Torrance City Council – A Town Hall Style Conversation About Local Politics

Reflecting upon the recently passed budget there were some clear winners and losers:

Winner: McCormick Ambulance        Loser: Gerber Ambulance

The City Manager revealed that they were notified by McCormick that it was not appropriate to charge paramedic fees that they had been charging Gerber.  Such fees resulted in $2.2 Million in revenue in FY 13/14 and the City had budgeted nearly $2 Million for such fees in FY 14/15.  This revelation has to feel like “pouring salt in the wound” for Gerber after they lost the emergency transport contract to McCormick in controversial fashion and subsequently went out of business shortly thereafter despite having better ambulance response times than McCormick has had in the first few months of their performance.

Winner: City Attorney        Loser: Legal Secretaries 

City Attorney John Fellows recently received a $20K raise boosting what was already the second highest salary for a City Attorney in the state to $280K a year from $260K.  Four Legal Secretaries that support Fellows were not as fortunate.  Despite a salary survey showing the secretaries made 12.8% less than their peers, a pay raise for them was removed from the budget.  The secretaries current pay range is approximately $50K to $60K a year.  The money for Fellows raise alone would have been enough to provide each of the four legal secretaries about a 10% raise.

Winner: Arthur Plourde        Loser: Library Services

The Library’s plea for $40K in order to purchase more materials was nixed by the City Manager.  That move may feel like vindication for Arthur Plourde who was ousted from his volunteer post on the Library Commission after only 3 months for advocating against the purchase by the library of more foreign language materials.  No word yet on whether the City Manager will be hauled before the Council to explain why he is curtailing the Library’s ability to purchase those needed foreign language materials.

Winner: Transit Operations        Loser: Road and Sidewalk Repairs

The budget included an astounding $1.6 Million for new transit positions ($850K of which will go toward manning the Transit Center).  The budget also added a fleet administrative analyst ($124K) and a fleet mechanic ($88K).  Not included in the budget were a requested streetscape crew ($470K) and concrete crew ($397K) to fix roads and sidewalks.

Winner: City Public Relations        Loser: Tree Ordinance

The City added a public relations position ($139K) to help with community outreach and media relations.  The City has done considerable outreach over the past 4 months to gather community input about a proposed Tree Ordinance.  Despite an overwhelming majority of people that have voiced support for such a measure during the outreach process, the Tree Ordinance was sent back to a Council sub-committee where it will likely languish for at least another year according to City officials.  To add insult to injury, the City also denied a request to increase tree trimming from every 8 years to every 4.7 years ($77K).   The lack of tree trimming on City owned trees was perhaps the number one complaint offered by those seeking a Tree Ordinance.

Winner: Torrance Cultural Arts Foundation        Loser: Torrance Art Museum

The City increased the annual donation to the Torrance Cultural Arts Foundation from $109K to $169K.  Axed from the budget, however, was a request to provide $51K in funds for a Museum Director/Curator.  No mention was made of the fact that Councilwoman Ashcraft’s husband Dan serves on the Board of Directors for the Torrance Cultural Arts Foundation or that Ashcraft herself and Mayor Furey serve on the Advisory Board.  The board and advisory committee to the Torrance Cultural Arts Foundation includes a host of other City luminaries.

Winner: Rose Float        Loser: Fireworks

The City found a way to provide $125K to the Rose Float for the next two years.  The often referred to 4^th of July Fireworks show was not so lucky despite a scaled back proposal for the show in the amount of $75K.

Winner: Community Services Commission        Loser: Donations to Community Services Non-Profits

The Council approved the establishment of a Community Services Commission ($5K to $30K) to help tackle social issues like homelessness and supporting veterans.  Removed from the budget was a line item to increase the amount of non-profit social services grants to $40K from $20K.

Winner: Water Services         Loser: The Public

After recent water rate increases the Water Enterprise Fund continues to show large surpluses ($5.4 Million in FY13/14 and projected $3.3 Million in FY 14/15).  The surplus is supposedly going to fund capital projects.  The budget also included a new water apprenticeship/intern program ($109K).  The public will pay for these measures through continued tiered rate increases and drought related fines.

Winner: Farmer’s Market        Loser: Crossing Guards

The Council recently allocated $178K to purchase new bollards for the Farmer’s Market.  The budget also included a new staff position to help move those bollards as well as a Security Guard for the market ($28K). No money was in the budget to fund crossing guards for sites that were recently proposed to be removed. Is the safety of revenue generating shoppers at the market more important than the safety of kids on their way to school?

