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HomeMy WebLinkAbout1993 - MINUTES - 6/23/1993 CITY OF PALM SPRINGS 0 07 J CITY COUNCIL MINUTES JUNE 23, 1993 An Adjourned 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 Wednesday, June 23, 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 consisted of items continued from the June 22, 1993, and met posting requirement pursuant to the Government Code. COMMUNITY REDEVELOPMENT AGENCY: Mayor declared the meeting adjourned for the purpose of convening as the Community Redevelopment Agency; after which, members reconvened as the City Council. PUBLIC COMMENTS: a) Comments concerning Item 2: Joe Scarna, Valley Players Guild, reported that a meeting was held between the Desert Museum Theater, the P.S. Follies and the Valley Players Guild, and they will join resources to help stimulate entertainment industry in the community. c) Mr. Thurtle, taxicab owner, repeated comments he made previously concerning Sardine regulation and added fare charge, and asked for Council help, and expressed view that Sunline has a conflict of interest between providing bus service and regulating taxi service. b) Comments concerning Item 1: Jean Aubrielle,resident,expressed concern about the proposal to close Victoria Park,and commented on its benefits not only to residents in the area, but to school children at the adjoining Vista del Monte Elementary School; and asked that other items be considered before taking such steps. Marcia Thompson asked that the Council move quickly to complete the fire consolidation. Roy Picard, resident, stated that a reduction from 16 to 14 manning for the fire (061- department contemplates a reduction from excellent to satisfactory, however, he felt that 015) the 16 man level was not satisfactory, and that is why the betiefit assessment was requested to be approved by the voters; that he favors consolidation io reduce duplication of efforts,overhead and administration; and commented on change over from a municipal police force to County Sheriff in San Clemente, which saved that community $2.1 million. Beth Martin, teacher at Vista del Monte School, expressed similar concerns about the closing of Victoria Park. Dee Dee Stone, expressed view that the visitor center duplicates services of the Chamber of Commerce, and perhaps could be closed and money saved. Marshall Gilbert, stated that he felt the budget problem was temporary, and lost positions should be regained as quickly as possible, and he supported a utility tax to fund police and fire service, as well as a commission to educate the public and regain the lost positions. Josh Isenstein, city employee, favored a utility tax, commended the Council for its approach in the past two days, and felt it would be equally as successful in finding new revenues. Andrew Aubrielle, supported retaining Victoria Park. Ron Young, resident, suggested closing the visitor center and possibly not operating the golf course; and favored allowing card rooms to be licensed in Palm Springs, for which he was ready to apply. Fred Ebeling reiterated his prior comments about those who cannot pay added taxes. Y(j' 5 Council Minutes 6-23-93 Pg. 2 1. 1993-94 BUDGET On June 16, 1993, the Council conducted public hearing on the 1993-94 proposed budget; and various actions concerning its adoption, and continuing appropriation from 1992-93 into 1993-94, 1993-94 appropriation limit calculation, and reservation of unappropriated fund balances, to June 22, at which time the matter was continued to this date. (Note: Refer to listing of additional items for consideration, finalized by the sub-committees, on file with the City Clerk,attached to "options"sheet dated"bud94plan 6/'23/93"-numbers reflected here correspond to the numbers shown in said document.) 25. Rent Control: Proposal provides for rent control to be self-funded, including recovery of legal costs. This requires ordinance amendment to provide cost recovery of legal fees, and pass- through to tenants. 28. Building & Safety: Proposal to eliminate principal plans examiner, and establish fee for services provided at information permit counter which exceed 15 minutes in response/research time. 29 Information Mgmt. Services: Develop goals to enhance computer services; provide 6 month funding for one project manager. Long-term planning required to create system to reduce staff time and allow dial access to building permit/application/plan check, etc. processes. May take 7 months before programs are running; no projected revenue included at this time. 31 Reduce advertising and/or VIC budget: Director of Finance staled that current TOT rate produces about$6.9 million, and added percentage(bringing to 11%v for all hotels)would increase that by $350,000; that $2.5 to $2..6 million is spent on all tourism related budgets; and that the Visitor Center budget is $320,000 and produces a direct revenue of$150,000. Councilmember Schlendorf