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HomeMy WebLinkAbout06-05-2003 City Council Study SessionMINUTES CITY COUNCIL STUDY SESSION CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CA THURSDAY, JUNE 5, 2003 ***~~*~+***~~*~**+*~**~~*~+***~**~*~*+*~*~~~*+***~***~*+****~*~~+* CALL TO ORDER The City Council Study Session was called to order by Mayor Pro Tem Schiffner at 2:10 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY,SCHIFFNER BRINLEY (Mayor Brinley arrived at 2:15 p.m. ) Also present were: City Manager Watenpaugh, Assistant City Manager Best, City Attorney Leibold, Community Development Director Brady, Community Services Director Sapp, Police Chief Walsh, Engineering Manager O'Donnell, Finance Manager Magee, Information/Communications Manager Dennis, Lake Operations Manager Kilroy, Planning Manager Villa, Public Works Manager Payne, Recreation & Tourism Manager Fazzio, City Treasurer Judziewicz and City Clerk/Human Resources Directar Kasad. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Councilwoman Kelley. DISCUSSION ITEM Fiscal Year 2003-04 Bud~et Page T~vo - City Council Study Session - June 5, 2003 City Manager Watenpaugh explained that this meeting was intended to be an overview of the proposed draft budget, and stressed that it was not yet complete. He announced that the Special Meeting noticed for 4 p.m. would not be held due to illness of the Consultant, and noted that efforts were being made to coordinate another meeting. City Manager Watenpaugh advised that this meeting would focus on the General Fund Budget, which allows for the most discretionary power for the Council, and a brief discussion of the Lighting and Landscape Maintenance District and Redevelopment Agency budgets. He prefaced his comments with the fact that at the ending of this fiscal year, the City was in a position of expending less money than anticipated. He explained that the budgeted expenditures for 2002-03 were $16,444,770, but it was project that only $16,218,200 would be spent, leaving a year end balance of $1,903,759 in excess revenues. He advised that for the next fiscal year there would be $5,498,759 available to carry forward, in addition to the projected revenues, which would start the year at $23,854,359. He further advised that previous Council's had set policy to maintain a$2 million reserve, and noted that the proposed budget would tecl~nically show $1.1 million in deficit spending. He detailed the projected expenditures including about $1.13 million in General Fund Capital Projects, including the lake projects which would be reimbursed, the Outlet Center Gas Line with some reimbursement. He advised that it was staff's recommendation that an extra $1 million be added to the reserves, which would leave about $310,000 for projects and set aside. He noted the sheet detailing the highlights of the changes from the current year. He indicated that this was not a roll-over budget, but a presentation based on what staff understands the Council wants and professional judgment. City Manager Watenpaugh reviewed the major changes in the proposed budget including funding for the Southwest Riverside Council Economic Development Council. MAYOR BRINLEY ARRIVED AT 2:15 P.M. Page Three - City Council Study Session - June 5, 2003 City Manager Watenpaugh advised that the City Attorney's Budget had been reduced by $125,000, the City Clerk's Office Budget was increased to allow for Election Costs, the City Manager's Office included an Economic Development Technician and technology set-aside, the Administrative Services Department included conversion of the position, the Police Services budget was increased by 3-1/2 new position including one School Resource Office, and the Fire Services budget included a full-year of operation of Station 85. He indicated that the Community Development Department had several changes including new positions and programs; and the Community Services Department included an increase in Animal Control Services, potential savings with the Stadium, an increase to the base salary for graffiti control, work associated with the Destratification project and the conversion of some positions. City Manager Watenpaugh commented that the proposed budget would set aside more money for the reserves and add medics far the fire department, with costs associated with converting firefighters to paramedics. He explained that the ongoing cost for next year would be $24,000. He indicated that after these proposals there would be an additional $221,000 to set aside or spend on projects. City Manager Watenpaugh suggested that the Council set goals and objectives, so staff can take general direction on areas to cut or find money for services, rather than saying which projects to cut, and noted the trickle down impacts of those types_of actions. Councilman Hickman inquired what the State would be taking. City Manager Watenpaugh indicated that the money was set aside to cover the known take- aways, such as ERAF for this year, but noted that next year it might take three times as much. He noted that setting aside another million in reserves would be cushion and noted that it would take a while to recruit the new positions, so if necessary, the hiring could be postponed. Councilman Hickman questioned the launch pass revenues, and inquired if