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HomeMy WebLinkAbout1996-07-22MINUTES CITY COUNCIL/REDEVELOPMENT AGENCY CITY OF HUNTINGTON BEACH 5:00 P.M. - Room B-8 8:00 P.M. - Council Chamber Huntington Beach, California Monday, July 22, 1996 A videotape recording of this meeting is on file in the Office of the City Clerk Call To Order Mayor Sullivan called the regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to order at 5:00 p.m. in Room B-8. City Council/Redevelopment Agency Roll Call Present: Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo Absent: Harman Recess - Closed Session The Mayor called a recess of the City Council and the Redevelopment Agency at 5:05 p.m. to consider the following closed session items: - Closed Session - City Council pursuant to Government Code Section 54957 to consider personnel matters - Performance Evaluation of City Administrator. (120.80) Closed Session - City Council pursuant to Government Code Section 54957.6 to meet with its designated representatives William Osness, Personnel Director, and Daniel Cassidy, Esquire, Liebert, Cassidy and Frierson, regarding Labor Relations Matters - Meet and Confer with the following employee organizations: Marine Safety Officers Association, Police Officers Association, Police Management Association, Management Employees Organization, Municipal Employees Organization, Huntington Beach Firefighters' Association, and Surf City Lifeguard Employees Association. (120.80) Reconvene The Mayor reconvened the regular meetings of the City Council and Redevelopment Agency at 8:00 p.m. in the Council Chambers with all Councilmembers recorded present except Councilman Harman. 445 Page 2 - Council/Agency Minutes - 07/22/96 Joint Meeting - City Council And Finance Board - Long Range Financial Plan Finance Board Roll Call Present: Scheid, Harlow, Bohle, Falzon, Belsito Absent: Dolton Pledge of Allegiance The Pledge of Allegiance was led by Mayor Pro Tempore Bauer. The Mayor announced that the Finance Board, had prepared a report titled Long Range Financial Plan for the City of Huntington Beach, California, dated July 2, 996. The report is an outgrowth of an action initiated by the City Council in September, 1995, relative to Infrastructure Review. Chuck Scheid, Finance Board Chairman, introduced Finance Board member Chuck Bohle, who made the Board's presentation. Councilman Green requested that the names of the Finance Board members be included in the report as it is a permanent document. Chuck Bohle, using a slide presentation, reported on the Long Range Financial Plan prepared by the Finance Board. The Finance Board Study focused on what financial strategy will allow the city to move forward and fund the maintenance, repair, rebuilding or replacement of its aging infrastructure; how can this can be accomplished during an era where the city is already immersed in the process of dealing with budget deficits, and further stated that the plan the city adopts must address all problems associated with putting the city in a position to fund all validated requirements for services. Chuck Bohle reviewed the topics in the report including background information, problem assessment, the scope of this Finance Board presentation, and quantification of the problem. He presented the Financial Projection Baseline scenario and reviewed the question - Can revenue increases resolve the problem? He reported on the preliminary conclusions of the Finance Board which are that revenue increases will resolve only a small part of the City's deficit and that the primary solution must result from cost reductions. He spoke regarding reasonable questions that might be asked relative to infrastructure and answers contained in the report. The cost reduction target of $900 million over 20 years was presented. Mr. Bohle reported on the lessons learned from the City of Indianapolis' success study. He stated the Finance Board had been in touch with Indianapolis prior to the Mayor's visit to Huntington Beach. Chuck Bohle reported that in the City of Indianapolis, the Mayor was in charge and had authority while the structure of Huntington Beach city government is different and perhaps this should be studied. 446 07/22/96 - City Council/Redevelopment Agency Minutes - Page 3 Chuck Bohle reported on aspects of the Finance Board's recommendation to reduce personnel costs, including a Second Tier Compensation package for new employees. He used the Fire Department as an example of examining and re -thinking current work rules and service delivery approvals. Mr. Bohle reviewed his past work experience at General Dynamics as it pertained to retaining employees, total compensation, and restructuring. Mr. Bohle stated that with 70 cents of every dollar spent on personnel, that there is no way that personnel costs will not have to be reduced. He spoke regarding the need to find a way to reward very productive employees so they will not be lost. Mr. Bohle continued with the definition of alternative scenario relative to personnel costs. Chuck Bohle then presented the final recommendations set forth in the report and recommended that Council set a time limit on their debate of the report and then proceed. He spoke regarding the need for a public awareness program on the problem. He concluded by stating that the Finance Board recommended that Council charter and empower the City Administrator and staff to develop and implement a total program. Mayor Sullivan thanked the Finance Board for their presentation and opened the meeting to Council questions and comments. Mayor Pro Tempore Bauer stated that he believed time was needed to digest the report. He spoke regarding the difficulties of translating city operations into the industry world; that the public safety aspect was not fully taken into account; that there was an unrealistic assumption of income and expenses; and public participation in financing was needed as well as political reality of a City. Council versus a private Board of Directors. He stated that he believed a disproportionate share of the burden to solve the problems of the city had been placed on city employees. He stated that to implement the entire report would destroy what he believed was the City of Huntington Beach. Councilwoman Dettloff questioned whether at any time were fees considered to cover costs of public services and infrastructure as the current fees do not cover the costs. She stated she agreed with Mayor Pro Tempore Bauer that one segment cannot bear the full brunt of reductions. Mr. Bohle