Loading...
HomeMy WebLinkAbout4_29_2003 - Council Minutes - Adjourned Regular MeetingAPPROVED BY THE CITY COUNCIL ON MAY 13,2003 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF AN ADJOURNED REGULAR MEETING APRIL 29 2003 The City Council of the City of Orange, California convened on April 29, 2003 at 5:00 p.m, in an Adjourned Regular Meeting in the Weimer Room, 300 E. Chapman Avenue, Orange, California. 5:00 P.M. SESSION BUDGET 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 (Councilmember Alvarez left the meeting at 6:15 p.m.)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, Cassandra J. Cathcart, declaring posting of City Council agenda of an Adjourned Regular Meeting of April 29, 2003 at Orange Civic Center,Main Library at 101 N. Center Street, Police facility at 1107 North Batavia, the Shaffer Park Bulletin Board, summarized on Time-Warner Communicatious and available on the City's Web site www.cityoforange.org, 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.ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a public record in the Office of the City Clerk.MOTION - Alvarez SECOND - Cavecche AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, CaveccheItem 3.1 was approved as recommended.PAGE 1 CITY COUNCIL MINUTES April 29, 2003 4. REPORTS FROM MAYOR MURPHY - None 5. REPORTS FROM COUNCILMEMBERS - None 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None 7.ADMINISTRATIVE REPORTS TAPE 90 7.1 Report from the Director of Economic Development concerning the acquisition by the City of Orange of real property located at 105, 125, 145 and 164-180 South Water Street from the Orange County Fire Authority aud approval of au amended Cooperation Agreement with the Orange Redevelopment Agency relating to the sale of 164-180 South Water Street to the Orange Redevelopment Agency.See Redevelopment Agency Minutes 7.1)SUMMARY: The City has negotiated a Purchase and Sale Agreement for the acquisition of the surplus Orange County Fire Authority property located at 105, 125, 145 and 164-180 South Water Street. Because the Orange Redevelopment Agency will acquire a portion of the property from the City concurrently with the City's acquisition of the property from OCFA, a portion of the $3.5 million purchase price in the amount of $1,815,818 will be funded with ORA funds. The balance of the purchase price will be paid using Water Capital Funds and General Funds, The City intends to use the 1.5 acre eastern portion of the property (e,g, 105, 125 and 145 South Water St.) to support Fire Department and Water Division activities, however, project conceptualization, design and planning for that portion of the property, as well as the portion to be conveyed to the Agency, will be evaluated after the acquisition. Discussion Rick Otto, Sr. Housing Manager, presented a brief report. In response to questions by Councilmember Ambriz about the property on the west side of Water Street, Mr. Otto reported the Orange County Fire Authority has 18 months to transfer this property, and during this time, the City will be developing plans for the use of the property on the west side, Mr. Chuck Case, 195 S. James, asked if low income housing will be considered for the property on the west side of Water. Mayor Murphy noted that all uses can and will be considered for that property. Currently, the majority of the property is zoned Residential, with a small portion zoned Office- Professional.Council Action RESOLUTION NO. 9727 A Resolution of the City Council of the City of Orange finding and determining that the public interest, convenience and necessity require the acquisition for public purposes of certain real property located at 125-145 and 164-180 South Water Street in the City of Orange from the PAGE CITY COUNCIL MINUTES April 29, 2003 7. ADMINISTRATIVE REPORTS (Continued) Orange County Fire Authority and approving the terms and conditions and authorizing the execution of a Purchase and Sale Agreement and Joint Escrow Instructions therefore; approving an Amended Cooperation Agreement with the Orange Redevelopment Agency relating to the sale of 164-180 South Water Street to the Orange Redevelopment Agency; and making certain findings in connection therewith.MOTION - Alvarez SECOND - Coontz AYES - Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Moved to adopt Resolution No, 9727.MOTION - Alvarez SECOND - Coontz A YES- Ambriz, Alvarez, Mayor Murphy, Coontz, Cavecche Appropriated $1,150,000 from the Water Capital Fund 601 to Account No, 601-8041-481102-8935 (Water Plant Warehouse Replacement Project) for the project.FISCAL IMPACT: There are adequate funds available for the acquisition and redevelopment of the site in the following accounts:Water Funds ( 601) (Water Plant Warehouse Replacement Project) $1, I 50,000 Fire Facility - Area 0 Fund 565 (Fire Station Headquarters Replacement $1,560,000 General Fund Capital Fund 500 (Fire Station Headquarters Replacement) $500,000 General Fund Unappropriated Reserve (from the sale of Manchester property) $1,125,000 Redevelopment Agency Fund 936 (Water Street Acquisition Project $1,815,818.THE COUNCIL RECESSED TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 8. REPORTS FROM CITY MANAGER 8.1 Report on the proposed Fiscal Year 2003/04 Budget including a summary of projected revenues and recommended expenditures.The City Manager reported this has been a very difficult budget year as the City faces economic challenges. The City has seen some recovery, but not to the levels of pre 9-11. The State deficit,the fall in interest rates and significant investment losses experienced by the