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HomeMy Public PortalAboutCity Council_Minutes_1993-02-22_Regular 1993CITY OF TEMPLE CITY JOINT ADJOURNED MEETING (BUDGET STUDY SESSION) CITY COUNCIL AND TEMPLE CITY COMMUNITY REDEVELOPMENT AGENCY MINUTES FEBRUARY 22, 1993 INITIATION: 1. CALL TO ORDER: Pursuant to the Agenda posted February 19, 1993, Mayor McGowan called the Adjourned Meeting of the City Council and Temple City Community Redevelopment Agency to order at 6:30 p.m. on Monday, February 22, 1993. 2. ROLL CALL: PRESENT: Councilmembers - Breazeal, Budds, Wilson, Manning and McGowan ALSO PRESENT: City Manager Ovrom, Community Development Director Dawson, Assis- tant to the City Manager Kravitz, Community Services Director Chadwick, Economic Development Director Sims, Financial Services Director Maldonado, Public Services Director Hart and Julie Estrada from the Foothill Star Tribune Pledge of Allegiance was led by Mayor Pro Tem Manning. Announcement of Closed Executive Session: City Manager Ovrom stated a Closed Executive Session was held pursuant to 54956.9 (A) relative to the .OH litigation and no decisions were made. 3. A. APPROVAL OF MINUTES - Special meeting of January 28, 1993 Councilmember Breazeal indicated that although he seconded the motion on page 5, he did not hear that the motion included an implementation plan and is not in support of this motion. He also inquired why the parking spaces were not marked as of yet. City Manager Ovrom stated that unfortunately the weather has not been cooperating and the County needs 24 hour notice. Councilmember Breazeal moved to approve the minutes of January 28, 1993, seconded by Councilmember Budds and unanimously carried. B. REVISED FIVE -YEAR REVENUE /EXPENDITURE /FUND BALANCE PROJECTIONS - City Manager Ovrom indicated per Council direction from the January 28 budget study session, stab has revised the Five -year Revenue and Expenditure projection. The best information that we have at this point is from the League of California Cities and is that the Governor's proposal for 1993 -94 assumes taking property tax from local government and transferring it to support schools. The best information which we have is that they would withhold 45% of our property tax revenue. The difficulty we have is that the information we received from the League does not even list the City of Temple because City Council/Agency Special Meeting Minutes Page 2 February 22, 1993 we are a no property tax city. We have assumed the same percentage take -away from us as from the cities which are receiving AB 8 relief from the state after Prop 13. As a result, the Financial Services Director reduced the revenue by an additional 36% which combined with the existing 9% that had been withheld gets to the 45% which was mentioned and is reflected in the revised projections. This amounts to $230,000. Financial Services Director Maldonado stated that the proposal which Governor Wilson has submitted is reflected in a 45% reduction. Councilmember Breazeal asked if we are anticipating getting $313,000 from property taxes. Financial Services Director Maldonado responded that the $313,000 is anticipated based on Governor Wilson's proposal. City Manager Ovrom added that the $313,000 is 55% of the 4% of property taxes which we would have received in year four of the seven year phase -in. Councilmember Breazeal inquired if the total general fund revenues with reductions is $5,459,000 and Special Revenues of about $2.8 million. Financial Services Director Maldonado indicated the figures were correct. Councilmember Breazeal stated there is a increase of total revenue is almost $646,734 over FY 92 -93. Financial Services Director Maldonado responded the majority of the increase is Special Revenue ($485,000) and General Fund is $161,000. Councilmember Breazeal stated that the financial picture is not as bad as was thought. City Manager Ovrom indicated that it is bad since Special Revenue Funds are restricted dollars for specific purposes. Financial Services Director Maldonado added that the increase accounts for the reimbursement of the AB 939 costs and it is not really additional revenue and in reality we are losing $230,000. City Manager Ovrom indicated the Lighting and Landscape Assessment has been reduced by $14,000 due to reduced expenditures. On the expenditure side there is a decrease due to the consolidation in the Public Services Department of the Maintenance Superintendent and the Public Works Coordinator. Councilmember Breazeal stated that we show 93 -94 projections to increase $331,000 and $250,000 is law enforcement. He also noted that we show $82,000 of projected increases and he is not sure where they come from. City Manager Ovrom responded that some of the increases are due to the 4% CPI for expenditures which is one of the assumptions we have made for projection purposes. Finance Director Maldonado indicated that in addition the elections program is not in FY 92 -93 budget and will show as an increase in the amount of $22,000.00 for FY 93-94. 