HomeMy WebLinkAbout2001 - MINUTES - 4/11/2001 WORKSHOP 2BUDGET WORKSHOP
APRIL 10, 2001
CITY OF PALM SPRINGS
CITY COUNCIL
ROLL CALL: All Present
PUBLIC COMMENTS:
Larry Lapham, stated that the format used for this year’s budget is one of the
best in 10 years; that it is recommended that the Council streamline
expenditures to offset the budget deficit and submitted a report concerning
the future economy of the City.
1. Workshop Discussion Items (not necessarily in order of discussion)
Discussion of 2001-02 Preliminary Budget Issues
Overview of Preliminary Budget
City Manager stated that although this is an early look at the budget, there
are concerns as matters are evolving; and that discussion would cover
Estimated Revenues; Appropriations and Transfers In and Out.
City Treasurer stated hat there are some changes in the handouts from the
March 28, 2001 meeting; that items of Council direction are now reflected in
the proposed budget; that estimates now include a 15% increase in energy
rates; that the deficit will be approximately $1.6 million; that the surplus of
the current fiscal year is $2.3 million; that the budget is being projected on a
two year process; that work on reductions will need to occur during the next
fiscal year to address the upcoming deficit; that the items on page three of
the handout are not items that are reflected in the budget; that should the
Council direct those items to be allocated, the budget will need adjustment;
that some of the items should pay for themselves; that others are items
requested by the Council that alternative financing will need to be generated;
that a building inspector is needed to address the more complicated projects
that are being permitted; that some of the employees are working out of
class and must at this point be compensated; that jobs are competitive; that
Code Enforcement supervision has moved from a planner to the lead
worker; that the position does need to be recognized with its additional
duties; that the permit technician is now training new employees; that the
increase in building necessitates a Senior Building Inspector position to be
added; that the changes in Engineer reflect skills being offered by the
employees and the change is needed to keep pace with the going market;
that the Procurement Manager will be upgraded to a Department Director;
that it is due to the increase in job duties of taking over contracts; that the
department will now generate all contracts for the City; that a contract
secretary position will be eliminated and a new administrative secretary will
be added; tat the $28,000 currently designed for contractual services will be
used to offset the cost of the admin secretary.
Mayor questioned if the City Clerk would still see all the contracts.
City Manager stated that the Clerk will review all contracts for consistency;
that if the contracts are not agreeable, the contract will be given back to
Procurement for modification.
Councilmember Oden questioned if the new process will shorten the length
of time.
City Manager stated the time of process should be shortened; that all
accountability will rest with Procurement; that the City Attorney is supportive
of the change; that the change should eliminated unnecessary work and will
keep track of where a contract is in the system.
Mayor questioned if there is a threshold amount of a contract to start the
involvement of Procurement.
City Manager stated that the change is to remove the generation of contracts
from Department Heads and free them up to do departmental work.
Councilmember Oden stated that there should be a tracking system set in
place; that with changes, snags may be hit; that a review should be done in
six months to see how the process is going; and that the changes needs to
be more effective is use of the City Attorney’s time.
City Manager stated that at this time, things could potentially stop in 25
different areas; that with the new process, there is only one place a contract
can stop.
Councilmember Oden stated that this would relieve duties from the Clerks’
Office.
City Manager stated that the process would flow better.
City Treasurer stated that the increase in PERS does reflect a change in the
MX/EX no longer paying its PERS; that the City will be picking up the costs;
that with the super status the offset should be a wash in cost; that the health
insurance premiums has increased 15%; that the City does pay #3.1 million
in health insurance premiums per year; that police and fire overtime is an
actual increase of $110,000 over budget; that the fact is the projected costs
for police can in on schedule; that fire has experienced a number of injuries
and the cost is over projection.
Fire Chief stated that the $475,000 projected in the budget was allocated as
a deficit; that the past years the budget has been overrun in overtime costs
as much as 100%; that this year $650,000 will be spent in overtime costs;
that some of the funding will be made up through salary savings; and other
budget savings in the General Fund; that there were many long term
disabilities experience this fiscal year; that with the 17 minimum manning
many position had to be backfilled; and that there is consistency two position
vacant on two shifts.
Councilmember Reller-Spurgin stated that last week the two positions were
addressed.
Councilmember Hodges stated that last year the projections of overtime
were supposed to be realistic; and that this year the projection should be
targeted on what will be really spent.
Councilmember Oden stated that the paramedic project and the downtown
experience probably added to the expenditures.
