HomeMy WebLinkAbout2002 - MINUTES - 4/30/2002 WORKSHOPWORKSHOP
CITY OF PALM SPRINGS
APRIL 30, 2002
CALL TO ORDER
A. ROLL CALL – All Present
B. REPORT POSTING OF AGENDA: City Clerk reported the Agenda was posted
in accordance with Council procedures.
C. PUBLIC COMMENTS:
WORKSHOP: THE FOLLOWING ARE COMMENTS AND CONCERNS EXPRESSED
BY MEMBERS OF THE CITY COUNCIL, NOT NECESSARILY IN ORDER, NOR
CATEGORIZED BY WHOM.
A. 2002-03 BUDGET ISSUES
City Manager stated that the handout incorporated changes requested by the
Council; that there is a deficit; that should the Council accept the
recommendations, the deficit would be $75,000; that the Assistant City Manager
position is in the cuts; that the comments by the Council regarding the position
need is appreciated, but that the deficit outweighs the necessity of the position.
Oden: appreciate concern, the Council as a body has stated not to cut the ACM
position and would appreciate not seeing the position on the reduction list again;
that the police commander position could stay on the reduction list; that the
position is vacant at this time and the Police Chief stated it is not needed.
Police Chief stated that it was stated the position could be left vacant; but that
has changed; that with the age of the members on the department, more
supervisors are needed; that there are issues of accountability, staff reports,
monitoring that all require an upper management position.
Oden: thought sergeants were the front line supervisors; that there are 14, each
supervising 5 patrol officers; that the cut is only one position and should not
change the organization.
Mayor: Not sure what is adequate, should be u-p to the police chief to determine
the needs of the department, could hold vacant until the new chief is appointed.
Oden questioned status of TOT rebate agreements
Finance Director stated Spa Hotel expires in 2003; Palm Holiday Inn
approximately 6 more years. The rebate is an agency obligation.
City Manager stated that restroom maintenance is being proposed to be brought
back through city employees; that the contract price has escalated; will save
money to do in-house; will take 4 additional people; will also do special events
and village fest; that the level of the police fitness program participation was low,
should suggest to cut the program.
Hodges stated do not fund the program
City Manager: could cut the Lobbyists, however $500,000 grant for airport
security has been obtained through the contract; that the State contract has not
yet had a chance to see if grants can be obtained;
Hodges stated should keep both for now.
Director of Planning stated that fees in Planning are being proposed to be
increased; that most of the fees have not been increased since 1994; used to be
on the high side in the Valley, now are the lowest fees in the Valley, would gain
about $14,000 increase in sign permits alone.
Oden next fiscal year has more coming out than coming in; if raise building and
planning fees will be considered not business friendly; that need to be concerned
how to make City survive; that since the workshop on 4-11 the General Fund
savings has increased, how possible.
Finance Director stated departments encouraged not to spend; this is indication
of not spending all that is allocated.
Oden was told when approved the 2% at 55 many retirements would happen;
haven’t seen any yet, where are they; increase in revenue indicated at 4%; have
a deficit; all units will enter into negotiations, with nothing budgeted to bargain
with; have to get ready for what is coming, no indication that it happening.
Hodges may have to take each expenditure as it comes.
City Manager if do nothing expenses increase $1 million; question is whether
revenue will keep pace with expenditures.
Hodges need to live with means.
City Manager parameters are if revenue doesn’t keep up, cuts will be made;
budget presented is $75,000 deficit. with Council add ins goes up to 1.2 million.
Oden stated that it is better for the Council to know what cuts are being made;
that the $205,000 being proposed should be explained by the departments that
are taking the cuts; that the time may be ill conceived to reallocate some
positions and cut others.
City manager stated that the $205,000 in salary savings us thru attrition or
people retiring; and that a certain percentage of first phase cutbacks will be
management.
Oden I do not want to talk layoffs; that there is something off and the Council
should discuss each department budget.
