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HomeMy WebLinkAbout2004 - MINUTES - 3/10/2004 STUDY SESSIONSTUDY SESSION CITY OF PALM SPRINGS MARCH 10, 2004 CONVENE IN OPEN SESSION A. Call to Order-Large Conference Room-All Present B. Flag Salute C. City Attorney Report on Matters Discussed in Closed Session-See Page 2 of Agenda this date. D. PUBLIC COMMENTS Joel Douglas, spoke regarding naming a street after Kirk Douglas and recommended the airport entrance loop be considered. Joy Meredith, recommended the 911-communication fee be implemented by Council; and added that the police department cannot take cuts and the fee will enhance the dispatch center. E. COUNCIL COMMENTS/QUESTIONS/REPORTS Councilmembers commented on various civic functions attended. Foat requested a resolution in opposition to the proposed Federal Constitutional Amendment against same sex marriage. Mills requested a report regarding on-site retention; and that a specific plan does need to address the Chino Cone area. Oden requested the Walk of Stars be scheduled for discussion at a future study session and naming opportunities for street and city facilities policy needs to be developed. F. CITY MANAGER COMMENTS - None G. STUDY SESSION 1. CAPITAL IMPROVEMENT PROJECTS ANIMAL SHELTER City Manager stated that past direction from past Council was to proceed with building of a new shelter; that funds have been budgeted to hold the present shelter together; that the Friends of the Animal Shelter have formed to undertake fundraising for the new facility and introduced Members of the Friends of the Animal Shelter that were present. City Manager stated that $3.5 million is estimated for the new shelter; that $90,000 is currently allocated for the project; that Council direction is needed on whether to move ahead or not; that the Friends are a non-profit and will start efforts for the new facility once Council determines the direction; that there are two proposed locations, one at its present site and one at DeMuth Park; that the issue came about through discussions with CVAG discussing a regional facility to be located in Thousand Palms; that the City Council at that time did decide to stay with its own facility due to length of travel to the regional facility and the no-kill policy of the City. Oden clarified that the City of Palm Springs standards was the number one reason to keep the facility. Pougnet questioned the process of how the group would report to the Council on fundraising activities and progress. City Manager stated that this is the first information meeting; that the group’s first effort will be to attain non-profit status and that the City will also need to determine its fair share portion of the facility. 2. 2004-05 FISCAL YEAR BUDGET City manager stated that Proposition 57 & 58 did pass in the State resulting in maintaining of the City deficit of $3.8 million; that there is some hope that the Governor will restore some of the Motor Vehicle Fees that were taken away from the City. Director of Finance & Treasurer stated that the Motor Vehicle Fees to the City were $2.7 million; that the amount has been dropped to $900,000 and that it has been stated that the City will have to pay an additional $500,000 in ERAF fees to the State. Assistant City Manager reviewed various potential tax increases and the 911-fee implementation. Foat questioned if the funds from the 911 fees could be used only for expansion or if the funds could be used to replace General Funds targeted for the safety services. Assistant City Manager stated that the funds could be traded out; that the funds are all a recovery of services and do not require the City to increase funding or match levels. Director of Finance & Treasurer in answer to questions by Council stated that the admission tax estimate is assumed that most of the tax would be from tourist and that the Follies does have approximately 180,000 in admissions yearly; that the time share occupancy tax is on the books but is not being collected and to enact may be subject to Proposition 218; that the Utility User Tax is being levied at 5% and was on the ballot and approved by the voters. McCulloch stated that Mello Roos fees could be used for services of police and fire. Assistant City Manager stated that some Cities do have the Mello Roos, but it may trigger Prop 218; that it can be implemented Citywide or on new development; that it is different than a parcel tax; that the parcel tax is a specific tax, while Mello Roos is usually a general purposes tax and is at a higher cost; that an assessment engineer would need to be hired to determine the parcel tax. In answer to questions by Council Director of Finance & Treasurer stated that the UUT one percent increase equals $1 million and adds about $20 – 30.00 per household per year; that in comparison of other neighboring Cities, we are about in the middle for city taxation; that most cities are waiting on State decisions, but will likely have to increase taxes; that for sales tax, the State is seizing an additional one-quarter of the cities share; that no tax is insulated from the State; that probably the parcel tax may be the best one to avoid State diversion; that property transfer fees, documentary tax could be raised; that the City of Riverside did increase its fee, but the County does take one-half of the fee; that any of the taxes could be continuous or approved with a sunset date; that the current UUT does not have a sunset; that currently the UUT is at 5%, with a $400,000 allocation designated to Parks, Recreation and Library services; that to raise or lower the UUT would require a vote; that for any measure to be placed on the ballot it is a Council or citizen initiative. City Manager stated that current projects are a $3.8 million deficit; that if the State enacts all that it has suggested the deficit due to PERS increases; the State withholding a portion of the Vehicle License Fees; and the keeping of part of property tax will increase the deficit to $8 million; that staff is bringing forward the assumption of the $4 million deficit and possible mitigation measures through proposed ballot measures to increase taxes to be on the November ballot. Foat stated that meetings need to be held with the Community on the issue and that the Council needs to review the list of recommended cuts. City Manager stated that last year $1.7 million was cut; that 17.5 positions were eliminated; that staff is in the process of formulating deficit reductions; but that the end result will be a reduction in service to the Community. Mills stated that this is not a one year problem, but at a