Ventura City Council Meeting
June 21, 2010
Ventura City Hall - 501 Poli Street
FY 2011 budget passes as proposed with Fire Station No. 4 closing.
Mayor Fulton called the council meeting to order with the city clerk calling the roll. Council Member Weir was not present due to travel.
Tony Ciancimino of The National Safety Council made an award presentation to Ventura Fire Chief Kevin Rennie. A list of claim costs showed a reduction of 38 percent for the award winner, representing a distinct downward trend, also recognizing outstanding achievement in the line of duty. Chief Rennie accepted the award, speaking of the success of the department’s Wellness program, while also thanking Mr. Ciancimino.
Mayor Fulton, in acknowledging National Safety Month, recognized Council Member Andrews who thanked all those in the community who supported the city’s Mental Health Outreach programs.
Council member Morehouse thanked those who attended the Johnny Cash Music Festival on Saturday, June 19th at the Ventura County Fairgrounds. The Regional Board’s Commissions and Committee report was presented by Council Member Brennan, who noted that summer electricity rates are phasing in, encouraging all to pay attention to their consumption habits during the next few months. A reminder was issued concerning the Edison program, which may be of help to small businesses.
Council Member Morehouse reported from the California Policy Committee meeting, noting that targets laid out by the California Air Resources Board, in discussing the California Medical Marijuana law, found opposition to portions of the law as it would apply to school zones in and around Ventura along with many other cities around the state. Mayor Fulton announced that an initiative to protect California taxpayers has obtained the required number of signatures to qualify for a ballot initiative.
The Policy Committee Meeting was attended by Council Member Andrews as well, reporting that the city’s opposition to the anti-bankruptcy provision legislation was discussed and opposed by members. Mayor Fulton reported that the city of Carlsbad leads the state in the rollback of pension systems, overtaking Ventura in this area.
Item Nos. 2 and 3, commented upon by Brian Rencher, spoke to the objectives of safety and return on investment by balancing risks vs. return, and recommended a switch away from Bank of America.
On Item No. 3, the Investment Policy as commented upon by Camille, the question was asked as to whether or not the city can identify, categorize and justify the loss of $10 million of taxpayer money, the speaker also wanting to know the status of the investment default and if current bonds are safe.
City Manager Cole commented in return, saying that the category of investments that were reinvested weren’t in Lehman Brothers but in WAMU, which also went bankrupt, representing a substantial loss to the city. The city has liquidated all of its corporate notes and has no intention of repurchasing them.
A motion on Items 1, 2 and 3 was presented by the mayor and seconded by Council Member Morehouse. The roll was taken – Items 1, 2 and 3 passed unanimously.
Item No. 5, the budget item, continued from June 7th on operating capital and redevelopment budgets. Jay Panzica, Ventura’s Chief Financial Officer, spoke on the operating budget and the capital improvement budget. “This will be the final day,“
he said, for a public hearing, whereupon a vote will be taken to adopt and close the measure.
The second year of the two-year budget – the general fund redesign plan plus the development of new cost-saving recommendations – was presented. A balanced approach to living within our means was emphasized by putting in safeguards for the key services necessary to keep the city safe. Final approval and recommendation before the council is $231 million. The approval of this budget will result in the submission of a balanced budget, he said.
In the general fund budget, the final recommendation is $80.4 million. Latest forecasts indicate declining revenues of $4.7 million and rising costs of 3 million for a total projected shortfall of 7.7 million in dollars.
The two-year budget redesign reductions in the general fund resulted in 83 eliminated positions within the city. The cost of city services per resident per day represents $2.02, based on current budget figures.
“We consider the city’s financial position to be still very strong,“ was the quote returned by Standard & Poor’s Ratings Agency. Double-A-minus is the city’s latest rating.
“The city’s budget revisions in fiscal 2009 and 2010,“ said the S & P summary, “have been allowed to maintain what we considered to be a very strong financial position. The outlook also incorporates our opinion that these revisions, along with the proposed additional budget revisions, while [moderately] risky for 2011, have set the stage for the city to achieve balanced operations during the current trough in the economic cycle.“
Public speaking was opened for its final public hearing on the 2011 budget proposal.
Ben Davis, the first speaker and a representative of the Fire Fighters Association, spoke of an “all losing“ situation through salary reductions and possible loss of safety to the citizens. He emphasized that firefighters are looking for solutions to some cost-sharing programs and the sharing of expenditures. Their proposed package included reducing overtime costs along with salary reductions. He encouraged continued cooperation and added that to “dual-up“ plus the closing the Fire Station No. 4 will have public safety implications.
