1991/08/16City Hall, Anaheim, California - COUNCIL MINUTES - AUGUST 16, 1991, 9:00 A.M.
PRESENT:
ABSENT:
The City Council of the City of Anaheim met in a special meeting.
COUNCIL MEMBERS: Simpson, Ehrle, Pickler and Hunter
COUNCIL MEMBERS: Daly
Mayor Hunter called the special meeting to order at 9:00 a.m. on August 16,
1991.
Jack White, City Attorney recommended that the City Council recess to closed
session to con~ider personnel matters and to meet with the City's designated
representative(s) regarding the salaries, salary schedules and work hours of
its represented and unrepresented employees, as indicated on the Notice of
Special Meeting, item 1.
On motion by Mayor Hunter, seconded by Council Member Pickler, the City Council
recessed to Closed Session. Council Member Daly was absent. MOTION CARRIED.
(9:01 a.m.)
AFTER RECESS: The Mayor called the meeting to order, all Council Members being
present. (9:50 a.m.)
PRESENT:
CITY MANAGER= Jim Ruth
CITY ATTORNEY: Jack White
ASSISTANT CITY MANAGER: James Armstrong
CITY CLERK: Leonora N. Sohl
HUMAN RESOURCES DIRECTOR: Dave Morgan
PROGRAM DEVELOPMENT AND AUDIT MANAGER~ Ken Stone
ADMINISTRATIVE SERVICES DIRECTOR: Ron Rothschild
LABOR RELATIONS DIRECTOR: Garry McRae
106: ADJUSTMENTS TO THE 1991/92 R.A.P.:
City Attorney Jack White explained that the City Council has duly called a
special meeting for reasons as are stated in the notice posted. The Council
has just concluded a closed session with its Labor Relations Director regarding
collective bargaining matters with the City's various labor organizations. The
only other items which can be taken up at this meeting are the consideration of
an emergency ordinance which would implement a utility user's tax; the Council
has been provided with copies of three versions of such ordinance. These were
prepared to mirror the ordinances introduced by Council Member Simpson at the
meeting of August 13, 1991. The law does not permit the Council to adopt any
one of the ordinances introduced last Tuesday, as it provides that the Council
may only adopt an urgency ordinance at a special meeting and further the law
provides there must be a minimum of five days between introduction and adoption
of a non-urgency ordinance.
The three alternative ordinances introduced by Council Member Simpson at the
meeting of August 13, 1991 as regular measures will be on the agenda of the
next City Council meeting, and may be acted on at that time.
559
City Hall, Anaheim, California - COUNCIL MINUTES - AUGUST 16, 1991, 9:00 A.M.
Today, Mr. White continued, the Council has before it, three alternative
measures which Council could adopt to institute or reinstitute a utility user's
tax - in the amounts of 2%, 2.75% and 3%. If one of these is adopted today, it
would have an operative date of September 1. A regular ordinance adopted next
Tuesday would have an operative date of October 1. Further, to adopt an
urgency ordinance this date will require a 4/5tbs vote, and the ordinance will
have to be read in full.
Mr. White suggested that prior to deliberation of the ordinances, that the City
Manager summarize the information presented to Council in written form.
Mr. Jim Ruth reported that as directed by the City Council, the Labor Relations
Director has met with labor organizations to ascertain whether they would
consider wage increase deferrals or other concessions.
Mr. Garry McRae reported that as a result of discussions with labor
organizations since Tuesday the only document of significance to report is a
letter from AMEA, received this morning which indicates that in the best
interests of the City, the AMEA will take a 6 month (or 13 pay period) wage
deferral, keeping in mind that the base wage will not change, if Council goes
forward with a 2.75% utility user's tax.
Mr. Ruth advised that if AMEA approved their wage deferral, that amount added
to the management deferral, amounts to a $977,000 deferral package for Council
consideration.
Mr. Ron Rothschild reviewed the matrix presented to the Council, outlining the
impact of the various budget cuts required (organized by priority into "A", 'B'
and 'C' levels) by adoption of a 2%, 2.75% and a 3% utility user's tax.
At the conclusion of Mr. Rothschild's presentation, Mr. Ruth reminded the
Council that the budget cuts discussed today are all in addition to $10 million
and 97 full time equivalent positions which have already been removed from this
budget.
Council Member Simpson stated it is his belief that the economy is not going to
turn around immediately and that the City will be in the same position next
year, he has been in favor of a 4% tax, but is willing to compromise and
therefore, he would offer for adoption the urgency ordinance establishing a
2.75% utility user's tax.
Council Member Pickler was of the opinion that the Council did not want to get
into the 'C' cuts, and this could be accomplished with a 2% tax. He did not
want to go beyond a 2% tax.
Mayor Hunter pointed out that with 2% the Council would have to take $900,000
worth of 'C' cuts, in addition to the "A' and #B' list. He indicated a
willingness to compromise, but noted that if some kind of amount is not imposed
the debt increases by $800,000 each month.
560
City Hall, Anaheimt California - COUNCIL MINUTES - AUGUST 16, 1991t 9:00 A.M.
In response to Council, Mr. Rothschild explained that because of the
implementation date the tax would not generate $3 million but $2.246 million
for each one percent. The Council would have to raise $2.48 million to
eliminate all of the 'C' cuts, and that is without taking into consideration
the participation in deferrals by AMEA, and with deferrals of management
raises.
