROLL CALL PRESENT - Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz ABSENT - Spurgeon, Barrera NOTE: Councilmen Barrera and Spurgeon arrived at 3:10 P.M.1.3 APPROVAL OF MINUTES Regular Meeting - January 12, 1993 MOTION - Steiner SECOND - Mayor Beyer AYES - Steiner, Mayor Beyer, Coontz ABSENT - Spurgeon, Barrera ACTION: Approved.Regular Meeting - January 19, 1993 MOTION - Steiner SECOND - Coontz AYES - Steiner, Mayor Beyer, Coontz ABSENT - Spurgeon, Barrera ACTION: Approved. 1.4 PRESENTATIONSI ANNOUNCEMENTSI INTRODUCTIONS Resolution No. 8134 was presented to Ed Makimoto of the Orange Water Department,commending him for more than 26 years ofloyal and dedicated service.1. 5 PROCLAMATIONS - None PAGE 1 CITY COUNCIL MINUTES January 26, 1993 2.CONSENT CALENDAR TAPE 2954 2.1 Declaration of City Clerk Marilyn J. Jensen declaring posting of City Council agenda of a regular meeting of January 26, 1993, at Orange Civic Center, Main Library, Police facility at 1107 North Batavia and the Eisenhower Park Bulletin Board; 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 regular meeting. ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a public record in the Office of the City Clerk. 2.2 Authorize the Mayor and Director of Finance to draw warrants on City Treasurer in payment of demands. ACTION: Approved. 2.3 Request authorization for final payment to Beverly Hills Transfer and Storage for moving expenses related to the Civic Center Improvement Project in the amount of $6,794.50. P2500.0.5) FISCAL IMP ACT: $6,794.50 is budgeted in the Civic Center Expansion Account #500- 1311- 781301-9808. ACTION: Approved.2.4 Request for temporary closure of South Orange Street for block party - approximately 100 feet southerly of Chapman Avenue between 4:00 p.m. and 11:00 p.m. on March 25,1993. (S4000.S. 4)FISCAL IMP ACT: None ACTION: Approved.2.5 Request for the installation of red curb markings at 512 E. Katella Avenue, adjacent to Ozzie's Restaurant. (S4000.S.3.1. 1)FISCAL IMPACT: Funding provided under Traffic Safety 250 Funds.ACTION: Approved.2.6 Request for the installation of vision zones at the southwest comer of Trenton Avenue and Grand Street. (S4000.S.3.1. 1)FISCAL IMPACT: Funding provided under Traffic Safety 250 Funds.ACTION: Approved.PAGE CITY COUNCIL MINUTES January 26, 1993 2. CONSENT CALENDAR (Continued) 2.7 Request for the installation of a 'cargo loading' zone at 1449 W. Braden Court. S4000.S.3.U) FISCAL IMPACT: Funding provided under Traffic Safety 250 Funds. ACTION: Approved. 2.8 Request approval of Legal Services Agreement with the Law Offices of Cummings & Kemp. (A2100.0.Agr 2056) FISCAL IMP ACT: No additional appropriation will be required. Funds for payment of liability legal defense firms are budgeted in Account 740- 1211-426100.ACTION: Authorized Mayor and City Clerk to execute on behalf of the City.2.9 CLAIM FOR DAMAGES FROM: C3200.0) Jerry Patterson Erick Fink Marlene Dumas Matthew Gillispie James Su Mary Perez FISCAL IMPACT: None ACTION: Denied Claims and referred to City Attorney and Adjuster.2.10 Authorize receipt of $4,500 in California Library Service Act funds administered by the California State Library for the purpose of Families for LiteracyProgram. C2500.I)FISCAL IMP ACT: The Grant Award of $4,500 will augment the Library Department's fiscal year 1992-93 budget.ACTION: Approved.2.11 Request to approve an amended Uniform Bail Schedule regarding Vehicle Code parking violations. (A2500.0)FISCAL IMP ACT: Increase in the percentage of reimbursable revenue to the City of Orange from fine collection by the Municipal Court generated by the higher bail amounts contained in the Amended Bail Schedule for CVC Parking Violations.ACTION: CITY COUNCIL MINUTES January 26, 1993 2, CONSENT CALENDAR (Continued) MOTION - Steiner SECOND - Spurgeon AYES - Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz All items on the Consent Calendar were approved as recommended.END OF CONSENT CALENDAR 3.REPORTS FROM MAYOR BEYER TAPE 2968 3.1 Report from Mayor Beyer on Joint Use Library architect's contract and project schedule.OR1800.0.90) Council discussion ensued regarding what monetary commitment beyond the architectural design does the State or Rancho Santiago College expect through this proposal. Past Council approval was only for the architectural design approval, due to the budget shortfall. It was noted $100,000 was budgeted for this purpose and there is no further allocation of City funds beyond that, which is understood by Rancho Santiago College.MOTION - Mayor Beyer SECOND - Steiner AYES - Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to advise Rancho Santiago College that the project schedule and Architectural Services Agreement is acceptable to the City of Orange concerning the Joint Use Library Project.4. REPORTS FROM COUNCILMEMBERS NON-AGENDA ITEMS TAPE 3572 a. RAIN DAMAGE REPORT - Councilwoman Coontz requested the Director of Public Works to give a brief presentation of the Public Work's involvement throughout the City during the recent heavy rains. The Director of Public Works reported on complaints and damages received as well as the control of water from the Villa Park dam that was released. Over $11,000 was expended in overtime for City crews during the