HomeMy WebLinkAbout02-23-2010 Council Minutes - Study SessionAPPROVED BY THE CITY COUNCIL ON MARCH 9, 2010
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
STUDY SESSION February 23, 2010
The City Council of the City of Orange, California, convened a Study Session at 3:00 p.m. on
February 23, 2010 in the Weimer Room, 300 E. Chapman Avenue, Orange, California.
3:00 P.M. STUDY SESSION
1. OPENING
1.3 ROLL CALL
PRESENT - Smith, Murphy, Cavecche, Dumitru, Bilodeau ABSENT -
None 1.
4PRESENTATIONS/ 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.7.
ADMINISTRATIVE REPORTS -None.8.
REPORTS FROM CITY MANAGER 8.
1Proposed 2010-11 Budget.
Deputy City Manager Rick Otto provided a power point presentation, reviewing revenue and
expenditure projections, budget savings measures and strategies to bridge the gap between
revenues and expenditures.
CITY COUNCIL MINUTES -STUDY SESSION February 23, 2010
In response to questions from Mayor pro tem Smith, Mr. Otto reported the current budget takes
into account the 30 frozen positions as of FY 09-10; and that an additional $1.5 million
in potential savings includes maintaining 20 current
vacancies.Mayor Cavecche noted the projected 4% increase in revenue for the next several years
seems optimistic, that a system to reduce expenditures needs to be looked at seriously and that a
system wide approach needs to be taken with this
budget.Mayor pro tem Smith clarified that she is uncomfortable with the notion given to employees
that the intent to negotiate the deferral of raises was done at the direction of Council, as that was
not her first choice, but one of many issues presented to balance the budget. She noted there
has been months of brainstorming with all departments on how to maintain city services;
and commented that Orange has always had a very conservative fiscal
policy.Councilmember Bilodeau suggested looking at a plan to possibly sell the city-owned
house at 206 S. Center Street, a plan for cost sharing of PERS costs, a possible tiered system
for benefits for newly hired employees; and encouraged ideas from employees. He noted there
would still be a liability with freezing
vacation cash-outs.Councilmember Dumitru agreed with the use of one-time
revenue sources; and suggested looking at a furlough plan, a plan to close a library, the use of
contractors for certain city services, asked for a report on how many and the status of
any current probationary employees;and encouraged
ideas from employee groups.Councilmember Murphy agreed the revenue projections are optimistic; agreed
with the use of one-time revenue sources, encouraged ideas from employees on
both revenue sources and ways to reduce expenditures, and would consider
a furlough plan if necessary.Mayor Cavecche noted there seemed to be an agreement about
the use of one-time revenue sources; and clarified with staff that discussions
are taking place with employee groups.Mayor pro tem Smith noted she has been in favor of selling
the city-owned house at 206 S.Center; asked about the status of renting out
the vacant Fire Prevention Building on Orange Street;- the Royer Building at 307 E. Chapman and
any other city-owned buildings; and the possibility of parking
kiosks or meters in the downtown area.City Manager John Sibley clarified that Orange's
catastrophic reserves are at $1$ million, that other cities' reserves are varied, depending on ability
to maintain reserves; that, as long as they're safe, the city is not replacing computers or
vehicles, as often, to reduce Internal Service Fund costs; that the Workers Comp Fund is at $1
million; and that additional fees in the proposed Master Schedule of Fees have not been included in
this budget
as
CITY COUNCIL MINUTES -STUDY SESSION February 23, 2010
Council discussed eliminating the funding for the Fire Headquarters project, the costs associated
with retrofit versus new construction and the need for a new Headquarters in the future, whether
at its current location or at another location.
Items for further study -selling
of city owned house at 206 S. Center renting
of buildings at 174 S. Orange and 307 E. Chapman renting
of empty parking lot on 300 block East Almond second
tier for PERS benefits cost
sharing of PERS benefits library
closure contractual
services furlough
plan list
of probationary employees parking
kiosks/meters in downtown area 9.
LEGAL AFFAIRS -None.10.
ADJOURNMENT -The City Council adjourned at 4:20p.m.Declaration
of City Clerk, Mary E. Murphy, declaring posting of the City Council Study Session Agenda
of February 23, 2010 at Orange Civic Center kiosk, Police Facility at 1107 North Batavia,and
Orange Public Library at 407 E. Chapman Avenue; 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.l
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HYCITY CLERK