Mayor our costs are growing faster than revenue; that it will take money to
increase revenues; that the City needs to invest where it gets returns such as
tourism, retain centers and big boxes; that the City’s money comes from those
sources; that car dealers enhance the revenues; that we need to put funding in
the investment machine; it may be more money should be put in tourism to
determine who the real traveler to Palm Springs is; then the City could go after
them; that the convention center expansion will help; but that the Council needs
to establish what it needs and wants.
Oden stated that the proposed property sale should not go to the General Fund,
but set aside for economic development enhancement.
City manager stated that staff is concentrating on getting investments in the City;
that there are two big box requests pending; that the convention center
expansion is moving; that the DFP is coming forward for Council closed session
negotiations.
City Manager stated currently there is nothing budgeted to offer developers; that
many cities offer land buy downs; that it is an enhancement to the developer.
Oden stated in the past when a deficit occurred, the City infrastructures was let
go; that we should not get there again; that everyone knows what is coming and
we should get prepared.
Redevelopment Director stated that to get the ability to write land down would be
a significant incentive to offer developers; that big box 2 is in the pipeline; that
Big Box 3 at the intersection may go forward without any financial incentives that
the auto expansion improvements have enhanced revenues; that the luxury auto
dealerships bring in good revenue; that seed funding availability is needed to
enhance economic development.
Mayor could set up an account to develop incentives; that need to keep money
going back in to bring investments back out; that where the money comes from is
a Council decision; could have a special fund created from a portion of the
reserves or other source.
Hodges stated that the Convention Center expansion money cannot be touched;
that TOT may not be mentioned and is not acceptable for use.
City Manager stated that the DFP, Convention Center expansion is coming; that
it will create more TOT; that a lot is coming for economic development.
City Attorney stated that the Mayor is stating that a separate fund should be
created to have a series of options available for developers; that staff could come
back with options, once Council sets the parameters.
Mayor questioned Council pleasure on an economic development incentive fund
and the amount and how much does Council want to maintain in reserves.
Reller-Spurgin stated need economic development incentive fund at $2 million,
with zero out of reserves.
Hodges: don’t care if any funds are put in reserves this year.
Director of Finance stated that the City currently has 15% in reserves.
Mayor stated fund could come out of reserves for investments, could place back
when investment pays off.
Oden ok with me for some amount for this year, but what about next year.
Mayor questioned where sales of city property proceeds should go.
Hodges not sure what a big box incentive would cost; any idea of hotel closures
this summer or the cost escalation on electricity.
City Manager Marquis is closing for renovation for about three weeks; do have
money in reserves if in economic development fund would come to council either
way for expenditures, should not be spent otherwise.
Mils if there are no incentive funds then can’t offer incentives.
If all are willing to use reserves, then are willing to do likewise, but how much
Mayor 2 Million
Hodges, then how is deficit addressed, but be realistic, staff is talking about a
10% cut of services.
Oden questioned where significant saving could be found.
City Manager stated thru flexibility of people leaving and retirements.
Oden questioned how the proposed reclassifications affect the budget.
City manager stated already budgeted.
Oden: If having a slowdown difficult to cut jobs, then reclassify others.
City Manager all reclassifications went through a process, working out of
classification.
Executive Director of Airports stated that most of the reallocations are per
MOU’s.
Hodges stated two things are needed in budget updating the General Plan and
more funding for tourism.
Oden questioned why the risk management fund is so high.
Finance Director stated reserves for claim, increases in health and liability and
property.
Oden: workers Comp
Human Resources Director: historically claims spike; 7-year cycle; past 3 years
increases number of disabilities are up; rates have increased and in January a
significant benefits was shown.
Oden what can be done to bring down costs.
Human Resources Director stated third party administrator is savings, but may
not be significant, have two safety committees; in California must meet laws in
States; each time new benefits are introduced City has to meet the benefit, there
is great cost through police and fire safety members; the growth if 23% this year
alone.
