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HomeMy WebLinkAbout1992 - MINUTES - 10/7/1992CITY OF PALM SPRINGS CITY COUNCIL MINUTES OCTOBER 7, 1992 A Regular Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor Maryanov, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, October 7, 1992, at 7:30 p.m. ROLL CALL: Present: Councilmembers Hodges, Lyons, Reller, Schlendorf, and Mayor Maryanov Absent: None The meeting was opened with the salute to the Flag and an invocation by Reverend LaVeta Dillman, Chapel on the Way. REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on October 2, 1992. PRESENTATIONS: Mayor read and presented a Certificate of Achievement for Excellence in Financial Reporting, from the Governmental Finance Officer Associations; and Certificate of Award in Financial Reporting, from the California Society of Municipal Finance Officers Association, which was accepted on behalf of the City by Nancy Klukan, Accountant and Ronald Everett, Accounting Manager. COMMUNITY REDEVELOPMENT AGENCY: No business HOUSING AUTHORITY, FINANCE AUTHORITY, AND IDA - No Business APPROVAL OF MINUTES: It was moved by Lyons, seconded by Schlendorf, and unanimously carried, that the Minutes of August 12, September 2, 16, 22 and 25, 1992, be approved. PUBLIC HEARINGS: 1. DBID ANNUAL LEVY, 1992-93 On September 25, the Council declared intent to levy annual assessments for 1992-93 in the DBID, and set this as time for hearing; staff recommends that action be continued to October 27, in order to tabulate protests. Director of Finance recommended that the Council continue action to October 27, in order to compute protests. In response to question by Council, he stated that a 50% plus $1 protest would result in precluding any levy for the current fiscal year, otherwise it is discretionary with the Council to either proceed with the levy, or to not levy. NCouncilmember. Lyons stated that he considered unpaid assessments test is filed or not, and roasked that whetheran be afactored ctual r� into any q� protests for the proposed assessment. " dLih�uz (074- 001) (133- Ov) Council Minutes 10-7-92 Page 2 1. DBID (Continued) Director of Finance stated that some factor could be accommodated; that a listing of the assessments, and identification of who protested, and be developed; and that the basis for the protests is calculated on the amount of the assessment, not the number of businesses, which is required by State Law. Mayor declared the hearing opened. The following persons spoke in favor of the DBID: Dan Johnson, 801 E. Tahquitz Canyon, noting that it provides a vehicle to raise funds for promotion which could not otherwise be raised; that with Main Street restructuring proposal, it is an opportunity for the City, DBID, and the merchants to coordinate efforts in a way that has not been done in the past; and that the coming year offers promotional opportunities greater than ever. Glenn Dennis, member of the D13ID Board„ presented letters withdrawing protests. Ralph Rhea, member of the DBID Board, stated that opposition to the district was foregone conclusion when the district was first formed; that many feel it has not achieved what it was originally intended to achieve; that he still believes in the concept, however, the district is too large and needs to be scaled back to something smaller, and a reevaluation of its purpose, with a new agenda for the new year. John Connell, 270 N. Palm Canyon, stated that he did not see the protests as divisive, rather an opportunity to create change; that the assessment is only 24t per day for his business, which he could riot otherwise buy advertising; that he has not heard any alternative suggestions; that if the district is dissolved, there will not be anyone to speak for him to the Council, since he has a small business and cannot attend meetings; and that perhaps it needs to be restructured, but it should not be dissolved. Doug Keith, 300 Block North Palm Canyon, stated that he would like the protest energy directed toward helping downtown; that he favors the concept, but opposes the economics of it, in that it is very costly to run; that he would like someone to come up with ideas of how to help downtown; that there needs to be a vehicle to get positive action moving forward, and it is up to the Council to give direction. Fred Ebeling, 2460 Tuscan, stated that there should be a 2/3 vote to levy the assessment; that people who are not raising the money should not be the ones to decide how to spent it; that cooperative groups should be formed; and that businesses should run their own affairs. The following persons spoke in opposition to the DBID: Sheldon Bell, P.S. Retirement Investment Corporation, particularly, the category of his business, its removed location from downtown, and lack of advertising that would be beneficial to his type of business. Council Minutes 10-7-92 Page 3 9391 1. DBID (Continued) Marsha Craig, 22 The Plaza, submitted a listing of persons who filed a protest, and read some of the comments contained therein, opposing the district