1 1 1 City Council/Agency Special Meeting Minutes Page 3 February 22, 1993 Councilmember Wilson asked why General Government Buildings reflects an increase of $100,000. City Manager Ovrom indicated these are Capital Improvements. Councilmember Wilson stated that we have put on a new roof and installed new carpeting so what are the other expenditures. Public Services Director Hart responded that those are Capital Improvement Projects that are listed in the CIP for 1993 -94. This included upgrading the ceiling and interior lighting in the Civic Center at a cost of $35,000; repainting the interior surfaces of Civic Center for $10,000; painting the interior and exterior surfaces for $10,000 of the maintenance yard; lighting improvements at the maintenance facility for just under $3,000; constructing an office, improving the restroom facilities and employee assembly area at the maintenance yard in the amount of $10,000, and replacing the carpet in the emergency operation center. Repair asphalt tiling in the emergency operation center $2,000, repaint the inside of that facility $2,000 and replace the water heater $1,000. Replace carpeting $25,000 in City Hall, repaint the interior surfaces at a cost of $15,000. Mayor McGowan asked if we were replacing the carpet that was just installed. Public Services Director Hart indicated that the expenditure for carpeting this fiscal year was to install carpeting where there was none in City Hall due to liability concerns and that carpeting would remain. City Manager Ovrom indicated that if the Council needs additional information we could forward that to them. Public Services Director Hart stated that we will be reviewing the program and Council will have an opportunity to look at the programs and make adjustments. The essential projects are the water heater and the maintenance facility. Councilmember Budds indicated the revenue projection for FY 93 -94 General Funds are $5,459,204 and the expenditures is $5,226,080, so that is a net surplus of $233,124. Financial Services Director Maldonado indicated that the two figures Councilmember Budds mentioned are the $5,459,204 and the expenditures of $5,226,080. The other items funded out of the General Fund are Capital Projects as well as any transfers out for Special Revenue Funds that do not totally cover the expenditures such as Gas Tax and other Special Revenue Funds. Those items are included in the transfer out of $357,000. Councilmember Budds inquired if the assumptions on the revenue side are best guesstimates of revenue that we will see based on Governor Wilson's proposal and does that assume an increase for business license and include an assumption for a utility tax? Financial Services Director Maldonado indicated the revenues are based on Governor Wilson's proposal and includes a 4% CPI for business license fees but does not include a utility tax. City Manager Ovrom added that it does include the Solid Waste Fee. City Council/Agency Special Meeting Minutes Page 4 February 22, 1993 Councilmember Budds stated that with the $233,000 in revenue over expenditures we are talking about applying that money to capital improvements and other programs that the special revenues cannot fund such as the Gas Tax programs and we are not looking to cut by line items. Financial Services Director Maldonado reviewed the revenue and expenditures. City Manager Ovrom reviewed the assumptions stating that the expenditures includes the 4% CPI which is built in for projection purposes, it includes General Fund subsidy for Capital Projects and it includes the deletion of the $230,000 from the property tax as proposed in the Governor's budget. On the revenue side it includes 4% increase for fees and charges we have control over and a very modest if any increase in sales tax and investments. Financial Services Director Maldonado indicated this shows a $60,000 decrease in investments. City Manager Ovrom said that this shows a total picture of what our known commitments are over a five -year period and what our known revenues are over the same period based on the best information we have at this time. Councilmember Budds stated that he wished to make an observation that when Public Services Director Hart comes forward to bring Capital Projects before the Council and there is some place that needs carpeting he is going to assume that it will need to be replaced. He also respectfully suggested that we do not go by industry standard only. Councilmember Breazeal stated there are items in the capital improvement budget that does not have to be done this year. City Manager Ovrom reminded Council that the purpose is to give you a multi -year picture of the Capital Improvement Program. You certainly can defer some of these projects but at some point they will have to be done. Councilmember Budds indicated he realizes that, but if staff feels they should not be deferred then they should be prepared to make that statement. We sometimes get into this argument that certain items are going to cost a certain amount and then we are arguing with staff's judgement. City Manager Ovrom indicated she hopes that the Council realizes the staff is looking at the City's best interest and not those of the private industry. C. APPROACH TO BUDGET DISCUSSIONS REGARDING SALARIES AND BENEFITS - City Manager Ovrom provided background information stating that staff is looking for direction on the approach of salary and benefits as we begin moving into that time of year. Council has in the past reviewed the median of similar classes in neighboring cities, the Los Angeles area Consumer Price Index information as well as the results of the annual employee survey. We consider and evaluate all this information and sit down with Council and talk about the kinds of adjustments we are going to make for the a given year. We would like to go through a discussion of each of these elements and the overall approach so that staff may move forward and get this wrapped up in a timely basis. 