78-0614_CC_Minutes_Adjourned Regular MeetingJUNE 14, 1978
ADJOURNED REGULAR MEETING OF THE CITY COUNCIL
OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA
The Adjourned Regular Meeting of the City Council of the City of
San Juan Capistrano, California, was called to order by Mayor Friess
at 7:02 P.M., in the City Council Chamber.
ROLL CALL PRESENT: Kenneth E. Friess, Mayor
James F. Thorpe, Mayor pro tem,
joined the meeting at 7:05 P.M.
Lawrence F. Buchheim, Councilman
Gary L. Hausdorfer, Councilman
Phillip R. Schwartze, Councilman
ABSENT: None
STAFF PRESENT: James S. Mocalis, City Manager; E. Phillip Hale,
Assistant City Manager/Director of Administrative Services;
William D. Murphy, Director of Public Works/City Engineer; Thomas G.
Merrell, Director of Community Planning and Development; Thomas
Baker, Director of Recreation; James S. Okazaki, City Attorney;
Mary Ann Hanover, City Clerk
PUBLIC HEARINGS
1. PRELIMINARY BUDGET REVIEW
FISCAL1978-83
(24) Public Hearing:
Notice aving een given, Mayor Friess declared the Public
Hearing open and inquired if anyone in the audience wished
to address the Council. There being no response, the Mayor
declared the Public Hearing closed with the right to re -open
at any time.
Mr. Hale advised the Council of possible loss of revenues of
$850,000 due to the passage of Proposition 13; the amount
depending upon whether a ruling is made that cities are not
special districts for taxing purposes.
Council Discussion:
Councilman c wartze recommended that it would be more prudent
to adopt an interim budget for a 120 -day period of time and
thereafter finalize a budget for the remainder of the fiscal
year. During the interim period, a moratorium would be
instituted on expenditures for capital projects, travel and
expenses, hiring, and raises, with a frugal stance taken by
the City. Following the 120 -day period, the Public Hearing
would be re -opened, and a final budget adopted.
The City Manager concurred with the recommendation of Councilman
Schwartze and advised that the City is financially capable of
maintaining the current level of service for the interim period.
In response to Mayor Friess, Mr. Mocalis advised that staff
would prepare an interim budget for Council consideration.
Councilman Buchheim noted that if capital improvements are
not undertaken, consideration should be given to the possibility
of losing Federal funding for such projects. Councilman
Schwartze stated that any freeze on hiring or projects should
be across the board and that any items of expenditure should
be individually reviewed by Council. Councilman Hausdorfer
stated that Council should indicate general categories where
restraints would be appropriate. Mr. Hausdorfer stated that
the residents should be aware of the City's financial position
and be assured that basic services will not be reduced.
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The City Manager stated that he would prefer to continue
the Meet and Confer process with the Employees Association.
Mayor Friess stated that during budget considerations, every
possible consideration should be given to protecting the
City employees; that lack of a cost -of -living increase would
be the same as a cut in pay.
Councilman Thorpe stated that care should be taken during
the interim period so that Council options are not precluded
without Council action. Mr. Thorpe suggested that citizen
input be gathered with regard to areas of cut back, and that
many services could be self-supporting by instituting fees.
Councilman Buchheim stated that the City should be run frugally
while maintaining the higest possible quality of service,
with fees raised for such services as recreation classes and
Council reviewing each request for expenditures on an
individual basis.
Councilman Schwartze requested that staff provide the
following: (1) A list of potential revenues that could be
gained from fees for various services; and, (2) A prioritized
list of possible cuts to the amount of $850,000.
Preparation of Interim Budget:
With ounci concurrence, ffayor Friess directed that an interim,
120 -day budget be prepared and that staff begin preparing lists
of revenues and possible cuts, as suggested by Councilman
Schwartze. The City Manager advised that the information
would be prepared by June 28th; or, if possible, by the
meeting scheduled for June 21st.
SUMMER RECREATION PROGRAM
The Director of Recreation advised that the summer program was
scheduled to begin on June 19th, but that the School Board had
taken action on June 12th to delete the program due to the effects
of Proposition 13. The school facilities and the Teen Mother Center
will be closed for the summer and not available for City use; 700 parti-
cipants have enrolled in the recreational classes for the summer
period.
Council noted that since summer school will not be held, there
will be a greater need for activities such as the recreation program
and suggested that staff investigate renting a circus -type tent
with a floor for use at Descanso Park. Further, staff should
discuss the possibility of a City -paid custodian in negotiating
with the School District for use of their facilities. Council also
suggested that the media could assist by covering the need for
facilities such as meeting rooms and church auditoriums, etc.
Council suggested that consideration be given to a possible
recreation/educational summer program in order to keep some of
the schools open; i.e., Reading for Fun, and that a joint powers
agreement be discussed with the District and the Public Facilities
Committee. Mr. Baker was directed to consider all alternatives
while maintaining the program on a self-supporting basis.
V111011)IRIPIIDI\YY
There being no further business before the Council, the meeting
was adjourned at 8:09 P.M., to the next meeting date of Wednesday,
June 21, 1978, at 7:00 P.M., in the City Council Chamber. Mayor
Friess directed that the Public Hearing on the preliminary budget
be continued to the meeting of June 21, 1978.
ATTEST:/ Respectfully submitted,
KENNETH E Es I
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