weekend.b. SPOTLIGHTS IN RESIDENTIAL AREAS - Councilwoman Coontz reported on complaints received regarding spotlights in residential areas, particularly in backyards, that light up adjacent neighbor's backyards and shine into their homes. The City ordinance covering this issue is for the industrial area only.The Director of Community Development was instructed to include this request PAGE 4 CITY COUNCIL MINUTES January 26, 1993 4. REPORTS FROM COUNCILMEMBERS (Continued) in the list of activities for development standards which is scheduled to be presented to Council. Costs for staff time are also to be provided for this request c. MARKET BASKETS (Shopping Carts) - Councilman Barrera indicated he has received many phone calls concerning market baskets being taken from the stores and left on city streets. The City Attorney was instructed to report back to Council on February 9, 1993 on the prosecution of any person removing the carts from the grocery stores.5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS TAPE 3559 5. 1 Confirmation of Council appointments on committees (Continued from December IS,1992 and January 12, 1993.)Mayor Beyer requested this item be continued to February 9, 1993.MOTION - Barrera SECOND - Steiner AYES - Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Approved.6. ADMINISTRATIVE REPORTS - None 7. REPORTS FROM CITY MANAGER - None 8.LEGALAFFAms TAPE 3725 8.1 RESOLUTION NO. 8145 A Resolution of the City Council of the City of Orange authorizing the execution of a Public Works Cooperation Agreement with the Orange Redevelopment Agency relating to Public Improvements, Construction ofImprovements, Orange Metro Link System, in an amount not to exceed $400,000, located at the Santa Fe Depot site, 184 N.Atchison. (A2100.0.Agr 2057)MOTION SECOND AYES Barrera Steiner Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz PAGES CITY COUNCIL MINUTES January 26, 1993 8. LEGAL AFFAIRS (Continued) That Resolution No. 8145 as introduced be adopted and same was passed and adopted by the preceding vote. 8.2 RESOLUTION NO. 8146 A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public works and improvement; Bid No. 923-03; Ruiz Engineering Company; Pearl Street and First Street (A2100.0.Agr 1977) MOTION SECOND AYES Barrera Steiner Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz That Resolution No. 8146 as introduced be adopted and same was passed and adopted by the preceding vote.8.3 RESOLUTION NO. 8144 A Resolution of the City Council of the City of Orange expressing appreciation to Ted L. Schoettger, Director of the Finance Department, and commending him for more than fifteen years of loyal and dedicated service. (C2500.J,1)MOTION SECOND AYES Steiner Spurgeon Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz That Resolution No. 8144 as introduced be adopted and same was passed and adopted by the preceding vote. 9. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 10. ORAL PRESENTATIONS Vic Iversen, 719 E. Hoover, commented in opposition to the sale of beer and wine at the Thrifty Gas Station on the corner of Katella and Cambridge.Mayor Beyer indicated he would send a letter in opposition to the judge that is hearing Thrifty Oil's application for the Alcoholic Beverage Control license.Carol Walters, 534 N. Shaffer, commented Council should not allow the waiver of any fees by any group. Also, it was requested that the Director of Community Development report on how much has been spent on the request by Old Towne Preservation Association for downzoning properties.PAGES CITY COUNCIL MINUTES January 26, 1993 11. RECESS The City Council recessed at 4:10 P.M. to a Closed Session for the following purposes: a. To confer with its attorney regarding pending litigation pursuant to Government Code Section 54956.9(a), to wit: City of Orange vs. County of Orange, Orange County Superior Court Case No. 68- 18-89.City of Orange vs. Steven D. Wymer et at, United States District Court Case No. 922141 SVW.b. To confer with its attorney to decide whether to initiate litigation pursuant to Government Code Section 54956. 9(c).c. To meet and give directions to its authorized representative regarding labor relations matters pursuant to Government Code Section 54957.6 d. To confer with its attorney regarding potential litigation pursuanttoGovernmentCodeSection54956.9( b)(1).e. To consider and take possible action upon personnel matters pursuant to Government Code Section 54957.g. To consider and take possible action upon such other matters asareorallyannouncedbytheCityAttorney, City Manager or City Council prior to such recess,unless the motion to recess indicates any of the matters will not be consideredin Closed Session.Note: The City Attorney instructed that section f, giving instructions to its negotiator in connection with the purchase, sale, exchange or lease of real property pursuant to Government Code Section 54956.8, be removed. CITY COUNCIL MINUTES January 26, 1993 7:00 P.M. SESSION 12. INVOCATION - Ron Thompson, City Manager 12. 1 PLEDGE OF ALLEGIANCE TO THE FLAG 12. 2 ANNOUNCEMENTS - None 12.3 INTRODUCTIONS - None 12.4 PROCLAMATIONS A proclamation was presented honoring Sean Michael Dumas on his appointment to the United States Naval Academy.12.5 PRESENTATIONS TAPE 5136 Report on the Implementation Program for Citizens Ad Hoc Financial Advisory Committee Recommendations. (OR1800. 