Winner: Bocce Ball        Loser: Playground Equipment

The Council recently allocated $80K to build a Bocce Ball court at Columbia Park.  Removed from the budget was a $30K proposal to upgrade aging playground equipment at public parks.

Winner: City Council        Loser: Transparency

The City Council travel budget was increased from $12.2K to $31.5K. With the increase, the Public will have less insight into how these travel funds are used by City officials as the low budget forced the Council to seek permission at Council meetings for many of their trips.  As Mayor Brown in Hawthorne has reminded us, things can quickly get out of control when there is a lack of scrutiny and public oversight.

Below is a summary of the 411 page proposed operating budget for 2015-2017.  The Council held the 1st Budget Workshop and Public Hearing last Tuesday and will hold the final Budget Workshop and Public Hearing at the upcoming Council meeting next Tuesday.

Good News

• After major revenue shortfalls in the years following the recession, the City is now seeing modest revenue growth
• Expected general fund revenue for FY 14/15 is $172.3M, FY 15/16 forecast is $185.3M, with FY 16/17 forecasted at $189.3M
• City is anticipating significant positive impact in revenue due to expected completion of Del Amo Mall just in time for the holiday season as well as new car dealerships on Hawthorne Blvd
• Revenue increases allowed the City to provide employees with recent pay increases and offer a budget with no reductions

Bad News

• City had to curtail hoped for enhancements to the budget due to unexpected revenue losses
• City is currently experiences revenue losses of $500 to $700K a month due to ExxonMobil shutdown and resultant decrease in Utility Users’ Tax (UUT) receipts
• Revenue was further impacted by restrictions in paramedic fees (budgeted $1.96M, forecast of $977K – revenues for FY 13/14 were $2.2M)
• City also facing unknown monetary impact of drought mitigation measures
• RDA Loan repayment yet to be resolved with state and the City could be ordered to pay $2.5M
• The City may need to tap into $14.5M Economic Anomaly Reserve to cover shortfalls due to unexpected revenue losses

Proposed Budget Increases (expected to be approved)

• One-time $2 Million increase for FY 15/16 and additional $300K increase for FY 16/17 in Self-Insurance reserve (probably due to increased lawsuits against the City)
• Increase of $100K annually in building maintenance costs
• New Medical Director services position ($30K) and patient care reporting position($42K) for TFD
• Add Police Services Officer for the City Jail ($90K)
• Upgrade computing capacity at Madrona Marsh ($7.2K)
• Add Farmer’s market site leader as well as Security Guard ($28K)
• Increase City Council annual travel budget from $12,208 to $31,500 (mayor’s budget to increase from $2,224 to $7,500)
• New community relations management associate position ($139K)
• Add Administrative Analyst ($124K) and Mechanic ($88K) for Fleet Services
• New Water Apprenticeship/Intern Program ($109K)
• Add several transit positions funded through measure R and Prop C local return ($1.62M in total – $850K for Transit Center positions)

Proposed Budget Increases Still Under Consideration

• Torrance Rose Float donation ($125K)
• Increase annual Torrance Cultural Arts Foundation donation from$109K to $169K

Some Items removed from Proposed Budget by City Manager

• Increase library budget in order to purchase additional library materials ($40K)
• Addition of three firefighter positions ($572)
• Add Streetscape crew ($470K) and concrete crew ($397K)
• Increase tree trimming from every 8 years to every 4.7 years ($77K)
• Increase non-profit donations from $20K to $40K
• Add Special Investigations Analyst ($124K) and admin analyst ($62K)
• 12.5% raise to 4 Legal Secretaries ($40K) and increase training/travel for City Attorney office ($15K)
• Add Accountant and Administrative Assistant to City Treasurer Office ($147K)
• Laser leveling of softball fields ($20K)
• Park equipment replacement ($30K)
• Addition of Museum Director/Curator ($51K)

On the Radar, but not being Considered at this Time

• Return of fireworks to Wilson Park
• Veteran’s Commission and Community Services Commission
• Veteran’s Day Program in conjunction with Armed Forces Day