minimum a two year; that in 2004-05 the deficit is $3.5 and that 2005-06 the City will be facing at least a $4.5 million deficit; that the actions need to reflect action for the future. McCulloch stated that projections can get better; but that 9 out of 10 initiatives fail in the State; that all likelihood is that a ballot measure would fail; that the City does need to plan for cuts, and look to what our neighbors are doing. Pougnet stated that the citizens are owed a session on potential savings through cuts. Foat stated that the recent survey taken by the City did not go far enough; that the citizens should have been asked if they would pay an increase to keep services. Mills stated that historically the citizens of Palm Springs has been supportive of tax increases when the Council has explained the need and given details to the Community; but that information needs to be specific and that the City needs to set an example by cutting back on its spending. Oden stated that the City does have to address the true issues; that 18 positions were cut; that no more can be done at City Hall; that the next cuts will have to affect police and fire; that the City has done a good job in the past educating the Community, but that the Community did expect the problems to be fixed; that over the past few years we have not spoken enough on the financial problems; that it is more than just getting out of a deficit; that the City needs to look at the increasing cost of employees; that a full service City is desired, but it has to be understood, that a full service city costs; that the fact is we can’t continue to maintain the level of service our citizens get without some kind of increase; and that the citizens need to know and understand the problem and determine what level of services it desires. 3. MARKET RESEARCH & STRATEGIC PLANNING CONSULTANT Assistant City Manager stated that it would be recommended to hire a marketing firm to research the citizens regarding the various measures and further recommended the firm the Council used during the election for Measures U, V W and x. Foat stated that during that period there was an outcry from the citizens for that expenditure of $125,000. Mr. Davis reviewed proposal, copy attached, and added for a 300 voter random sampling the cost would be $25,000. Assistant City Manager stated that staff is seeking direction so that the measure with the best chance of passing can be brought to the ballot. City Manager stated that a series of budget sessions will need to be held with the Council and that the sessions will also be conducted with the neighborhood groups for input. Mr. Davis stated that it is best for the citizens to have a package to understand what is being faced. Assistant City Manager stated that the first step would be to hire the consultant to poll what the citizens would support. Mill directed that the spreadsheet addressing potential tax increases add which ones take parcels and which ones need the assessment engineer, how long the engineer will take and the cost. City Manager stated that the awareness is in the community of the deficit; that neighborhood groups could be asked to discuss the issue and give input; that the Council should over the next study sessions allocate time to discuss budget issues; and that in that same time of budget discussion the assessment engineer could be determining costs with the answer to the assessed value within two months. 4. CONTINUATION OF BUDGET TASK FORCE Foat stated that the budget task force should be reactivated and that if the members are willing to serve be reappointed; that any vacancies on the task force could also be filled. Mills stated that the budget task force was helpful; that the volunteers put in many hours; that specific focus should be given to the task force to complete what is needed. Oden stated that revenue tax is the focus and directed staff to develop focus guidelines for the budget task force, contact members to determine who is willing to serve; and schedule for discussion with the Council. 5. TIME AND FORMAT OF STUDY SESSIONS (INCL DOCKET REVIEW) City Manager recommended 4:30 for closed session and 6 p.m. for open. Foat stated the times should be left as they are. McCulloch stated the some items are so late that people leave before the items are discussed due to the lateness of the hour and recommended 4:30 for closed and 6 p.m. for open meetings. Mills stated that with the change more people could come and stay longer, but that no 5th Wednesday should also be included; and questioned is one and one-half hours are enough for closed session. Pougnet stated that the time change in his opinion is up to Mills and McCulloch, that personally work hours are flexible and concurred with no 5th Wednesday. Oden stated that closed session is filled to the maximum; that the two hours is needed, but eliminating the 5th Wednesday is ok, but that if closed session starts at 4:30, two hours should be allocated. City Attorney stated that to change the time an Ordinance would need to be introduced for the regular sessions and a resolution for closed and study sessions. Council consensus for closed sessions to start at 4:30 p.m., open sessions at 6:30 p.m. and both items to be brought to the April 7, 2004 agenda for action. STUDY SESSION DOCKET Oden directed the topic of neighborhood formation be scheduled for discussion. City Manager stated that a model for formation is being drafted and will come for City Council approval. Pougnet stated that the docket should include visioning for the City, such as the downtown mall, interchanges and the like for brainstorming sessions. Foat stated that the docket used for topics of study sessions is outdated and is more like leftover list; that this Council needs to create its own list and create a new vision for the City. Oden stated that after the March 24th meeting the Council should have a strategic plan in place and that the study session will replace workshops. Mills stated that visioning and strategic planning could encompass a lot; that it may be that the last ½ hour of study sessions could be designed. REPORTS OR REQUESTS City Manager stated that the Design Review Committee will be on the April 7, 2004 agenda for consideration; that March 24 will be a study session and that March 31st will be a study session for Section 14 review. Foat stated that the written report from the Tourism Department is outrageous in size of content and totally inappropriate in response for what was asked. Mills stated that he had asked for a comprehensive report from the Tourism Department regarding the item. ADJOURN 9:45 p.m.