stated that the Center's space is not used just to provide phone answering or reservations, but for fulfillment of advertising and marketing programs, and that space was made use of to zero in on that fulfillment to get the best return on advertising, which currently is the highest return in the industry. Mayor stated that he supported spending the $2.5 million in advertising and promotion because of the return in room taxes, and cutting it would be the fastest way for the City to die. Councilmember Hodges stated she was concerned about raising the TOT, and did not want to turn-off the one industry that was working for the community, and it would be better to take a cut than increase the tax. (061- 015) Risk Management Fund: Proposal would transfer$200,000 from Risk Management Reserves,plus the $75,000 savings as a result of the new JPA which will insure the Coachella Valley Joint Powers Insurance Authority. At this point, Council reviewed proposals submitted at the June 22 meeting, and numbers correspond to the above mentioned document on file. 2. Police: Consensus: 2 detectives position proposed to be cut, to be set aside for further discussion. S. Swim Center: Director of Finance adjusted figure to $70,000 in saving, and closure was changed to October through March, rather than closing starting in November. 7. Victoria Park: Mayor voiced opposition to closing the park at this time, and questioned what the effect would be of closing the rest rooms and not cutting the ,grass. Director of Parks, Recreation&Golf Course stated that the$48,000 would relate to cutting staff maintenance on the site, small amount of materials, and water; that the joint use agreement with the School District does not include use of the parks; that there was no consideration at this time to fence the site; that removal of all equipment would restore the site to a vacant lot, later to be offered for sale; that Frances Stevens was added back, and if Victoria was also added hack, some of the overtime budget would have to be restored;and that Frances Stevens' tenants will be contacted about taking over the maintenance. Mayor stated he would prefer reducing the maintenance level for all parks, rather than closure of this park, at least until a usage study is provided, and he fell strongly that closure was leaving a void in the community. Councilmember Schlendorf stated that the recommendations are not matters that would be chosen if there were funds, but cuts had to be made; that Desert Highland, Sunrise Plaza, Ruth Hardy and DeMuth parks were felt to be located throughout the community; and.that perhaps the School District would take over the maintenance of Victoria Park. She also apologized to the Parks &Recreation Cormnission for having to take the action, and expressed respect for its position. Councilmember Reller-Spurgin staled that she would like a sign in the park denoting that the City cannot pay the cost to maintain it, and that perhaps the residents would adopt the park. Council Minutes 6-23-93, Pg. 3 17. Public Works, Engineering: Engineering Assistant Position is currently filled; revenue associated with the position is estimated at$50,000; if position is cut, services will be contracted for as required and recovered through fees; and if the service demand is low, and the position is not cut, the revenues would not come in, yet the employee would still be paid. 21. Slum Seal: Mayor stated that reduced street maintenance will result in deteriorated streets, and they will require rebuilding rather than maintenance, and the work now could save$1 million later. Councilmember Lyons stated that the maintenance effort is already so far behind, and the costs are so high that this additional $200,000 will not make those slakes that much higher. Director of Public Works reported that there will remain $200,000 for slurry and $200,000 for cap seal, to do some minimal work; and that the Gas Tax Fund has a three year window in which the City does not have meet its Maintenance of Effort requirement. 23. PM10: Director of Public Works reported that grant funds are available, and if secured, a PM10 program would be set up and would totally include the street sweeping program. 