the lack of revenues was because the launch was closed. City Manager Watenpaugh Page Four - City Council Study Session - June 5, 2003 confirmed, noting that the City only received day use pass revenues. Councilman Hickman questioned the compensation for lake staffing and motor vehicle dollars. City Manager Watenpaugh indicated that they would be backfilled with a three month delay for the first check. Councilman Hickman questioned the City's share of the CDBG revenues. City Manager Watenpaugh indicated that there was CDBG money set aside to do abatement and structure abatement. Councilman Hickman questioned what percentage the City pays into retirement. City Manager Watenpaugh clarified the retirement system and indicated that at this point it was about 18% of salaries. Councilman Hickman inquired why the City still received Social Security. City Manager Watenpaugh indicated that in the 1980's cities were given the opportunity to drop out of Social Security, but did not. He clarified that each employee gave up 6.2% of their salary to pay for Social Security. City Manager Watenpaugh presented and explained graphs and charts representing expenditures and revenues, revenues by category, sales tax revenue comparisons by quarters, expenses by major categories and LLMD expenditures. He noted the historical statistics on the General Fund comparisons for the last few years. Councilman Hickman questioned the General Fund revenues for parks and questioned RDA assistance. City Manager Watenpaugh explained that money to address the annual operating expenses were transferred from the General Fund. Councilman Hickman questioned Crime Free Multi-Housing. City Manager Watenpaugh indicated that no revenue was received from that program. Councilman Hickman questioned the three full time positions. City Manager Watenpaugh clarified that they were part of the new Rental Inspection Program. He further clarified that the Crime Free Multi-Housing Program helped to reduce the risks of renting to problem tenants. Councilman Hickman questioned Redevelopment Agency funds, and what additional dollars might be taken by the State. Councilman Hickman questioned transferred in funds. Finance Manager Magee Page Five - City Council Study Session - June 5, 2003 advised that the 110 account was Gas Taxes transferred in, the 115 account was the Traffic Safety CIP fund from developers and the 112 account was Transportation fund, mostly from Measure A funds. She further indicated that the 130 account was the LLMD for landscaping of City parks. Councilman Hickman questioned the Measure A funds transfer and if it was only $80,000. Finance Manager Magee confirmed. City Manager Watenpaugh noted that the Capital Improvement Budget would clarify those funds further. Councilman Hickman noted that employee insurance costs were escalating. City Manager Watenpaugh clarified the most recent negotiation on medical plans to cap them at a fixed rate to cut costs. Councilman Hickman noted that the City Clerk was the only employee receiving Deferred Compensation. City Manager Watenpaugh confirmed and clarified that this was established by the Council. Councilman Hickman questioned the possibility of using that program as an incentive for more people in the future. Councilman Hickman inquired if the City Treasurer's position was required. City Manager Watenpaugh advised that to abolish the position would require a vote of the people. Councilman Hickman inquired if the issue should be placed on the next ballot. Councilwoman Kelley indicated that this issue was on a ballot in 1988, and the attempt was rejected by a large majority of the voters. Councilman Hickman addressed the structure of the City Manager's Office and the divisions administered by Community Developmerrt Director Brady, and suggested moving Code Enforcement to the Assistant City Manager, as a better use of her position. City Manager Watenpaugh clarified that although there were several divisions under Mr. Brady, there were several new positions being added to the department, and noted that weed abatement was being moved. Councilman Hickman inquired if the Publications and Memberships category was a slush fund. City Manager Watenpaugh clarified that the account included memberships such as WRONC~ etc. Councilman Hickman indicated that there were publications received which he did not renew. City Manager Watenpaugh indicated that any unwanted subscriptions could be cancelled. City Clerk/Human Page Six - City Council Study Session - June 5, 2003 Resources Director Kasad indicated that a number of publications were received, however many of them were free. Councilman Hickman questioned the Information/Communications Budget which included postage and freight. City Manager Watenpaugh indicated the all freight and postage were included in that account. Councilman Hickman inquired if that was also the account for computer repairs far the City. City Manager Watenpaugh confirmed. Councilman Hickman addressed the Finance Division budget and questioned GASB. Finance Manager Magee advised that it stood for Governmental Accounting Standards Board. Councilman Hickman questioned the Professional/Technical Services budget of $178,000. Finance Manager Magee indicated that it included the annual audit, CFD and Assessment District administration