HomeMy WebLinkAbout1993 - MINUTES - 6/8/1993 «0 5
CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
JUNE 8, 1993
An Adjoumed Regular Meeting of the City Council of the City of Palm Springs, was called to order by
Mayor Maryanov, in the Large Conference Room, City Hall, 3200 Tahquitz Canyon Way, on Tuesday,
June 8, 1993, at 7:30 p.m.
ROLL CALL: Present: Councilmembers Hodges, Lyons, Reller-Spurgin, Schlendorf and
Mayor Maryanov
Absent: None
REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with
Council procedures on June 4, 1993.
PUBLIC COMMENTS:
a) Note: The following persons spoke under the Public Comments portion of the Study
Session agenda, but related to the 1993-94 budget(Item 2)and are noted here for historic
purposes:
Herb Shinerock stated that he spoke at the neighborhood meetings, and felt if police and
fire safety employees' are cut, residents' insurance will increase and people will stop
coming to Palm Springs. He suggested selling the Convention Center.
Marshall Gilbert spoke in favor of imposing a utility tax, stating that if employee salaries
are negotiated downward, they will leave the City, and the community will suffer; that
police, fire, and all employees are needed, and a utility tax is not unusual, and he asked
the Council to bear the political heat in imposing it, and listen to the silent majority.
Mark Bragg stated that if services are wanted, people must be prepared to pay for them,
and that a utility tax is a tough decision, but is necessary and is supported by
Shadowrock.
Robert Lipshutz, spoke in favor of a utility tax, stating that it may be unpopular, but is
the only reasonable way to solve the problem; that there should be some limit on the total
amount of the charge, particularly on electricity in summer months; that police and fire
should not be cut, and he opposed cutting another 125 positions; and that the tax is the
least painful with a time limitation as to how long it will be imposed. He suggested 1-2
years, and, if needed, a vote to confirm its continuance. He added that he felt people (061-
speaking to the Council should not be abusive during the Council meeting, and that there 015
are other forums outside of the meeting in which to express those kinds of views.
Vern Keener, District Manager Gas Co., stated that the company is neutral on the subject
of the tax, however, observed that they have made cuts and other efforts to keep rates
as low as possible, and asked that the Council recognize the difference in energy demands
during inclement weather in this area, and offered a suggestion that a flat tax be
considered, one for residential and another for commercial, and eliminate the unfairness
of a tax based on consumption, adding that the amount of consumption of the utility has
nothing to do with the amount of money to supply the City services.
Diane Marantz, spoke in favor of a utility tax and stated that although her utility bills in
February may be$6,000 she was willing to pay the tax to support the need for police and
fire; and that times are tough, but the Council needs to bite the bullet.
Linda Cooper Lee stated that if a utility tax is imposed, she preferred a flat rate; and that
the budget situation is the result of public apathy and prior Council's decisions.
Mark Reid, attorney representing fire, police and general unit employees stated that the
budget is not an easy task for the Council; that the employees did not cause the problem,
and there are problems the Council must cure; that employees have given assistance to
resolve the budget, including indignity of standing before groups to demonstrate what
services would be lost without a utility tax in an amount greater than what the Council
is considering; that the Council understands what it will take to solve the problem, and
he asked that it not be entirely placed on the back of the workers; that no employee is
paid anywhere near the same level as employees in other areas of the County, and in
asking them to take more cuts, is making the statement they are not worth what everyone
else is making; that the Council must take steps to solve the problem and when it reaches
the point of income that it can raise, and there still remains a deficit, the employees will
be there to help, otherwise the Council will have to solve it on its own.
005
Council Minutes
6-8-93 Pg. 2
(Continued)
Rolph Arnhym, Chamber of Commerce, reported that the Executive Committee met and
repeated its position of April 23, i.e., that police and fire protection levels must be
continued; that the compensation package for employees must be looked at and employees
should share the same pain that everyone is suffering, and if that is done, the utility tax
would be supported to be in place in October, and sunset.June 30, 1994.
Ron Cummings, P.S. Fire Fighter, stated that working; for the City today means
uncertainty as to whether he has a job from day-to-day, and he was willing to give
something back, but as a citizens did not feel that city employees should have to carry
the entire deficit, when there are 40,000 residents being served. He stated the fire
employees are underpaid, and face situations most people clo not even know exists; that
he was one of the employees who was "paraded" at neighborhood meetings to
demonstrate to the public the need for a utility tax; and that as a resident, it was not fair
to expect him to pay the utility tax, and take a pay cut.
