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HomeMy WebLinkAbout06-07-2010 Special City Council Meeting MinutesMINUTES SPECIAL CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA MONDAY, JUNE 07, 2010 ..................................... ............................... CALL TO ORDER Mayor Melendez called the special meeting to order at 5:00 p.m. ROLL CALL PRESENT: MAYOR MELENDEZ MAYOR PRO TEM BHUTTA COUNCIL MEMBER BUCKLEY COUNCIL MEMBER HICKMAN COUNCIL MEMBER MAGEE ABSENT: NONE PLEDGE OF ALLEGAINCE Mayor Melendez invited Mr. Morsch to lead the audience in the Pledge of Allegiance PUBLIC COMMENTS There were none. DISCUSSION ITEM 1. Consideration of Fiscal Year 2010 -2010 Citv Ooeratina Budoet Recommendation: It is recommended the City Council review the proposed Fiscal Year 2010 -2011 proposed Operating Budget Mayor Melendez asked the City Clerk if there were any speakers who wished to address the City Council. City Clerk Cowley replied by saying there were several speakers who wished to address the Council. Kathie Delgado, representing LIUNA Local 777 indicated that the employees for the City of Lake Elsinore recognize that the City Council has an important and difficult decision to make with regards to the City's budget gap. She indicated the employees have not yet finished their deliberations on what position they would take as there are several issues to consider and they have requested more time to evaluate. Special City Council Meeting Page 2 of 5 June 07, 2010 Ron Hewison, representing Helping Our People in Elsinore (H.O.P.E) thanked the City Council for all of their support over the past several years. He stated HOPE continued to serve the community with charitable contributions and requested the Council continue to support the organization for the next fiscal year. Natasha Johnson, representing Lake Elsinore Valley Chamber of Commerce (LEVCC) provided an explanation to the audience of what the Chamber of Commerce provides to the City. Sachin Trivedi, representing the Lake Elsinore Valley Chamber of Commerce advised the City Council how the Chamber provides the community and visitors of the community with information regarding the City. He indicated that due to the furloughs when City Hall is closed every Friday, the Chamber of Commerce has been busy providing information to the public on those days. Tony Lopiccolo, Director of the Lake Elsinore Chamber of Commerce stated as a partner with the City, the Chamber of Commerce has taken extraordinary measures to provide additional resources to the public with promoting businesses, development and to increase funding and participation. He indicated the Chamber attracts visitors to grow the City's tourism business and developed relationships with outside promoters. He invited the Council, City Manager and Commissions to attend the monthly EWDC luncheon at no charge. Tom Tisdale, retired County Fire Chief spoke of the Trauma Intervention Program for Southwest Riverside County (TIP). He noted the Budget Committee is considering a reduction of funds to the organization and thanked the Council for their continued support to the organization. He advised the City Council of the services provided by TIF and how it supports law enforcement win getting their work done. Jay Stewart, representing the Public Safety Advisory Commission (PSAC) thanked the City Council for the continued support to the committee. He stated that the Commission is mindful of the City's budget challenges during these critical economical times. He advised the audience and the Council of the upcoming meeting on June gth and requested any cuts that are being considered be finalized after the meeting, so the Commission has an opportunity to make suggested cuts. Nancy Lassey, City employee of Lake Elsinore thanked the City Council for considering an extension of the City employee's contract. She provided options to the Council for budget cuts such as reducing the funds to the Chamber to what it was in 1999, reducing the funds PSAC and the legal costs associated with the committee. She suggested reducing funds for car allowance to staff, restructure the administrative leave to a use it or lose it basis, and to utilize the volunteers to help the City staff. She expressed to the City Council that the proposed reduced funds comes to approximately $105,000 which could be used to help save a job or allow a partial cost of living increase. Special City Council Meeting Page 3 of 5 June 07, 2010 Crystal Robinson, a City employee spoke of new events that have come to the City and suggested the Council increase revenue by increasing the percentage fee associated with the events. She indicated that for the last Wagon Wheel festival the City collected no fees for the event and the City could increase their revenue with this proposal. Shawn Slater, a City employee stated it has been an honor working for the City since 2004 and how the City of Lake Elsinore is unique. He stated that he does not envy the decision Council has to make regarding the City budget and how their decision to cut staff would have an impact on the service level that is provided to the community. He stated the staff has provided Council with some useful options and hoped the Council would consider the options. Kim Cousins, representing the Lake Elsinore Chamber of Commerce stated the Chamber is here to work with the City as business partners working to develop additional opportunities for growth to the City. He stated that visitors increase the sales tax as well as lake use fees, and he spoke of a potential drive through restaurant coming to the City. He addressed other ways to increase revenue to the City to offset the operating costs. There being no additional speakers, Mayor Melendez brought the discussion back to the dais for Council Members comments. Council Member Hickman stated that he felt the City has cut enough and needs to generate income such as extending the Weed Abatement program to 12 months. He spoke of how to generate income and agreed to look into charging a percentage for special events. Council Member Magee thanked all of the speakers that came before the City Council. He indicated that the Council Members are confident that only three positions would be cut. He suggested the Union write the State representatives to stop taking funds from local government, as the City needs to keep the money. He stated with respect to the charities, the