0.50)The CityManager reviewed the following issues pertaining to the Budget Fiscal Year 93/94: 1) Where do we cut costs? 2) Should public safety contribute to the reductions? If so, how much? 3) Should revenues be increased - transient occupancy tax, utility users tax, users fees? 4) Should any more reserves be used, and how much?The Assistant City Manager reviewed the history of the City's revenues and expenditures over the past 12 years.The Assistant to the City Manager reviewed the population growth of the city over the past 12 years, and the fluctuation of the employee base. The Citizens Ad Hoc Financial Advisory Committee's recommendations were reviewed.The following people presented their concerns regarding the Citizens Ad Hoc Financial Advisory Committee's report and recommendations:Dennis Schmitz, 322 S. Liberty Way, President of Mid-Management Employees Association Richard Brown, 830 N. Ross St., Santa Ana, staff representative of the Orange County Employees Association Larry Lykins, 830 N. Ross St., Santa Ana, staff representative for the Technical, Clerical and Professional employees of the City of Orange Irene Carney, 1438 N. Pine St., Orange, President of the Professional, Clerical and Technical employees Carol Walters, 534 N. Shaffer Alice Clark, 205 N. Pine St.PAGES CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) Their concerns were expressed as follows: Mr. Schmitz commended the Ad Hoc Committee on their generosity and dedication to the citizens of Orange. Their association submitted in writing to the committee based on information gathered from members both revenue and cost saving ideas. These ideas, it is sincerely hoped, would be seriously considered because in ultimately balancing the budget, it will take a team effort. In recommending that the cuts be implemented city-wide and distributed equally throughout the City workforce, we believe the burden of balancing the budget, and especially the general fund cannot be accomplished without total cooperation from all the employee groups. All non-safety employees do perform and provide the majority of the safety functions that all the citizens enjoy. Our impact on the citizens, and the City's potential liability on a day by day basis is most critical. We strongly feel it is necessary that all groups, safety and non-safety participate and sacrifice equally.Mr. Lykin commented, the employees are concerned the City will continue to balance the budget on the backs of the employees. There is a severe communication problem with the employees. The morale is at an all time low in the City. There are approximately 60 vacant positions in the City, and the current employees are doing that work. They are going well above and beyond what they are required to do, and the City is getting a major bang for its bucks. The employees have been cut to the bone and are doing a great job under difficult circumstances.It is a crime that the employees have to pay for the budget. The City is spending money before they had it.Mrs. Clark suggested the following cost cutters: 1) Stop paying for City officials birthday cakes; 2) Investigate the possibility of using the basement in the Redevelopment Building for the City Attorney's Department; and 3) Charge fees for those who approach Council to request a rezoning or some other official procedure.This push to downzone certain selected properties in Old Towne has cost extraordinary amounts in staff time, public hearings, etc., this one expense could be eliminated with the immediate return to one of our most basic freedoms now being ignored by the ones in charge.The City Council made the following motions:1. Mayor pro tem Steiner remarked the following motion would provide $ 100,000 for the City at some point this fiscal year, and $300, 000 annually CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) MOTION SECOND AYES Steiner Coontz Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to approve, in concept, the fee increases presented, and that the City Clerk provide public notice of the proposed fee increases in accordance with Senate Bill 1977.The City Attorney be directed to prepare for Council consideration fee increases in the forms of ordinances and resolutions as may be appropriate.Councilwoman Coontz amended the motion to include no waiver of fees, which was accepted as part of the motion.2. Mayor pro tem Steiner indicated this motion would provide for an additional 400,000 in revenues annually.MOTION SECOND AYES Steiner Barrera Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to direct the City Clerk to provide public notice of the proposed increase in the transient occupancy tax in accordance with Senate Bill 1977, and the City Attorney prepare for Council's consideration, an ordinance amendment adopting an increase in the bed tax from 8% to 10%.3. Mayor pro tem Steiner remarked a public safety assessment is to be voted on by the public, and would take a 2/3's vote of the population. Councilwoman Coontz commented, "We haven't been very successful in this community and neither have others with this type of election. It would seem to me that this would not pass,regardless