Das Williams, speaking as an individual, not representing cause, offered experiences from Santa Barbara’s City Council, suggesting that budget shortfall problems in Santa Barbara were similar to those in Ventura. A deforestation program was closed and a bargaining unit was set up there. Williams reported that the bargaining unit had reached a recommendation agreement just today in Santa Barbara and that a similar effort might prove productive in Ventura.
Brian Rencher, speaking on behalf of the Redevelopment Agency, claimed to be exercising extended time due to concessions from other “group“ members, but was challenged by the mayor who then deferred to city attorney. Not agreeing with Mayor Fulton’s position, the city attorney sided with Mr. Rencher, acknowledging, however, that the definition of “group“ was causing confusion.
“The Ventura Redevelopment Agency“ said Rencher, “as a venue for airing citizens concerns seems not to be heard. A small number of people are dictating to us,“ he stated further. Rencher noted that the city’s insurance premium will be impacted by closing Fire Station No. 4. He warned that the closing of facilities and the reduction of fire and police safety services will become more costly in the long run.
Mr. Rencher then ran through a list of the city’s losses through the construction of a multi-level parking structure, a downtown theater, failed achievement goals by the Visitors Convention Bureau and losses through the State of California’s raid of the city’s funds.
Mr. Rencher tried to make the case that the projected income from these programs should have made enough money to cover a budget shortfall of $2.6 million.
Lorraine, whose husband is a fireman, spoke next, stating for the record that her husband contributed to the Fireman’s Retirement Fund through voluntary contributions, not just those of the city, while declaring that the city should be correcting a long overdue problem – the pension program. She stated further that she hated to see the pension plan foreclosed upon. Another note included a comment on the lack of fire department support in the Marina area where she lives.
Chris Mann, on behalf of Ventura County’s professional firefighters, came to speak on the station closure and also to comment on the public’s commenting. He gave assurances that his highly professional organization understands the impact of a fire station closure. On the redevelopment bill, the group’s position is that no money would be saved by being funneled through special districts without improving safety.
Council member Morehouse asked a question by referring again to the Policy Committee’s bankruptcy stance and that support statewide doesn’t suggest that the bill provides direct line toward bankruptcy, but rather a process toward counseling. His organization was the only organization to take a positive stance other than the California Teachers Association.
There was a brief tete-a-tete between the mayor, Council Member Andrews and Council Member Morehouse with Chris Mann ultimately stepping in as the referee. City manager Cole seemed to have resolved the issue by reminding everyone on the floor that the general fund is separate from redevelopment fund.
Dan Cormode addressed the council with concerns over closing the Station No. 4, claiming economic vitality, over and above the issue of public safety, as a benefit-to-cost ratio. “If economic vitality represents so great a payback,“ he asked, “then why close Station No. 4?“
The next speaker lives on the end near the fire station and was opposed to its closure noting a doubling or tripling of response times. As a retired Naval officer he noted traditional levels of cooperation between city, state and military fire organizations, also noting the great natural benefit we all derive from this cooperation.
Marie Lincoln, followed by Ms. Rubenstein, both spoke as longtime residents in the area, also expressing displeasure over the closing of Station No. 4.
Gary Weiss, representing the Chair of the Chamber of Commerce, noted that there has not been a business that remains unaffected by the downturn in the economy. During downturns cities and businesses need to deal with losses of revenue, stating that the comments made before the council were not unexpected.
The next speaker, Jeff Wiens, has been a fire captain in Ventura and spoke on behalf of his interaction with city council members during the floods, recounting life-and-death struggles on the job. Station Captain of Fire Station No. 4 over the past 7 years, Capt. Wiens mentioned other issues and stories of heroic efforts from the past. He reiterated the fact that every moment in an emergency is critical.
Todd Leach spoke next as a professional firefighter and reminded the council that there are OSHA standards which must need adhered to. The procedure called “two-in, two-out“ is a requirement described as a rescue operation based on available manpower. Mr. Leach brought up legal issues which must be followed whether or not there is the potential for the loss of life.
The mayor closed the public speaking segment, turning deliberations over to the council. City Manager Cole mentioned that the state has raided redevelopment funds two years in a row, hampering any further use of redevelopment funds to fund ongoing services.
