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06/28/2024 - Council Minutes - Special MeetingAPPROVED BY THE CITY COUNCIL ON AUGUST 13, 2024 MINUTES City of Orange City Council June 28, 2024 The City Council of the City of Orange, California convened on Friday, June 28, 2024, at 4:30 p.m. for a Special Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California. 4:30 PM REGULAR SESSION 1. OPENING/CALL TO ORDER Mayor Slater called Closed Session to order at 4:32 p.m. 1.1 PLEDGE OF ALLEGIANCE Led by Councilmember Ana Gutierrez. 1.2 ROLL CALL Present: Barrios, Dumitru, Tavoularis, Gutierrez, Bilodeau, Gyllenhammer, and Slater Absent: None 2. ADMINISTRATIVE REPORTS 2.1. City of Orange Public Safety/City Services Local General Transactions and Use Tax (Sales Tax). (Continued from June 25, 2024.) Public Speakers: The following spoke in support of placing a sales tax measure on the ballot: Sister Mary Sweeney, Bradley Brown, Ray Winick supports a 1%, Curt Peterson supports a 1%, Jonathan Zimmerman supports a 0.1/2%, Reggie Mundekis supports a VA for 10 years, Ryan Pratt, Matt Hamilton, Doug Hamilton supports a 3/4% for 4 years, Pat Buttress supports a 1/2%, Diana Zdenck supports a 1%, Dru Whitefeather, Bryan Hyland supports a 1%, Eugene Fields, Tim Smith, Doug Redding, Lirio Sanchez supports a 1%, Laura Thomas, and Mike Learakos. The following spoke in opposition of placing a sales tax measure on the ballot: Bill Masters, Eddie Albright, Todd Spitzer, Paula Prizio, Carole Walters, Gary Doebereiner, Vicente Mendez, John Sackrison, Sara Catalan, David Johnson, Ernie Glasgow, and Allen Mozneft. Charles Bell spoke in support of an audit. Written Public Comments Stephanie Lesinkski Tilhof emailed in support of a 1/2% sales tax for 10 years. Page 1 of 4 City Council Minutes June 28,2024 The following submitted eComments in support of placing a sales tax measure on the ballot: Johnny Pham, Patricia Waasted, Jeff Lawrence supports a 3/4% for 4 years, Don Dawson supports a 3/4% for 5 years, and Michael Ristig. During deliberations, Council discussed whether they would support placing any kind of sales tax measure on the November ballot, the range of percentages they could support, and duration. A motion was made by Mayor pro tern Barrios, seconded by Councilmember Gutierrez, to adopt Resolution No. 11559 with a 1% transaction and use (sales) tax expiring after 10 years and a 1/2% transaction and use (sales) tax to follow expiring after 10 years. The motion failed by the following vote: Ayes: Barrios, Dumitru, Gutierrez, and Slater Noes: Tavoularis, Bilodeau, and Gyllenhammer Absent: None During further discussion, Councilmember Bilodeau indicated he would only support a 1/2% measure. Councilmember Gyllenhammer expressed he did not support any tax measure at this time and thinks the City can continue making budget reductions and streamline processes through technology. Council also discussed eliminating Council stipends and health benefits. Mayor Slater made a motion to adopt Resolution No. 11559 with a 1/2% transaction and use (sales) tax expiring after 10 years; but then withdrew his motion to allow his colleague to make the motion. A motion was made by Councilmember Bilodeau, seconded by Mayor Slater, to adopt Resolution No. 11559 with a 1/2% transaction and use (sales) tax expiring after 10 years. A substitute motion was made by Mayor pro tem Barrios, seconded by Councilmember Gutierrez to adopt Resolution No. 11559 with a 1/2% transaction and use (sales) tax expiring after 15 years. During discussion, Councilmember Dumitru indicated that a 1/2% sales tax would leave the City with an ongoing deficit after 4 years. A substitute motion was made by Mayor pro tern Barrios, seconded by Councilmember Gutierrez, to adopt Resolution No. 11559 with a 1/2% transaction and use (sales) tax expiring after 15 years. The motion failed by the following vote: Ayes: Barrios, Gutierrez, and Slater Noes: Dumitru, Tavoularis, Bilodeau, and Gyllenhammer Absent: None Mayor Slater called for the vote on the main motion. Page 2 of 4 City Council Minutes June 28,2024 A motion was made by Councilmember Bilodeau, seconded by Mayor Slater, to adopt