that people support public safety. It would postpone the day of reckoning for the amount of money we have to come up with, in fact, we should be keeping track of this, especially if we turn down high ticket recommendations, because I don't think we will make it when we get to the end."Mayor pro tem Steiner commented the reason for making the motion, recognizing the issue and difficulty of getting a 2/3's vote on anything in the environment we are in,that we hear over and over again, and many of us feel that public safety in the sense that Police and Fire Services, in terms of our constituents, is an extremely important issue for them. In some cases they have a chance to put their money where their mouth is. We have nearly a 2/3rd's vote, spent millions of dollars to purchase the Santiago Golf Course, nearly a 2/ 3rd's vote for a park. It seems reasonable to me that with good public education that an effort to be made to dedicate 1.7 million dollars per year among 110,000 residents of this city for Police and Fire services. This is my recommendation, and I realize if it doesn't go forward and it's a long term approach to PAGE 10 CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) our revenue deficit problems, we will have to have other alternatives, but at this time it is an appropriate motion and we should move in that direction. Councilwoman Coontz asked the possible cost of the election? The City Clerk commented it was assumed this could be a measure on another County election. A June date is not possible, however the last measure cost $7500.00. Councilwoman Coontz remarked the cost is not out of sight, but obviously to win any kind of an election, especially 2/3rds, someone has to spend money to promote it or it won't pass. The other point is, we need to address the immediate financial needs and even if this does pass, it's not going to affect our revenues for quite a period of time. This is my concern and we need to bite the bullet now. Mayor pro tern Steiner remarked we are looking at a 2-year issue, not a 5 month issue.The decisions that are made tonight need to deal with the immediate circumstances, but you don't throw the baby out with the bath water. We have to look over a period of at least 2 years to turn things around for our City. MOTION SECOND AYES NOES-Steiner Barrera Spurgeon, Steiner, Mayor Beyer, Barrera Coontz Moved that in lieu of a new utility tax, and in lieu of an 18% surcharge on water use as a fee, and in lieu of the public water system paying a property tax, and in lieu of a lighting and landscape maintenance assessment district, we explore the possibility of a public safety assessment of approximately $50.00 per parcel, which would raise approximately 1. 7 million dollars annually. Also, require the City Manager to further develop this in terms of staff refinement prior to the appropriate public notice and return to Council with a full report.4. Mayor pro tem Steiner commented it is his understanding that the City is very close to a tentative agreement with the Firefighters Association and that rate which has been tentatively agreed to for the balance of these four or five months, it would save the City approximately $135, 000. The Police Department has already reached that target through efforts in their own department taking place to the tune of $760,000. The contributions of the two departments is approximately I million dollars for the balance of this fiscal year.Councilwoman Coontz stated, we appreciate the plans of the two chiefs to maintain a good level of police and fire service with credible programs, which include reduction of overtime.PAGE 11 CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) MOTION SECOND AYES Steiner Coontz Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to confirm the Citizens Ad Hoc Financial Advisory Committee's finding that financial necessity requires the City to seek reductions in labor costs and safety services.5. MOTION SECOND AYES Steiner Coontz Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved that Council adopt a statement of intention to seek through negotiations freezes and salary and benefits in fiscal year 1993 and 1994; that we do not support the recommendation at this time of salary reductions.6. Councilwoman Coontz commented, when we went into the furlough program, my reason for voting for it was that it was short term. Also, along with that recommendation, Council agreed that we would evaluate the furlough program, its effect on city services, the work force and the way it is produced. I have not seen any comments at all on that from department to department. I feel that before we go further with that we need to get some information. It was suggested that as policy makers we make that decision, but without the evaluation, it makes it very difficult.The City Manager indicated the management and departmental evaluations would be available for the February 9,1993 Council meeting.MOTION SECOND AYES Steiner Barrera Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved that the furlough program be extended through June 30, 1994 for all management and nonsafety personnel.7.MOTION SECOND AYES Steiner Spurgeon Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz PAGE 12 CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) Moved to explore the possibility of eliminating the self-insured health coverage option forCity employees in conjunction with labor negotiations for the upcoming fiscal year,with an $80,000 per year immediate saving, and a freeup of $200,000 for other priorities, subject to negotiations.8. With regard to privatization, Mayor pro tern Steiner commented, that after working for 16 years of the last 32 years in the public sector, privatization sometimes can be a mixed blessing and is not all its represented to be. We already contract out in at least 18 different areas and functions of the City, and so I'm not terribly excited about the further benefits of privatization, but I do believe we have a responsibility to take a look at it.Councilwoman Coontz remarked this is one of the issues that I had as a motion for the Blue Ribbon Committee to help pursue. We need an outside body on this also. MOTION SECOND AYES Steiner Coontz Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to direct the City Manager and Department Heads explore the possibility for additional privatization. 9. MOTION SECOND AYES Steiner Barrera Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved that, regarding Boards, Committees and Commissions, a sunset date be appropriated for periodic review of their functions, and recognition by the Council that the multitude of committees in this City results in tremendous amounts of staff work and therefore, it is appropriate to continue to address this. As members of our community bring forward to Council various special projects, studies, programs, land use issues, etc., requested by the constituents, that staff, at that moment in time, give Council an estimate of what kind of staff time and dollars will be associated with all the requests.10.MOTION SECOND AYES Coontz Mayor Beyer Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz PAGE 13 CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) Moved that the Blue Ribbon Committee look at the following issues: privatization opportunities, regionalization opportunities, like Net 4, and the investment portfolio. The first two would result in some cost savings, the next two would talk to the revenues of the City. The Blue Ribbon Committee is directed to look at the City's investment portfolio as an outside group looking at the Treasurer's realm. Also, the creation of goals and a business plan for the Redevelopment Agency. We've been missing the goals and a business plan for Redevelopment since 1983 when it was established. A timeline has not been added because there needs to be discussions on what needs to come first and how long this will take. Mayor Beyer added, the Blue Ribbon Committee be continued to accomplish these goals as set forth. Lynn Doti and Bob Breskin will continue to serve. Jim Hansen cannot serve because of business obligations. A third person can be added to continue in his role. 11. Councilwoman Coontz felt the question of reserves in the motion should corne at a later time, because in trying to keep track of the decisions that have been made, there are some million dollar decisions that we bypassed including the utility tax and/ or the public water system tax, lighting and landscape maintenance tax, and we don't know what the results are going to be of the 2/3rd's vote for the public safety assessment. Therefore I'm not willing at this time to participate in a motion on the reserves. I know we have to go into the reserves until at the end of the exercise, we have a better idea of whether we are meeting the 9.1 to 9.7 shortage that we have in the City of Orange. Mayor pro tern Steiner responded the figures we have been running a total on appear to be for 1993/94 about a 7 million dollar opportunity minus the 1.7 million dollars we would not have the public safety assessment tax pass. However, that does not include a portion of the 5 million dollars that is available in reserves to spend in 93/94. We are really not hedging all of our bets on that 1.7 million dollars for a safety assessment district issue to pass with the voters. I feel that we must give at least that direction or we might as well abandon the boat. We must use reserves to these levels. I recognize that management staff has recommended a 10 week reserve, a 20% reserve. Some governmental entities, and I do not recommend operating this way, have a 3% reserve. I feel it is an appropriate motion at this time. Obviously a lot of this is fluid, staff is going to have to corne back, and we will have to see how things go in terms of negotiations and so forth, but, again it is a starting point to get us off the dime, and have a comfort level that this Council by policy is allowing management and this City to use 5 million dollars in reserves. Councilwoman Coontz asked staff to address what this does to the proposal of the Blue Ribbon Committee to leave 10 weeks to take care of the paychecks. PAGE 14 CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) Scott Morgan indicated the motion would reduce discretionary reserves by 2 million, making it closer to 8 weeks. Other cities have an arrangement, and Lynn Pierson Doti addressed that. Some cities would like to have as much as 3 months, others are looking at 4, 