1 1 1 City Council/Agency Special Meeting Minutes Page 5 February 22, 1993 The first part is an external survey and Council policy is to pay its employees at market median when feasible. Market median is the salary position in a ranking of cities where half of the cities we survey are above us and half are below us. This is different than an average when you add all the cities and divide by the number. Once we do that, there are certain classes that we align for internal relationships. We do not survey all classes and instead survey benchmark classes. Due to the economic conditions we are recommending that we survey for informational purposes only for salary and benefits and how other cities are responding to the budget crisis. One of the issues the Council wished to discuss was the survey cities and so we have put together some information for you which Assistant to the City Manager Kravitz will review. Councilmember Breazeal stated that asking other cities what they are doing in this economic crisis is germane to what our staff does but if we are not going to be using the information then I don't see why we would have staff go through the trouble of compiling the salary and benefit data. City Manager Ovrom indicated that staff would be doing the survey anyway for information on what they are doing as far as the budget but I also think it is good information to have to know where we stand in our market. We would be doing it in the summer anyway. It is important to know where we are in the market as far as salary and benefits so that we can understand that as we go into the next year. Councilmember Budds indicated he would like to continue and have staff do what they are talking about because as it gets further into the discussion he would like to address and maybe come to a meeting of the minds as a Council on what cities we are talking about surveying. Attachment A is the current list of cities we have been surveying for a number of years. The rationale has been that all cities are in our geographic region and is important because that is where we are typically competing for the labor pool, they are comparable population, all the cities are in the San Gabriel Valley and there is a combination of full service and contract cities. This provides a good cross - section of cities. Assistant to the City Manager Kravitz reviewed what the individual columns mean in the survey. The figures represent total full and part time staff; population served per each staff person; General Fund as reported by each city; total fund that combines the General Fund with all other funds; total funds per capita which shows how the population compares with the amount of funds or how many dollars are spent on each citizen in the community; total salaries as reported by each city; average salary depicts the total salaries divided by number of staff; percentage of General Funds and percentage of all funds compares the salaries to these to funds; and, at the bottom is a line which shows the average of all the other cities in the survey. This format is consistent for all the different versions which the Council has before them. Exhibit A includes all the cities in our current survey pool. Basically this is how they compare to Temple City. City's with a " #" sign next to them have a law enforcement department; the City's with an " &" symbol have a Fire Department; and the City's with a " %' symbol means they are a no or low property tax" city. Even though some cities have a law enforcement department does not mean they are not a contract city, therefore they may appear in other exhibits. City Council/Agency Special Meeting Minutes Page 6 February 22, 1993 Exhibit B is the same neighboring cities in our current survey pool with the exception that the figures for staffing of law enforcement and fire figures have been removed. Exhibit C is the contract cities that responded to the written survey. There were 37 responses. Many of these cities have a law enforcement department. Exhibit D is the 37 contract cities with the law enforcement and fire departments removed. Exhibit E removes any contract city that had law enforcement or fire departments. Exhibit F includes only no/low property tax contract cities. Exhibit G is a comparison of contract cities by population. City Manager Ovrom indicated that no matter which version you use it shows we are serving more people with less staff, our salaries are below average in all versions so as far as staffmg goes we are doing pretty well with the resources that we have. Councilmember Budds stated he would like to head into comparing Exhibits F and G and look at the contract cities that do not have law enforcement programs. From Exhibit F remove Azusa, Bell, Irwindale and Signal Hill all the rest contract with the Sheriff's Department. They are also listed under no/low property tax cities. That gets us into showing an ability to pay. If we go into a discussion of salaries and staffmg levels we then have a comparison of like cities as far as the duties of the personnel. If you look at Artesia, South El Monte, Bell they have the same duties that we have as far as the duties of the personnel which include managing Sheriff's contract, public works contract, etc. If we are going to start competing with cities that have full service agencies that may have a better ability to pay, then we are not comparing apples with apples on duties performed by the staff of the city. City Manager Ovrom said that the cities that have police departments have more staff to provide those services that doesn't mean that the person in accounting is doing anything different than we would it is just a matter of volume. Councilmember Budds said that he would suspect that the staff here in Temple City are more generalists and do a whole range of things rather than in a city where there are more specialists. The skill level may even be higher here and probably is since one person is doing more things. His main point is that comparable salaries in no/low property tax cities and the ability to pay. City Manager Ovrom said that the coalition of seven cities in Senator Russell's group is a good cross section of cities which include no/low property cities like Temple City and La Canada/Flintridge and large cities like Pasadena, Glendale and Burbank. An interesting point is that you must look at all the revenues and not just one. There may be cities like San Diego, for example, that have not utilized their authority to implement a trash fee tax so from the States perspective, why are they complaining. There are other cities that may not have a utility users tax but they have implemented franchise fees on everything that they could. Every city is fording their equilibrium and paying for their services in different ways. Ultimately, cities have had to be more creative. 