charges. Councilman Hicksnan questioned Risk Management and the payment for insurance. He further questioned the redemption in the amount of $765,000. City Manager Watenpaugh clarified that the litigation payment was made annually and the City had debt service on the Park and Recreation Bonds. Councilman Hickman offered kudos to Code Enforcement Officer Alvarado for handling a car issue, noting that it was well handled. He noted a letter from the Caldwell's and indicated that he thought the whole area should be addressed, possibly with the new people. He reiterated that he felt Code Enforcement should report to Assistant City Manager Best. Community Development Director Brady indicated that this type of shift would not make sense because Code Enforcement interacts with the other divisions of Community Development to resolve issues. Councilman Hickman questioned if the employees knew their jobs. Community Development Director Brady clarified that Code Enfarcement was originally under Building and Safety, but that had changed and it was now under Planning. He indicated that staff was placing great emphasis on this area and placing it under a separate department would not make sense. City Manager Watenpaugh noted that this area was restructured under a new supervisor who was more proactive. Councilman Hickman indicated that he wanted to see Code Enforcement, not Page Seven - City Council Study Session - June 5, 2003 selected enforcement. Councilman Hickman questioned how many regular employees were represented in the budget breakdowns and suggested including the number of position funded. He inquired if Engineering was a profit center. Community Development Director Brady indicated that it was not a profit center, but rather a cost recovery situation, where costs are paid through the fees and deposits for those services. Councilman Hickman commented that employee "perks" were 50% of the pay. City Manager Watenpaugh indicated that they were generally 40 to 55% of the salaries, in most public agencies. Mayor Brinley questioned the Rental Housing Inspection Program reduction. City Manager Watenpaugh indicated that it was reduced due to the fact that there won't be staff for the whole year. Councilman Hickman questioned the Rental HousingAutomotive Expense. City Manager Watenpaugh advised that this was for vehicles for the inspectors. Councilwoman Kelley noted that one of the goals of the Council was to develop that program, and inquired when that program would be ready. City Manager Watenpaugh indicated that the Clerk had been hired and the interview process was underway for Inspectors. He noted that the program was originally under the Building and Safety Manager. Councilwoman Kelley questioned the number of inspectors that would be assigned to this program. Community Development Director Brady indicated that there would be two inspectors. Councilman Buckley addressed the Rental Inspection Program and indicated that he was under the impression that staff was directed to develop the program and bring it back for approval by the Council. City Manager Watenpaugh indicated that the program was approved and direction was given for staff to move forward and develop the program. He noted that with the departure of any employee, the program would be up and running soon. Councilman Buckley further questioned Page Eight - City Council Study Session - June 5, 2003 the need to bring the program back for approval. City Manager Watenpaugh reiterated that there was an understanding that staff should implement the program. Councilwoman Kelley clarified that the program was approved, but not the finite details. Councilman Buckley stressed that money was already being spent without the program being in place. Community Services Director Sapp further clarified that the position would transfer to public works and be converted to a full time position. He explained that the funds are 100% grant monies by contract with CR & R, so no General Fund monies will be used to support the program. Councilwoman Kelley noted the magnitude of this program. Councilwoman Kelley questioned the $50,000 in Library Funds for payback of the loan, but questioned additional dollars for books. City Manager Watenpaugh indicated that the additional dollars were in the Capital Budget. Councilman Hickman questioned if there had been consideration of privatizing this program, noting that grafFiti was getting forced back on the HOA's. City Manager Watenpaugh indicated that if they call and report graffiti to the City, staff would go out and paint out graffiti, even on private property with permission; but noted that there was no full time person on graffiti right now. Community Services Director Sapp indicated that staff had asked associations to do removal until new staff is on board. Councilman Hickman clarified that this arrangement was temporary. Community Services Director Sapp confirmed. Councilwoman Kelley questioned the increase in Animal Control Services. Community Services Director Sapp indicated that there would be a meeting with the Board of Supervisors to discuss the County participation level in the construction of the shelter. He indicated that there was a need for a study session with the Council to discuss the relative issues. Councilwoman Kelley noted that a couple of years ago Animal