blaming the DBID itself for many problems, wasting funds, using assessment revenue to "protest the protests", expenditure of other business funds for advertising in addition to the assessment, and dividing of the business community. Patrick Duffy, 302 E. Arenas, stated that he considered it ill-conceived, that he has not paid it for four years, and that the Council is in control of the City and can override the formula to calculate the protests. Betty Kemp, Consultant, 210 Amado Center, agreed with some of Mr. Duffy's comments, and added that the DBID does not have the support of the majority of the businesses, regardless of the amount of the assessment; that protestors have been maligned as to their reason for protesting; that the program as constructed and administered has a high overhead, duplicates other efforts; and that many areas should be covered by the tourist bureaus, chamber of commerce, or other autonomous merchant: groups; and urged that the protests and needs of the businesses be honored. Esther Youngerman, 444 S. Indian Canyon, stated that the DBID used assessment funds to send out a letter "protesting the protests" and crediting the DBID with successes that the City actually sponsored; that the resolution of intent cites reasons for the district which she considered too depressing to ever consider; that the area is not deprived, but felt it will be if the DBID continues. Bill Short, 123 N. Palm Canyon, stated that the DBID lacks an action or marketing plan with key result areas; that there are 489 businesses in the DBID of which 298 have filed protests, equalling about 54% of the amount of the assessment; that P.S. Life Magazine shows that the sales tax has consistently decreased over the past four years; and that he accused the Mayor of sending a letter to the major hotels asking them to withdraw their protests. Mel Haber, 200 W. Ramon Road, stated opinion that nothing positive has come out of the DBID; that it is being forced on the merchants; that it should be a decision of the community, and not the Council; that he considered the DBID inefficient and ineffective; and that it was given an opportunity, but has not been proven successful. Becky Molatora, new restaurateur, 356 S. Indian Canyon, stated that she has made her business a success without the City or the DBID; and that she did not think it has helped at all. Joan Gattuso, 119 S. Indian Canyon, stated that a letter has circulated regarding a meeting between the large hotels and the Mayor; that Mr. Roulette of the Marquis implied that the Mayor is looking to do away with the DBID in the next year; that his withdrawal equals $2,000; that Mr. Schmidt withdrew his appeal equalling another $2,000, and stated that it was at the request of the Mayor. She asked that the Mayor abstain because he is within the District, a landowner, and has many clients in the district; that 260 merchants opposed the District six months ago; that although the number of businesses has decreased since 1989, the protests have not faltered; that the protesters 0.i r Council Minutes 10-7-92 Page 4 1. DBID (Continued) have only two weeks to collect protests; that the DBID uses its money to protest the protests; that all retractions should be verified; that using figures of several months ago, it takes 239 protests of $90 each to equal that of 14 of the large assessments, i.e., major hotels, who are represented by salaried employees. Pauline Smith, 278 N. Palm Canyon, stated that: $90 is not a lot of money, but she preferred to choose how to spend it. Charles Roulette, Marquis Hotel, stated that he has been very outspoken against the DBID; that he has changed his viewpoint; that he spoke with each candidate running for office in April, that reforms were promised; that he hoped that everyone would recognize that solutions will come; and that he believed those new solutions would surface with the new Council leadership. In answer to question by the Mayor, City Attorney stated that the question was posed to the Fair Political Practices Commission whether the Mayor had a conflict of interest, which it analyzed on the basis of location of the business, subject to the assessment, and concluded that there was not a violation of any of the provisions of the Political Reform Act, and that he has a letter from the FPPC which anyone may get a copy. Councilmember Lyons stated that the DBID issue has divided the business community at a time when it particularly needed to come together; that if ithad demonstrated verifiable result, there would not have been this big of a protest; that the list of successes for the DBID is dubious; that the concept of a district is not bad, and it works in other places; that large-scale marketing and advertising is in place, which also covers the downtown; that there should be a group which covers downtown and deals with events and promotions, in a way different from the VPB or the CVB; that absent landowners with vacant stores should also be assessed; and that until all of the issues are clear,, the assessments should stop. In