1 1 1 1 City Council/Agency Special Meeting Minutes Page 7 February 22, 1993 Councilmember Budds stated that all he is trying to say is when comparing Temple City to other cities, the common denominator is are they a no/low property and are they a full contract city like we are. Councilmember Breazeal concurred with Councilmember Budds that we should be compared to No/Low Property tax and full contract cities. Councilmember Budds asked where La Canada/Flintridge is on the exhibits. Assistant to the City Manager Kravitz answered that some cities just did not respond to the survey. City Manager Ovrom said that considering our labor market is important and maybe having a core of no/low property tax and contract cities and mixing in some of the more local ones that we are competing with would give Council a better overview. Councilmember Breazeal said that he looks at the other no/low property tax cities and knows that a) we both contract and b) were under the same fiscal constraints. Councilmember Budds stated on Exhibit F they should remove Azusa, Bell, Irwindale and Signal Hill and adding La Canada/Flintridge and San Dimas. He added that he would like to hear from the City Manager or Assistant to the City Manager on this issue. City Manager Ovrom stated that she would simple be repeating herself since she felt it is important to take into account what the geographic labor market is for the City of Temple City. She clarified that what she heard from Council is to use Exhibit F, delete the law enforcement cities and add La Canada/Flintridge and San Dimas. Which gives us 14 cities. Council concurred. City Manager Ovrom stated that next is the Employee Survey which is distributed to all employees and Isa meets with all full-time employees. This does three things. It gives us some direct feedback from employees regarding the organizational environment and overall job satisfaction; it satisfies the requirements of the Meyers, Mil lias Brown Act regarding having a dialogue with public employees relative to the terms and conditions of employment and it also enables employees to communicate their overall preferences and priorities as far as salaries, benefits and working conditions. This has been very beneficial in gaining feedback. The other thing we would like to do this year is to encourage employees to give us feedback on low and no -cost benefit items such as an alternate work week, additional holiday for a year, vacation increase, optional benefit. The recommendation is to conduct the employee survey and include the items mentioned. Council concurred that staff should conduct the employee survey paying particular attention to suggestions for low or non -cost benefit /working condition improvements. City Manager Ovrom indicated that the Consumer Price Index information is provided for information and for the twelve month period ending in December it was 3.5 %. The Incentive Recognition Program is an exciting endeavor. The Employee Task Force which is headed by City Clerk Love, is looking at different ways we can approach an Employee Incentive Program for coming up with cost savings and efficiency ideas. There is no information at this point and we will be coming back to Council at a later date. City Council/Agency Special Meeting Minutes Page 8 February 22, 1993 The Cafeteria Plan is an item which Council requested staff to return to from last year. In essence we already have a Cafeteria Plan and what is described as an alternate is a truer form of Cafeteria Plan which involves a lump sum which an employee can use on a variety of benefit options. At this point, it is not being recommended for implementation but instead is recommending to develop the Cafeteria Plan document which reflects our current plan. At a later date we can amend that to go to the truer form of Cafeteria Plan. Councilmember Budds stated that when you talk about the health benefits for employees he always put them on the other side of the ledger but does not see it as a supplemental salary benefit. If one person has a family then they are going to get more in terms of a health benefit than a single person. He doesn't think that the purpose is to make it equal or evenly distributed. Salary is salary and the health benefits should not be made up in cash. City Manager Ovrom stated that the cafeteria plan is to equalize benefits to employees. Councilmember Budds stated the single person that is entitled to benefits gets that benefit and the married person gets more. As long as the individual has their health needs taken care of I don't think they will squawk. City Manager Ovrom responded by saying that we should put into place what our current plan is and not proceed with the Cafeteria Plan. Assistant to the City Manager Kravitz stated that the $1,038 we provide to employees as an Optional Benefit Plan is