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1991-06-25 Special CC MinutesSPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF ALAMEDA JUNE 25, 1991 The meeting convened at 7:35 p.m. with President Withrow presiding. ROLL CALL - Present: Councilmembers Arnerich, Camicia, Lucas, Roth, and President Withrow - 5. Absent: None. HEARINGS 91-444 Consideration of approval and adoption of Operating Budget and Capital Improvements for Fiscal Year 1991-92, and appropriation of certain moneys for the expenditures provided in said fiscal year. Don Roberts, Alameda, stated he agrees with President Withrow,s approach in looking at costs first and then revenues; believes citizens want Fire and Police Departments funded; the first place to consider cutting back are assistant positions, e.g., assistant to City Manager, Assistant City Attorney. Charles Tillman, stated it is ridiculous to go into lengthy budgets; he would want to concentrate on a short-term budget and make a reassessment and addendums to the budget at the end of six months; the total amount of literature is difficult to review; and agrees with Mr. Roberts; on other review occasions, no one picked up the intent of the audit requirements because too much information was being presented to Council and the public to be digested; the matter should be simplified. President Withrow read the staff recommendation from the report. Councilmember Camicia stated Council may wish to wait until the State budget is passed before proceeding, because the cities may keep getting cutbacks by the State until that time. President Withrow stated Council needs to remember that a budget is a living document, could concur with certain portions of the budget recommendations but hold off on other elements until more is determined about what the State is going to do; and may want to send the matter back to the City Manager for him to provide different recommendations to pursue. Councilmember Camicia stated he has no problem with allowing the City Manager to make decisions administratively until Sacramento decisions are made; would like to see, before raising fees, a look taken at consolidating departments, contracting out services, e.g., investigate why the City has a Housing Authority which could perhaps be contracted out; also he would like to look at Department Heads and possibly consolidate some of those positions. Councilmember Roth agreed with the need to look at those things; has June 25, 1991 problem about waiting until the close of the year to do it. President Withrow stated the City has a budget and what is needed is to adjust it; many cities do contract out some work. Councilmember Lucas stated she likes the idea of looking at the City administration; the idea of contracting out some jobs makes a lot of sense to her; if the economy picks up, questions if many staff persons are to be hired again; in the Planning Department for example, some operations have been contracted out; she would like the flexibility and savings of contracting some of that work out, perhaps long-term saving, which would be a real benefit, and would like to hear from the City Manager on that subject. The City Manager stated the City contracts out many functions; e.g., street repair, resurfacing, for example, are contracted out and a number of things have been looked at for contracting; contracting out allows some flexibility; sometimes there are disadvantages, e.g., a park might be maintained at the same price by contracting out but without the advantages of staff usage and therefore would not have the same value to the City; some things can be done cheaper in-house; however, staff can look further at contractors. President Withrow stated sometimes contractors save money and sometimes they do not; he has found also that a great deal can be gained through the experience, to produce new ways that result in lowered costs and better understanding of a project. Councilman Arnerich stated he agrees with Councilmember Camicia's suggestion to find what is happening in Sacramento before going forward; it appears Council is asking people to receive less services and pay more; applauds those who say police and fire services should not be cut; he had requested the cost of certain alternatives, e.g., closing City Hall one-half hour per day, Monday through Friday, furloughing employees one-half day per month, and the City Manager came up with almost $400,000 to $900,000 yet he does not see this in the report; if a number of cuts must be made, e.g., closing parks on weekends, to save $75,000, perhaps Council should find a position paying $75,000 in salary, wages and benefits and cut that one person to keep the programs going; citizens are entitled to this; Council is going to look at some positions; he will support departments 100%; fees and charges must be looked at carefully. Councilmember Camicia stated he is trying to think of basic changes that do not raise fees drastically, and rethink provision of services provided; and believes that is what Council should do. Councilmember Lucas stated she has a real problem with Councilmember Arnerich's suggestion for cutting back hours; in the private sector, people work the same hours for less income during a recession and she expects the same of government employees. Councilman Arnerich stated during the past week some corporations in Silicon Valley adopted some things previously suggested e.g., furloughing people for a half day; closing plants a half-hour early; and top administration have taken 15 to 25% cuts until recession is June 25, 1991 8 A. over; perhaps Council should start looking to save money instead of charging the public more. Karen Lucas stated she believes the volume of work is down in some corporations; the City's work volume is not down and staff hours should not be cut; a union problem may occur but believes they need to understand that private business works for less during a recession and they should also. Councilmember Camicia stated he could not support reduced hours, and Councilmember Roth stated he also could not support reduced hours. President