Fire Chief stated that the paramedic program did add an additional six
positions increasing minimum manning from 15 to 17.
Mayor questioned when the minimum manning actually increased.
Fire Chief stated that in 1997-98 the minimum was 15 that the idea was to
place the emphasis on more on staff less on overtime.
Councilmember Oden questioned the staffing levels for this weekend.
Mayor stated that the weekend includes the white party and Easter.
Police Chief stated that the manning has been bumped up considerably; that
the contractual overtime is at 17 positions; that the white party does pay for
the services.
Fire Chief stated that three additional personnel will be added for the white
party; that the event does reimburse the City for its expenditures; that
emergency medical is also contracted and an ambulance is dedicated at the
site of the event.
Mayor questioned how many events require dedicated ambulances.
Fire Chief stated that only two.
Police Chief stated that the 17 officers contracted will be used down vally for
a concert; and that the City of Indio is the contract officer.
Mayor questioned the maximum capacity of the convention center.
Fire Marshall stated 8 – 10,000.
City Manager referred to page 5 stating that the figure to run the Tennis
Center will be for a full year; that the Desert Highland needs additional
clarification; that there are temporary employees that have worked a number
of years that the bargaining units are starting to question and that the
resolution may be to make the employees permanent.
Councilmember Oden questioned the paramedic needed for SWAT.
Fire Chief stated that the request is to staff a paramedic to the SWAT team;
that protective garments, training, a gun would all be needed; that the
paramedic would be in a safe zone, but able to service the officers if needed.
Councilmember Oden stated that immediate assistance could be needed for
the officers; and questioned if the member would respond to multiagency
calls.
Fire Chief stated that they could, but that pay for the event is not clear from
participation of the all the other agencies.
Police Chief stated that the agencies respond on a mutual aid when
requested; and that all pay for its own personnel.
Councilmember Oden questioned if the paramedic was used for Riverside
County response would the County pay for the costs.
Police Chief stated it would.
Fire Chief stated that the intent of the program is to have a higher level of
medical service at the incident; that the first part of the funding is geared to
training of the paramedic; that the person would need a handgun, safety
equipment and helmets; that there may be grants that could be obtained to
offset the costs.
Councilmember Oden stated the idea is creative and excellent.
Mayor stated that the readiness of both departments is to be commended;
that everyone needs to know where to be in an incident; that it is not clear if
the paramedic would be in a hot zone, but that the training would be needed
to safety of the firefighter.
Councilmember Hodges questioned if the firefighter trainee would be
obligated to the City for a certain term of years.
Fire Chief stated that the firefighter trainee is a conceptual idea at this point,
but that a term could be included.
City Manager stated that the funding requested for the ONI is needed to
offset costs that are being generated with the additional notifications and
staffing related costs.
Director of Planning & Building stated that several years the department has
requested budgeting for a noise ordinance and study; that each year the
cost is deferred; that enforcement of the noise ordinance is difficult until
additional studies are done, that there is a change in the Community; and
that the noise situation needs to be understood.
Councilmember Oden questioned if the suggested changes would be
addressed through compliance measures or studies.
Director of Planning & Building stated that the study is needed to do
readings on weekends to determine ambient levels.
Councilmember Oden stated that the cost related to the study of $20,00 is
lower than anticipated; that the City does need to determine what is
acceptable; that the Council does need to determine its direction; that
originally the thought was that the downtown would be an entertainment
district; that the desired was obtained; but that now it is not clear what the
Council is seeking downtown.
Councilmember Reller-Spurgin stated that the Nature Express is conducting
outdoor music and that is the kind of thing that needs to be discussed.
Director of Planning & Building stated that policy issues are the regulatory
side of permits; that the police department is notified of violations and
address the compliance side of the issues; that we are not encouraging
outdoor music where the doors can not be shut; that the allotment requested
will not address every business in the downtown, but will give us enough
knowledge to move ahead on the noise issues.
Councilmember Oden stated that if the City gives a business a permit to
open, and then cites it for making too much noise; there is a problem; that
we need the parameters to use; that the study is needed to help form the
direction; and questioned if the downtown businesses would participate in
the cost of the study.
Director of Planning & Building stated that the participation has been
requested; and that with the funding allocated by the City a new approach of
participation could be tried.
Councilmember Hodges questioned the status of the downtown task force.
City Manger stated that there has been a hiatus for the meetings since the
parking think tank was started.
Councilmember Hodges questioned if the noise is not a big problem this
year.
City Manager stated that the complaints come in waves; that one downtown
business was cited for a noise violation two weeks ago.