24. Traffic Maintenance (Graffiti): Mayor agreed that the program should be, handled by volunteers, and would like the structure for that to be.in place. Councilmember Reller-Spurgin stated that the Rotary (Noon) new President and she will co-chair a committee to look at taking over the manpower aspect of the program, and noted that the City has the paint. Following review and clarification of the numbers and the recommendations, it was the consensus of the Council that the recommendations be accepted, with the following exceptions, which were separately discussed and voted on for inclusion as a part of the budget: items 2, 7, 31 and 32, and issues relative to reserve balances and transfers, and TOT. T.O.T.: Concerning whether the room tax rate should be increased toll%, or advertising budget reduced, Councilmember Schlendorf stated she agreed with earlier comment by Councilmember Hodges that it would be preferable to decrease the advertising budget than to increase the tax. It was moved by Lyons, seconded by Reller-Spurgin, and carried by the following vote, that the advertising budget be reduced by $150,000, and that the TOT rate remain rs is: AYES: Hodges, Lyons, Reller-Spurgin & Schlendorf 140: Maryanov ABSENT: None 7. Victoria Park: It was moved by Schlendorf, seconded by Lyons, and carried by the following vote, that $48,000 to maintain Victoria Park be cut: AYES: Hodges, Lyons, Reller-Spurgin & Schlendorf NO: Maryanov ABSENT: None Request was made to staff to contact the School District and make inquiry as to it possibly maintaining the park. Reserves: Director of Finance projected that the General Fund reserves by dune 30, 1993, would be approximately$700,000, and will have decreased by$2 million over the 92-93 fiscal year,after one-time transfers. Mayor stated that coupled with the $700,000, $200,000 from the MVR Reserve and $200,000 Risk Management reserves, a total reserve of $2.3 million is possible, which would be approximately 7% of the General Fund. In answer to question, Director of Finance stated that the Blue Ribbon Budget Committee(1987)recommended a 15% reserve; and Director of Public Works stated that vehicle replacements near the year 2000 are projected at $2.25 million because of some major pieces, e.g., fire truck, and even with that possibility, the MVR fund balance could support the $200,000 transfer. It was moved by Reller-Spurgin, seconded by Lyons, and unanimously carried that the $1.2 million PERS reserves remain as reserves. It was moved by Schlendorf, seconded by Hodges, and carried by the fofllowing vote, that $200,000 be transferred from the MVR reserves to balance the budget: AYES: Hodges, Lyons, & Schlendorf NOES: Reller-Spurgin & Maryanov ABSENT: None It was moved by Schlendorf, seconded by Lyons, and unanimously carried, that $200,000 be transferred from the Risk Management reserves to balance the budget. Council Minutes 6-23-93 Pg. 4 Employee Participation/Utility Tax: City Manager reported that extensive review of the health packages has been done, and if reasonably it is acceptable, it equals $1.1 million, of which $880,000 would be attributable to the General Fund; and that there has not been closure on other negotiation matters. Councilmember Reller-Spurgin stated that it would Its 3%of each employee's salary. Mayor stated that the health packages, and possible holiday reduction could be about $1 million; and that a 4% utility tax would produce $2.4 Councilmember Hodges stated tbal.if the Council aggressively approaches new revenues as it has the expenditure reductions, the retraining amount needed might not be from a utility tax; and perhaps showing it as "additional revenue" rather than a utility tax, leaving options open to see what else may be possible. Mayor stated that he wanted to bite the bullet and if further revenues am found between now and July when the tax ordinance is considered, the amount could be adjusted. Councilmember Reller-Spurgin suggested calling it a"community investment" and recognize that everyone living here must help participate in solving the problem;that the remaining deficit is$2.7 million and a "utility tax" is part of solving that problem. Councilmember Schlendorf indicated that"additional revenue"could possibly be used to designate the projected income, and then substituted with "utility tax" or other possible sources after the hearing; and that she was willing to work on convincing and help inform the public about the need for the tax, and questioned whether spelling out the tax at this time abridged the public hearing process. City Attorney stated than an amount is simply being plugged into the budget identified as "utility tax" but that does not make it a final decision, and gave example that not funding maintenance of Victoria Park did not mean it would be instantly closed, rather than there would be a number of actions employees would have to take, and decisions the Council would have to make if it were to be disposed of. (Note: Although the decision on the detectives was interjected here, the following is reflected for reading continuity.) It was moved. by Reller-Spurgin, seconded by Lyons, and carried by the following vote, that $2.7 million be identified as "utility tax" revenuer, AYES: Lyons, Reller-Spurgin, Schlendorf&Maryanov NO: Hodges ABSENT: None 2. Police Detectives: Mayor stated that he was uncomfortable in cutting the two positions, and that there would be room within the utility tax that they could be retained. Councilmember Reller- Spurgin stated that she agreed, and would oppose the cut. It was moved by Schlendorf, seconded by Lyons, and carried by the following vote, that the