reported on what the Finance Board, with assistance of city staff had studied in regard to fees such as sewers, stating that such fees were regarded as taxes. He reviewed the report scenario whereby only 36% of reductions came from city employees. Councilwoman Dettloff asked if the Finance Board had been presented with any information as to how far the city could reduce services Mr. Bohle responded that what was wanted was to reduce costs, not services. Councilman Leipzig thanked the Finance Board for the concept of "directionally correct." He spoke regarding the benefits and drawbacks of the report including the need for skepticism of projections. Page 4 - Council/Agency Minutes - 07/22/96 Richard Harlow spoke regarding his observations that some city employees thought the Finance Board was critical of employees. He stated that was not the Finance Board's intent; the intent was to develop a way to solve the infrastructure improvement funding problem. He stated that he believed city employees had been over emphasized. He stated that he believes programs should be evaluated to determine if the state mandated programs are being followed too enthusiastically and could be reduced. Chuck Scheid stated it was not the intent of the report to make reductions on the back of city employees, however, he does not believe the reduction of services, thus reduction of employees, meant a burden on city employees. He stated that he believed this would be a reward and incentive to employees to solve this problem. Floyd Belsito stated that he does not believe the Finance Board needs to be put on the defensive in this matter. He stated that employee salaries are 70% of the budget and that the budget. He questioned how a $700,000 deficit can be balanced through the remaining 30% of the budget. He reviewed the duties given to the Board and stated that the taxpayers are owed a responsibility by Council to provide effective services at a viable cost. Councilman Green asked if Management Services Incorporated fees were studied. Chuck Bohle stated that solving the issue of fees was ducking the issue but that certainly fees could be looked at. He stated that Management Services Incorporated fees could be part of the solution but that Council would have to be willing to take on the citizens. Mr. Falzon stated that this was a model for Council to do with as they like but stressed the need to do something. Councilman Garofalo stated that the proposal is based on what Council has been trying to do for 24 months; for example, the Two Tier Solution. He stated that he agreed with the Finance Board that Council should use their borrowing power especially for infrastructure improvements that generate income. He spoke regarding the fact that the Police Officers would be paid the lowest in the county if the plan was implemented. Councilman Garofalo spoke regarding the many facets of the problems including the need to obtain citizens agreement with service reductions as well as whether they will accept lower service levels. Mayor Sullivan thanked the Finance Board for their report. He stated that there were inadequate sources of revenue and that issue needed to be reviewed. He stated that he believed the two tier solution can be studied. He stated that city employee benefits must be reviewed and cited the funds lost in the past due to retirement spiking. The Council thanked the members of the Finance Board for their efforts and time expended on this project. 07/22/96 - City Council/Redevelopment Agency Minutes - Page 5 Motion To Reconsider July 15, 1996 Council Denial Of Submission Of Proposal To City Of Newport Beach For City Of Huntington Beach Provision Of Ambulance Transportation - Approved Mayor Pro Tempore Bauer stated he had received further information from the City of Newport Beach regarding the provision of ambulance transportation and that he believed Council should reconsider the time. City Attorney Hutton advised Council of the need to vote to take action on an item not on the current agenda and that the motion to do so required five affirmative votes. A motion was made by Bauer, seconded by Garofalo, to make a determination that the need to take action on the issue of the Proposal to the City of Newport Beach for the City of Huntington Beach Provision of Ambulance Transportation arose subsequent to the agenda being posted as specified in Government Code Section 54954.2(b)(2). The motion carried by the following roll call vote: Ayes: Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo Noes: None Absent: Harman A motion was made by Bauer, second Garofalo, to reconsider the action taken at the July 15, 1996 Council meeting which denied the Fire Chief authorization to submit a proposal to the City of Newport Beach for Basic Life Support Emergency Ambulance Transportation. The motion to reconsider carried by the following roll call vote: Ayes: Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo Noes: None Absent: Harman (City Co(incil) City Of Newport Beach Request For Proposal For Basic Life Support Emergency Ambulance Transportation - Approved Mayor Pro Tempore Bauer stated he did not want to walk away from an opportunity for regionalization recognizing that Council could make a final decision at a later date. Mayor Sullivan gave reasons why he would be voting in opposition. The City Administrator informed Council that the deadline for the city to submit a proposal is July 31, 1996. He stated that staff will return to Council in August with bid results and the nature of the program. He informed Council that at the August meeting the City Council will have an opportunity to further review the issue. 449 Page 6 - Council/Agency Minutes - 07/22/96 On motion by Bauer, second Garofalo, Council authorized the Fire Chief to submit a proposal for Basic Life Support Emergency Ambulance Transportation to the City of Newport Beach with a submittal deadline of July 31, 1996. The motion carried by the following roll call vote: Ayes: Leipzig, Bauer, Dettloff, Green, Garofalo Noes: Sullivan Absent: Harman Adiournment - City Council/Redevelopment Agency The Mayor adjourned the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach at 10:15 p.m. to Monday, August 5 1996, at 5:00 p.m., in Room B-8, Civic Center, 2000 Main Street, Huntington Beach, California. ATTEST: City Clerk/Clerk City Clerk and ex-officio Clerk of"the City Council of the City of Huntington Beach, and Clerk of the Redevelopment Agency of the City of Huntington Beach California 11 % Mayor/Chairman 450