2002 06 20 CCU
�w City Council Agendas are
G�ht OF available on the City's web page
@www.la-quinta.org
City Council
Agenda
CITY COUNCIL CHAMBERS
78-495 Calle Tampico - La Quinta, California 92253
SPECIAL MEETING
Thursday, June 20. 2002 - 10 a.m.
Beginning Res. No. 2002-
Ord. No.
I. CALL TO ORDER
ROLL CALL:
Council Members: Adolph, Henderson, Perkins, Sniff, Mayor Pena
II. PLEDGE OF ALLEGIANCE
III. PUBLIC COMMENT
At this time, members of the public may address the City Council on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes. Please watch the timing device on the podium.
IV. CLOSED SESSION - NONE
V. CONFIRMATION OF AGENDA
VI. BUSINESS SESSION
1. CONSIDERATION OF THE FISCAL YEAR 2002-2003 PRELIMINARY BUDGET.
A. MINUTE ORDER ACTION
T00
City Council Agenda (Special Meeting) Page 1 March 20, 2002
Vill. PUBLIC HEARINGS - NONE
For all Public Hearings on the agenda, a completed "request to speak"
form must be filed with the City Clerk prior to the start of City Council
consideration of that item. The Mayor will invite individuals who have
requested the opportunity to speak, to come forward at the appropriate
time.
Any person may submit written comments to the La Quinta City
Council/ Redevelopment Agency before a public hearing or may appear
and be heard in support of, or in opposition to, the approval of the
project(s) at the time of the hearing. If you challenge any of the
projects(s) in court, you may be limited to raising only those issues you
or someone else raised at the public hearing or in written
correspondence delivered to the City Clerk at, or prior to the public
hearing.
Vlll. ADJOURNMENT
Adjourn to the regularly scheduled City Council Meeting, commencing with closed session at
2:00 P.M. and open session at 3:00 p.m., Tuesday, July 2, 2002, in the City Council
Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
City Council Agenda (Special Meeting) Page 2
002
March 20, 2002
DECLARATION OF POSTING
I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for
the La Quinta City Council meeting of Thursday, June 20, 2002, was posted on the outside entry to
the Council Chamber, 78-495 Calle Tampico and on the bulletin board at the La Quinta Chamber of
Commerce and at Stater Bros. 78-630 Highway 111, on Friday, June 14, 2002.
DATED: June 14, 2002
gol�� —
1
JU . GREEK, CIVIC
City Clerk, City of La Quinta, California
PUBLIC NOTICES
The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the
hearing impaired, please call the City Clerk's Office at 777-7025, 24-hours in advance of the meeting
and accommodations will be made
If special electronic equipment is needed to make presentations to the City Council, arrangements
should be made in advance by contacting the City Clerk's Office at 777-7025. A one (1) week notice
is required.
If background material is to be presented to the City Council, during a City Council Meeting, please be
advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk. It is
requested that this take place prior to the 7:00 p.m session for distribution.
003
City Council Agenda (Special Meeting) Page 3 March 20, 2002
T4ht 4 4 Q"
AGENDA CATEGORY:
BUSINESS SESSION: /
COUNCIL/RDA MEETING DATE: June 20, 2002 CONSENT CALENDAR:
STUDY SESSION:
Consideration of Fiscal Year PUBLIC HEARING:
2002/2003 Preliminary Budget
RECOMMENDATION:
Adopt the Fiscal Year 2002/2003 Preliminary Budget and direct staff to
prepare a Fiscal Year 2002/2003 Final Budget for the July 16, 2002, City
Council Meeting.
FISCAL IMPLICATIONS:
All Preliminary Fiscal Year 2002/2003 revenues, operational appropriations
and capital projects funding are included in this Preliminary Budget.
BACKGROUND AND OVERVIEW:
INTRODUCTION
This preliminary Fiscal Year 2002/2003 Budget is similar to the format
implemented the last few years. This format utilizes two separate
documents to develop the City, Agency and Financing Authority's Budget.
The first of the two documents utilized for presentation of this year's budget
is titled Fiscal Year 2002/2003 Preliminary Budget and includes the total
scope of operations for the City, Agency and Financing Authority. The
second document is titled the Supporting Document. This document
provides the detail for each program operation and the justification for any of
the changes requested.