actually already a "Cafeteria Plan" because you can reimbursed for actual medical expenses. This then falls under Section 125 which is pre- tax dollars. The thing that we do not have in place is the written document City Manager Ovrom asked if there is concurrence to document the current plan. Council concurred. City Manager Ovrom summarized her recommendation is that there be no cost of living for employees in FY 93 -94, that we do a survey of the cities that the Council has identified and include salaries/benefits and other cities actions relative to the State budget and economic crisis; that we continue with the Employee Survey paying special attention to no and non -cost benefit improvements; the Employee Task Force continue to develop the details of the Employee Incentive Recognition Program; and that we prepare a Cafeteria Plan document reflecting our current plan. Mayor Pro Tem Manning moved the recommendation as stated by the City Manager. Councilmember Budds inquired that if Council votes on these things then are they in fact agreeing that no cost of living increase would be made this year? City Manager Ovrom responded yes, that is what her recommendation is at this point. If Council is not in concurrence with that then she would remove it from the recommendation and would bring it back when staff returns with the Employee Survey information. Councilmember Budds stated he felt Council should look at this farther down the line in the budget process. 1 1 City Council/Agency Special Meeting Minutes Page 9 February 22, 1993 City Manager Ovrom stated then the CPI increase issue is removed from the recommendation and will return later. Councilmember Budds moved to amend the motion on no cost of living increase to exclude that at this particular time, seconded by Councilmember Breazeal and unanimously carried. D. UTILITY USERS TAX - City Manager Ovrom stated that we are returning with an implementation plan for the Utility Users Tax. The Public Safety Tax we will deal with at a subsequent study session. Public Services Director Hart stated that we have gone over the State Budget Crisis and its impacts several times. However, he pointed out that as is shown in the five -year projections and in all the discussions of the City's financial position, during recent years the City's revenue has not been in step with the cost of doing business. For example, the law enforcement contract service increases which the City has experienced over the last three years. The actual increase for FY 91 -92 was over $152,000. The estimated expenditures for current fiscal year will exceed $120,000 and with the 12% increase including the liability pool we are looking at $250,000 for next year and those are increases with very few, if any increases in service. All law enforcement services are paid for out of General Fund monies and currently there is no alternate funding source to pay for this. It is important to note that in the next year or so, based upon the increase and demand for service we are most likely looking at increasing by perhaps, at least one more general law unit and possibly another traffic enforcement unit. This would depend upon the cost of these increases which could range from $250,000 to $450,000, again with no additional revenue source to compensate for that increase. It is important to mention that Temple City has been very fiscally prudent in that we have provided essential services only to the community with very few exceptions. We provide the level of law enforcement that is adequate to meet the public safety concerns of the community but we do not do much more beyond that. When looking at this situation, the options are very limited, either we look at various ways to enhance our revenue base or we consider reducing the level of service which we talked about at the last study session. Council directed staff to put together the Utility Tax Implementation Plan, but first we should review the proposed tax rate. Staff is suggesting a 2% Utility Tax rate be set which would generate between $400,000 - $500,000 in annual revenue. The average cost to the customer which is the combined utility increase is estimated at $3.50 to a high of $4.34 per month. This is based upon preliminary information that we have obtained. The maximum annual cost per household would not exceed $53. The rationale behind this recommendation is contingent upon the $248,000 projected increase in law enforcement services which we will experience effective July 1 and as mentioned the potential revenue loss resulting from State actions which could be in excess of $230,000 and when we look at the five year projections the General Fund reserve will be projected as 2.4 million in FY 93 -94 and unless other revenue enhancement measures are implemented such as the Utility Users Tax, there will be an estimated $520,000 reserve deficit by FY 96 -97. As mentioned, it may be possible to balance this years budget however, it will not be possible next year and certainly not in FY 95 -96. The proposed implementation plan would begin with a proposed community relations and public outreach program which we feel it is very important. We would be using the a City -wide newsletter to all Temple City residents and businesses prior to the public hearing so people would have the opportunity to participate. The City Manager would make public presentations to not only the commissions but also to various other organizations throughout the community; staff would implement a comprehensive public relations program designed to disseminate information regarding the utility tax on a community -wide basis; a formal notice to the utility companies would be issued