Friends were looking at a lot of money from each entity for the shelter. Community Services Director Sapp advised that the proposed cost of the facility at this time was $7.2 million, with the City's share being 22%, based on the number of animals turned in. Mayor Brinley addressed the Senior Center and questioned how many City Page Nine - City Council Study Session - June 5, 2003 residents go there and how many County residents. She noted the availability of CDBG funding and questioned the County's willingness to assist. Community Services Director Sapp indicated that about 34% of the Seniors were County residents. He advised that every year applications are submitted to the County through CDBG for their level of participation, and although assistance is received, it is not proportional. Mayor Brinley questioned other ways to address the issue and find funding, and suggested that staff seek grants to assist. City Manager Watenpaugh noted that County funding had gone down annually. Mayor Brinley suggested looking at another way to approach the County; and suggested getting assistance to give more activities and find operating funds. City Manager Watenpaugh noted that there was a new Senior Center in Wildomar. Councilman Hickman suggested that based on his observations the County attendance was probably higher than 34%, possible over 50% from outside the City. City Manager Watenpaugh suggested that the count varies by individual programs, but records are maintained for all programs. Mayor Brinley stressed the need for more money to help with services for County residents. Councilman Buckley suggested that the next budget packet be indexed with page numbers. He indicated that he would like to see all personnel costs, including benefits broken out to show a percentage of benefits the year vs. last year. He suggested that the variable was 35% last year to 45% this year, with some in excess of 50%. . City Manager Watenpaugh requested clarification of the request, noting that total salary and total benefits could be provided fairly quickly. Councilman Buckley explained that during labor negotiations there was discussion of the offset of the COLA increases to PERS. City Manager Watenpaugh indicated that staff could run the numbers, and include the calculation for the health insurance capping. He noted that Blue Shield costs were continuing to increase and this budget represented 12-1/2 new positions. Councilman Buckley questioned the new positions. City Manager Watenpaugh detailed the new, full- time, and converted positions. Councilman Buckley questioned the approval for new positions. City Manager Watenpaugh clarified that the positions were based on Council direction. Councilman Buckley suggested that the budget had nothing to do with the creation of new positions. There was general discussion of the positions to be funded and Page Ten - City Council Study Session - June 5, 2003 the authorization process. Councilman Buckley questioned the approval process for new positions further. City Manager Watenpaugh clarified the budget process. City Attorney Leibold further clarified that typically the administration of positions was within the purview of the City Manager, based on the funding received from the City Council. Councilman Buckley indicated that therefore every new position should be broken out with regard to benefits and pay. He inquired if the proposed budget reflected the Hayhurst recommendations for salaries. City Manager Watenpaugh indicated that they had not been included. Councilman Buckley requested further information on the line item of "Professional, Technical, etc.", to show everything included in that category. He also noted the discussion of increasing the base salary for the graffiti person, and questioned how many people applied for the job. Public Works Manager Payne indicated that interviews were held with limited qualified applicants. Councilman Buckley suggested that if advertised at the same salary it might have still drawn applicants. City Manager Watenpaugh expressed concern that the City had gone six months without a graffiti person, so the services were not available to the community. He further expressed concern with the cost of training. Councilman Buckley addressed the Animal Shelter, and questioned his understanding that it would be paid for by private funds. He suggested that if each entity was going to be asked to pay for the facility, they should have some say in the ultimate design of the facility, and he was not sure he wanted to build them a Taj Majal. Councilwoman Kelley indicated that private donations were not possible, based on the price tax, so they looked to each entity to divide up the costs; and although they have downsized and modified to some extent it is still costly. Community Services Director Sapp indicated that they were now considering floating bonds or obtaining a commercial loan, but either way they want the entities to pay for it. Councilwoman Kelley commented that she would ultimately expect that approach, however with the plans done, it would be hard to obtain modifications to the plan. There was general discussion of the new facility and funding options. City Manager Watenpaugh concurred that there were a number of Page Eleven - City Council Study Session - June 5, 2003 issues, and staff