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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