Librarian stated that help is needed to upgrade the computer system at the
library; that a new circulation system is needed; that IT is very busy and can
not always address the problems at the library; that the database needs to
be purged; that the HP3000 is not working as it should; that data is corrupt
and missing; that new terminals are needed and a dedicated IT person
needs to allocated to the library to maintain its now 83 computers; that the
standards for the library are not being met.
Director of Information Technology stated that typically there is one
technician to 40 –80 computers; that the City has two for 250 computers;
that when one calls for assistance it does go to voice mail; that the calls are
responded to as quickly as possible, but that it may not be as quick as
needed; that the funding for one person to be dedicated to the library is
needed.
Councilmember Oden stated that is sounds like more technicians are
needed for the City.
Mayor stated that the renovations for the library are funded from the Trust
Fund; that Measure Y should help offset some costs.
Councilmember Jones stated that there is some confusion here; that the
Director of Finance has projected a $1.6 million deficit and the Council is
considering hiring more people.
City Manager stated that the costs would come full circle.
Librarian stated that the VR University was created 5 ½ years ago; that the
costs were absorbed by grants; that the grants have now ended; that the
Trust Fund and Friends of the Library have been picking up the costs of
running the University; that the program is losing $4,000 per month; the loss
does not include in-kind services provided by library staff; that if the
University is a program that the City wants to continue the General Fund
must now cover the costs; that with the remaining funding the University is
funded till the end of the fiscal year.
Councilmember Reller-Spurgin questioned staff position.
Librarian stated that the program should be discontinued; that it is a big
obligation of staff time and funds; that the return is not there; that now
distance learning through the internet on line is the new way of learning; that
most of the universities that were participating have withdrawn; that the
objectives of the university were met, but that new technology is evolving;
and that the State is placing the emphasis on ESL and family literacy
programs.
Councilmember Reller-Spurgin stated that the program was not a failure; at
the time of inception it was state of art; that the venture has run its course
and it is now time to move in another direction.
Tourism Director stated that an additional $200,000 is being requested; that
the additional funding of $160,000 granted by the Council has been put to
good use and that the expenditures are now showing the benefits; that the
economy is slowing down; that now is not the time to cut expenditures to
tourism; that many promotions have been started; that a new location is
needed for the visitors center; that new photographs of Palm Springs are
being promoted; that tour operators are being brought up to speed on what
to do in Palm Springs; that the outlook is good, but that more is needed; that
all are vying for the tourist dollar; that Palm Springs needs to remain in the
forefront; that Eco-tourism is big; that the canyons are big; that summer
business is needed; that the web site is being enhanced and being utilized;
and that a new reservation system needs to be set up.
Councilmember Oden questioned any new special events.
Tourism Director stated that a Rock & Roll festival is needed; that the
downtown venue is perfect for the setting; that all enjoy rock and roll and
remind people of good times; that this type of music festival would fill the
hotels and increase sales tax revenue; that other proposals such as a Taste
of Palm Springs is being addressed.
Capital Projects
Possible Bond Issue Refinancing; Council Requests for Budget
Explanations, Additions or Changes; Discussion of other Council Priorities
Affecting the Budget.
City Manager stated that the Fire Station renovations need to be addressed;
that it is not clear if the Council desires a new station or continual
expenditures on the old station; that there are many items in the Capital
Improvement budget that need to be addressed; that the projects are related
to the evaluations of hard projects; that traditionally the projects are 10% of
sales tax by Council policy; that improvements are needed at the Village
Green; that some of the projects are augmented with grants; that grants for
the restoration of historic buildings to be used in conjunction with the fire
station are being looked at; that the staff is increasing grant applications.
Mayor stated that $688,880 is based on requests; that it does not take into
account the need for computers; that based on the prior report by the
Librarian new computers will be needed; and that the policy of 10% may not
be applicable.
Councilmember Hodges stated that all could be funded has been; that there
is no additional funding left.
Mayor stated that there might need to be a shift in priorities.
Councilmember Oden stated that it is a valid point for the future; that
depreciation and repairs on infrastructure will increase as time passes.
Director of Finance stated that some infrastructures are addressed through
Gas Tax Measures.
Mayor stated that the parking downtown needs to be addressed; that Arenas
Road between Palm Canyon East and the end of El Segundo allows for bay
parking; that improvements needs to be made with lighting, increased
parking and landscaping.
Councilmember Hodges stated that in fact these same issues were brought
up by her two years ago; and that it is time to address the need.