regarding City Council/Agency Special Meeting Minutes Page 10 February 22, 1993 the City's intent to establish a utility tax which would also include the required City boundary information and exemptions; the City Council would hold a public hearing to facilitate and document citizen input; staff would develop the required utility tax ordinance for adoption by the City Council and a resolution for adoption establishing the utility tax rate. Finally, the utility companies would begin collection of the utility tax and remit revenue to the City beginning September 1, 1993. It is very important to mention that the City Council can determine or build in a rate reduction which could reduce to zero at a designated time. Utility tax rates may be adjusted at the Council's discretion on an annual basis or more frequently as desired. The staff is recommending that we proceed with a 2% Utility Users Tax per the proposed implementation process and request that the Council appropriate general funds in the amount of $3,000 which would be an estimated cost for Community Relations and Outreach Plan and amend the current fiscal year budget. Councilmember Breazeal mentioned that the staff of the City of Artesia provided numbers that were substantially over what was needed. Public Services Director Hart responded that the projected range is very close and are working closely with the utility companies which would further narrow the figures down. We have provided the absolute low and absolute high. The numbers are very reliable. Mayor Pro Tem Manning inquired if there is an overage could it be designated for law enforcement. City Manager Ovrom responded that the Council could designate the funds as they wish perhaps for the projected increases in Law Enforcement. Public Services Director Hart indicated you would want to specify the purpose of the dollars. If there is a conservative reserve the Council has the ability to determine how the funds should be applied. Councilmember Budds stated that he is looking at the issue of the utility tax in conjunction with the environment we are currently in. The reserves will not be there very much longer. He felt that we should go into this program however, once the monies are approved and these funds do become available then the concept should not be to find projects that are not on the table. This is to build a firm foundation and we need to be in a position to take care of ourselves. We need to take care of those things that we have identified as needs today, not finding new things for this money. City Manager Ovrom mentioned that next fiscal year the City may be faced with adding law enforcement services regardless of what our revenue base is since the service demands have increased. Councilmember Wilson indicated she still feels that this should go to the public for them to vote on it and is not in favor of it. Councilmember Manning stated that she is not sure there is the time for that as the situation is critical. Councilmember Breazeal indicated the last few years we have doubled the lighting assessment fee, established AB 939 fee and increased business license fees. We are being asked to approve a budget before we have adopted a budget. You take a look at all the absolute expenditures and if you have a short fall then you take a look at it. He 1 1 1 1 City Council/Agency Special Meeting Minutes Page 11 February 22, 1993 mentioned the CEP and indicated that routine expenditures $464,500 and $150,000 of that is painting and carpeting or cosmetic. He still feels there are major things we can do and we haven't taken a hard look at internal operations. He stated he will not vote for a utility user tax until he knows it is absolutely essential. Councilmember Budds wished to clarify and asked Councilmember Breazeal if he was stating he does not -want to go through the public outreach program and the public hearing process. Councilmember Breazeal stated he does not since we will not even have the budget adopted by May 18 and the program calls for the adoption of the resolution and ordinance on May 18. City Manager Ovrom indicated that Council does know the two issues outlined for the rationale of the utility users tax. We do know that the law enforcement costs are going to increase and we know the state is going to take dollars from us. Councilmember Breazeal said last year we had heard that major cuts were going to take place in the Sheriff's Department and they did not. He indicated that he does not see how we pay more money for less service since they cut detectives out of the Sheriff's Department. City Manager Ovrom responded that they did take place but not at Temple Station. Councilmember Budds stated the issue is a Contract City issue. The Board of Contract Cities should be bringing that up with the Sheriff's Department. He asked Councilmember Breazeal if the reserve fund issue enters into his decision. Councilmember Breazeal responded that yes he is aware of the reserve fund issue. His point remains that we have not take a hard enough look at the City's operating costs. Public Services Director Hart said in all due respect the staff would then be very interested in direction from the Council on what cuts we are going to make, since we will have to make them. If we are not at bare bones then we will be at it or below it. City Manager Ovrom stated that we are at bare bones and there is going to be service reductions as a result and we will be looking to Council for direction on where Council will want to cut. Councilmember Breazeal said a 2% utility users tax will raise a half- million dollars that is what we are looking for which is the difference between the loss of