answer to question by Council, City Attorney stated that the Council can determine not to levy the assessments, without tabulating the protests; and that further review of the statute is needed to determine if an affirmative action is required to dissolve the district, or if not levying the assessment is tantamount to dissolution. Discussion followed whether the protests should be tabulated, in which Mrs. Gattuso affirmed that a basis for determining the base for protests had been agreed upon; and it was the consensus that the protests should be tabulated, however, the Mayor felt the tabulation should occur prior to taking action to either not impose the assessment, or dissolve the district. Councilmember Hodges stated that each year the protest has always been very close; that there has not been any progress, and she felt it was time to move forward, and reassess what is being done, and suggested that if a formal vote is required to dissolve the district, that it be considered after six months, during which, any efforts to work out a resolution to the issues could be addressed. 0393 Council Minutes 10-7-92 Page 5 1. DBID (Continued) Mayor stated that he would not vote until the tabulation is completed; that he felt there was very little doubt that if action were continued for two weeks to calculate the protest, that the vote would be against the district regardless of the protest, however, the Council has not heard from the entire district, only a few businesses represented in the audience; that he would be out of the country and not available for the next meeting, and it was not his intent to campaign for the assessment during the interim; and that the Council could further continue action at that time to October 27, when he would return; that once it is voted down, it will not be revisited, at least for many years; and that he believed the structure needs to change. Councilmember Schlendorf stated that there has been nothing but controversy over this issue; that the district tried hard to make it work, but it has not succeeded; that many businesses are saying that it is not good for them; that the system is not working; that she would like to give an opportunity to change it; and that those who have wanted it are frustrated in trying to make it work. It was moved by Hodges, seconded by Schlendorf, and carried by the following vote, that no assessment be levied for 1992-93, and that the Director of Finance proceed with tabulation of the results, with report back as to its affect on continuation and/or dissolution of the district: AYES: Hodges, Lyons, Reller & Schlendorf NO: Maryanov ABSENT: None 2. LAND USE PERMIT - ART AUCTION Consideration of appeal to review Planning Commission action of September 9, to allow art auction at the Marquis Hotel on November 19 and 20, 1992. Director of Planning & Zoning reviewed his report, noting that the art is original work, and very different from the "truckload" sales that have been of concern recently; (III - and that if this type is not allowed, it may be difficult 002-) to allow the vintage auto auction associated with the road races; and that the staff recommended approval, along with the Planning Commission. Councilmember Schlendorf stated that she appreciated the sales tax that the City will receive, and asked if a mutual arrangement could be worked out through the Gallery Association President, to avoid work of artists carried by local galleries, i.e., she noted from the auction catalogue that it would be Chagall. Councilmember Lyons stated that he did not think there would be undue competition, since artists have multiple works, and people's preferences are different. Councilmember Reller stated that she was riot in favor of jewelers or furriers, for example, renting rooms in hotels for weekend sales, competing with merchants who remain in business here all year, however, the Code allows onetime events every three months, and if the Council does not favor this idea, the ordinance should be changed. Council Minutes 10-7-92 Page 6 2. LAND USE PERMIT (Continued) Mayor declared the hearing open; there were no appearances, and the hearing was closed. Councilmember Hodges staled that she called for the appeal based on the Planning Commission minutes which did not discern whether• this was an auction or a "pirate sale"; that she did not have a problem with the type of auction proposed; and asked that staff pursue the possibility of establishing a land use permit fee for such applications. Mayor stated that he would also like to review the "pirate" sales, including the bringing in for quick sale "brand name copy" merchandise sold at deep discounts. Resolution 17956 approving Planning Commission action, was presented; after which, it was moved by Reller, seconded by Lyons, and unanimously carried, that R17956 be adopted. PUBLIC HEARINGS: 3. ZONE CHANGE - DOWNTOWN PARKING COMBINING ZONE Recommendation: That the Council approve a change of zone to add a new Downtown Parking Combining Zone (D-Zone) to properties 'in the downtown currently zoned