proposal before the budget committee needs to stay as is. He commended staff employees who addressed City Council and although he does not agree with all of the suggestions, he heard their concerns. He stated he had the opportunity to meet with the Chamber of Commerce President and discussed the possible increase of the transient occupancy tax (TOT). He stated he has asked the City Manger to research what the City is generating and how the City could take action by August Vt. He stated he is somewhat disappointed with the PSAC not willing to reduce their funds and stated he does believe the citizen's of the community need the strong outreach yet the commission has a responsibility to limit staff time and cost back to the City. He noted that the staffs car allowance is considered a perk which is part of the employees pay structure and pointed out this would be the third year in a row that staff has agreed not to take a cost of living or merit increase. He stated he supports the recommendations as they stand and allowing the monthly meetings for PSAC, and Special City Council Meeting Page 4 of 5 June 07, 2010 make up the difference through the Rainy Day fund, recognizing that staff could back fill the Rainy Day fund with funds from the TOT increase. Council Member Buckley concurred with most of Council Member Magee's recommendations. He suggested he would be in support of extending the union agreement if the union would consider the two tier pension plan. He noted there must be a better way to increase funds through special events and the Stadium. Mayor Pro Tern Bhutta appreciated the suggestions particularly with generating revenue for the City. She stated increasing the TOT is a good idea as well as attracting new businesses which she realizes the Chamber of Commerce is actively doing. She thanked the employees who addressed the Council and would agree to a one year extension as well as a two tier retirement. She feels that the proposed funds for the charitable organizations are sufficient; however next year may not be the same. She asked the PSAC to find ways to come up with cutting costs and agreed with using the Rainy Day fund to off set the costs. Commissioner Stewart agreed to have PSAC look at ways to reduce the costs and suggested not having the City's legal representative present. City Treasure Baldwin asked the City Manager what it was going to cost the City for repayment from the Redevelopment Agency. City Manager Brady replied by saying essentially having it paid off sooner. He stated there is a loan that the City made through the Redevelopment Agency and the City is advancing the payment on the loan. He stated the City is proposing to use $1.75 million this year to help balance the budget. City Treasure Baldwin spoke of the Rainy Day fund and after this year it would be $950,000 and it looks as though most of it would be used for the next budget year. He suggested not giving money to charities when the City doesn't have the extra funds. Mayor Melendez spoke of her concerns with balancing the City's budget which means that reductions need to be made. She pointed out that the City is in a very critical situation and next year there may not be those funds available. She spoke of the cut to the Police Department and to City staff and the City must reduce their expenses due to a failing economy. She stated she is not in agreement with leaving the proposed budget as it is. She stated she does support extending the employee's contract as the staff members are already taking a loss. She agreed to increase the percentage for special events and have the event be responsible for cleaning up afterwards and not be the responsibility of the employees. She agreed to research the increase to the TOT from the hotels in the community. She asked the City Manager how much the CDBG funds were and who would receive these funds. City Manager Brady stated the funds vary per year and the City gives out approximately 15% of those funds. He stated the funds could be used for Capitol Improvements or used for the City's Code Enforcement Department and must be used in an area that meets the criteria for income levels. She asked the City Manager about the policy for cashing out the administrative leave. City Manager Brady responded by saying it is the City's policy to not cash out administrative leave. He stated the only person who has cashed out administrative leave was himself, which is part of his contract. He stated it is difficult for him to take the time off due his Special City Council Meeting Page 5 of 5 June 07, 2010 responsibilities. Mayor Melendez did address the three positions that would be eliminated and stated that the number is not a guarantee. She stated the City Council has to make a difficult decision and the Council cares about losing the positions. She advised the City Council that Chairman Norkin of the PSAC did send her an email and requested the letter be entered into the record. Mayor Melendez asked what the $31,000 under economic development was for. City Manager Brady responded that the funds were put into a separate budget to identify the City's activities such as licensing software and commercial items that staff prepares for economic development purposes. Council Member Hickman reiterated his statement from the last meeting indicating the funds have to be cut from the charitable organizations with the exception of the Boys & Girls Club. He asked if the Rape Crisis funds not get used, would the funds go back to the City. City Manager Brady was unsure. Council Member suggested having some of the CDBG funds go to the Boys and Girls Club and give $1,000 to the Memorial Day fund. Mayor Melendez pointed out that the budget agenda for the next meeting is substantially smaller than last year and does not contain all of the details. She felt the detailed information was necessary for the Council and the public. The City Manager Brady replied by saying the detailed sheets were eliminated in order to expedite the process. She thanked the audience for their participation and for being so responsive to the Council. ADJOURNMENT There being no further business to come before the Council and Agency Board, the special meeting was adjourned at 6:23 p.m. and returned to the Regular City Council meeting at 7:00 p.m. on June 8, 2010. MELISSA MELENDEZ, MAYOR CITY OF LAKE ELSINORE CAROL COWLEY, INTERIpIII CITY CLERK CITY OF LAKE ELSINOR