Loading...
06-06-1995 Council Minutes Adj RegularCITY COUNCIL MINUTES OF AN ADJOURNED REGULAR MEETING ORANGE, CALIFORNIA June 6, 1995 The City Council of the City of Orange, California convened on June 6, 1995 at 4:30 P.M. In an Adjourned Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange,California. 4:30 P.M. SESSION 1. OPENING 1,1 PLEDGE OF ALLEGIANCE TO THE FLAG 1.2 ROLL CALL PRESENT - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ABSENT - None 1.3 APPROVAL OF MINUTES - None 1.4 PRESENTA TIONS/ ANNOUNCEMENTS/ INTRODUCTIONS _ None 1.5 PROCLAMATIONS - None 2. CONSENT CALENDAR 2. 1 Declaration of Deputy City Clerk, Cassandra 1. Cathcart, declaring posting of City Council agenda of anadjournedregularmeetingofJune6, 1995 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 adjourned regular meeting.ACTION: Accepted Declaration of Agenda Posting and authorize its retention as a public record in the OfficeoftheCityClerk.MOTION - Murphy SECOND - Barrera AYES - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Item 2.1 was approved as recommended. END OF CONSENT CALENDAR 3. REPORTS FROM MAYOR COONTZ - None 4. REPORTS FROM COUNCILMEMBERS - None 5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS _ None PAGE 1 CITY COUNCIL MINUTES June 6, 1995 6. ADMINISTRATIVE REPORTS 6.1 Consideration of fiscal year 1995-96 budget.The City Manager, Finance Director and Revenue Manager gave the budget presentation which included a general overview, historical perspective, Status Report for FY 94-95, and a Revenue and Expense Forecast. The Fire Chief described the Organizational Transition Plan.The City Manager presented the following three choices for a balanced budget: 1) status quo, 2)limited reserve reduction, defer $1.7 million of depreciation expenses and reduce operating budget an additional 3-5%, and 3) Organizational Transition Plan - including a two year budget.Council expressed the following concerns: Budget Expenditures Status quo" is not reflected in the proposed budget, the reason being the expenditure projections for 1995/96 are based on last year's beginning budget, not how the City is operating at year end,Status quo" should represent the ending budget 1994/95, which included substantial savings.The wrong message is being sent out that there is a $45 million operating expenditure this year and it is shown to immediately jump to $50 million next year on an annualized rate on the basis of the calendar flipping over. This is not the case.Also reflected in the budget document are changes in policy that Council is not ready to make at this time.From a projection standpoint, there is no real value in forecasting anything past 1996/ 97.The spread sheets in the document reflect no change; that the City will rollover and not do anything. The key is where is the City today. Looking at the graph curves from 1990/91 and 1992/93, where the changes have been based on yeoman's efforts from the staff, the City has gone from being out of balance to being balanced; to this year operating with a budget surplus of $3. 1 million.This budget proposal is a "worst case," assuming the City will make no changes in its operation.The expenditure side should show how the City is operating today utilizing the best data available now, carrying out to 1994/95, 1995/96 and 1996/97. The Fire issue and other issues are to return at a later time to be reviewed individually. The Revenue side has been projected fairly accurately. Understanding the history of the City, it is an insult to assume Council would follow the "status quo" option, which was the only item with backup in the budget document.In the 1994/95 Budget document, the Revenue fund designations are different for this budget than in past budgets. This makes it difficult for Council to review the proposal.The budget format of previous years was indecipherable as tar as the community was concerned and a new budget format was established by Council to be easily understood. This document does not follow that format. Headings should be the same in order to compare with past years,There are no line item budgets from the Departments for Council to review. This budget document does not allow Council to identifY where one department is versus the other.PAGE 2 I CITY COUNCIL MINUTES June 6, 1995 6. ADMINISTRATIVE REPORTS (Continued) The Council understood