CBD, C-1, C-1AA, C-2, R-2, R-3 and 0. Director of Planning & Zoning reviewed his report, and noted that the zoning is consistent with recent action to amend the Zoning Text, making it easier for new businesses to open; and that there were no objections raised at the Planning Commission by anyone within the district boundary. In answer to question by Council, he stated that the revised standards have virtually eliminated any need for in -lieu parking for any existing storefronts. Mayor declared the hearing open; there being no appearances, the hearing was closed. Councilmember Schlendorf pointed out that the changes along with the zone designation, a.re steps toward recognition by the City and the community to meeting requirements to reduce air pollution, and noted that people may be doing more walking. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING CASE 5.0616-CZ, A CHANGE OF ZONE TO ADD THE "D" DOWNTOWN PARKING COMBINING ZONE TO THE EXISTING ZONES IN THE DOWNTOWN AREA. It was moved by Reller, seconded by Lyons, and unanimously carried, that further reading be waived, and that the Ordinance be introduced for first reading. 4. TRACT 27507 - TENTATIVE MAP Recommendation: That the Council approve tentative tract map for apartment conversion to condominiums on the NW corner of Vista Chino and Avenida Caballeros, James Slatton, R-2, Section 2. 039- Council Minutes 10-7-92 Page 7 TM 27507 (Continued) Director of Planning & Zoning reviewed his report, noting that the condition of covered parking for 46 spaces will be pursued through Architectural Review, and is required prior to approval of the final map; that a variety of incentives are being explored to retain housing affordability; and that the applicant will deal with one purchaser who acquired a unit after the 60-day required rfy notice. d93) Mayor declared the hearing open; there being no appearances, the hearing was closed. In answer to question by Council, Acting Director of Economic Development reported that the eleven units committed to affordable housing will remain so for the life of the use of the property, or until the structure is demolished. City Attorney suggested that approval be conditioned upon language developed in the CCRs relating to the affordable housing units. Resolution 17957 as recommended, was presented; after which, it was moved by Hodges, seconded by Reller, and unanimously carried, that R17957 be adopted. PUBLIC COMMENTS: a) Comments Concerning Item 5. Gary Bosworth, Box 3066, Palm Springs, provided copies of the human rights ordinance in Chicago, to illustrate his point that "source of income" should be included in the "discrimination" definition of the ordinance. He stated that the task force had included in the category in its recommendation. He stated that without (060- it, discrimination will be allowed against disabled 027) who typically are unemployed or have low incomes. He expressed opinion that the Chicago ordinance addresses any concern related to illegal income. Tony Aguilar, 1975 Mark Leslie, stated that he is not an applicant for the commission, however, strongly supported the task force recommendation for the commission to have subpena power in order to deal with the more difficult situations; and hoped that as the Commission convenes, it will become apparent that it will work better if it has that authority. b) Comments re Item 8: Miles Barrett, 1725 Tuscan Road, Education Chair for the Chamber of Commerce and member of the Citizens Committee for Schools, urged that the Council support (098- passage of Prop. P on the November ballot, noting 001) that the District is growing at the rate of two elementary schools per year, that some of the facilities have buildings dating back to World War II, and that funds raised through the measure remain in this area. .0 V Council Minutes 10-7-92 Page 8 c) Comments re Item 9A: Rick Cadigan, Palm Springs, resident and firefighter, spoke in favor of the Council imposing a utility tax, and expressed his opinion that only people who benefited from Prop. 13 would complain; that he estimated his (061 cost of a 3% tax would mean $100 per year; and that 014 as a single -income family of four making $30,000 per year, he felt it was easily affordable. He stated that he did not think such a tax would pass if placed on a ballot, because he did not think the public generally understood the problems associated with the current level, 2-man engine company, of the Fire Department, and the demand for mutual assistance for standby whenever an emergency is responded to. d) The following persons spoke on other matters not related to an agenda item: Sue Cote, 2820 Tahquitz Canyon, stated that she did not see where the curb cut was located at Indian and Arenas, fell off the curb in her wheelchair, and was insulted by the responding police officer who referred to her as a child; and that the City needs to start fixing its sidewalks, and training police that the disabled are not children who need permission to go outside. Mayor asked City Manager to follow-up. George