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HomeMy WebLinkAbout1990 - MINUTES - 6/26/1990 r� c CITY OF PALM SPRINGS CITY COUNCIL MINUTES JUNE 26, 1990 An Adjourned Regular Meeting of the City Council was called to order by Mayor Bono in the Council Chamber, 3200 Tahquitz-McCallum Way, on Wednesday, June 26, 1990, at 2 p.m. ROLL CALL: Present: Councilmembers Broich, Hodges, Murawski , Neel and Mayor Bono Absent: None (Note: Council recessed for dinner at 7 p.m. , after which, Councilmember Neel was absent) REPORT OF POSTING OF AGENDA: Report of City Clerk: Agenda posted in accordance with Council policy on June 22, 1990. CLOSED SESSION: Mayor declared the meeting adjourned to a Closed Session, legal and personnel ; after which, members reconvened at 2:40 p.m. PUBLIC COMMENTS: None LEGISLATIVE ACTION: 1. 1990-91 BUDGET Councilmember Broich stated that he was not aware of any plan by three members of the Council to decide how to cut the budget; that he was not a party to such, and that it would be a violation of the Brown Act to do so; that he will not be a party to any back room deals; that he wants to review the budget line-by-line, and would be satisfied to cut $1.7 million, but would prefer to cut $2 million. Councilmember Murawski stated that he appreciated, in particular, the information which Mr. Howard Lapham had provided; that the previous Councils did not understand restructuring of spending to increase or improve the delivery of services, which is what he would like to do; and that his goal is to arrive at a budget that will work well for the community, and he hoped the Council would achieve the $1.7 million cut at this time. Councilmember Hodges stated that she favored cutting the $1.7 million. Acting City Manager stated that the staff would also like to complete the budget, and are prepared to work with the Council to do so; and noted that while there is a deficit, the City is not broke. Mayor stated that he hoped the affect of what the Council has been attempting to do in generating revenues will be considered, and personnel needs from a standpoint of remaining entrepreneurial and creative will be considered; that the budget must be balanced, and a reserve available; that tourism is a billion dollar business, and the City is a bureaucracy as well as a corporation in an industry, which places a burden to produce cash flows; and that if the cuts proposed pose a liability, the staff should point that out. - - ry %>, Council Minutes 6-26-90 Page 2 1. 1990-91 BUDGET (Continued) The City Council proceeded to review the budget department- by-department, and division-by-division; staff members reviewed their respective allocations, pointed out possible areas for cuts, the impacts of those, and responded to questions for clarification by the Council . A summary of the changes is on file in the Office of the City Clerk, and the estimated total cut given at the meeting was $2,062,912; the actual figure, after refinement was $1,997,736. The following reflects general subject matter, broader directions:, discussion, and comments. Vehicle Mileage Reimbursement; It, was the consensus of the Council to reduce car allowance from 29¢ per mile to the 25� per mile permitted by the IRS; and that staff review and report on the use of car pools, in-lieu of monthly car allowances. Public Arts Commission Support; Commission directed to explore a volunteer program to provide the administrative support it needs; Community Development Secretary to continue providing minutes/agendas; Commission to resubmit request if volunteer program is unworkable. Printed Materials: In-house printing should be on back-to- back pages, as much as possible; and limit the number of items using bindings and special covers. Museum Curator: Convert from contract employee to regular employee; Historical Society reimburses salary and one-half of benefits. MAYOR DECLARED A DINNER RECESS, AND THE COUNCIL RECONVENED AT 8 p.m. Councilmember Neel was thereafter absent. Fire Cadet Program: Delay consideration for one year. Chamber of Commerce Memberships: General policy that staff memberships are not paid for by the City. Traffic Signal Left-turn Modifications: Provide information to Council regarding any further changes. Golf Course: Recommendation will be forthcoming on increased user rates; second golf course expected within the next year; cash flow will be needed until play on both courses can be brought up. Deficit: In answer to question by Council , Director of Finance reported that the auditors look closely, and question how the deficit will be made up; that the expected revenue projections have not been met, which were conserva- tive, and either a transfer from reserves or an increase in rates has to be made; that the same performance is expected for the next year, which is why the transfer was originally recommended; and that the auditors will not approve allowing the deficit to remain unfunded. Councilmember Murawski stated that at some point, the voters may need to decide that if some of the services are wanted, revenues will have to be provided; that the cuts are not necessarily a forever situation, rather if the goals to restore vitality and revenue can be accomplished, many of these can be considered to be restored; and that he will work toward achieving those goals. Council Minutes 6-26• 90 Page 3 1. 