04-22-2014 Council Minutes Adj RegularAPPROVED BY THE CITY COUNCIL ON JUNE 10, 2014
CITY COUNCIL MINUTES OF AN ORANGE, CALIFORNIA
ADJOURNED SPECIAL MEETING April 22, 2014
The City Council of the City of Orange, California, convened an Adjourned Special Meeting at
5:00 p.m. on April 22, 2014, in the Weimer Room, 300 E. Chapman Avenue, Orange, California.
5:00 P.M.
1. OPENING
1.1 INVOCATION
Rich Jacobs, Finance Director
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Mayor pro tem Fred M. Whitaker
1.3 ROLL CALL
PRESENT - Alvarez, Whitaker, Smith, Murphy, Bilodeau
ABSENT - None
1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS - None
2. PUBLIC COMMENTS - None
3. CONSENT CALENDAR - None
4. REPORTS FROM MAYOR SMITH - None
5. REPORTS FROM COUNCILMEMBERS - None
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None
7. ADMINISTRATIVE REPORTS — None
CITY COUNCIL MINUTES OF AN ORANGE, CALIFORNIA
ADJOURNED SPECIAL MEETING April 22, 2014
8. REPORTS FROM CITY MANAGER
8.1 Second Study Session for the Proposed Fiscal Year 2014 -15 Budget.
Rick Otto, Assistant City Manager, presented the staff report. He provided an updated revenue
estimate number of $95.4 million dollars, a 2.4% increase over last year's revenue. The
estimated expenditure number is $95.2 million dollars, a 6.0% increase over last year's
expenditure numbers. The expenditures include the continuation of 43 frozen staff positions and
no increases for departmental spending. The increase in expenditure comes from changes to
labor agreements, cost of living adjustments and the end of the furlough program. Increases in
PERS costs of $2.2 million dollars also factor into the increase.
Councilmember Murphy explained that the increase in expenditures for staffing breaks down to
$1.1 million dollars as the cost to end the furlough program and $600,000 dollars as the cost of
the COLA. Total increase to expenditures is $1.7 million.
Councilmember Alvarez asked where the costs related to the wind down of the Redevelopment
Agency are located. Mr. Otto explained that the bulk of the expense is in the City Manager's
budget. City Manager, John Sibley, added that former redevelopment agency staff focuses on
economic development and that the City received $250,000 back from the State of California
Department of Finance.
Mr. Otto reported that the costs related to projects that were discussed at the first budget study
session are as follows: The sewer system cost will be approximately $64 million dollars,
landscaping medians will cost approximately $350,000, the lighting project for the undercrossing
at the 55 freeway will cost approximately $20,000; and a plan for succession planning will be
discussed in the future.
Mayor Smith asked that dollar figures be included in a report on succession planning. Mayor pro
tem Whitaker asked that a list of options and priorities be included on the succession plan report
as well.
Mayor pro tem Whitaker asked if the increases in revenue are related to sale tax increases and if
the five percent growth forecast was reasonable. Mr. Otto responded, yes, sales tax is the reason
for the increase in revenue and that the 5% increase is conservative and backed up by
independent studies.
Mr. Otto reported that the unreserved fund balance will be $9.1 million dollars. After transfers
out of $7.2 million, to replenish other funds such as the enterprise, capital projects, internal
service, etc. and a new business investment fund, the unreserved fund balance would be 1.9
million.
Mayor pro tem Whitaker asked for more information on the business investment fund prior to
transferring any money into it. City Manager John Sibley explained that at the budget adoption
hearing, more information will be provided and the Council will have all options open to them
regarding transfers out.
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CITY COUNCIL MINUTES OF AN ORANGE, CALIFORNIA
ADJOURNED SPECIAL MEETING April 22, 2014
Councilmember Bilodeau advocated sending money to PERS ahead of schedule. Finance
Director Rich Jacobs explained that there are market risks in sending money ahead of schedule.
Councilmember Murphy and Mayor Smith both asked for a "total" line for each account. Mayor
pro tern Whitaker explained that he does not want to see totals listed. He does want to see the
reserve funds fully funded.
Each Department then presented their budgets and work plans for the 2014 -15 fiscal year.
Mayor Smith asked about an Emergency Management Plan for the community and stated that she
wants to see one created.
Councilmember Alvarez asked about the option of adding a third Captain position to the Police
Department staff. He clarified with staff that the vehicle replacement program will purchase a
new DUI truck.
Mayor Smith asked about the staffing levels in the Planning Department. She wants to insure that
all Planning staff has sensitivity toward historic issues. She asked for a report on how the
streamlined project effort has worked out for City customers and staff. She wants to see the Old
Town Design Standards have community input and she wants to see a master plan for Old Town
lighting.
Mayor pro tem Whitaker asked about what might be available for grants in , a joint use park with
the Orange Unified School District.
Councilmember Alvarez asked about a push to get more filming in Orange. He also suggested
staff get some training regarding effective grant writing.
9. LEGAL AFFAIRS — None
10. ADJOURNMENT — The next Regular City Council Meeting will be held on Tuesday
May 13, 2014, at 6:00 p.m. in the Council Chambers with Closed Session beginning at 5:00 p.m.,
if necessary.
Declaration of Chief Clerk, Robert Zornado, declaring posting of the City Council Agenda of a
Budget Study Session on April 22, 2014 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
com of said Study Session.
OBERT ZORNADO
CHIEF CLERK
ERESA E. SMITH
MAYOR
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