the $230,000 from the state and the $235,000 from the increase in law enforcement costs. So we are covering that spread. He feels there is some flexibility in the CIP. Councilmember Budds stated he agrees with what he is saying but the flexibility and we are taking care of our costs, his concern is that we will need those dollars to build up the reserve fund again. Mayor Pro Tem Manning stated that we cannot constantly continue to rob Peter to pay Paul. City Council/Agency Special Meeting Minutes Page 12 February 22, 1993 City Manager Ovrom indicated that we are trying to take more than a one year view of this. If we do not deal with these issues now, we are going to be sitting here a year from now and dealing with the same thing in a crisis mode. Even if we have a good economy, that does not affect Temple City's revenue. Temple City's sales tax base stays fairly stable and will not have a substantial affect on our revenue base. Councilmember Budds stated he wishes to make a point and is inhibited from doing so by discussions we have had relative to on -going negotiations in litigation. Councilmember Breazeal stated that he realizes the reserve fund is committed. Depending on which numbers you use between Block A and outstanding litigation we don't have any reserve. He stated there are cuts we can make. City Manager Ovrom stated that even if we eliminated the entire Community Services Department we would not solve the problem and that is the magnitude of the problem we are dealing with. As long as Council keeps in mind that the types of reductions we are talking about are massive and if you look at the multi -year numbers, it is not going to solve our fmancial problems in the City. We can nickel and dime ourselves and its not going to solve our long -term financial problems. Councilmember Budds asked if Council would like to follow Councilmember Breazeal's line of thinking and go into an exercise in a study session, before we take a position on this, so that it is not an issue. Councilmember Breazeal stated that it would be essential for him. Mayor McGowan asked if we did not give the 4% that is projected how much could we save? City Manager Ovrom stated staff would need to come back to Council with that figure. Councilmember Budds stated that what we are voting on tonight is not to implement the utility tax but to implement the public outreach program. Councilmember Wilson stated that it was. Councilmember Budds said that it sets the motion for a public hearing and is not to adopt a resolution. City Manager Ovrom stated that what is being recommended is a very comprehensive outreach effort so that when the public hearing is held by the Council to consider this, that everyone in the community knows about it and has the opportunity to address the Council on this matter. Bob McGinnis stated that the in Irvine they have a Community Services fund that works well. He is against a Utility Users Tax. Councilmember Budds suggested that before we have staff spending their time doing the outreach program and expending the $3,000 appropriation we should have another study session to discuss budget cutbacks. Which would help us decide whether its 0 %, 1% or 2 %. 1 1 1 1 1 1 City Council/Agency Special Meeting Minutes Page 13 February 22, 1993 City Manager Ovrom stated that she needs to hear from the Council as to what the issues are. The context of what is being recommended is so that we may avoid a crisis situation. Councilmember Breazeal stated that the Capital Improvement Program is an issue and the $94,000 in Equipment Replacement. Councilmember Budds moved to postpone action on this item, seconded by Councilmember Wilson and unanimously carried. City Manager Ovrom asked Council to set the next study session date and a date which comments from the Council should be submitted. It was suggested that comments be provided by Council by March 1 and return on Thursday, March 11 at 6:00 p.m. and Council concurred. E. DISCUSSION OF NOTIFICATION STRATEGIES FOR RESIDEN- TIAL /COMMERCIAL PROPERTY RENTAL BUSINESS LICENSES - City Manager Ovrom indicated that the Council is very familiar with this item and was brought back to the Council for additional direction on how much outreach and publicity the Council wished to do. Staff could do things such as Channel 55, inform the Chamber, provide news releases, etc. She pointed out that by doing so you are not getting to the majority of the people that it impacts. Council could decide on a much more elaborate notification strategy. Mayor Pro Tem Manning stated that by doing a news release, Chamber and an article in the newspaper that must hit a majority of the people. Councilmember Budds said it was his guess that most of the rentals are absentee landlords and don't even live in Temple City. Mayor Pro Tem Manning stated that we have a listing so couldn't a mailing be sent? Financial Services Director Maldonado responded that we do have a list containing about 650 names and addresses and we are estimating the cost is going to run about $300 for a special mailing. City Manager Ovrom added there would also be staff time. The question is whether the Council is asking for input or just informing them of the action. Councilmember Wilson indicated she felt they should be able to give some input. Councilmember Budds inquired if this had to go to a public hearing. Financial Services Director Maldonado indicated that it would appear on a Council agenda but did not have to have a noticed public hearing. Councilmember Budds indicated that there should be notice made that this item will appear on the agenda. Councilmember Breazeal inquired about what the impact would be for the Financial