Resolution No. 11559 with a 1/2% transaction and use (sales) tax expiring after 10 years. A Resolution of the City Council of the City of Orange ordering the submission to the qualified electors of the City a certain measure relating to a local general transactions and use tax (Sales Tax) at the November 5, 2024, General Municipal Election as called by Resolution No. 11545. The motion carried by the following vote: Ayes: Barrios, Tavoularis, Gutierrez, Bilodeau, and Slater Noes: Dumitru, and Gyllenhammer Absent: None Council requested the City of Orange Police Association, the City of Orange Firefighters Association, Mike Spurgeon, Carolyn Cavecche, and Mike Short write the argument in favor, with consent, with Barry Cottle and a City of Orange business leader as alternates. A motion was made by Mayor pro tem Barrios, seconded by Mayor Slater, to adopt Resolution No. 11561 requesting the following to be signatories of the argument in favor: one representative from the City of Orange Police Association, one representative from the City of Orange Firefighters Association, Mike Spurgeon, Carolyn Cavecche, Mike Short with Barry Cottle and an Orange business leader as alternates. Resolution No. 11561. A Resolution of the City Council of the City of Orange Setting Priorities for filing written arguments regarding a City measure and directing the City Attorney to prepare an impartial analysis for the measure to be submitted to the voters at the General Municipal Election to be held on Tuesday, November 5, 2024. The motion carried by the following vote: Ayes: Barrios, Tavoularis, Gutierrez, Bilodeau, and Slater Noes: Gyllenhammer Absent: None Abstain: Dumitru 2.2. City of Orange Public Safety/City Services Transient Occupancy Tax Measure. A motion was made by Councilmember Dumitru, seconded by Mayor Slater, to withdraw Item 2.2 from discussion. The motion carried by the following vote: Ayes: Barrios, Dumitru, Tavoularis, Gutierrez, Bilodeau, Gyllenhammer, and Slater Noes: None Absent: None Councilmember Dumitru left the meeting at 6:17 p.m. 2.3. Fiscal Year 2024-25 Proposed Budget Reductions. Council discussed reconsidering council compensation and health benefits and terminating all city memberships. Mayor Slater prefers to wait on discussing council compensation until all Councilmembers are present. A motion was made by Mayor Slater, seconded by Councilmember Bilodeau, to postpone discussion of eliminating City Council compensation and health benefits to the August 13, 2024, City Council meeting. The motion carried by the following vote: Page 3 of 4 City Council Minutes June 28,2024 Ayes: Tavoularis, Bilodeau, Gyllenhammer, and Slater Noes: Barrios, and Gutierrez Absent: Dumitru During further discussion, staff was directed to return with a report about reinstating the Crossing Guards Program. 2.3. Fiscal Year 2024-25 Proposed Budget Reductions. Public Speakers: Reggie Mundekis supports bringing back the crossing guards program and expressed concerns with the City canceling its SCAG membership. James Kushon spoke about relinquishing a $125,000 CIP dog park project leftover from FY24 budget. Chris Jepsen opposes any reductions to the library or library staff. Eddie Albright encouraged the City to accept Wilson Automotive's donation for the Concerts in the Park series. Councilmember Tavoularis left the dais at 6:30 p.m. and returned at 6:41 p.m. Mayor pro tern Barrios left the dais at 6:39 p.m. and returned at 6:40 p.m. A motion was made by Mayor Slater, seconded by Councilmember Gyllenhammer, to reinstate all Concerts in the Park events pending the donation from Wilson Automotive is received by Wednesday, July 3, 2024. The motion carried by the following vote: Ayes: Tavoularis, Bilodeau, Gyllenhammer, and Slater Noes: None Absent: Dumitru Abstain: Barrios, and Gutierrez 3. ADJOURNMENT There being no further business, the meeting was adjourned at 6:44 p.m. The next Regular City Council meeting will be held on Tuesday, July 23, 2024, at 6:00 p.m., in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary. The July 9, 2024, Regular City Council meeting has been cancelled. PAMELA COLEMAN DANIEL R. SLATER CITY CLERK MAYOR Page 4 of 4