Items of Interest

• No mention in budget of possible revenue losses due to major business relocations (i.e. Toyota, Kubota, Farmer Brothers, Panasonic, Hello Kitty)
• Actual FY 2014/15 general fund revenues $4M less than projected (budgeted forecast of $176.4M, current forecast of $172.3M)
• No mention of providing money for additional crossing guards
• Water Fund continues to show revenue surplus with FY 14/15 revenues of $39M and expenses of $35.8M (possibly due to recent rate increases – is this a sneaky tax?)
• Expenditure forecasts incorporated recent PERS changes including: decreasing return on investments by 0.25%, limiting amortization to no greater than 30 years, increasing the mortality rates, and accounting for lower than expected return on investments for the current fiscal year
• Budget shows $114K FY 14/15 budgeted amount for City Council salaries and benefits (not including travel reimbursements) amounting to $16,285 in annual salary and benefits per councilmember (not a ton, but still worth mentioning next time you hear one of them say they only get $100 per month for their volunteer job).

Recently ousted Library Commissioner, Arthur Plourde, is now pursuing legal action against Torrance for defamation of character.  He claims that the City made several false allegations against him in order to justify his removal from the volunteer position. Those false allegations were subsequently circulated widely in the community through social media and an article in the Daily Breeze. Plourde believes this negative exposure slandered his character and unjustly harmed his reputation.

The City accused Plourde of advocating a personal agenda thereby exceeding the scope of his duties. This allegation appeared to stem from a March Library Commission meeting. In reference to Plourde’s behavior that day, the City staff report stated that Plourde “gave a speech” about how President Roosevelt declared English the language of this country and how all people coming to this country need to learn English. The staff report also noted that when another commissioner asked what item on the agenda they were discussing that Plourde directed his comments to that commissioner and was “direct, loud, and used an accusatory tone” while “pounding his fists on the table.” The City also claimed that Plourde’s action resulted in the offended commissioner being “too upset to speak for the rest of the meeting.”

Plourde adamantly denies the City’s portrayal of his behavior. He claims he did not pound his fists on the table and that there were witnesses in attendance who will testify to that effect. He says he was only trying to offer his opinion based on his interpretation of the oath of office that he took to uphold the California Constitution. If guilty of anything, he believes it would be solely offering a perspective that his colleagues apparently did not agree with.

A newly released audio recording of the meeting would seem to corroborate Plourde’s version of events and may ultimately provide some of the evidence Plourde will need in order to prevail in a lawsuit.

During the meeting, there was a discussion about the changing mix of ethnic groups in the community and the desire to have more materials available in foreign languages to accommodate those groups. At one point, one commissioner wondered aloud if the City was addressing the needs of the community by not having more foreign language materials available. To that, the City Librarian commented that one of the long term needs was material in other languages. In reference to that need she stated, “We know we need to invest more … we need more money in international languages.”

That prompted the following response from Plourde provided in its entirety:

“The primary focus here in America is the English language.  The people coming to this nation in 1907 were welcomed by President Roosevelt and [he] stated clearly that he welcomes all immigrants, that our language in this country was English and that we had one flag and one flag only in this country and there would be no other flag flown in this country.  And this is a Presidential order and now we are drifting away from our American institutions and our heritage with respect to allowing these other languages to drift into our society and become primary languages instead of secondary languages.”

Plourde’s statement above barely totaled 40 seconds in length and he hardly spoke at all during the rest of the 90 minute meeting. His comments were succinct, on point, and relevant to the matter under discussion. Plourde did speak with conviction, but contrary to the staff report his comment did not appear directed at any one colleague in particular. In fact, he was actually interrupted toward the end of his thought by a colleague asking where they were on the minutes in what appeared as an attempt to cut him off. He did not state that everyone coming to this country should learn English, nor did it seem like his comments were overly loud or accusatory. The audio also does not reveal any obvious fist pounding sounds.

After Plourde’s comments, the meeting continued to proceed amicably and in a professional manner with all Commissioners continuing to speak at various times in contradiction to the staff report stating that one commissioner did not speak the rest of the meeting.

Plourde had no idea he had upset any of his colleagues until Mayor Furey called him in for a closed door meeting shortly before he was removed. At the meeting, he was told the Mayor had received complaints about his disruptive behavior at the March meeting and pins he wore on his suit, as is his custom, to his initial Library Commission meeting in February. Those pins included an American flag, the Marine flag, a pro-life pin, a 9/11 remembrance pin, a support the troops pin, and a support Israel pin. Plourde did not wear the pins to the meeting in March or his last commission meeting in April.

The relevant portion of the audio recording is provided below.