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HomeMy WebLinkAboutMinutes - City Council - 2008-12-15 - Special Meeting 224 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California December 15, 20085:30 p.m. The special meeting was called to order by Mayor Bosetti with the following Council Members present: Dickerson, Jones, McArthur and Stegall. Also present were City Manager Starman, City Attorney Duvernay, Assistant City Manager Tippin, Personnel Director Johnson, City Clerk Strohmayer, and Assistant City Clerk Mize. At the hour of 5 :30 p.m., Mayor Bosetti announced that the City Council would adjourn to closed session to discuss the following: I Closed session pursuant to California Government Code Section 54957.6: CONFERENCE WITH LABOR NEGOTIATOR Designated Agency Representative: Linda Johnson Employee Organization: All Represented and Unrepresented Employees (P-I00-050 & P-l 00-050-1 00) At the hour of 6:36 p.m., Mayor Bosetti reconvened the Special Meeting to open session and advised that no reportable action was taken during the closed session. PROPOSED BUDGET REDUCTIONS (B-130-070) City Manager Starman stated that the severe global economic downturn is adversely impacting City revenue, however, because the current and past City Councils have always placed great emphasis on fiscal responsibility and long-range financial planning, Redding is in a stronger financial position than most cities and counties. Mr. Starman recalled that in response to declining sales tax revenue and building related fees, the City imposed a selective hiring freeze in October 2007, then in February 2008, the General Fund expenditure budget was reduced by one half of one percent and in August 2008, it was reduced by an additional one percent. He advised that revenue continues to decline and projections for third quarter sales tax revenue is even less than previously anticipated. Without General Fund spending reductions, he said the reserve will slip to 4.7% by the end of this year. Mr. Starman recalled that at the November 18, 2008 meeting, the City Council adopted a set of "budget reduction guidelines" and directed staff to utilize those guidelines to develop a list of proposed budget reductions for Council's consideration. In addition, Council directed staff to meet with each of the labor unions that represent City employees to discuss possible wage and benefits concessions in order to mitigate potential layoffs. Mr. Starman reported that the unions indicated they are not willing to consider such concessions. Consequently, the City will need to eliminate approximately 23 full- and part-time positions in order to balance the General Fund budget. In response to suggestions from some sources to conduct additional meetings, Mr. Starman cautioned that there is a real sense of urgency in the need to move forward with the proposed budget reductions. I Mr. Starman recommended the City Council consider the budget reductions proposed in the staff report dated December 10, 2008, modify the list, if necessary, and direct the City Manager to implement the budget reductions as soon as possible. Ray Thomas, Senior Business Representative for International Brotherhood of Electric Workers (IBEW), stated that in the meetings with the City, other cost saving options were presented, including incentives for early retirement which he contended cost pennies on the dollar compared to overall employee cost. Mr. Thomas indicated that IBEW workers already make wage concessions to the City because their wages are 20 - 60% less than like journeyman working for other utility companies. He stressed the importance of working together to reach a favorable outcome for both sides. I Captain Randy Carter, Redding Fire Department, representing International Association of Fire Fighters #1934 (IAFF), requested that the City Council take no action tonight and instead, schedule a series of at least three town hall type meetings to allow the citizens to have input regarding the proposed budget reductions. Ian Arnold, Field Supervisor, Service Employees International Union #1021 (SEIU), expressed disappointment with the meeting with City Manager Starman. He maintained that 12/15/2008 225 all the unions offered to work with the City, and he requested that layoffs be postponed until after town hall meetings are conducted so that additional options can be presented. Rob Middleton and Greg O'Sullivan, representing Economic Development Corporation of Shasta County (EDC), thanked the City Council for its past and future financial support. They related the difficulties EDC is experiencing now with obtaining private sector donations and the continuing need to search for new jobs for the area. Although they understand the City's need to reduce spending, they requested that the reduction in the City's