things were nol that bad, and the prcscnlation of the very "worst case"is not where the City is today.Option 1 should be eliminated. It was suggested there could be a combination of options 2 and 3 relating to budget goals.What is the budgetary goal of the Organizational Transition Plan?The words "re-engineering" or "right-sizing" continue to be misused and should not be part of the budget.Transition is what every budget is about. The budgetary process is supposed to start again immediately after the current budget is passed. This has not occurred.An accurate understanding of job titles is necessary for any reorganization proposal. Many jobs performed at City Hall are not necessarily defined within the job description. If positions are going to be eliminated, it has to be decided where those duties will go.Concern was expressed regarding the guidelines for the interest earned from the savings.Regarding the Organizational Transition Plan, the City got off to a bad start in re-engineering because of unauthorized leaks about the plan. The Council had never signed anything off, but were still in an information gathering stage.This is an on-going effort to always look al how the City can uo things better. The Council has been doing this the past several years and will continue to do so,It is to be made clear that as the Council goes forward with the evaluation of the organization,that layoff memos are not sent out to employees when in fact the Council never approved a plan.The evaluation of the organization is to be done with the participation of all levels of employees and with constant briefings with Council. Reallocation of positions will be reviewed by Council.This is an on-going process and everyone has a role to play and at every level so there is a sense of ownership as Council goes forward.MOTION SECOND AYES Murphy Spurgeon Murphy, Barrera, Mayor Coontz, Spurgeon, Slater Moved to prepare another draft of this plan reflecting those items discussed earlier; comprised of this year's actuals 1994/95 with 1995/96 and 1996/97 - a 2-year forecast, and to include additional information and cost estimates pertaining to the options discussed, reserve reduction isslle, as well as implications of the Organizational Transition Plan. This information be made available to Council at minimum one week from Thursday, but prefer it 10 be available one week from this date.Clarification: Numbers are to reflect actual operating costs of today.Mayor Coontz recognized the following speakers who voiced their concerns regarding the budget process:PAGE CITY COUNCIL MINUTES June 6, 1995 6. ADMINISTRATIVE REPORTS (Continued) Bob Bennyhoff, 10642 Morada Dr. Nick Lall, 1624 Mabury Carole Waiters, 534 N. Shaffer Barbara DeNiro, 1118 E. Adams Will Chambers Bill Trapp, City of Orange employee Larry Day 7. REPORTS FROM CITY MANAGER _ None 8, LEGAL AFFAffiS - None 9. ORAL PRESENTATIONS Carole Waiters, 534 N. Shaffer, complained that a letter was written regarding Dick Green's problemswithwaterstandinginfrontofhishome. Mrs. Walters asked when this letter and problemwouldbeaddressed?Mayor Coontz instructed the Director of Public Works to investigate the problem,10. RECESS MOTION SECOND AYES Barrera Murphy Murphy, Barrera, Mayor Coontz, Spurgeon, Slater The City Council recessed at 6:00 p.m. to a Closed Session for the following purposes:NOTE: Councilman Spurgeon was not present for discussion of Item a.a. Conference with Legal Counsel - existing litigation pursuant to Government Code Section 54956.9(a):CityofOrangevs. Orange County Sheriff, Orange County Superior Court Case No. 72 9718 b. Conference with Labor Negotiator pursuant to Government Code Section 54957.6:City Negotiator: Interim PersonnelDirector.Employee Organization: All Employee Organizations (List Available in Personnel Office).c. To consider and take possible action upon such othcr mallcrs 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 thematterswillnotbeconsideredinClosedSession,PAGE 4 CITY COUNCIL MINUTES June 6, 1995 II. ADJOURNMENT MOTION SECOND AYES Spurgeon Slater Murphy, Barrera, Mayor Coontz, Spurgeon, Slater The City Council adjourned at 6:40 p.m.MARILYN J. JENSEN MARILYN 1. JENSEN, CMC CITY CLERK 7" . / / (/~ ' )/ L r:_ X .- -1---11 L (_ ~. ! -f) - -:JOANNE C. COONTZ I MAYOR {~' L~/2u{ GrkA2/fZ CASSANDRA UP. THCART, CMC DEPUTYCITYCLERKPAGE5