had met with other cities that have similar concerns. He noted that Animal Friends would also like to standardize the fees, which would eliminate cat fees. He also noted that they could not float a bond, without a guaranteed revenue stream, so staffwas working on a study session. Councilman Buckley indicated that more police deputies were definitely needed, and had been needed for quite some time, but questioned paying for the Student Resources officer. Captain Walsh indicated that as proposed that officer would be almost free, and available for additional staffing when not working at the school. He indicated that the rate would be less than 50% of the cost of a fully supported police deputy. Captain Walsh provided a summary of the SRO and the impact it would have on crime, on or off the Campus. Councilwoman Kelley questioned the new ratio with this addition. Captain Walsh indicated that it was about 1 per 1,000, with the new officers. Councilman Buckley questioned the first year funding for paramedics and if $88,000 was correct. City Manager Watenpaugh confirmed and noted that future years would be about $30,000. Councilman Buckley indicated that he bumped into Chief Tisdale, who indicated he would need a letter as soon as possible to get the staff trained. Mayor Brinley inquired if the City Treasurer had any concerns with the budget as presented. City Treasurer Judziewicz indicated that he supported the paramedics and increase in public safety. City Manager Watenpaugh indicated that adjustments could be made to the budget if there are specific travel needs. Councilman Hickman inquired if there were dollars for the Chamber and HOPE. City Manager Watenpaugh indicated that they were funded in the City Council budget under Community promotions. Councilman Hickman further questioned the funding for HOPE. City Manager Watenpaugh explained that it would be funded out of the CDBG grants, and those monies are approved by Council for allocation. Councilman Hickman questioned the ability to get more money for the Chamber; and inquired if the CDBG grants could be increased. City Manager Page Ttvelve - City Council Study Session - June 5, 2003 Watenpaugh indicated that those dollars were already allocated for this year, so any increases would be General Fund dollars. Councilman Hickman inquired if there was more money available for HOPE. City Manager Watenpaugh indicated that it would have to come from unallocated funds. Councilwoman Kelley questioned the $40,000 for the Library in the Capital Budget, and the current level of the building fund. City Manager Watenpaugh indicated that the projection for the end of the year would be $315,780 in the building fund, and clarified that this was a dedicated fund. Councilwoman Kelley questioned the new Library at the high school on Riverside Drive, and inquired what the City's contribution would be to that project. City Manager Watenpaugh indicated that the City had not yet been requested to put any funds into it. Councilwoman Kelley questioned the ability to put the money into furnishings for the new library. Ron LaPere noted the projected unallocated revenues of $1.3 million; and suggested in addition to the $1 million increase in reserves there was another $300,000 which could be used for the current movement toward increased public safety. He further suggested adding less to the reserves and adding five police officers, noting that it would take six months to train officers before they could work their first shift. He stressed the growth rate of the population and suggested that it would be helpful to be ahead of that growth. He questioned the need for the Economic Development Technician, particularly in light of the work being done by Assistant City Manager Best. He concurred with the funding for technology improvements, but suggested it could not be done in one year, so the funds should be carried over to next year to complete the project. Mayor Brinley indicated that would be the intent. Mr. LaPere reiterated that any unused funds should be earmarked to complete the system next year. City Manager Watenpaugh responded to Mr. LaPere and discussed the Redevelopment Agency Budget and indicated that the assessments would not be received until August, but the intent was to have a rollover budget with a 2% increase. He indicated that some of the litigation and debt had been paid this year, Page Thirteen - City Council Study Session - June 5, 2003 so there would be some dollars to do project or loan repayments, subject to the hard numbers being received. He indicated that the California Bank and Trust litigation had been paid off. He further indicated that there were considerable funds available to the RDA, which could come back to the General Fund far Public Safety or Housing Assistance, but those funds would be more clearly identified later. Mayor Brinley questioned the Technical position for Economic Development. City Manager Watenpaugh noted that the position was recommended by the Hayhurst study to assist with Economic Development. He indicated that the work for that position was currently being done in Community Development, so the position would free up staff and the Assistant City Manager to do more City work, as opposed to Economic Development. City Manager Watenpaugh also indicated that there was no