State retirement system (CaIPERS) are of major concern to everyone; and the City is looking at cost reductions,revenue enhancements and the utilization of prior year surplus funds.Mr. John Sibley, Assistant City Manager provided a power point presentation, indicating this meeting is the third in a series of four meetings on the proposed budget. He highlighted General Fund Expenditures and Budget Balancing Strategies, which include revenue initiatives,PAGE 3 CITY COUNCIL MINUTES April 29, 2003 8. REPORTS FROM CITY MANAGER (Continued) programmed savings plans, reductions in internal service charges, a surplus from FY 02-03 and the liquidation of funds not needed for capital projects. He reviewed recommended staffing changes, which result in 679 total full time employees for FY 03-04, down from 681 from FY 02-03; and the history of full time employees, noting that the City of Orange has one of the lowest ratios of employees to population in the County.Mr. Rich Jacobs, Assistant Finance Director, reviewed General Fund Revenues, noting the City is projecting a 1% increase, or $621,000, in overall revenue for next fiscal year. He also reviewed General Fund Revenues, noting that sales and property taxes alone do not even meet safety expenditures for the City.Councilmember Coontz indicated there is a proposal to take away sales tax and have cities depend solely on property tax; stating there are already problems even without this legislation.Mayor pro tern Cavecche indicated this legislation just came out of local committee and was heading for the Assembly floor.Mr. Jacobs reviewed Budget Transfers and Budget Reserves and Designations, indicating there is a reserve of $16.8 million and adesignation of $ 6.4 million,Mayor Murphy asked for clarification on the Fund Balance for the General Fund, noting that particular slide was misleading, He asked how much money would be available at June 30, 2004 given all assumptions.Mr. Jacobs stated there would be approximately $25 million, which is simply being set aside for future years cost as well as a 25% catastrophic reserve.Mayor Murphy stated it is important to note that the City is setting aside significant reserves and planning for the future, and there is not a lot of discretion for additional projects while the City deals with the uncertainties of the economy,Councilmember Coontz stated there needs to be more specifics on the budgetary concerns for the Education Relief Augmentation Fund (ERAF) shifts and the Vehicle License Fee (VLF)Backfill, and what affects they will have,The City Manager reported if the budget were to be adopted with the proposed recommendations, it would be a balanced budget. However, there are still concerns with the Education Relief Augmentation Funds which are very vulnerable, AB 1221 which is a sales taxI property tax shift, the backfilling of Vehicle License Fees, the state and federal economy and the downturn of the stock market, and the increasing costs for the PERS system, He stated additional information will be provided to the Council on these concerns. CITY COUNCIL MINUTES April 29, 2003 8. REPORTS FROM CITY MANAGER (Continued) The City Manager stated he is also looking for concurrence and acknowledgement from the Council to either move forward, or not move forward, concerning discussions with the School District on the issue of Crossing Guards at approximately 21 locations which do not meet State, County or City warrants. He also asked for direction regarding the City's intent to suspend the DARE Program for at least the next few years so these Police resources can be redirected to crime suppression activities; and the City's intent to bill the School District for water services at certain locations, These issues will be consolidated into a separate report, with the concurrence of the CounciL The City Manager reviewed positive steps for the City, including the Water Street property acquisition, the renovation of the Mall of Orange, residential and commercial development in East Orange and West Chapman and the efforts of the Library and Community Services Foundations. Council Ouestions Mayor pro tern Cavecche wanted to clarify that the $1 million for the Police facility debt service was a debt paid by the Redevelopment Agency, but set aside in the event the Agency could not fulfill that obligation; and noted that the PERS financial condition could get worse before it gets better and this money is being set aside for the future. Councilmember Coontz thanked the Staff for being more proactive and doing more than in the past and wanted to ensure that Staff was working on strategies for a worse case scenario in addressing priorities and other ideas. She suggested it is important to get the word out to the community exactly what the budget constraints are and what the repercussions will be throughout the community, so that outside organizations will understand the limits of supporting certain events, There needs to be a dramatic presentation to the community of what the cuts will be and how they relate specifically to Police, Fire and Public Works. The City Manager pointed out this is a good opportunity for the public to step up and help with the funding of certain events and projects in a true public/private partnership. Councilmember Alvarez asked about the elimination of the Internal Auditor position and the addition of a Homeland Security position. He asked if the City will be able to provide services to the newly proposed East Orange areas and if the City is pursuing any hotel development to increase Transient Occupancy Tax revenues, The City Manager