Goldberg, expressed opinion that the meeting with the Rent Review Commission, which was riot held due to a lack of quorum, was not: posted correctly and was a Brown Act violation; that the Council should not hold meetings at the Airport, because there is no public parking; that if the City wished to balance its budget, it should layoff police officers, and train firefighters to respond to traffic and calls for police service not requiring a firearm. Karen Aguilar, 1975 Mark Leslie, asked that the Council give a high priority to the need of the P.S. Youth Center air conditioning, and in its celebration of its 50th anniversary. Mayor noted that the City Manager has been asked to follow-up. Linda Cooper Lee read a portion of a statement she previously read concerning the good works of an unnamed local citizen. Fred Ebeling asked about the Mayor's campaign promise for an ombudsman; and urged no utility tax. Mayor noted that since taking office, all calls have been responded to the same day, some necessitating additional follow-up; and that there may have been some confusion as to what an ombudsman can do, i.e., limited to answering concerns about city government. Council Minuts 10-7-92 Page 9 5. MUNICIPAL CODE AMENDMENT - HUMAN RIGHTS COMMISSION Recommendation: That the Council amend the Municipal Code to add Chapter 2.45 to establish a 9-member Human Rights Commission. City Manager noted that the proposed ordinance is a result of the task forte's efforts, and the City Attorney finalizing the draft; and that the Personnel Director was available to respond to questions. In answer to question by Council whether "legal source of income" could be added to the Ordinance, Personnel Director reported that the task force intent was to protect welfare recipients from discrimination. City Attorney stated that the source of income provision was not included in the draft at the point he became involved, and he was not aware of the Chicago ordinance provisions; that the desire to prohibit discrimination because a person receives support or welfare may be addressed, however, there are times when credit references or economic researches are relevant to some types of employment; that he was concerned the category may be overly broad, without some review on his part; that the Council could introduce the ordinance and direct him to review the matter, with possibility that the ordinance be revised and reintroduced, or it could revise the ordinance to include such language at this time, with direction that if necessary it be revised and reintroduced at the next meeting. Councilmember Hodges stated that she did not have a problem with adding source of income, and if it needed to be deleted, a revised ordinance could be introduced on second reading. Mayor concurred, and added that the City Attorney should complete his review before the second reading. Councilmember Schlendorf stated that the ordinance is a positive step forward, and it is up to the commission to make recommendations as to how it might be made better; that she was a little concerned that the Commission maybe frustrated in attempting to deal with situations where disagreements were involved, but did not go to the justice system, and would like a firm commitment that the Council will support the Commission if it feels changes are needed. Mayor stated that he would like to move forward slowly as this is a fragile area, and he would be willing to listen to any changes that the Commission might recommend. Councilmember Hodges suggested that the Council meet with the Commission after it is established for six months, and perhaps on a regular basis until any procedural issues are worked through. City Clerk read title of the Ordinance, as follows: AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING TITLE 2 OF THE PALM SPRINGS MUNICIPAL CODE BY ADDING THERETO CHAPTER 2.45 TO ESTABLISH A HUMAN RIGHTS COMMISSION. It was moved by Hodges, seconded by Reller, and unanimously carried, that further reading be waived, that the ordinance be revised to include "source of income", and that the Ordinance, as revised, be introduced for first reading; City Attorney to review implications, and provide recommendation if necessary to revise the ordinance. (06r. 021) l 1 . b •11,,0 Council Minutes 10-7-92 Page 10 GOLF COURSE EXPANSION - ENGINEERING SERVICES CONTRACT Recommendation: That the Council approve agreement with John M. Tettemer and Associates, Ltd.,for engineering u�y services in the amount of $240,000 to prepare and process documents for necessary permits from the, U. S. Army Corps of Engineers; Dept. of Fish and Game; and development of plans and specs for the golf course expansion; and to terminate prior agreements (#2936 and 3056) - A3157. (Discussion combined with Item 7) GOLF COURSE EXPANSION - PROJECT MANAGEMENT CONTRACT AMENDMENT Recommendation: That the Council approve amendment to agreement with Community Golf Development, Inc. for an increase of $103;,360 for an amended scope of work, A3015. David Shey, consultant, stated that both matters relate to the