Withrow stated he requested a meeting Friday [6/28/91] with labor associations with the City to get their feedback on what they feel they can do, what adjustments and/or cutbacks can be made; perhaps they will go along with a no -increase. Councilman Arnerich commented he believes that is a sensible approach. President Withrow explained why, in recessions, revenues drop but costs escalate and must be covered, as with the water company [EBMUD]. Councilman Arnerich stated the water company should have reserves for lean years and not build huge buildings. The City Manager stated, as the budget is a dynamic document, perhaps some tentative decisions should be made for this year and six months from now, the matter can be brought back and revenue reviewed; could find out what the State has done, the outcome of requests of Finance Committee and Golf Commission; noted Bureau of Electricity (B of E) has made decision to transfer $700,000 to the City if the City allows B of E to go out for debt financing; Council could do some adjustments tonight, authorize staff to proceed on those areas with which Council is comfortable; direct staff to not make personnel changes at this time, hold off on purchasing, capital outlay, supplies; not lay off any positions until a better look at this matter takes place around the first of October; at that time, come back and talk about ideas Council has, e.g., consolidating, contracting out, streamlining of City Government; that will allow time to meet and confer with employees; there will be a clearer knowledge of what is going to happen and will give a chance to make a little better decision. Councilmember Camicia suggested Council accept Item No. 3 of staff recommendation [implement Phase I of the budget reductions] and No. 3 of the alternate recommendation authorizing the City Manager to proceed with budget reductions subject to what happens with Golf Commission and Finance Committee Meeting, and allow City Manager to make administrative cuts. Councilmember Lucas stated that makes sense, but is concerned about waiting until October 1st as she does not believe the economy or revenues will increase that much, should plan ahead, seismic work must be done on City Hall, and positions should not be kept in place June 25, 1991 183 until October. The City Manager stated he chose October lst because greatest reductions in personnel start October 1st, and noted e.g., positions that will be eliminated. Councilmember Lucas stated her main concern is that she would like consolidation of departments, and contracting out, looked at as soon as possible. The City Manager gave alternatives for action, e.g., budget can be left as is and changed at a later date but moneys need to be appropriated to pay necessary items; stated staff has already held open many positions; staff was instructed by Council to cut back $1,100,000 and has saved close to $1,500,000. Councilman Arnerich commended department heads for doing exemplary job of belt -tightening in the past year; would like Council to move on items discussed but not too fast, must do the right thing; and should see what happens to the economy. Councilmember Camicia stated he would like the City Manager to have some leeway for administrative decision; does not mind discussing consolidation, contracting out, which are basic structural changes, but does not want to come too close to personnel decisions. Councilmember Roth stated the further cuts are held off, the more deficit will need to be made up. Councilmember Lucas commented on voting on Cable tax at the next meeting. The City Manager noted the next meeting may be too tight, perhaps in a couple of weeks if Council would like a special meeting, and by then there may be answers from the State. Councilmember Camicia moved Item No. 3 of the staff recommendation [Implement Phase I of the budget reductions and Item No. 3 of alternate recommendations which is administrative budget reductions, and would prefer matter come back September 1st. Councilmember Lucas seconded the motion. Councilmember Roth stated he is comfortable with that. The City Manager stated work on contracting out takes time, need Requests for Proposals and some studies; coming back September 1st would give opportunity to bring things before Council and allow thirty days to accomplish what Council wants and return on October 1st. The motion was carried by unanimous voice vote - 5. Report and Recommendation 91-445 From City Manager recommending Council authorize the collection of existing Utility Users Tax on Cable Television pursuant June 25, 1991 1 8 /' to Ordinance 2502 N.S. Councilmember Camicia reported Cable Television persons were adviseE late about the meeting and would like the matter put off to a regularly scheduled meeting, and he had informed them it has usually been Council's practice to honor such a request, and moved to put the matter off to the July 16th Council meeting. Councilman Arnerich seconded the motion. Councilmember Lucas inquired if the two speakers from the audience were amenable to having the matter held over. President Withrow inquired if the speakers were agreeable and both [Don Roberts and Verna Marsh] agreed. The motion was carried by unanimous voice vote - 5. 