two detective positions shown, $119,303, be cut: AYES: Hodges, Lyons, & Schlendorf NOES: Reller-Spurgin & Maryanov ABSENT: None Resolutions 18126, 18127 and 18128 continuing appropriation frorn 1992-93 into 1993-94, approving 1993-94 appropriation limit calculation, and approving reservation of unappropriated fund balances, as recommended, respectively, were presented; after which, it was moved by Schlendorf, seconded by Lyons, and unanimously carried, that R18126 be adopted; and it was moved by Schlendorf, seconded by Hodges, and unanimously carried, that R18127 and 18128 be adopted. It was moved by Schlendorf, seconded by Lyons,and unanimously carried, that Resolution 18129 adopting the 1993-94 budget, with modifications as above indicated, be adopted. Councilmember Hodges thanked the two Council sub-committee, and the staff for the hard work in putting the final proposal together, and appreciated that it was not an easy task. Councilmember Lyons also thanked the staff, and that lie looked forward to a continued review of the budget process as an on-going means of bringing the City up to par as soon as possible. Mayor complimented the spirit of cooperation, and appreciated the agony of everyone; that the community has done a good job of recognizing the problems, and there has been very little opposition; that the Council will have to work toward re-inventing government and starting the process of looking at how it functions, and working on economic development to provide painless revenue sources, e.g., increased sales and other taxes, and be strong in getting a community district tax, which he.felt people would support for parks, police, fire and other things; and that jai} d � Council Minutes 6-23-93 Pg. 5 1. 1993-94 BUDGET (Continued) prior cuts will affect the future of the City; and that the community has said not to cut police and fire, yet other departments have been cut over the past several years to the point that there is nothing left to cut, and now the "piper must be paid." Councilmember Schlendorf stated that she was pleased to have come to a resolution on the budget, and feels that message has been sent to the community as to the import of the budget, and it is beginning to feel the real loss of excellence of service that has been provided, and that loss will he mourned; that there were choices that had to be made, but that did not make them good choices; and that she felt saddened about the losses and cuts that were made. Councilmember Reller-Spurgin stated that this has been a case where not everyone could be happy, and the Council worked together and tried to arrive at a win-win situation in the best way it could, and that it should be respected for it has done. In answer to question by Council, Director of Aviation stated that the RSVP is not budgeted in the Airport budget, but would be negotiating with RSVP on the amount, and will absorb it in a contractual account. 2. DOWNTOWN PROPERTY IMPROVEMENT PROGRAM - VALLEY PLAYERS GUILD Staff Recommendation: That the Council approve a loan for exterior tenant improvements to the Valley Players Guild from funds currently available in the Downtown Property Improvement Program, for $25,000, at 6% interest and repayment over 36 months, for the purpose of improving an outdoor garden amphitheater at the Desert Fashion Plaza as a new location for the Palm Springs Playhouse, documents in form acceptable to the City Attorney, A3242. On June 22, 1993, the Council adopted a motion determining the need to add the following staff recommendation: That the Council revise the Downtown Improvement Program policy to provide an additional third category of"Tenant Improvement Loan," allowing for loans to be made to non- profit organizations. (I33- City Manager reported that a third category is recommended to be added to the existing policy, 005 which will allow granting loans up to $25,000 for tenant improvements, l➢mited to non-profit organizations, which desire to create community oriented activities such as recreational facilities and entertainment venues. He stated that the proposed loan for Valley Players Guild is intended to be used to make physical improvements to interior or exterior of errkertainment facility to include outdoor amphitheater type uses, and not for operational or administrative costs, and are to be repaid within 36 months, and are not General Fund money, rather from the Tax Allocation Bond Issue, set aside for this program. Resolution 18124 amending program policy as recommended; and Resolution 18125 approving loan to Valley Players Guild, as recommended, were presented; after which, it was moved by Lyons, seconded by ReBer-Spurgin,and unanimously carried, that R18124 be adopted;and it was moved by Schlendorf, seconded by Lyons, and unanimously carried, that R18125 be adopted. ADJOURNMENT There being no further business, Mayor declared the meeting adjourned. dl� 91j-)UDIT14 SUT&CF H City Clerk