Mitchell Spike, police officer, stated that he was not on the negotiating team, nor the
Association Board, and only represented himself, and expressed opinion that the
negotiation package was a slap in the face; that the department has lost two officers; that
reduced salary will result in fewer high qualified applicants; that, in the past, the City
experienced situations that when vacancies occured, hundreds of applicants would seek
employment with the department; and that fellow officers who leave the service will be
missed.
Jerry Poss, police department parking control, also commended that the attractiveness of
Palm Springs to high-caliber applicants is because of benefits and wages, and that all
employees are needed,.
Fred Ebeling stated that city employees are well paid, and citizens will have:a hard time
paying the utility tax,and urged the Council consider Ms. Schlendorf's proposal; and that
everyone should share in the sacrifices.
Greg Jackson member of the P.S. Police Officers Association negotiating team and
speaking for the Association, stated that the employees should not take the lion's share
of the cuts - stating it would cost him$16,000, and the Association favors a utility tax;
that law enforcement is not cheap; that they are willing to negotiate fairly with the City;
that they have not received an increase in nearly two years; that one officer has already
resigned, and he anticipated more would do the same; that many are filling out
applications to move elsewhere, and if replaced with rookies, it will create problems for
the community, noting; that the department is comprised of seasoned officers.
Mayor read a letter from Milt Levinson in favor of a utility tax, and not cut police or fire
staffing, and consider review and reduction of benefits, and to only impose the tax from
October through June.
LEGISLATIVE ACTION:
I. COMMITTEE ON CONSOLIDATION OF SERVICE
Discussion regarding possible committee to explore consolidation of services, i.e., fire, with
neighbor cities was continued from June 2, 1993.
City Manager reported that the joint meeting with Cathedral City has been confirmed for
Wednesday, June 16, 1993, at 4 p.m., at the Airport Conference Room.
Mayor suggested that this matter be delayed until after the meeting wii th Cathedral City, and stated (087_
that the only other issue is whether the Council should interview applicants, or just advertise the o01
opportunity.
Councilmember Schlendorf questioned if the only consideration by the Committee will be the fire
service with Cathedral City, and noted that Supervisor Larsen and other desert cities expressed
a similar interest.
It was the consensus of the Council that the first effort would be with Cathedral City, and other
joint agreements may be expanded later. City Manager noted that. CVAG TAC has formed a
group to explore this, and it would be parallel with the joint committee.
Mayor suggested that individual members may wish to interview applicants they might not be
familiar with, and make recommendations to him for consideration.
Council Minutes 0055
6-8-93 Pg. 3
1. Consolidation Committee (Continued)
Councilmember Lyons stated he did not think interviews were necessary, and each member could
make their recommendations to the Mayor.
Councilmember Hodges stated she felt the group interviews were very helpful, and perhaps the
decision should also be held until after the joint meeting with Cathedral City.
2. I993-94 BUDGET
Discussion and action, if any, regarding the 1993-94 Budget, including ffollowup on requests for
additional input given June 2, regarding possible action to seek quote from Sheriff, and for
department heads to submit reductions based on Councilmember Schlendorf's proposal of 5-25-93;
and continued discussion for balancing revenues and expenditures, including possible utility user
tax.
Councilmember Schlendorf stated that even if a 5% utility tax raised $4-5 million, the deficit is
$7 million, and the Council will still have to cut services. City Attorney responded to her
question, and stated that there is no legal limit as to the percentage of the tax.
Mayor restated his opinion that he felt the budget could be balanced through a combination of
utility tax, expenditure cuts, and staff participation, and revenue enhancements, e.g., the fire
service fees which can be paid through insurance; that position cuts should not impair or render
the City helpless; that the Council has identified $1.2 million in cuts and revenues, and a $2
million participation by employees,hopefully, through benefit changes, and$3 million in a utility
tax, would leave about $1 million; that he felt the City staff does an excellent job; that the police
and fire departments are outstanding; that the Economic Development Department is now moving
forward, and without a viable economy, the City cannot survive, likewise tourism, and all of the
departments.
Councilmember Schlendorf stated that the fact that the City has this problem is not a reflection on
its employees, who she agreed do an excellent job, rather to do with the economy of California;
that she felt, realistically, it will take time for the State economy to recover; that the Council
works at the behest of the public, who pays for the cost of government; that Palm Springs is not
alone in this problem,rather most cities in the State share the problem; that it must be coped with, (061-
and if the Council waits, the problem will get bigger; that the Council must cope as realistically 015
as possible, so people who do continue to be here, have some kind of future to look forward to;
that it is a hard decision to cut excellent staff which no one wants to lose; and that it would not
be fair to string it along for another year, only to have a worse situation.
Councilmember Reller-Spurgin stated that every resident is a shareholder in the community, and
the employee should not carry the burden alone; that she agreed there must be a plan for this year,
as well as the next; that it is not fair to the employees to continually question whether they have
a job; and that the Council must be strong and solve the problem.
