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2010 JUN 24 CC MINSPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL Thursday, June 24, 2010 El Segundo Public Library 111 W. Mariposa Avenue, El Segundo, CA 90245 7:30 a.m. 7:30 A.M. SESSION CALL TO ORDER — Mayor Busch at 7:30 a.m. ROLL CALL Mayor Busch - Present Mayor Pro Tern Fisher - Present Council Member Brann - Present Council Member Fuentes - Present Council Member Jacobson - Present PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed. Chris Thomason, El Segundo Firefighters' Association, spoke in favor of merging the El Segundo Fire Department with Los Angeles County Fire Department. Ron Swanson, resident, spoke regarding the initiative petition being circulated to transition the Fire Department to Los Angeles County. Mark Marion, resident, spoke regarding opportunities for public comment. Dave Burns, resident, spoke against consolidating El Segundo Fire with County Fire. Jack Kenton, resident, suggested that the City look at non - essential programs which could be eliminated and services which could be charged back to the residents. Marty Smith, resident and Los Angeles County Firefighter, addressed the concerns of non - transport issues and the benefits of having multiple paramedic units available if both units assigned to the City were busy. Fred Curcio, resident and Los Angeles County Firefighter, spoke in support of the County consolidation. MINUTES OF THE SPECIAL CITY COUNCIL MEETING JUNE 24, 2010 PAGE NO. 1 Rod Spackman, Chevron, spoke regarding the other responsibilities that the El Segundo Fire Department is currently charged with and his concerns with training and cooperation currently enjoyed between Chevron and the City. SPECIAL ORDERS OF BUSINESS: Consideration and possible action regarding a strategic planning session which will guide staff in the preparation of the Fiscal Year 2010 -2011 Preliminary Budget. Staff will present a brief overview of the estimated General Fund Fiscal Year 2009 -2010 yearend projections, General Fund Fiscal Year 2010 -2011 budget assumptions, projected shortfall and options to balance the FY 2009 -2010 and FY 2010 -2011 General Fund Budgets. Staff will also provide follow -up on open items from the prior Strategic Planning Session. Deborah Cullen, Finance Director, gave a presentation on the following items: a. Fiscal Year 2009 -2010 Yearend projections i. Balancing options b. Fiscal Year 2010 -2011 Preliminary Budget i. Balancing options 1. Fire Department a. L. A. County Fire Contract b. Reduce staffing level to 14 C. Run short options Council recessed at 8:55 a.m. Council reconvened at 9:00 a.m. with all present. 2. All City Departments savings /reductions ii. Early retirement options for Safety /Miscellaneous employees iii. Union Concessions 1. Freeze /reduce scheduled salary increases 2. Furloughs 3. Layoffs 4. Benefit cost sharing 5. Tiered benefit cost sharing iv. Reduce General Fund unreserved /undesignated balance V. Internal Service Funds vi. Reduce Capital Project funding vii. Undesignate funds in the Economic Uncertainty Fund viii. Reduce Other Post Employment Benefits (OPEB) funding or withdraw Pay Go from Trust C. Potential Revenue Generators i. Public Library Foundation and Recreation and Park Fee Study ii. Trash collection fees iii. Sale of Fire Station #2 MINUTES OF THE SPECIAL CITY COUNCIL MEETING JUNE 24, 2010 PAGE NO. 2 iv. Transient Occupancy Tax increase in tax rate (April 2012) V. Increase Utility User Tax rate (April 2012) d. Open Items i. Council Benefits ii. Early Retirement Council discussed transitioning to Los Angeles County Fire or keeping our City Fire Department. Debbie Aguirre, Chief, Planning Division, and Daryl L. Osby, Chief Deputy, from Los Angeles County responded to Council questions. Los Angeles County fire proposal would be completed and given to the City in July, 2010. Negotiations would take approximately six months. From Contract approval (signature) to complete transition would be approximately August 2011. MOTION by Mayor Busch to go forward with the proposal, go back to all bargaining groups and ask for a 5% concession to bridge the budget gap, negotiate a two tier system for future employees, and conduct public meetings to get public input regarding fire services. Motion failed for a lack of a second. MOTION by Mayor Pro Tern Fisher to go forward with the proposal, go back to all bargaining groups and ask for a 10% concession to bridge the budget gap, negotiate a two tier system for future employees, and conduct public meetings to get public input regarding fire services. Motion failed for a lack of a second. MOTION by Mayor Busch, SECONDED by Council Member Brann to ask employees for a 5% cut in compensation and /or benefits and negotiate a two tiered benefits system. MOTION PASSED BY THE FOLLOWING VOTE: AYES: MAYOR BUSCH, COUNCIL MEMBERS BRANN AND JACOBSON; NOES: MAYOR PRO TEM FISHER AND COUNCIL MEMBER FUENTES. 3/2 MOTION by Mayor Busch to begin negotiations with Los Angeles County and get further information and detail, SECONDED by Council Member Brann. MOTION PASSED BY THE FOLLOWING VOTE: AYES: MAYOR BUSCH, MAYOR PRO TEM FISHER, AND COUNCIL MEMBER BRANN; NOES: COUNCIL MEMBERS FUENTES AND JACOBSON. 3/2 In negotiations with County, staff directed to investigate costs associated with El Segundo having their own ambulance transport. MOTION by Mayor Busch, SECONDED by Mayor Pro Tem Fisher to have the Regular City Council Meeting on July 6, 2010, keeping the agenda brief for the 7:00 p.m. open session for Strategic Planning purposes, and have the 5:00 p.m. closed session dedicated to bargaining group negotiations. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 Staff directed to return on the July 6, 2010 meeting with an analysis of the proposed ballot initiative to transfer El Segundo Fire Services to Los Angeles County. MINUTES OF THE SPECIAL CITY COUNCIL MEETING JUNE 24, 2010 PAGE NO. 3 Staff to agendize a two tier Council benefits option, and voluntary reduction of Council stipend and benefits, for the second meeting in July. Staff to address placing a "Pledge of Allegiance" and second "Public Communications" on future agendas. ADJOURNMENT at 10:55 a.m. MINUTES OF THE SPECIAL CITY COUNCIL MEETING JUNE 24, 2010 PAGE NO. 4