golf course expansion; that the Tettemer proposal would result in cancellation of the previous agreements, and provides for engineering and redevelopment of documents (091, for the revised plans for the Corps of Engineers and the ei�) U.S. Fish & Game Department permits; and that amendment to his contract accommodates the redesign and reworking of the project to the point of beginning the construction; which is expected to occur in April, 1993. In answer to questions by Council, he stated that the proposal will result in a construction cost savings in the overall project of between $900,000 and $1 million; and that wherever possible, work has been sublet to local providers., i.e., some of the civil engineering work has been done by local civil engineers; that the travel allowance under the Tettemer contract has been built for instances outside of the Southern California area, and he did not. think there would be any objection to revising the agreement to clarify that, Minute Order 5092, approving the agreement with Tettemer, was presented; after which, it was moved by Lyons, seconded by Reller, and unanimously carried, that M05092 be adopted, subject to revision to stipulate that travel expenses relate to outside of the Southern California area. Minute Order 5093 as recommended, was presented; after which, it was moved by Hodges, seconded by Lyons, and unanimously carried, that M05093 be adopted. NOVEMBER 3, 1992 BALLOT MEASURES Council requested that summaries of various measures on the November 3 ballot be presented, to allow consideration of taking positions on any or all of the initiatives. (09d- City Manager noted that the summaries were outlined by 001) the City Librarian. Councilmember Lyons recommended that 'the Council take a position of opposition on Prop. 166 (mandates employer provide basic health care insurance to employees who work in excess of 17.5 hours per week, including their families, and pay 75% of lowest premium available). s ; 039Y Council Minutes 10-7-92 Page 11 8. BALLOT MEASURES (Continued Councilmember Hodges stated that she did not have a problem taking a position on local issues, however, felt that the voters did not need to have Council's opinion concerning state-wide issues. In answer to her question, City Attorney stated that there was no legal requirement to state why a person abstained. City Clerk noted that the rules of procedure provide that abstention is allowed based on conflict of interest, with nature of the interest disclosed, or on the appearance of conflict. Mayor noted that he felt Councilmember Hodges' reason would fall under the appearance of conflict category. Councilmember Schlendorf stated that she has participation through other areas in which she expresses her views, and felt that the Council should only act on those measures which effect the local area; and that she felt she had a conflict on this measure because, as a business person, she opposes the measure, but as a Councilmember, she represents aspects of the public who would benefit by such a measure. Mayor stated that that he felt it was important to take a position on Prop. 166, in that he considered it detrimental to everyone living here; that he felt a universal health insurance was needed, but not through this way; that he considered it bad legislation for everyone, and it would lead to the loss of jobs and not increase universal coverage, which needs to be addressed on both a state and federal level. It was moved by Lyons, seconded by Reller, and carried by the following vote, that the Council appose Prop. 166: AYES: Lyons, NOES: None ABSENT: None ABSTAIN: Hodges Proposition P: Reller & Maryanov and Schlendorf Councilmember Schlendorf stated that she firmly supports the measure, and noted that one of the major factors in attracting new business, is the local school system, and the community needs to make that as attractive as possible from that standpoint. It was moved by Lyons, seconded by Reller, and unanimously carried, that the Council support Measure P. ADDITIONAL LEGISLATIVE ACTION (Satisfied agenda posting requirements) 9A. 1992-93 BUDGET Consideration of proposals to balance the current city budget, e.g., use of a utility user tax, and use of P.E.R.S. (061- (Retirement) Fund reserves; including possible discussion 014) relating to alternative taxes. City Manager reviewed his report, a copy of which is on file with the City Clerk. Council Minutes 10-7-92 Page 12 9A. 1992-93 BUDGET (Continued) Utility User Tax Option: Mayor stated that he was opposed to imposing such a tax, although he would not preclude its possibility, and wanted to first try other resolutions to the problem. No other interest or discussion occurred. PERS Fund Reserves: City Manager noted that use of $1.025 million in unplanned retirement reserves as a result of the State's budget balancing action, will still require an additional $500,000 in cuts to achieve a balanced budget, some of which would be those items identified in his report which will be pursued, but which are at this time uncertain. Mayor