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HomeMy WebLinkAbout6/20/1988 - MINUTES MINUTES OF CITY COUNCIL MINUTES AND OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS JUNE 20, 1988 An Adjourned Regular Meeting of the City Council and of the Community Redevelopment Agency, of the City of Palm Springs, California, was called to order by Mayor/Chairman Bono, in the Council Chamber, 3200 Tahquitz-McCallum Way, on Monday, June 20, 1988, at 8 a.m. ROLL CALL: Present: Council/ Agency Members Broich, Foster, Neel and Mayor Bono Absent: Council/Agency Member Apfelbaum REPORT OF POSTING OF AGENDA: Report of City Clerk: The agenda was posted in accordance with Council policy on Friday, June 17, 1988. PUBLIC COMMENTS: a) Jeremy Crocker stated that taxation is destructive no matter how it is applied, and recommended "plugging the leaks. " He stated that redevelopment has drawn $3.9 million which otherwise would have gone for General Fund purposes; that redevelopment funds have been wasted, i .e. , on the auto park, the Palm Canyon Plaza Hotel , and the Renaissance Hotel ; that if redevelopment funding is shrunk, more money will be available for municipal functions; that he questioned why SENCA should be required as an intermediary for development (East Area) when private ownership is ready to develop it, including street improvements, and for which $125,000 could be saved; that the Blue Ribbon Budget (61) Committee recommended 10% cuts and 90% increases, and he felt only the citizens can decide where cuts will be made; and that public officials and elected officials will not make the cuts, because of the electoral process. LEGISLATIVE ACTION: 1. 1988-89 BUDGET Consideration of documentation to adopt the budget for 1988-89, and other actions related thereto. City Manager reported that the budget includes items shown on the recon- ciliation sheet, as follow-up to items discussed at the budget work session. CRA Budget: Resolution 539 approving a budget for the Community Redevelopment Agency of $4,208,966, was presented; after which, it was moved by Foster, seconded by Broich, and unanimously carried, Apfelbaum absent, that Resolution 539 be adopted. Director of Finance recommended that the amount of unappro- priated fund balances be appropriated into reserves, which will bring the City up to, but will not exceed, its appro- priation limit for 1987-88; that the specific amount will be determined following the close of the books for 1987-88; (61) and that the amount is estimated at $28,806,517, but only the amount of the unappropriated funds will be reserved. Council Minutes 9 6-20-88 Page 2 1. 1988-89 BUDGET (Continued) Resolution 540 approving the reservation of unappropriated fund balances, as recommended, wus presented; after which, Foster, seconded by Broich, and unanimously carried, Apfelbaum absent, that Resolution 540 be adopted. I Mayor stated that a lot of mail is received from people who feel it is inequitable for the City to fund the CVB without other cities contributing to its funding; that comments were to have been received from the other cities by July 23, and thus far only Cathedral City has responded, indicating that it is not interested in participating in the CVB, and is not interested in parity, or part of parity; that none of the other cities have responded; that if the City takes it on alone, then it will be neces- sary to reexamine the funding, and the whole package; that he questions the need For 34 employees, or the size of the CVB if it is only focusing on 7,000 rooms; and that he suggested the Council appropriate $200,000 on an interim basis until the answers are received from the other cities. He stated that there needs to be a coordi- nated effort of the new events and happenings that are coming along, and everyone will need to work in unison to bring the kind of revenue to Palm Springs That these events can bring. Councilmember Broich agreed with the Mayor's comments. Councilmember Foster stated that the possibility of doing I so was discussed during the budget session, and it was recognized that the CVB is in a state of flux, and changes might be made when the other cities responded; that the CVB is not aware of the possibility of short-funding, and he would prefer meeting with them to determine if the amount is adequate, or if specific items would suffer as a result; and that he agreed with the concept, but did not wish to be arbitrary in setting the amount. Mayor stated that if there are special circumstances, the Council should be open to additional funding, and the CVB could come to the Council and indicate what those are. Councilmember Broich stated if the CVB comes back solely to Palm Springs, the Council will have more control over the board, and it will be necessary to redo the budget. Councilmember Neel stated that it will appear as if the Council is pulling out the rug from under the CVB, and send a message which is not intended; and that he preferred to give them the time that was granted, and then consider cuts if they do not come through. Councilmember Broich stated that it should be clear that I the intent is not to pull the rug out, but that only a limited funding would be provided until the responses are given, and if reorganization is necessary. Mayor stated that at a minimum, communications should have started, and he respected Cathedral City for expressing its position; that the flow of the CVB is being controlled by Frank Oliphant, and since the direction is set by the Council , if he wants something, he should come to the Council ; and that the Council is open to discussing the contribution situation. Council Minutes 6-20-88, Page 3 1. 1988-89 BUDGET (Continued) Councilmember Foster stated that he agreed on the termina- tion of the consolidation, if the City is to be the only funding source, but had a problem of jerking the rug out; that the CVB has had no opportunity to talk about short- funding ; and that the Council said it would reorganize if the other cities did not want to participate, and make funding changes. In answer to question by Council , City Manger stated that the CVB probably would like to have the Council make an early decision, perhaps by July 5, to assure that sufficient funding is provided for July operations. Mayor stated that he would not mind leaving the budget as proposed, as long as the Council has the ability to reevaluate it if the down valley cities do not join in. Councilmember Foster stated that he agreed, and thought the CVB knew that if it does not happen:, the budget will be reconsidered.' Councilmember Broich pointed out the concern of (Main Street to funding the Chamber of Commerce, because it ;sends money down valley to other merchants. City Manager stated that there is no legal problem, as long as there is a properly executed contract with the Chamber. Mayor stated that people need to give the Council a chance to turn things around; that the City has provided funds to the Chamber for years ; and that it would be a different issue if it did ,not perform its contract. Councilmember Foster stated that if they have problems , they should discuss the membership issue with the Chamber, since it allows merchants from other areas to join; and that he considered the money it receives from the City as well spent on helping people who come here. Resolution 16502, appropriating unappropriated fund balances into reserves from 1987-88 into 1988-89; Resolution 16503, establishing appropriations limit; and Resolution 16504, (061) adopting the budget as recomuended, including reconciliation items , was presented; after which, it was moved by Foster, seconded by Broich, and unanimously carried, Apfelbaum absent, that Resolution 16502, 16503 and 16504 be adopted, subject to understanding that the allocation for the CVB will be subject to reconsideration if the down valley cities do not participate in its funding. City Manager reported that the Allocated Positions & Compensation Plans reflect salary increases consistent with memoranda of understanding with the employee units. Resolution 16505 adopting the Allocated Positions and Compensation Plans for 1988-89 was presented; after which, it was moved by Foster, seconded by Broich, and unanimously -carried, Apfelbaum absent, that Resolution 116505 be adopted. Risk Manager highlighted recommendation for insurance rates and City contribution for employee medical , dental , long and short term liability coverages for 1988-89. Council Minutes 0 911 6-20-88 Page 4 1. 1988-89 BUDGET (Continued) Resolution 16506 was presented; after which, it was moved (110) by Broich, seconded by Foster, and unanimously carried, Apfelbaum absent, that Resolution 16506 be adopted. ADJOURNMENT There being no further business, Mayor declared the meeting adjourned to Tuesday, July 5, 1988, at 7:30 petit. , in the Council Chamber. --- 'JUDITH SUMICH City Clerk