Mayor stated that the Henry Frank parking lot is in need of revamping.
Assistant City Manager-Operations stated that CVAG is being requested to
increase its match to the City’s shares.
Director of Finance stated that the estimates for TOT are somewhat flat for
the coming year; that next year most are predicting flat to a 3% growth; that
there are possible bond refinancing that the Council could consider; that
interest rates are down; that some of the proposals are straight forward; that
the downtown parking could benefit from the refinance with a parking
structure; that lower payments would be obtained, and that the time for
payments the same length of time.
Councilmember Jones stated that the most logical approach would be to go
for savings in payments.
Director of Finance stated that the revenue received would be placed in the
General Fund; that additional funds could be obtained through grant
matching; that the Convention Center bonds could also be called.
City Manager stated that the Convention Center refinancing was not
included for discussion due to the fact that the proceeds could be used for
the enhancements needed at the Convention Center; and that direction is
sought from the Council.
Mayor stated that the parking think tank is addressing parking issues with
the possible financing from the bond refinancing proceeds.
Director of Finance stated depending on the option that the Council chooses;
that the revenue could be as high as $6.8 million additional for the General
Fund, but that the time would be extended to the year 2026.
Councilmember Hodges questioned if the proceeds are designated for
capital improvements, and if some of the surveys could be funded from the
proceeds.
City Manager stated the studies could be funded; that some of the big
programs such as parking need to be addressed and that the
recommendation is that the Council addresses the larger projects.
Councilmember Jones stated that the refinancing would save the General
Fund $291,000 a year.
Wrap Up (Council Comments/Questions/Requests)
Councilmember Oden stated that a tope needs to be revisited regarding
workshops; that while this particular workshop was appreciated with all who
participated with the additional information; six years ago the Council did
hold a workshop; that direction was set; that the Council has changed during
that time; that while the Council has tried to maintain a sense of direction, it
is not coming together; that six years ago the Council decided that the
downtown was to be an entertainment district; that now the direction has
changed; it seems that the Council lacks direction; that all are not on the
same plate; that the Council needs to regain the direction and focus; that the
Council had decided that a new tax base needed generation so that the
dependence on tourism would not be as strong; that there have been some
issues that the Council could have addressed to face the change; that it is
difficult for staff and the departments to move forward when there is a lack of
understanding of what the Council’s direction is and suggested that a
workshop to define Council direction be scheduled.
Councilmember Hodges concurred.
Councilmember Oden stated that it is good that the neighborhood
involvement has started, but that the group was not to be advisory to the
Council, but a forum to allow the neighborhood to know what is going on;
that now the Council is hearing from the groups “do this or else”; that the
Council is being told what to do and how to do it; that while input is
important, the Councilmembers were elected to do a job, and that now is the
time to set direction and policy so that the Council can proceed forward on a
united basis.
Councilmember Jones stated that the concept is agreeable and reminded
the Council that he had written a letter to the members last June addressing
that Council direction was needed.
Mayor stated that time has been spent on the budget, but that the direction
workshop is needed.
Council member Jones stated that the $1.6 million needs to be addressed.
City Manager stated that while revenues are uncertain; that it is clear that
one direction is to cut personnel, but not cut services; that the staff needs to
do more with less; and work smarter; that early retirement plans, across the
board cuts, that a change in the retirement system will all be addressed
during the next fiscal year; that during that time structural changes in the
organization will likewise be addressed; that government is labor intensive;
and that next year measures will be addressed.
Councilmember Jones sated that the staff needs to react strongly to the
deficit; that the revenues will be down the next two years; that reaction
needs to take place before the problem hits, not after; and that plans need to
be made for the worse case scenario.
Mayor stated that the issues needs to be resolved by the Council, not the
City Manager; that when the Council looks at the numbers for the next two
years it will be a balancing act; that the workshop proposed by
Councilmember Oden will help to set the direction needed and give the
Council a clear idea where it needs to go.
Councilmember Jones stated that when labor negotiations were going on, he
asked how the Council intended to pay for the increases; that consistently he
was told by staff that all was ok and would be taken care of; that now it is not
ok; that now the Council has to pay for the increases; and that he does feel
mislead by staff saying the funds would be available.
Director of Finance stated that the increase in energy costs of over $1 million
were not anticipated, nor was the County recalculations in property taxes;
and that if those had not occurred, the budget would be balanced.
Consensus of Council to hold a workshop on April 24, 2001 at 5 p.m., at the
Hyatt Conference Room.
ADJOURN