1990-91 BUDGET (Continued) Mayor stated that he questioned the validity of simply asking for a 10% cut from every department, without taking into account the needs of each department and recognizing different values and functions of each; that an across-the- board blanket approach will push some departments into a liability position; and that he challenged that course of action to balance the budget. Councilmember Broich stated that the City must have a balanced budget, and it cannot spend surplus funds, which is not good business, and at some point the Council must say, "No"; that he did not like cutting jobs; that he thinks the City is overstaffed; and that the Council must bite the bullet. Chamber of Commerce: Councilmember Broich stated that he would not vote to fund the Chamber's request until he has seen the proposed bylaw and policy statement changes in writing, which he felt had been agreed upon in the meeting with the Chamber, him, and Councilmember Murawski as a subcommittee of the Council ; that he was not in favor of leaving the funds in the budget until that happened; and that he felt they had met in good faith. Councilmember Murawski stated that the Chamber was to have provided the Council with a letter of understanding, as a result of their meeting; that the Chamber's news release was only just that, and the exact document to follow would be more detailed; and that he favored not cutting the funding, rather not approving any expenditure until the bylaw and policy statement changes are submitted in writing, and agreed to by the Council . Nolph Arnhym stated that the Chamber has put the recommended changes in place, and sent a letter asking if that was agreeable, and that additional documents would be finalized; that if the Council agreed with the Chamber' s statement, the draft can be finalized. It was the consensus of the Council that the allocation would remain in the budget at this time, that no expenditure will be made until the Council reviews and agrees to changes in the Chamber's bylaws and policy statements. Executive, Management, Supervisory & Professional Salaries: No increases across-the-board; reclassifications to remain in the budget, unless otherwise cut, City Manager to later explain how those are reflected throughout the budget. It was moved by Broich, and seconded by Murawski , to adopt the budget with changes and deletions. Mayor stated that he was somewhat in confusion about the structure of the budget cuts; that other members seem to have data from the fire association that he did not have; that he felt left out of something that should not have happened in the first place, and did not feel privy to it; that he did not feel he had a position of leadership in this issue, and perhaps some areas of protocol may have been bypassed; and that for those reasons, he would vote against the motion. Council Minutes 6-26-90 Page 4 1. 1990-91 BUDGET (Continued) Councilmember Broich stated that the data from the association was of individual salaries; that: he did what he said he would do, which was to go line-by-line, and approve a balanced budget; that he was not happy with all of the cuts that were made, but they needed to be done; that he had no prior discussion with any of the Councilmembers; and that he did what he felt he had to do. Mayor stated that he has not had any communication as to the how, what, where, or why concerning the approach to the budget, other than the statement on the previous Tuesday that the budget was going to be cut, and the deficit eliminated; that when the Council , as a body, acts on something as important as this, there should be communication, goals, and structure behind those actions; that he did not Feel he had any leadership in this in any way; that he favored budget cuts, and that they should have been done, but not necessarily in this form; that if there had been discussion whether to do it in this manner, he would have said he did not agree; and that because that discussion did not happen, there is confusion, and he was not comfortable voting for approval ,. Councilmember Murawski stated that he spent two weeks doing homework on the budget; that he hall no meetings with other Councilmembers; that he came with the position that the Council was going to balance the budget line-by- line; that he does not think one member has mnore authority than another; and that in the review process In some cases, members out voted each other, which is part of the process. Above motion by Broich, seconded by Murawski , carried by the following vote: AYES: Broich, Hodges & Murawski NO: Bono ABSENT: Neel ADJOURNMENT There being no further business, Mayor declared the meeting adjourned to a Closed Session, personnel ; after which the meeting was adjourned to Saturday, June 29, 1990, at 8 a.m. , at Jimsair on Gene Autry Trail , for the purpose of team building and communication. JUDITH SUMICH City Clerk