recommended that there be a 2.9% cut in all programs, including reducing the film Festival, and pointing out to the festival promoters why the action is necessary, with realization that litigation is possible. He stated that any fire consolidation would not yield any savings this year, and such should not be included in balancing the budget for 1992-93, particularly :since it has not been presented 'to the city councils involved. Councilmember Reller noted that a fire consolidation would also take about three years to implement. Councilmember Schlendorf stated that she felt a utility tax would balance the budget, however, felt it would be too hard of a burden on the community, particularly, local businesses which are struggling now, and which could be faced with $20,000 through a utility tax; that she accepted the possibility of using some of the PERS funds, but felt the Council should explore some of the concepts learned at the Reinventing Government workshop in looking toward entrepreneurial efforts, and suggested that two standing committees be considered: one to address expenditure reductions, and one to explore revenue generators; that each committee could have members of the City Council, within limits of the Brown Act, staff who would volunteer, and possibly community members; that the Council could set parameters or guidelines for them to follow, which would address balancing the budget and the vehicle to go forward over the next several years, and with a completion date of March, 1993; that some department heads have already generated ideas which could produce significant savings by the end of the year; and that the worst thing that could happen is that the Council would still have to use the retirement funds. Mayor stated agreement that at the final solutions; that have been used to make up for very slim; that he felt a reserves; and that it will be up with a balanced budget. the Council needs to look $2 million of reserves will lost revenue, making reserves program is needed to build an on -going program to come Councilmember Hodges supported the recommendation of Councilmember Schlendorf, and questioned what the legal responsibility is for the City to have a balanced budget at this moment°, that use of the PERS funds remains an alternative, but in the meantime the two committees could be set up with a deadline of March, and if it is not successful, the retirement funds can be used as a fallback position; and that perhaps there are other ideas that can be generated. Council Minutes 10-7-92 Page 13 9A. 92-93 BUDGET (Continued) 0Aa 1 City Attorney stated that the Council must have a balanced budget by the end of the fiscal year; and that if it is not balanced intermittently, it needs to be within some period of time. Councilmember Lyons agreed that the budget must be an on -going effort and the Council should move as rapidly as possible to address the issues; that he favors eliminating "civil service;" that he feels a.n affirmative step needs to be taken immediately; and that he favors using the retirement reserves. City Manager acknowledged that when expenses exceed revenues, a deficit occurs; that in this case, the City received a return of funds that were not expected; and that he would like to solve the problem, and move forward. Mayor agreed with the premise of the City Manager causing the staff and citizens to come up with ways of cutting expenses and raising revenues. Councilmember Hodges stated that the Council balanced the budget originally, and because of State decisions, -it is out of balance, and may be out of balance again during the year; that the door should not be closed on the idea under discussion, as there may be people in the community and the staff who have not been heard from, and who have ideas to offer; that she questioned why the Council should wait until next year to address the deficit; that using the retirement funds only takes the money from one city source to another city source, and does not create anything that will generate additional revenue; and that perhaps such committees could achieve results that would not require use of the retirement funds. Mayor stated that creative ways to raise revenues have been sought; and that he did not have confidence that cuts would be possible this year of substance to achieve the needed amount. Councilmember Lyons stated that he approves of the concepts in general, and feels it could be made more firm and considered in study session; that he favors creativity as a permanent and on -going tool. Councilmember Schlendorf stated that allegations were made during the election campaign that the Council had V} balanced the budget with "smoke and mirrors" and she felt that the same could be said about the current situation. � n �vC � Ln�'i1G Motion by Schlendorf, seconded by Hodges, to create two standing committees, as above described, failed to carry ,ci by the following vote: &6 w'jcl AYES: Hodges & Schlendorf 0 r�l NOES: Lyons, Reller & Maryanov ABSENT: None It was moved by Lyons, seconded by Reller, and carried by the following vote, that Resolution 17958 amending the budget to transfer $1.025 million from the Retirement Fund to the General Fund, be adopted, and that the City Manager provide recommendations as to cutting an additional $500,000: AYES: Lyons, Reller & Maryanov NOES: Hodges & Schlendorf ABSENT: None 0,102 I.,.i.