5 or 6 weeks. Councilwoman Coontz commented she would vote on it with this understanding. MOTION SECOND AYES Steiner Barrera Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to authorize the use of 2 million dollars from unallocated general fund reserves,over a period of 2 years, current prices and 93/94. This recommendation is based on the actuarial study which indicated to Council 2 million dollars can be freed up from reserves. If necessary, authorize the use of a 2 million dollar expenditure from the Disaster Fund and a I million dollar expenditure from the Equipment Replacement Fund for a total of 5.5 million dollar use of reserves to lessen the impact of these decisions.12.MOTION SECOND AYES Steiner Coontz Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved that the City Manager and Department Heads be directed to fully explore reorganization opportunities with a cost effective approach to City government,prioritization of City services, and through the use of a negotiated layoff procedure that 40 full time equivalent positions be identified for reduction as a starting point. These layoffs would impact all City Departments, but would first be targeted as they affect administrative overhead and away from positions that most directly affect our residents. Further, City Manager to report to Council on the potential impacts on City services should these layoffs occur. It should be noted that through attrition and retirement we have already reduced our staff by 58 fulltime equivalents and 22 part-time employees at 8% reduction in our staff right now.13.Mayor pro tem Steiner made the following motion which indicated other areas that could serve as mitigation for layoffs for the City.MOTION SECOND AYES Steiner Coontz Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz PAGE 15 CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) Moved to direct staff to explore the following alternatives available in lieu of layoffs: 1) City will spend this year approximately 1 million dollars in litigation, approximately 3/4's of a million dollars from the general fund, and 1/ 4th of a million dollars from redevelopment. This is outside contract attorneys dealing with litigation within the City. Much of this is involved in terms of one governmental agency suing another governmental agency, utilizing all taxpayer money. Take a look at the cost for outside litigation. 2) Look at the depreciation allowance for a period of 18 months. The fact that 1.5 million dollars comes out of the budget on a paper transaction, and that since we are in extraordinary times in this City, and we want to be around for another day, we temporarily suspend that depreciation allowance for a period of 18 months, a potential saving of 1.5 million dollar paper transaction. 3) Look at the 1.7 million dollars of cash revenue that was set aside for replacement of vehicles. 4) Look at deferring equipment purchases. I realize we need to replace equipment in the City, but some of us expect we will have consumer confidence going up before we think about buying another car or doing something in terms of our own families and own living circumstances. These are big ticket items, 1.7 million budgeted in 1992/93 for equipment/ vehicle purchases. I don't know whether all of that could be deferred for one year, one half of it could be deferred for one year, but if any of it could be deferred for one year, I think it could potentially help us in terms of not experiencing layoffs in this City. 5) There were discussions a few months ago on the PERS contribution rate, and were told perhaps the actuarial studies would result in a different percentage calculation to 20.812% for safety and 6.879% for non-safety, a potential savings to our City of approximately 1 million dollars. This issue needs to be further addressed with the California Legislature, and staff is to investigate this possibility.6) Councilwoman Coontz added an indept review be completed because concern was expressed at the time the City purchases the new equipment what happens to the cost of it, and also if Council is in favor of the emergency services of the City, including Public Works, we have to be sure the vehicles used are in top shape. 14. MOTION SECOND AYES Coontz Steiner Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz PAGE 16 CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) Moved to have a close review and prioritization of the 7 year capital improvement budget, with emphasis on capital projects which will necessitate or drive up operating costs from the general fund. We have a number of capital improvement projects, road projects and building projects. When you build a building, you have to be concerned about operations, the types of programs and the personnel. Wish lists have been compiled over the years of all kinds of structures that we were going to spend redevelopment money or, general fund money, and that would include cultural centers, community centers, libraries, and (I am an advocate of a new main library,) branch libraries, athletic buildings, etc. We need to look at this list because it will affect the general fund and the operating costs of the city. 15. MOTION SECOND AYES Coontz Steiner Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to