91-446 Resolution No. 12123 " Establishing Fire Department Emergency Ambulance Transport Fees." [Agendized as "Establishing fees for various City services and permits."] Councilmember Roth commented regarding fees, noted $1.00 is not an improper fee for photocopying because that includes labor, however the fees are not consistent; different offices charge different amounts. The City Manager explained fees are based on time, includinc retrieval of documents, sometimes archival research on other floorE of City Hall, blocking out of private information as required on some Police records; the intent is for people who want extra service to pay for it so the cost will not revert to being subsidized by property tax payers; in certain areas it is desireable to encourage people e.g., to come in and get variances, and some subsidies are appropriate. Councilmember Roth stated that was a satisfactory answer. Councilman Arnerich noted the cost of subscriptions for agendas in the City Clerks's office and inquired if that included mailing, to which the City Manager replied affirmatively. Councilman Arnerich commented he could understand the cost in that instance; and added it is necessary to review user fees, and would like to sit down with departments and go through the user fees in the next two or three months. Councilmember Lucas stated she sees Planning is included and she suggested including planning function in the contracting review; if that is to be done, it does not make sense to increase the fees at this point if there may be another change on September 1st; she would feel more comfortable if Council looked at fees but not for those functions that might be included in contracting situations. The City Manager stated the matter could be agendized to the same meeting as the Utility User's tax and give opportunity for Council to ask questions and bring the two items back separately. June 25, 1991 SJ Councilmember Roth stated he would like to pull out one item to pass, the fire department ambulance; the City is subsidizing insurance companies. The Fire Chief stated ambulance fees have always been compared to private company charges, currently the department is only getting about 70% of what a private company would charge for a Basic Life Support (BSL) ambulance service, and about 40% to 50% of what the County charges for their Advanced Life Ambulance Service, so the recommendation is to take the department back to 90% of what private ambulance companies currently charge for BSL Service; at those rates most private insurance companies, Kaiser, Medicare or MediCal, will handle almost all of the bill and therefore the citizens have almost no out-of-pocket expense. Councilmember Roth moved that fee be increased. Councilmember Camicia seconded the motion. Councilmember Lucas stated she believes it is a good idea to start collecting the fee. President Withrow stated it makes sense to him; he sees no reason to subsidize the insurance companies. The motion was carried by the following voice vote: Ayes: Councilmembers Camicia, Lucas, Roth and President Withrow - 4. Noes: Councilman Arnerich - 1. Absent: None. Councilmember Lucas made a motion to put over the balance of this item, except for Planning fees be put on the July 16th agenda. Councilmember Camicia seconded the motion which carried by unanimous voice vote - 5. 91-447 From City Manager recommending rescission of February 5, 1991, action of Council which returned $700,000 of excess earnings to the Bureau of Electricity. The City Manager stated the Public Utilities Board met the previous night (June 24, 1991) and by resolution established the amount of transfer to the General Fund which was $2,365,000 and an additional $700,000 be voluntarily transferred based upon City Council's authorization of financing of the Service Center Building Project, to make major renovation to their building; Council does not need to rescind action because the PUB has agreed to transfer $700,000. Councilmember Lucas inquired what the B of E has done to cut their budget, and the amount of their improvements. The City Manager replied no reduction has been made, and the amount of improvements is approximately $3,000,000. Councilmember Lucas stated she is not sure that cuts cannot be made in their budget or building plan. June 25, 1991 President Withrow stated the PUB should be commended for their move to debt -financing instead of cash because during recessionary perio is the time a public sector should be borrowing money; by financing in this manner, it will lower cost of service for 25 to 30 years for Alameda citizens. Councilman Arnerich inquired about the PUB meeting, to which the Assistant City Manager stated the Bureau staff formulated a plan to reduce 5% of the budget with a number of cuts that would have no service impact; there was no desire at the Board level to make any cuts, asked the General Manager if there is no service impact, can those areas that will not impact service be postponed, deferred, cut, and he agreed the Bureau would do that; a commitment was made that where projects were not necessary, the Bureau would not undertake the projects just because there was money in the budget. Councilmember Lucas stated she has a concern Council will ask staff to accept cuts and modify demands and yet the Bureau employees are not being asked to do any of those things and she believes that is unfair; would like to see some cuts made and the impact of the budget problems of the City evened out. Councilmember Roth moved to take no action [which, in effect, will not rescind previous action]. Councilman Arnerich seconded the motion which carried by unanimous voice vote - 5. 91-448 Resolution No. 12124 " Appropriating certain moneys for thE expenditures provided in said fiscal year." [Agendized as "Approving and adopting the Operating Budget and Capital Improvements for Fiscal Year 1991-92, and appropriating certain moneys for the expenditures provided in said fiscal year."] The City Manager stated Council can authorize continuing appropriations to pay for bills until such time a final decision is made on the budget. Councilmember Roth so moved. Councilman Arnerich under the Hearing Councilmember Roth's Councilman Arnerich unanimous voice vote inquired and the motion for seconded - 5. if the action affirms what was done City Manager responded yes plus continuing appropriations. the motion which was carried by 91-449 Resolution No. 12125 "Approving Supplemental Agreement to the Alameda Police Association Memorandum of Understanding for the Extended Period January 1, 1990 through December 31, 1992." Councilman Arnerich moved adoption. Councilmember Roth seconded the motion which was carried by unanimous voice vote - 5. June 25, 1991 ADJOURNMENT President Withrow adjourned the meeting at 9:00 p.m. Respectfully submitted, Patricia Calbreath Deputy City Clerk The agenda for this meeting was posted in advance in accordance with the Brown Act. June 25, 199_1