contribution to EDC be less than the proposed 30%. I Jeff Avery, Chairman of Board of the Greater Redding Chamber of Commerce (Chamber), stated that local businesses have experienced a 20 to 25% drop in revenue and some have closed while others have been faced with cutbacks including laying off valued employees. Mr. Avery urged Council to make a through review of available options and strive to maintain core services while making budget reductions.. He offered the Chamber's support during these difficult times. Judy Huskey, a 20-year City of Redding employee, expressed confidence in City Manager Starman and other staff members in their desire to do what is best for the City. She opined that SEIU has not sought the input of their members, and she did not agree with the suggestion to hold town hall meetings. Instead, she said the City Council should negotiate with the unions after the unions have conferred with their members regarding options such as furloughs instead oflayoffs. She stressed that contributions to non-profit agencies should be considered se~ondary to the jobs of City employees. I Andre Benoist stated that while not a City employee, he is concerned for both public and private employees. He emphasized that layoffs of City employees will hurt the entire community and believed there were other cost-saving alternatives. He urged the Council to incorporate a "top- down" approach to cut backs by temporarily reducing the salaries of the eight highest paid employees in the City; and, when the economy improves, the wages could then be paid back. He further suggested that any measure imposed on represented employees should also be imposed on unrepresented employees. Archer Pugh, Michael Warren, and Dee Domke spoke on behalf of Turtle Bay Exploration Park. They asked Council to consider that, although the City contributes $345,000 annually to Turtle Bay, according to a recent financial study, Turtle Bay generates $443,000 in annual revenue for the City. Turtle Bay has eliminated eight staff positions within the past 18 months and has instituted other cost saving measurers. Without verifiable support from the City, they maintained that the probability of obtaining grants will be reduced. They stressed that a $100,000 reduction in the City's contribution would seriously curtail Turtle Bay's ability to operate and requested that a smaller budget reduction be imposed and that the reduction be divided between the current year and next fiscal year. Steve Williams, Board of Regents of Turtle Bay and insurance agent, addressed the possible termination of the insurance policy on the Sundial Bridge. He advised that the cost to replace the bridge would be in excess of 27 million dollars and that, in comparison, the annual $34,000 insurance premium is not excessive. He encouraged the City Council to consider the danger of leaving the bridge uninsured. Douglas Bennett challenged the City to think about the individual workers and the impact layoffs will have on the local economy, and to continue to work with the unions to keep wages up and people employed rather than punishing the unions with layoffs. I , Gary Cadd observed that proposed spending cuts will not be the last cuts required and predicted that additional cuts will be necessary in March. Willie Preston, Shasta County Taxpayers Association, commended the City Council and staff for addressing the economic problems facing the City and for identifying three million dollars in budget cuts. Council Member McArthur commented that the budget cutting decisions are being made with a heavy heart but must be done in order to avoid the financial problems other cities are facing. 12/15/2008 226 MOTION: Made by Council Member Stegall, seconded by Council Member Jones eliminating the planned 3% COLA for all Unrepresented employees with savings to begin on July 1, 2009 resulting in an annualized General Fund savings of $135,000. The Vote: Unanimous Ayes MOTION: Made by Council Member Stegall, seconded by Council Member McArthur to reduce the salaries of the City Attorney and two Assistant City Attorneys resulting in a savings of $19,000 to the General Fund and to reclassify the Part-time Administrative Assistant's salary to the Housing Authority to reflect job duties, resulting in $7,000 in savings to the General Fund. The Vote: Unanimous Ayes MOTION: Made by Council Member Jones, seconded by Council Member Stegall to lay off/eliminate a one-halftime Clerk I position in the City Clerk's Licenses Office resulting in a savings of$17,000 to the General Fund. The Vote: Unanimous Ayes I MOTION: Made by Council Member Stegall, seconded by Council Member Jones to reduce the City Manager's salary resulting in a $15,000 savings to the General Fund and to fund $120,000 of the Economic Development Director's salary through the