Councilmember Lyons stated that cutting positions is a short-term solution, and the City must
restructure the way it does business; that he favored retaining an outside budget analyst and
looking at the way the City does business, and stated that contracts with employees have
contributed to the problem, in that benefit packages are now "slaughtering" the budget; that his
own business is down by 30% and that it was down 15% the previous year; that the Council
cannot keep cutting positions, otherwise it will simply make more cuts each year if it does not
address the way it does business, and it must cut what it can this year and bite the bullet.
Councilmember Reller-Spurgin stated that the insurance issue is something that can be looked at;
that she gave information to the City Manager, which could lead to possibly reducing the budget
by $1 million, without directly impacting employees' out-of-pocket compensation.
Mayor stated that it is important that, today, the Council make the decision on the utility tax,
along with a strong message to the staff that it participate in reductions this year; that he favors
the tax being imposed until June 30, 1994, with a ballot measure in either April or November on
either a utility tax, or other tax, that would generate some source of secure revenue; that he wants
to see an economic development plan for the City; that the Council is working on the annexation
and it will have a tremendous potential for revenue; that there are other economic recoveries which
are showing encouraging results; that the Council should followup on a charter, as well as looking
at contracting services that the City provides; that the City needs to change and change is
traumatic; and that the problem is statewide, but may be worse in Palm Springs.
Council Minutes
6-8-93 Pg. 4
2. 93-94 BUDGET (Continued)
Councilmember Reller-Spurgin stated that the public does not understand how a City finances
work, e.g., the public art program is developer fee funded, not general fund money, and operates
like an enterprise fund.
Relative to a flat utility fee vs. a percentage, City Attomey stated that a flat fee would require an
amendment to the ordinance, as well as would a percentage greater than that which previously was
in place; that the Council may wish to direct that the ordinance be developed based on a targeted
amount of money to be raised, and he will review the law to confirm if that is legally possible.
An informal proposal from the Sheriff to the Police Chief, which was provided last year, was
distributed,and its usefulness was questionable. Mayor stated he would like to see it refined; that
he wanted to stay with the City's own department, but would like to see the proposal refined.
Councilmember Schlendorf stated that the Council needs to know that it has the best department,
and or that it needs to make a change; and that she felt a refinement of the proposal probably
would lead to enhancing the feelings that the Council already has about the good quality of the
department.
It was moved by Lyons, seconded by Schlendorf, and unanimously carried, that the Sheriff be
requested to provide a cost proposal for providing comparable police services in the community.
At this point, City Manager distributed worksheets which reflected the departments' responses to
her proposal presented at the May 25 study session, i.e., various percentage reductions and how
those would be achieved, and the impact of those reductions.
In answer to question by Council, Director of Finance stated that the proposal focused on the
General Fund, and that some activities were unable to meet the proposed percentage: cuts, e.g.,
the Print Shop would not meet the percentage even if all personnel were cut, yet a contractual
arrangement for some printing needs in the past has not been efficient, or cost effective; and that
all approved revenue enhancements are being implemented.
Councilmember Schlendorf stated that the Council needs to talk about those which the Council
would need to set policy on, and be supportive of, noting that some have not come before the
Council yet.
Mayor stated that the Council looked at the revenue enhancement committee report, and there
were good ideas, but no others that could be made to work for this ;year.
Utility Tax:
City Attorney stated that lifting the utility tax suspension is not legally required to go on the ballot,
and he understood that the Council wanted to see that, along with a sunset provision.
Mayor stated that he wants a utility tax effective October, 1993 with a sunset June 30, 1994, and
apart from that, he would like to see a ballot measure to replace it, but the two are not otherwise
connected. (061-
City Attorney stated that there are a series of issues associated with the community facilities
015)
charge, and the establishment of a district must go through a LAFCO procedures; that a public (140-
hearing is needed if the utility tax rate is adjusted from the existing percentage, as well as it being 007)
considered at a "public meeting"; and a hearing notice is required to be published consecutively
for three weeks. He stated that a July 27 hearing date could meet an October implementation date,
which allows the utility companies 60-90 day start-up time.
The Gas Company District Manager stated that the company does not have other cities which only
collect the tax part year, and there may be start and stop costs which have not previously been
charged.
City Attorney stated that several measures could be placed on the ballot; and that the Council may
wish to provide direction for him to prepare the required materials for consideration at a public
hearing, looking at a July 21 date as the public meeting requirement, and publishing; the hearing
for one week later. In answer to question by Council, he stated that a November ballot would
require an August, 1994 deadline to have the requirements in plane, leaving no allowance for
anything to go wrong.