indicated there is currently an Internal Audit Manager position and any additional work is outsourced to consultants; and there will be no change in the services provided, The Homeland Security position will be an upgraded Sergeant position in the Police Department, and will coordinate security for the City and act as a liaison with outside agencies. PAGE 5 CITY COUNCIL MINUTES April 29, 2003 8. REPORTS FROM CITY MANAGER (Continued) The City is also working on a fiscal report for the East Orange area, hoping for a better property tax split with the County. He will provide a report on this to the Council within 60 days. He also reported the City is looking at hotel developments, with a specific niche, in order to compete in the hotel market. Note: Councilmember Alvarez left the meeting at 6:15 p,m. Councilmember Ambriz wanted to ensure that a complete line item budget would be available for the public prior to the June 10 public hearing; and there would be a public outreach program to inform the public on increases to fines and forfeitures. He also asked for a clarification on the crossing guard program. The City Manager reported the City needs to convey information to the School District about the budget constraints and the need to cut back certain programs; and give the School District the opportunity to either budget, or create partnerships with the public or private enterprise, to take over programs such as Crossing Guards and the DARE program. He stated that of the 45 Crossing Guard locations, 21 locations do not meet City criteria, which is more liberal than County or State criteria; and the District would have to be notified that the City may have to suspend Guards at these 21 locations, Mayor Murphy stated this is an opportunity to initiate an "Adopt a Guard" program; where the City would still run the program, but the funding for some of the guards would come from other sources, Councilmember Coontz stated the Crossing Guard issue is difficult because the City has been managing it for so long, but it may be an opportunity for the School District to shift some of their attendance boundaries. In response to a question by Councilmember Ambriz, the Community Services Director indicated none of the playground programs would be cut. In response to questions by Mayor pro tern Cavecche about the POST revenue line item, it was reported the line item numbers for POST revenue was $55,000 for 00-01, $71,000 for 01- 02 and 12,500 for 02-03 because of the cut off from the State.Council Comments TAPE 2510 Mayor pro tern Cavecche stated she was in agreement with communicating to the School District about the cuts for Crossing Guards and also for the DARE program, as she believed sworn officers should be on the streets and not in the classrooms. She suggested the School District should get creative in finding other ways to continue DARE programs, such as using retired or volunteer officers. She also agreed with transferring water bills to the School District, as this is an enterprise fund and the City needs to show good stewardship to the rate payers. She also stated the City needs to be aggressive with developers, who are not held to Quimby Act PAGE CITY COUNCIL MINUTES April 29, 2003 8. REPORTS FROM CITY MANAGER (Continued) standards, in holding developers responsible for building new parks. She suggested the budget message needs to get out to the community, possibly in the Orange Progress, explaining exactly what the City is in for and what the City will be doing to hold back services. Councilmember Coontz stated a message needs to be sent out to the community with specific examples of what could happen, especially with regard to Police, Fire and Public Works services, as these are services the community is familiar with, Councilmember Ambriz congratulated staff on a great job and was glad to see a very proactive approach to the budget. Mayor Murphy congratulated and recognized staff for the budget cuts already made this past fiscal year, which has allowed the City to manage the budget without making additional cuts, He agreed with the proposed cuts to the School District and stated it is important to communicate these proposed cuts to the School District, to give them time to manage and prepare their own budget to take on these extra services, He also congratulated the Foundations on the work they are doing which helps supplement the City budget. MOTION - Murphy SECOND - Ambriz A YES - Ambriz, Mayor Murphy, Coontz, Cavecche ABSENT - Alvarez Moved to receive and file the report on the proposed Fiscal Year 2003/04 Budget.9. LEGAL AFFAIRS 10. RECESS TO CLOSED SESSION NOTE: There was no Closed Session; the Council did not recess.The City Council will recess to a Closed Session for the following purposes:a. Conference with Real Property Negotiators pursuant to Government Code Section 54956,8:Property: 124-145 and 164-180 S. Water Street, Orange, CA Agency Negotiator: Linda Boone Negotiation Parties: City of Orange, Orange Redevelopment Agency and Orange County Fire Authority Under Negotiation: Price and terms of payment b. To consider and take possible action upon such other matters as are orally announced by the City Attorney, City Manager, or City Council prior to such recess unless the motion to recess indicates any of the matters will not be considered in Closed Session.PAGE 7 CITY COUNCIL MINUTES 11. ADJOURNMENT MOTION - Ambriz SECOND - Coontz AYES - Ambriz, Mayor Murphy, Coontz, Cavecche ABSENT - Alvarez The City Council adjourned at 6:35 p,m,it'<(0--tf~ ~MARY . URPHYDEPUTYCITYCLERK April 29, 2003 l1AJ!-fr MAYOR PAGE8r------