Council Member Pickler then stated that he would support a 2.5% tax as this
level would not require 'C' cuts. He indicated however he would still like, as
part of the total picture, that AMEA would participate in the wage deferrals.
Mayor Hunter pointed out that the City Manager has indicated to the City
Council that no matter what, the organization is going to continue to down size
by attrition.
Council Member Simpson withdrew his offer of an urgency ordinance to establish
a 2.75% utility user's tax.
Council Member Pickler offered an urgency ordinance to establish a 2.5% utility
user's tax.
Mr. Rothschild summarized that the effect of the shortfall with a 2.5% utility
tax imposed would be that all of the 'A' group cuts would be implemented and
$1,649,000 of the mB' group cuts, and none of the mC' group cuts; this does
also incorporate the deferral of management salary increases, but not the
participation by AMEA.
council Member Ehrle explained that on Tuesday night he felt that a compromise
was appropriate, but came to 2% with a lot of anguish. Since Tuesday he has
had 17-19 phone calls saying that meeting was one-sided and that the citizens
wanted no new taxes. If anything, he stated he is ready to call for a special
election to let the citizens decide the issue. He was of the opinion that the
Council and City have done a good job on trimming the budget, first the $10
million by attrition, and then by Council's action last Tuesday. Council
Member Ehrle summarized that he is at 2% with an absolute sunset clause and
wants the question put on the ballot with the June (1992) primary.
Council Member Simpson pointed out that with a 2.5% percent tax there is still
a potential for wage deferral for the next 13 pay periods, which makes up a
$511,000 difference.
The City Attorney explained that one of the options available to the Council
today is to take no action. It does not appear to him that there are the
necessary four votes for a 2.5% tax urgency ordinance as offered by Council
Member Pickler, however it is possible there may be three votes to adopt it as
a regular ordinance. An alternative would be for the City Council to, by
motion, direct that a regular ordinance for a 2.5% tax be placed on the agenda
for consideration next Tuesday, August 20, 1991. It could be introduced on
that date and adopted at the next regular meeting and would require three votes
rather than four. Also, if the City Council had four votes on Tuesday,
August 20, 1991 it could be adopted as an urgency ordinance at that time.
561
City Hall. Anaheim. California - COUNCIL MINUTES - AUGUST 16, 1991, 9:00 A.M.
Council Member Ehrle asked what would be the problem of delaying any action and
then putting this on the ballot, there would still be 6 months before the end
of the fiscal year, and the Council's Budget Commission could be in place.
City Manager Ruth explained that there is now a $6 million problem which will
accelerate by $800,000 per month to a $12 million problem by next June.
Council Member Daly voiced his opinion that the cuts proposed are basic
fDnctions and that he considers proposing to cut senior centers and library
services rather than looking at management positions, management salaries and
moving to retool the organization for tough times to be audacious. He
commented that while the Council does have some commitments to downsize he does
not see any evidence of that.
MOTION: A motion was made by Council Member Pickler, seconded by Mayor Hunter
to direct the City Clerk to place on the agenda for Tuesday, August 20, 1991 an
urgency ordinance establishing a 2.5% utility.user's tax and a regular
ordinance for introduction establishing a 2.5% utility user's tax. MOTION
CARRIED.
Council Member Daly inquired as to what criteria are used to determine whether
or not the City Council meeting be moved to a place other than the City Council
Chamber.
The City Manager advised that the ability to accommodate the public, and to
provide for the public safety, the need to keep fire exits clear, etc., would
dictate the change in location. The City could however provide additional
seating in the foyer and basement of the Civic Center with speakers so that
attendees could hear the proceedings with adequate provision for safety.
Council Members expressed their concern that Council meetings be conducted with
decorum and that efforts should be made to accommodate the public, and provide
for safety and still conduct the meeting in the Council Chamber, as best it can
be done
MOTIONs Mayor Hunter moved to adjourn the special meeting of August 16, 1991.
Council Member Pickler seconded the motion. MOTION CARRIED.
ADJOURNED ~ 10:55 a.m.
LEONORA N. SOHL, CITY CLERK
562
CITY OF ANAHEIM, CALIFORNIA 92803
OFFICE OF THE CITY CLERK
NOTICE OF SPECIAL MEETING
ANAHEIM CITY COUNCIL
This is to give notice that in accordance with Section 507 of the Charter
of the City of Anaheim, Mayor Hunter has called a special meeting to be
held at 9:00 a.m. on Friday, August 16, 1991 in the Council Chamber, Civic
Center 200 South Anaheim Boulevard.
The business to be considered and transacted at the meeting is as follows:
1. To hold a closed session to consider personnel matters and to meet
with the City's designated representative(s) regarding the salaries,
salary schedules and work hours of its represented and unrepresented
employees.
2. To consider the adoption of an emergency ordinance adding new
Chapter 2.13 to Title 2 of the Anaheim Municipal Code relating to a
Utility Users' Tax, including a determination of the amount thereof.
3. To consider the adoption of a resolution establishing a class of
persons exempt from the Utility Users' Tax set forth in Chapter 2.13
of the Anaheim Municipal Code.
Dated: August 14, 1991
BY ORDER OF THE MAYOR
NOTICES POSTED AND MAILED
LEONORA N. SOHL, CITY CLERK
200 South Anaheim Boulevard, P. O. Box 3222, (714) 999-5166