problem keeping the dollars earmarked for technology improvements for next year. Councilman Hickman questioned if new homes would be assessed the $300 per house per year for public safety and when the money would start coming in. City Manager Watenpaugh indicated that the Community Facilities District would start in the next phase of houses. Community Development Director Brady indicated that it would start after about 150 mare homes are built. Councilman Hickman clarified that this money would not be seen until tax time. City Manager Watenpaugh confirmed. Councilman Hickman inquired if any new Specific Plan Development would be included in the program. City Manager Watenpaugh indicated that it might not be possible in cases of four units or less. Councilman Hickman questioned when more police officers could be anticipated from the CFD. City Manager Watenpaugh clarified that initially the CFD would fund the fire station, but later a piece would be used for police. Frans Bigelow, representing Castle and Cooke, indicated that he was present at this meeting to give the Developers' perspective of City issues. He commented that when they considered investing money, key factars were the jurisdiction, the Page Fourteen - City Council Minutes - June 5, 2003 attitude of the City Council toward development and the City staff they worked with. He noted that it was important that the staff had longevity, professionalism, a strong knowledge base and history with the City. He stressed that Developers wanted to be able to come back and have consistent staff to work with, because with the amount of money they spend they want to be sure they are making good business decisions. He pointed out that the private sector always had to compete for good people, and those people might get paid more so he would recommend a good benefit package to retain employees. He noted that it was currently a good economy for a lot of positions; and they would like to see consistent good employees in the organization. He strongly recommended not cutting people costs, so they go to other areas. Mayor Brinley thanked Mr. Bigelow for his comments and concurred with the need to maintain good people. Mayor Brinley inquired when the Budget would be back to Council for approval. City Manager Watenpaugh requested time to bring back clarification of some items discussed today; and noted the need to schedule additional meetings for the Hayhurst Study and the MSHCP. There was Council discussion of possible dates. Mayor Brinley expressed concern with 4 p.m. meeting times and suggested 2 p.m. meetings to get the work done. City Manager Watenpaugh noted that two Councilmembers were working unti13:05 through June 24`t'. He indicated that study sessions were needed for budget, Hayhurst and MSHCP. Mayor Brinley inquired if a 330 start time would be possible for these meetings, with adjournment by 6:30 p.m. Councilwoman Kelley indicated that after June 24tn they could be any time. Mayor Brinley suggested the 17~h at 3 30 for Budget and Hayhurst, if Mr. Hayhurst or a representative was available, with a back date of the 18"'. City Manager Watenpaugh indicated that the meeting would probably end around 730 or 8 p.m. There was general discussion of other meeting dates and it was decided that the 17th and 18th could be used to schedule the three topics discussed. Councilman Buckley commented on theAnimal Control budget of $170,000. He questioned the Lake Operations and Destratification Project. City Manager Watenpaugh indicated that the funds were budgeted, but not yet expended. Councilman Buckley inquired if the RDA would actually be putting money into Page Fifteen - City Council Study Session - June 5, 2003 the 20% set aside this year. City Manager Watenpaugh indicated that technically it was done every year, but this year there would be the ability to pay back or specifically set the money aside. City Attorney Leibold indicated that some of the funds were required for debt service. Councilman Buckley stressed that some should be left in the set aside. He requested a breakout of the "Professional, Technical Services" category. He inquired how much longer payments would be required to Walmart. City Manager Watenpaugh indicated that he would have to check the Disposition and Development Agreement on the time lines for repayment. Councilman Buckley questioned the Capital project for Swick-Matich. City Manager Watenpaugh indicated that the design wark is done, but the project is not completed; and clarified that this was not new money. Councilman Buckley indicated that a representative from Hayhurst really needed to be present to defend their findings. He addressed the statement regarding extra or leftover funds, and indicated that with a$1.1 million deficit, there was no money left over. He indicated that he would have more specific comments based on what is presented later, but commented that he could not support the budget as presented, because it was not balanced. Mayor Brinley reiterated that June 17th and 18th would be the dates for the next meetings, and the meetings would be posted. ADJOURNMENT The City Council Study Session was adjourned at 4 p.m. •.-. ~ A EST: ~/1' n AMELA B NLEY, MAYOR ~~' i CITY OF LAKE ELSINORE ~ '~,.~e VICKI KASAD, CMC, CITY CLERK/ HUMAN RESOURCES DIRECTOR CITY OF LAKE ELSINORE