Services Department. City Council/Agency Special Meeting Minutes Page 14 February 22, 1993 Councilmember Budds stated it was his recollection that it would be about three months out of the year it would take a part -time person. Financial Services Director added that to start up it would take five months of a part time person and then additional part time staff at renewal time. Councilmember Wilson stated that this was done at a budget study session and felt it should be done at a regular Council meeting so that people have the opportunity to input. City Manager Ovrom inquired if Council would like notification to the Chamber, Channel 55 and news releases or individual notification to each person affected by this? Councilmember Budds stated that we have to notify property owners and he cannot see any other way to reach them than notifying them individually. City Manager Ovrom clarified that the previous action which Council took on this item is null and void and we are starting over. Therefore, what is being done is that we will be notifying all the people that are affected that the Council is considering this for the purpose of providing additional code enforcement and you will be considering it at the April 6th City Council meeting. Councilmember Budds stated that he feels better if all the people are notified in particular the residents. City Manager Ovrom said that she would like to look at this time frame, not commit to April 6 and get back to Council when this item will be ready. Mayor Pro Tem Manning moved to direct staff' to notify the property owners and to allocate the $350 and suspend previous action, seconded by Councilmember Wilson and unanimously carried. G. SET DATE FOR FUTURE BUDGET STUDY SESSIONS - The City Council discussed and concurred with the following dates for the budget study sessions. March 25 6:00 p.m. April 29 6:00 p.m. May 27 6:00 p.m. June 2 6:00 p.m. June 3 6:00 p.m. F. DISCUSSION OF CITY WIDE LIGHTING AND MAINTENANCE DISTRICT RESERVE FUNDS - City Manager Ovrom stated there was a question at the last meeting about the $120,000 that was tentatively earmarked to be part of the public improvement project for the downtown area for the replacement of lights. It makes sense to do this at the same time we are doing curb, gutter, sidewalks and roadway. Public Services Director Hart has been in discussion with Edison regarding the question as to what energy savings we might experience by replacing them, however, we haven't been able to get the information from them as of yet. 1 1 1 1 1 City Council/Agency Special Meeting Minutes Page 15 February 22, 1993 Mayor Pro Tem Manning stated that she had also asked about the exact cost of removing and saving the trees in the downtown area. City Manager Ovrom responded that staff will get those figures for her. 4. TIME FOR THOSE IN THE AUDIENCE WHO WISH TO SPEAK: NONE 5. MATTERS FROM CITY OFFICIALS: Councilmember Wilson stated that she thought the action for the ficus trees was to leave them in place and she stated that she agreed with the Planning Commission recommendation. City Manager Ovrom clarified that the action the Council took was that existing ficus trees in the downtown area will be removed and new ones would replace those in an appropriate spacing in conjunction with the capital improvement project in the downtown. The decision on east and west Las Tunas was to transition into Crepe Myrtle in the second, third or fourth year. Mayor Pro Tem Manning stated the reasons which were brought up for replacing the ficus were that it was too costly to remove, save, trim and replant them. Public Services Director Hart clarified that the existing trees in the Civic Center area, even if they were to be removed, root pruned and replanted, would be very costly and the mortality rate would be 20 -30 %. In addition, due to the pruning techniques that were applied will never reach the height which we would desire. City Manager Ovrom stated that based upon Council direction we are going to be developing the details of the tree replacement along with the plans and specifications of the capital improvement program which will coming back before Council. Councilmember Wilson stated that another subject which she would like to bring up is the Contract Cities Conference in Palm Springs. She inquired as to what the possibility is of the City paying the registration, if a Commissioner wants to go and pay their own way. Councilmember Budds stated he doesn't have a problem with it since he is not going strictly for budget savings. Mayor McGowan indicated that she feels the Mayor and Mayor Pro Tem should be the only ones attending. Mayor Pro Tem Manning inquired as to what is the cost of the registration. Financial Services Director Maldonado responded that it is $160 for registration and would be $2400 for all 15 Commissioners. Mayor McGowan stated that we keep saying we want to make cuts and it is not fair to limit it for one or two Commissioners it will need to be open up for all Commissioners. City Council/Agency Special Meeting Minutes Page 16 February 22, 1993 Councilmember Breazeal moved to approve the payment of registration fees from the Council budget for Commissioners to the Contract Cities Conference in Palm Springs, seconded by Councilmember Wilson and carried on a roll call vote as follows: AYES: Breazeal, Budds, Wilson, Manning NOES: McGowan 5. ADJOURNMENT: At 9:05 p.m., it was moved, seconded and unanimously carried to adjourn. The next regular meeting of the City Council and Redevelopment Agency will be held on Tuesday, March 2, 1993 at 7:30 p.m. in Council Chambers, 5938 North Kauffman Avenue. 40,A4i2i-icdoeuptt.teti Mayor 1 1 1