Agenda

Return
BREA CITY COUNCIL SUCCESSOR AGENCY TO THE BREA REDEVELOPMENT AGENCY SPECIAL MEETING MINUTES November 13, 2017

GENERAL SESSION
SPECIAL MEETING
6:00 p.m. - Community Rooms A & B
1 Civic Center Circle, Brea, CA 92821
Second Floor

CALL TO ORDER/ ROLL CALL - COUNCIL
Mayor Hupp called the meeting to order at 6:02 p.m., all Council Members were present.

Present:

Hupp, Parker, Marick, Simonoff, Vargas

Matters from the audience
Jay Padilla, Embassy Suites General Manager, expressed concern about the proposed Transient Occupancy Tax (TOT) increase, provided TOT statistics for other Orange County cities, and believed that the number of 911 police calls for issues at hotels in the City of Brea is minor.

John Koos, expressed concern about a possible increase to the business license tax, noted that he understands the proposed increase to the building permit fee, and stated that further discussion is needed.

DISCUSSION ITEM

Budget Update and Discuss Business License fees, Transient Occupancy Taxes (TOT), City Service Levels and Other Matters

City Manager Gallardo reported that the focus of the presentation will be on fiscal responsibility and stated that if we use time and creative energy to tackle budget concerns, we can succeed.

Administrative Services Director Russell presented a PowerPoint that included: what in the City of Brea has changed; the budget efforts to maintain service levels; balancing the current year budget; five (5) year General Fund projections; closing the 2018-19 budget gap; revenue enhancements; ballot measure considerations; ballot measure steps; direction needs; and the budget timeline.

In response to Council questions, staff explained that the expenditure savings in staffing reductions is for the past 2 years; verified that the amount given does not include the FARP Study Replacement Reserves; noted that only some of the retirement rates were calculated into the upcoming budget; stated that staff is analyzing the services to decide if layoffs are necessary; added that the FARP Study will be presented to Council in January or Februrary 2018; indicated that they will provide information regarding recreation/gym fees for nonresidents to Council at a later date; discussed possible digital billboard revenue; noted that communication with vendors for cell towers is ongoing; provided the amount of revenue versus expenditure for the paramedic program; offered to do more research to find out if the landfill will be closing; briefly discussed CBED funds; and clarified that staff will discuss JPA services again with other cities starting in January.

Council stated that they will need more information before making a decision on how to close the budget gap and noted that all options will be considered.

Council Member Vargas stated that he is willing to lower the mandated reserves to assist with the budget gap; suggested that the utilities in the City be municipalized; proposed that there be a $300,000 cap on compensation for employees; and directed staff to focus on workers compensation and pension reform. City Manager Gallardo stated that he along with Mayor Hupp, Mayor Pro Tem Parker, and Acting Human Resources Manager/Assistant to the City Manager Maldonado are going to Sacramento in December to discuss pension reform legislation.

Council Member Marick asked that staff keep Council updated on what other cities are doing in respect to concession bargaining.

In response to Council questions, Police Chief Conklin stated that there were 425 police calls for incidents at hotels in the City of Brea in the last three (3) years and noted that most calls for hotel incidents require two (2) Police Officers to respond. In response to a question, he added that he is not aware of a voucher program to pay for hotel rooms in the City for probationers.

Mayor Pro Tem Parker expressed concern that raising the TOT and business license tax may cause diminished returns. He directed staff to provide more information, to look at the impact, and to expand outreach in the community for feedback on how they feel about the new proposed taxes.

Mayor Hupp and Council Member Simonoff asked staff for more information from other cities that have raised taxes to find out the impact to their City and noted that they are not willing to take anything off the table.

Council Member Marick stated that staff should make sure there is a 4/5 vote of Council in favor of raising taxes before spending City funds to research any tax measure.

Mayor Hupp called a recess at 7:46 p.m.

Council reconvened at 7:53 p.m.

Mayor Hupp opened the floor for more public comments.

Jason Kraft stated that smaller cuts in the budget now, will help further down the road.

Dwight Manley stated that the public does not have enough information, believed that permanent decisions should not be made at this time, and expressed concern about mismanagement of funds in the past.

Sean Thomas believed that Council should look at who is impacted when raising taxes.

Keith Fullington asked Council and staff to be creative when raising taxes by soliciting ideas and suggestions from businesses and residents in the City.

John Bickel suggested that Council and staff look at all options and he briefly discussed grants.

Steve Shatynski believed that more information should be provided to the public, discussed pension reform, and suggested a citizen committee that will focus on the budget.

Administrative Services Director Russell recapped that Council would like more information regarding a ballot measure and staff should bring options for labor/service impacts.

ADJOURNMENT
Mayor Hupp adjourned the meeting at 8:01 p.m.

Respectfully submitted,	The foregoing minutes are hereby approved this 5th day of December, 2017.
_________________________________ Lillian Harris-Neal, City Clerk	________________________________ Glenn Parker, Mayor