Councilmember Hodges stated that there is no support from the majority of the Council for a
November election, even though there is plenty of time to get it on a November ballot:and provide
public involvement, with a start date of January 1, 1994.
a r31�
Council Minutes
6-8-93 Pg. 5
2. 93-94 BUDGET (Continued)
City Attorney stated that the package seemed to be more than just a utility tax, and that presenting
information to meet the public's right to know.
Councilmember Hodges stated that the Council's purpose is to balance the budget.
Councilmember Lyons stated that the remaining choices for doing so are not very viable.
Mayor declared a brief recess.
Discussion ensued as to percentage or flat rate utility tax, and it was moved by Lyons, seconded
by Reller-Spurgin,and carried,by the following vote, that the City Attorney prepare materials for
a public meeting on July 21 and a public hearing on July 28, to consider a utility tax to raise$3
million between October 1, 1993 and June 30, 1994, either through a percentage and/or flat rate
for residential and commercial, or a combination thereof, and to provide the required notice.
Councilmember Hodges stated that she did not feel the Council wanted to just dismiss
Councilmember Schlendorf's proposal, and questioned what the process was going to be in that
regard.
Mayor stated that he did not favor further cutting, and that a blanket reduction would destroy the
City.
City Manager stated that certain assumptions were made by the departments,in providing response
to the proposal. Director of Finance stated that the unallocated compensation and legal services
were not adequately reflected, and a small percentage was "added" to each department's targeted
percentage cut under the proposal.
As a result of discussion of the first portion of the responses, the Council concurred with a$1,700
cut in City Manager travel and training; the development of other travel and training cuts by the
City Manager for other departments; and the reduction of the Assistant Director of Economic
Development to entry level step.
On the subject of contracting services, Councilmember Lyons stated that he would like to look at
what other cities are doing, and how much could be saved through contractual services for
Building and Planning. Councilmember Schlendorf added that it should include how the services
will be contracted if work arises; and Councilmember Reller-Spurgin added that she would like
that work contracted for on a local area basis. Councilmember Lyons also asked for an
itemization of utilization of parks, and if they are under-utilized, perhaps they should be sold.
A discussion followed with the Director of Planning&Zoning;no specific consensus was reached.
Councilmember Schlendorf asked questions as to the impact of reduced staff levels, and stated that
if there are no projects going on, or projects are stalled, permanent staff may have to be reduced,
and a means found to perhaps contract for the work when it comes along in order not to lose
projects; that the annexation, zoning ordinance and general plan updates do not happen every year;
that if a secretary and two planners were cut, the department would have to deal with the priorities
set by the Council.
Director of Planning&Zoning stated that development currently is at a lower level,although more
EIRs have been processed than ever before; that in-house staff has been able to do the General
Plan update and ordinance clean up,which has not been possible for 20 years; that if the economy
turns around, the advance planning staff would be put back on project processing; that a 40°%
reduction in staff would result in shifting away from small items, which overall, he felt would
come back politically, e.g., the sign ordinance; and that only minimum State law requirements
would be met; that major developments would be told that processing would have to be delayed
because of other work; that replacing reduced staff levels would take 2-3 months, and the
contracting would take an equal amount of time considering bids and reporting; that a 30%
reduction would eliminate programs which are local, e.g., zoning and municipal code changes,
and are ones which people feel directly; and there will be days when only the telephone calls and
counter requests are responded to.
Mayor stated that he understood the Director to say that projects would not he processed, and the
department would revamp to merely conform to State law, and he did not think that is why the
Council was elected; and that the Council needs to make hard choices, and to get the word out to
the public.
Councilmember Schlendorf stated that the department would have 6.33 employees remaining, and
appears to be saying that is too punitive and it cannot function; that she did not see any desire to
live within budget constraints, or a desire to succeed.
U
Council Minutes
6-8-93 Pg. 6
2. 93-94 BUDGET (Continued)
City Manager stated that the department's responses have a lot of value, although the timing may
be off; that consequences and priorities need to be tailored.
Councilmember Lyons agreed that there is not a lot of time, and random cutting is shortsighted.
Councilmember Reller-Spurgin agreed that the problem needs to be addressed now.
On June 15, Council to look at the updated "5-28-93" options to balancing the budget, and that
the employees will be asked for a$2 million participation instead of a$3 million participation, and
the utility tax be included as part of the balancing. Councilmember Lyons asked that the issue of
a charter adoption be placed on the same ballot as the utility tax.
ADDED STARTERS: None
ADJOURNMENT
There being no further business, Mayor declared the meeting adjougled.
�- JUDITH SUML(CH
City Clerk