Redevelopment Agency. The Vote: Unanimous Ayes MOTION: Made by Council Member Jones, seconded by Council Member Stegall to reduce the Accounting Specialist position in the City Treasurer's office to 3/4 time resulting in a $16,000 savings to the General Fund. The Vote: Unanimous Ayes City Manager Starman asked for the ability to use his discretion should he find ways to realize an equal amount of savings while causing less impact on the employees. City Council concurred that he should have discretion in these matters. MOTION: Made by Council Member Stegall, seconded by Council Member Dickerson to layoff/eliminate an Assistant Community Project Coordinator position in the Community Services Department, resulting in a savings of $92,000, reduce part-time recreation staff hours and supplies, saving $15,000 and reduce the Youth Action Council (Y.A.C.) funding by approximately 55%, saving $20,000. I Council Member Jones indicated he would not support the motion because he believes that, while the Y.A.C. is a worthwhile program, when compared to the prospect of laying off police officers and firefighters, he favors eliminating the Y.A.C entirely. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, McArthur, Stegall, and Bosetti Council Members - Jones Council Members - None Council Members - None MOTION: Made by Council Member Jones, seconded by Council Member McArthur to make the following reductions in the Development Services Department: Eliminate Associate Engineering position saving $127,000; Layoff/eliminate GIS Analyst I position saving $49,000; Eliminate Assistant Planner position saving $90,000; Layoff/eliminate Building Inspector position saving $84,000; Layoff/eliminate Assistant Engineer position saving $115,000; Reduce Management Analyst position to Y2 time saving $51,000; Lay off/eliminate Landscape Planning Specialist position saving $95,000; Layoff/eliminate Senior Planner position saving $11 ,000; Reduce outside consultant budget (Building) saving $25,000. The Vote: Unanimous Ayes MOTION: Made by Council Member Stegall, seconded by Council Member Jones to eliminate the part-time salary budget in the Finance Department resulting in a $38,000 savings to the General Fund. The Vote: Unanimous Ayes I Council Member Jones stated that the Fire Department Boat Program should be eliminated rather than reduced, and in order to save the three firefighter positions at Station 8, the budget for public art and the Shasta Arts Council should be eliminated and funding to Turtle Bay should be reduced by $200,000. MOTION: Made by Council Member McArthur, seconded by Council Member Jones to eliminate all funding to the Fire Department Boat Program resulting in a $100,000 savings to the General Fund. The Vote: Unanimous Ayes 12/15/2008 227 MOTION: Made by Council Member Stegall, seconded by Council Member McArthur to layoff/eliminate three Firefighter positions at Station 8 resulting in a $340,000 savings to the General Fund. The Vote: . AYES: Council Members - Dickerson, McArthur, Stegall, and Bosetti NOES: Council Members - Jones ABSTAIN: Council Members - None ABSENT: Council Members - None I Council Member Stegall voiced concern regarding the recommendation for funding reductions to Turtle Bay, Economic Development Corporation (EDC), and the Arts Council noting that the recommended 30% cut was excessive and thought 15% was more reasonable. She added that the recommendation should indicate the cuts are temporary and would be restored when the economy improves. Council Member Dickerson concurred with speakers from Turtle Bay and EDC that because of the revenue these two organizations generate for the City, it makes little sense to reduce funding to a point which would eliminate their ability to produce income; and, although they should not be excluded from budget reductions, funding should be reduced by 10% instead of 30%. MOTION: Made by Council Member Dickerson, seconded by Council Member Stegall to reduce funding for the Lobbyist Contract by $18,000; reduce. funding for the EDC by $14,000; reduce funding for Public Art by $22,000; reduce funding to Turtle Bay Exploration Park by $34,000 and reduce funding to the Shasta Arts Council by $6,000. The Vote: AYES: Council Members - Dickerson, McArthur, and Stegall NOES: Council Members - Jones and Bosetti ABSTAIN: Council Members - None ABSENT: Council Members - None I MOTION: Made by Council Member Stegall, seconded by Council Member Dickerson to Layoff/eliminate a 3/4 time position in the Personnel Department resulting in savings of $20,000; eliminate the Wellness Program resulting in savings of$45,000; reduce Liability & Workers' Comp Insurance premiums by $50,000; transfer a Clerk II position from Personnel to Risk Management saving $25,000; retain the insurance policy on the Sundial Bridge in the amount of $34,000. Council Member Jones did not favor retaining the insurance policy on the Sundial Bridge as he believed this action put objects above people, and he would rather the money go toward saving jobs. The Vote: AYES: NOES:' ABSTAIN: ABSENT: Council Members - Dickerson, and Stegall Council Members - Jones, McArthur, and Bosetti Council Members - None Council Members - None Motion failed. I MOTION: Made by Council Member Jones, seconded by Council Member McArthur to lay off/eliminate a 3/4 time position in the Personnel Department resulting in savings of $20,000; eliminate the Wellness Program resulting in savings of $45,000; reduce Liability & Workers' Comp Insurance premiums by $50,000; transfer a Clerk II position from Personnel to Risk Management saving $25,000; and eliminate the insurance policy on the Sundial Bridge saving $34,000. The Vote: AYES: Council Members - Jones, McArthur, and Bosetti NOES: Council Members - Dickerson and Stegall ABSTAIN: Council Members - None I ABSENT: Council Members - None I . MOTION: Made by Council Member Stegall, seconded by Council Member Dickerson to eliminate a Police Services Supervisor position resulting in savings of $85,000; eli!TIinate four Police Officer positions resulting in savings of $480,000; eliminate a Community Service Officer position saving $70,000; reduce Rolling Stock Funds saving $50,000. Council Member Jones indicated that he would not support the motion because he believed there were other areas which could be cut in order to save one or two of the positions at the Police Department. 12/15/2008 228 The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, McArthur; Stegall, and Bosetti Council Members - Jones Council Members - None Council Members - None MOTION: Made by Council Member Stegall, seconded by Council Member McArthur to reduce the private security contract by $37,000; eliminate a Parks Lead Worker position saving $83,000; layoff/eliminate a Telecommunications Technician II position saving $40,000; reduce the Support Services Rolling Stock Fund by $15,000; and reduce Parks Maintenance Improvement funding by $15,000. The Vote: Unanimous Ayes MOTION: Made by Council Member Jones, seconded by Council Member Stegall to transfer RABA Staff Benefits costs from Transportation & Engineering to RABA saving $32,000; reduce Rolling Stock Funds by $53,000; transfer a Parking Employee position to the Streets Division saving $21 ,000; transfer two Public Works Inspector positions to Capital Program saving $180,000. The Vote: Unanimous Ayes I Council Member Dickerson emphasized the difficulty of making budget reductions arid that Council is sensitive to the fact that its actions are costing people their jobs. However, he said the reality is that cuts are unavoidable. He stated that his decisions wj~r~ ,made to achieve balance. While acknowledging the importance of the Police and Fire Departments and reiterating Council's commitment to public safety, he pointed out that other City departments cannot bear the total cost of budget reductions. He remarked that additional public meetings would not have been productive because people have had ample time to review the entire budget and yet no one brought forward any cost saving recommendations. He was dismayed that the labor union leadership was unwilling to make concessions in order to avoid layoffs, leaving the City Council with no other option. Council Member Stegall indicated that her decisions were based on a need for balance among all City departments, taking in to consideration the health of the community as a whole. She challenged the newly-formed Joint Council of Unions to continue to meet and to share cost saving suggestions with the City Council. She expressed frustration with the union leadership because their input to date has been that they do not want to make any concessions and they do not want anyone laid off. She said it is not possible to do both and asked union leadership to work toward solutions. I Council Member Jones thanked staff for the work involved in preparing the budget reduction proposals and reiterated his preference for saving jobs over programs. He thanked City employees for the work they do and apologized that due to the difficult economic times, some of them will be laid off. Mayor Bosetti stated that he was disappointed Council was unable to find a way to alleviate the budget shortfall without layoffs. He noted that Council and Staff would continue to work to stay ahead of changes in revenue, the economy will most likely continue to decline, and predicted that the City would be faced with additional cut backs in three to six months. ADJOURNMENT There being no further business, at the hour of9:04 p.m., Mayor Bosetti declared the Special Meeting adjourned. APPROVED ~;{~ Mayor I ATTEST: ~:v ~, City Clerk 1 12/15/2008