Mr. Panzica was asked by Council Member Morehouse for additional explanation over shortfall of revenue, and why revenue has fallen by 15 percent while pensions are rising. The city’s matching payments to pension funds are not sustainable according to City Manager Cole, who stated that the pension plan guarantee vs. what the fund managers have requested do not match, and that the amount offered as pension fund contributions does not balance requirements without cuts in other areas in order to balance the budget.
Council Member Monahan asked for clarification from Mr. Cole on the 7 percent figure for pension funds where the city’s fund contribution is not a gift but rather an amount taken in lieu of salary. An exchange between Mr. Cole and Mr. Monahan indicated that these agreements were made when negotiating money was available, whereas now the money is not available. Mr. Cole noted that the voters have on several occasions voted not to fund to bond and tax measures, leading to staff reductions in union contracts. The city saves 1.2 million by not funding vacancies in the fire department and by closing Station No. 4.
“It is possible to temporarily take money from the reserve fund and replace the funds as needed through current operating income,“ was the suggestion from Council Member Monahan. Mr. Cole replied that taking money from the reserve fund is an alternative that will cost in additional interest through grading reductions by Standard & Poor’s.
The chief negotiator for the Firefighters Association noted that there are strings attached to the contract – created through prior negotiations with the city. The association is willing to make sacrifices, he said, but does not wish to see negotiations made in bad faith by either party.
Council member Andrews stated that, “he’s not a fan“ of negotiating from the dais. The council cannot cede responsibility and its right to make decisions as council members, in speaking to those from the public and their representatives on union boards. His claim is that the step of closing Station No. 4 is the least damaging to city safety and operations. Personnel cuts must proceed with the understanding that restoration is to occur at the earliest possible time.
Council member Morehouse responded to Mr. Monahan with a graph on California general fund spending, noting that proposition 98 can be held up as one source of the problem – also proposition 218. He noted the infamous “triple flip“ – sales tax for property tax. Another graphic showed current income to the general fund followed by several slides showing breakdowns in various sources including secured property taxes by net average value. He thanked the mayor for his indulgence during this short educational program.
Council Member Tracy thanked Mr. Morehouse for his short presentation, noting that police department issues remain over and above just the closing of Fire Station No. 4, and that he opposes the use of reserve funds. Mr. Tracy then motioned to adopt both resolutions – and further seconded – with Councilman Monahan offering an amendment which would restore to 2009 levels the funds necessary to keep Fire Station No. 4 open through the additional income from 87 acres of farmland owned by the city. The mayor noted that requests for an amendment to the motion on the floor would require that the amendment be put forth by the originator. Further discussion of the amendment then ensued over the farmland issue.
The city owns 87 acres of farmland which Council Member Monahan believed would generate $400,000 in income and could be used to replenish the reserve fund – which was objected to on a procedural basis by Council Member Brennan, claiming further that he did not intend to second Mr. Monahan’s amendment.
The roll was eventually called on Mr. Monahan’s amendment for using reserve fund replenishments, failing however, with Council Member Monahan voting yes. The roll was called again – this time on the motion to adopt the 2011 budget resolution as drafted by the council and to close Fire Station No. 4 – which carried unanimously along with “great regret“ as expressed by all.
A motion was entered to ratify the Shear case by the mayor and was seconded by Councilman Monahan. The roll was called and the measure passed unanimously.
An issue on Council Communications was addressed in public comment by Helen Yunker, who spoke requesting management oversight in the handling of Lot 7’s title transfer, claiming12-years worth of inaction, and begging for city planners to resolve the issue.
Catherine Spinelli, in the final issue on Council Communications, critiqued Mayor Fulton for facial expressions worn while listening to public speakers’ comments, which she characterized as dismissive and condescending in nature. Also she criticized Deputy Mayor Tracy for a perceived bias over city police issues and VPD’s lax attention to chronic neighborhood problems such as vandalism and graffiti, claiming to have voted for Mr. Tracy in order to help resolve these issues, but further resolving to help remove them both from office as city council members for failing to pay attention to citizens’ concerns. This, she claimed, would begin with next Monday’s city council meeting, whereupon Mayor Fulton immediately responded (without reference to his facial expression) that there would be no city council meeting on the following Monday.
The mayor commented that the next opportunity for public participation on Council Communications issues would occur on July 12th – the next scheduled city council meeting.
The mayor closed the city council meeting with continuation to the next closed meeting session.