Mills prior to 9-11 workers comp in his business got a refund; now the costs have
escalated up to 35% more; health insurance has likewise risen.
Reller-Spurgin: difference in PPO and HMO?
Human Resource Director stated is a significant cost; but many physicians are
not taking HMO’s.
Mills questioned if the City carried earthquake insurance.
Risk Manager stated all property is covered at about 1/4th of the value.
Mills stated if tragedy occurred would be eligible for FEMA funding of disaster.
Fire Chief stated potential of no coverage if no insurance in place; that the
allocation for paramedics is for pay for an additional three; that it is not three new
bodies, but no one in department has met criteria at this time.
Oden need library literacy program.
Director of Parks & recreation stated there would also be $9,000 from the Library
Trust fund to finish paying for the position.
Hodges: Each addition adds up to the deficit.
Mayor stated there are some things that must be done, could allocate $250,000
to update the General Fund.
Planning Director stated could do a bare bones update; need a zoning ordinance
update and mining ordinance update also.
Mayor could put off till January, so expenditures are somewhat lower.
City Manager stated costs seem high for General Plan, would like opportunity to
explore alternatives.
City Attorney stated that the ordinances need to be done, that there maybe some
what to economize would suggest approving the increase in the City Attorney
fees effective in January; and will throw in updating the Mining Ordinance for free
for City.
City manager stated have saved on labor issues, attorney comes twice a month
does help management to address issues before become too large to handle.
Mayor questioned funding for Parades of Palm Springs for $30,000.
Oden would like to fund everything, but can’t; not sure how proposed cuts will
affect departments; would like to see the proposals before the cuts are taken;
would also like to hear from departments on how budget are made, what
programs and what programs will be sacrificed; tourism could come out of
reserves.
Hodges should not take out of reserves.
Oden direct investment in tourism, where are we going will be taking a hit on
reserves or will be major cuts.
Mayor stated police training could come out of risk management funds.
Hodges why don’t special events pay for themselves.
Director of Parks & Recreation stated the event expenditures are for inking
services, mostly police and fire, question is whether the Council wants the events
or not.
Reller-Spurgin questioned which special event brings the biggest crowd.
Director of Parks & Recreation stated 10 events helped by the City.
Hodges stated POPS asking additional $30,000 is that a total of $42,000 for the
event?
Mayor costs a great deal more to put event on, cash contributions total about
$100,000.
Hodges did not realize City funds at $42,000.
Director of Parks & Recreation stated special events covers police, fire, road
closures, traffic control, clean up, if wasn’t budgeted in a special event fund,
would be somewhere else in the budget.
Hodges how much did the Pride Festival cost.
Director of Parks & Recreation stated$20,000; the sponsors paid $9,000 of that
cost.
Hodges should ask a fee to have a special event.
Director of Parks & Recreation stated that the service costs always exceed what
the promoter pays.
Oden: most of the events are from non-profits.
Hodges: it does cost the City for the services.
Oden: How are contributions determined?
Director of Parks & Recreation stated some have contracts, such as film festival
and car classic, all are 501C3’s.
Hodges: questioned the costs for car classic.
Director of Parks & Recreation stated that the inkind are up to $10,000; that
certain criteria must be met to meet consideration.
Hodges: how does one get on the sanctioned list.
Director of Parks & Recreation: Meet criteria and approval of Parks & Recreation
Commission.
Reller-Spurgin: We gave funds to Palm Springs Youth Center with the
understanding that it be merged with PAL.
City Manager: Have determined that the merger would be a bad investment for
the City.
Mayor questioned if Council wanted the $465,000 reserved for economic
development.
Oden: don’t need a line item, but department can present ideas, but do want to
see how each department is specifically spending its budget; most specifically
Fire, Police, Risk Building and Planning Departments.
Mayor stated Council should see where the $1.2 million in hits are coming from
at next presentation.
ADJOURN