� Council'Minutes :i 10-7-92 Page 14 9A. 92-93 BUDGET (Continued) Mayor stated that he endorsed the basin: intent of the proposal to tackle the budget in detail!, in particular for the 1993-94 budget, and to develop a process for exploring alternatives and creative ideas. CONSENT AGENDA: 10. Res 17959 and 17960 temporarily suspending regulatory (050- ordinances; and closing certain streets in conjunction with 016) the 1992 P.S. Road Races, October 21 - November 22, 1992. 11. MO 5094 approving subrecipient agreement in the amount of (085- $41,887 with the Riverside County Housing Authority/ for 001) providing a Fair Housing Program, CDBG 92-93 - A3158. 12. See Item 20. 13. Res 17961 approving destruction of specified records currently (151- in the custody of the City Clerk. 001) 14, MO 5095 awarding contract to Steiny and Company, Inc., for $313,210 for powder paint coating for traffic signals and (130- related equipment in the CBD, CP92-28, funds appropriated 001) via the 1991 Tax Allocation Bond Issues, A3159. 15. See Item 21. 16. MO 5096 approving Change Order 3 to contract with Matich (056- Corporation for a decrease of $11,605.01, as a result of street O11) work added and deleted in Assessment District 157, A3096. 17. Res 17962 amending Comprehensive Fee Schedule, Footnote 8, to provide credit toward drainage fees paid by a developer for construction of on -site or off -site drainage improvements, (114- directly reducing the cost for the construction of storm 006) drainage facilities contained within the Master Plan for which the fee is collected„ 18. MO 5097 rejecting all bids for extension of an existing masonry wall on the east property line of the Sunrise Village Mobile (085- Home Park on San Rafael, CP92-04. 006) 19. Res 17963 and 17964 approving Payroll Warrants; and 17965 and 17966 approving Claims & Demands. It was moved by Reller, seconded by Lyons, and unanimously carried, that Resolutions 17959 through :17965, and Minute Orders 5094 through 5097, be adopted. 20. P.S. HIGH SCHOOL - POLICE RESOURCE OFFICER Recommendation: That the Council approve agreement with the School District to provide a full-time police officer on the P.S. High School campus for the 1992-93 school year, at a cost to the District of $52,547„92 A----. City Attorney stated that the District Office was unable to obtain a response from its attorney, and recommended that the agreement be modified to provide for joint and several liability, which in has the effect of assigning percentage of liability should a case come to a court decision, rather than left to a 50-50 split payment for any damages assessed. It was moved by Hodges, seconded by Reller, and unanimously carried, that this matter be continued for two weeks, in order to allow time for a response by the District's attorney. (086- 011) (126- 005) A A Council Minutes 10-7-92 Page 15 21. GOLF COURSE FOOD CONCESSION EQUIPMENT Recommendation: That the Council award bids for the purchase of refurbished and or new restaurant furnishings and equipment for the Municipal Golf Course restaurant to Air Con, Palm Springs, for $22,500. Purchasing Manager Highlighted his report. (092 002) Councilmember Lyons stated that he would abstain to a a family relationship. MO 5098 awarding bid as recommended, was presented; after which, it was moved by Hodges, seconded by Schlendorf, and unanimously carried, Lyons abstaining, that M05098 be adopted. ADDED STARTERS: None REPORTS & REQUESTS: 22. DEPARTMENTAL REPORTS - Received & Ordered Filed a) Treasurer's Monthly - July, 1992 CITY COUNCIL reports or requests a) Councilmember Hodges stated that the Council previously endorsed a league split in divisions which would result in the eastern half of the Inland Division of League as a separate division; and that the proposal before (104- the League Conference this year is to separate Riverside 001) County, Councilmember Schlendorf stated that while the endorsed split would have been preferable, the separation of Riverside County is at least a positive step. There were no other comments. b) Mayor requested that the appointment to the Planning Commission vacancy be scheduled for November 4 agenda; and requested input from the Council regarding vacancy on Public Arts. In response to question by City Clerk, he suggested that the applicants for the Human Rights Commission be interviewed in two groups, and the time scheduled at a future study session. PUBLIC reports or requests - None STAFF reports or requests a) City Manager noted that three members of the Council will be attending the League of California Cities meeting in Los Angeles, October 10-13, 1992. ADJOURNMENT There being no further business, Mayor declared the meeting adjourned. �- s CJUDITH SUMICH City Clerk