have a close review of the Redevelopment Budget, giving the same attention to overhead expenses that is given to all city departments and their budgets.16.MOTION SECOND AYES Steiner Spurgeon Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to have a close review of the enterprise funds, giving the same attention to overhead expenses that is given to all city departments and their budgets.17.Councilwoman Coontz commented the 17% administrative share of the budget is high and is a combination of administrative activities throughout the City, but we need to know what we can do to reduce this. This goes along with the remarks that were made earlier about the demands of the community. In some cases we spend an undue amount of time with a few subjects, a few projects that really don't deserve it because they don't address enough of the entire population.MOTION SECOND AYES Coontz Barrera Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to review the discretionary administrative programs to attain better utilization of people and programs, and to reduce the 17% administrative share of the budget.PAGE 17 CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) 18. MOTION SECOND AYES Coontz Spurgeon Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to investigate the possibilities of the closure of the Santiago Hills Library, which represents $ 344,000 per year to our budget, which was opened with the prospect of early development in East Orange. Such development now is on hold for an undue amount of time. It is not too far from one of the first branches in the EI Modena area,and the lease is high and very expensive for the kind of library that it is.The City Manager commented the lease runs out November, 1993.19. MOTION SECOND AYES Coontz Barrera Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to investigate the additional savings, for instance in utilizing the basement of the Redevelopment building, and the transference of one department or another, or partial department to that building. A great deal of Redevelopment funds went into revamping the building. It has an elevator and a lower basement, yet there is no one there, and it is a waste of funds.20.MOTION SECOND AYES Coontz Steiner Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to support the recommendation from the Ad Hoc Financial Committee on the City's financial reporting, to present a net change in funds, or more clarity so the public at large can understand the City's financial picture. Further to continue communication with employees.COUNCIL SUMMARY:Mayor pro tern Steiner, commented, the current fiscal crises which is now 30 months old is not unique to the City of Orange. We know that it is very hard to fix blame for these circumstances when everybody is in the same boat. In today's media there was a report that Garden Grove has a 7.7 million dollar deficit, there's a 12 million dollar deficit in Santa Ana that they say will result in layoffs. We know that County PAGE 18 CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) government has reduced its work force by 10%, 1700 positions, mostly through attrition, and also in today's paper San Clemente is considering contracting out its police force to save 2 million dollars per year. The reality is we have a pretty leaky boat in the City of Orange, and in some respects its going in the wrong direction. I really appreciate the courtesy that was afforded to us tonight in a very emotional topic. I know that my colleagues appreciate the courtesy that were extended to us tonight. I think we can continue to argue who's going to bail out the boat, how big the leaks might be in the boat, what direction the boat should be pointed, and even who should be in the boat? But, if we spend all our time on all that then the boat's going to sink. One advantage of being in the public sector for 16 years, and in the private sector for 16 years, is you have a sense of balance and perspective in terms of the bad and good times. When I came to Albert Sitton Home on Aprill, 1978 as the Director, three months later, Proposition 13 passed and we thought disaster had hit us, as I'm sure might have been with the City of Orange. We laid off or eliminated through attrition 1/3 of our children's services positions, at the same time child abuse was increasing and there were more demands on our services. I was asked to go downtown to administration and take $500,000 out of the Albert Sitton Home budget. I informed my superiors that we should close Albert Sitton Home. I know that wasn't an option because 26 police departments needed to use Albert Sitton Home for the case of abused and neglected children. However, we did cut out $100,000, which was 10% of our budget. I hated to do that, but we did do it. Over the next ten years the pendulum swung back and we regained our positions and things got better for us and we really sort of had a little bit of a dream world in the 1980's. The 1990's are different, much different. They may never be exactly the same for the public sector. You hear all the time about right sizing and down sizing and sometimes we have constituents that aren't terribly sensitive to what it is really like to be a public employee and to make many difficult sacrifices and work very very hard without some recognition. I feel if we can pull together in this process, and I agree with non-safety employees in terms of this having to be a team effort, and I certainly feel that non- safety employees are essential people to the City family, and I know my friends in Police and Fire are going to be helpful in this process, I feel we have indications now there is going to be help in this process, we will get through this together. It may not be exactly the way it was in the past, but I think we can still have this City thrive and prosper. It is very difficult in a cutback management mode, whether you are in the public sector or private sector to be able to get along in that process, but having seen it literally just CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) decimate a school district and with changes in board members, we should try to work together in this effort. Mayor Beyer - Thank you Mayor pro tern Steiner, and I might echo your commendation of the group. You have been very courteous and respectful tonight and conducted yourself as fine City employees, and we really appreciate it. As Mayor pro tem said, we will get through this all working together. Thank you for coming.Councilwornan Coontz -I hope that we've given you some comfort, but I know there are some issues that we have not addressed. I expect we will be seeing you again, I hope not with the same kind of problem you came here to discuss tonight and to present to us in the way that you did, which is appreciated. We are going to see additional, probably see utility taxes from Clinton, he's indicated that. We're going to see more programs from our Governor which are going to entail additional costs to the City of Orange. We've already seen AB939, the recycling law which has cost the City and this County a great deal of money. I think this kind of a forum, and the way it was handled, will be on the docket again, maybe not the same issues but probably other issues. I do appreciate your input. One of the things I always consider, is the fact that I' ve been an employee too. I'm an employee right now, but I don't get paid too much,but I still recognize the values of employees and their morale, the need for good morale, the need for a good work place, the need for the respect for their ideas and for the job that they do. We very often don't know exactly what you do because we only see a few of you. We don't see all of you. That's just a small little message. It's not a political message, but a personal one.Councilrnan Spurgeon - I won't talk as long as everyone else. I think they've summed it up. One of the best ways, I think Councilwoman Coontz was very correct, and we don't know all of you because we don't see the work you do, because a lot of it is not around City Hall, it's not in City Hall. You're out in the field performing those essential services, and I want to use that word essential services. I think the best way, one of the pluses of this City is the Mayor's Hotline, which was established a number of years ago.If somebody looks at somebody the wrong way in the north part of town, we hear about it and it comes in on the tape. The Mayor hears about it and the appropriate department replies for his signature. But, you know, we get very very little complaints from our citizens on our employees. You read it, all you have to do is pick up the Register or Times and hear about all these things going on in these other cities. I'm very proud of everybody here in this room and the dedication. These are not people that just pass through. These people that have given up their careers, their lives to be with this City long before many of us have been up here on the dais or involved in City politics or City activity. We appreciate your efforts and you corning tonight. Thank you.Councilrnan Barrera - As all of you know, I've been around this community a very long time. I was born here and in business 40 years, same place, same location. So, I've PAGE 20 CITY COUNCIL MINUTES January 26, 1993 12.5 PRESENTATIONS (Continued) seen these times. In my 40 years I saw times like this. Believe me we'll make it back. With your cooperation and this fine Council, we'll be sitting here again, you wait and see the times will be different. We'll make it different, and you'll help. 13. PUBLIC HEARINGS - None 14. PLANNING AND ENVIRONMENT - None 15. ORAL PRESENTATIONS Bob Bennyhoff, 10642 Morada Dr., asked what happened to the safety employees salaries, willtheystayastheyareorwilltherebeanegotiatedreduction?Mayor pro tem Steiner reread the following motion: The City Council confirm the Citizens Ad Hoc Financial Advisory Committee's findings that financial necessity requires that the City seek reductions in labor costs in the safety services, which includes Police and Fire.Council now has a rate that's been tentatively agreed to by the Firefighters Association and by Fire Management which has saved dollars and we also believe from figures tonight, that the Police Department has already reached those goals for this fiscal year.16. ADJOURNMENT MOTION SECOND AYES Mayor Beyer Steiner Spurgeon, Steiner, Mayor Beyer, Barrera, Coontz Moved to adjourn at 8: 55 P.M.MARILYN J. JENSEN, CMC CITY CLERK GENE BEYER MAYOR PAGE 21