SUMMARY OF THIS YEAR'S BUDGET:
REVENUES
This year's budget reflects an increase in a number of revenue sources
totaling $847,000. The Fiscal Year 2002/2003 revenues are projected with
the major changes reflected in the following tables: 004
INCREASE
REVENUE TYPE (DECREASE)
Property Tax
$269,100
Sales Tax
582,000
Transient Occupancy Tax
(85,000)
Motor Vehicle in Lieu
168,600
County Fire Tax
100,000
Interest
(176, 500)
Miscellaneous
(11,700)
$ 8 77,000
EXPENDITURES
This year's budget has also received close scrutiny of all planned
expenditures. The effects of Proposition 218 have resulted in the need to
utilize the General Fund for operating expenditures previously paid by the
Lighting and Landscaping District. The Public Works Lighting and Landscape
Maintenance costs exceeded reimbursements by $765,000.
As identified on page C-2 of the Preliminary Budget, this year's budget is
balanced and contains a $8,1 14 surplus. Some of the significant items or
changes contained in the Preliminary Budget are as follows:
Department
Description
Amount
Change
General Government
Legal Costs
$477,000
$80,000
City Clerk
Elections
35,800
35,800
Finance
Information Technology Charges
77,250
77,250
Finance
Citywide Integrated Activities Software
225,000
225,000
Finance
Budget Newsletter
10,000
10,000
Police
Patrol (Salaries)
2,503,943
105,000
Police
Motor Officer Full Year Funding
150,384
106,700
Police
Gang Task Force Position Full Year Funding
148,928
117,500
Police
Grant funded special activities
189,110
140,000
Building
Fire Services Contract
1,698,000
1,698,000
Public Works
Update Drainage Plan - Phase 1
75,000
75,000
Public Works
Contract Traffic Engineer
41,600
41,600
Public Works
Update Pavement Management Plan
60,000
60,000
Public Works
Citywide Landscape Maintenance Contract
700,000
100,000
Public Works
Landscape Lighting Maintenance Contract
160,000
44,000
Public Works
Landscape Utilities
354,100
66,000
All Departments
Salary and Benefits
5,746,300
825,000
All Departments
Miscellaneous
3,922
$3,8 00,722
005
002
OTHER FUNDS
The following lists other significant line items contained in the budget.
Fund Description Amount
Information Technology Accounting Software $225,000
Additionally, the following additions were requested by Departments for
improving City services and were not included in the preliminary budget.
Department
Position/Description
Amount
Public Works
Back Hoe
$80,000
Public Works
Drainage Study — Phase 2
50,000
Public Works
Office Assistant
46,600
Police Priority
Priority 1 — Community Action Team
426,045
Police
Priority 2 — Increase Patrol Hours
427,708
From 82 to 92
PFR-Q()NNFI
There are no proposed additions or deletions to the 76 full time equivalent
positions currently funded at the City.
The proposed budget includes normal step increases for eligible employees
and a 3.1 % Cost of Living Allowance.
COMMUNITY SERVICE PROJECTS
In past budgets, the Council has included community service projects to
benefit the citizens, children, and business community in the City of La
Quinta (Attachment 1). The following table lists Community Service items
exceeding $5,000:
AGENCIES
BUDGETED
C.V. Recreation & Park District — Pool Hours
$20,000
Bob Hope Chrysler Classic ( Attachment 2)
50,000
Boys & Girls Club Facility Use
30,000
Community Special Events (formerly Village Faire)
61,800
Boys & Girls Club — Floor Refinishing
6,000
Sports Complex — Shade Structure
25,000
Sports Complex — Brick Dust
6,000
Special Projects
55,000
La Quinta Arts Foundation
90,000
AB 939 Unallocated Requests
10,000
La Quinta Chamber of Commerce ( Attachment 3)
125,000
Date Festival
5,250
C.V. Economic Partnership
6,000
$490,050 006
fir?
TIMELINE
Attached is a brief outline of the City staff presentation of the Preliminary
Budget (Attachment 4) as well as a one -page summary of highlights of this
year's budget (Attachment 5).
Staff is requesting that at the June 20, 2002, City Council meeting, the
Council review and make any amendments as necessary to the Preliminary
Budget. Subsequent to this review, staff is requesting approval of the
Preliminary Budget with a July 1, 2002, effective date. Staff will then
incorporate all changes pursuant to the discussion of the Preliminary Budget
and schedule the item for consideration at the July 16, 2002, City Council
meeting for Final Budget adoption.
CAPITAL IMPROVEMENT PROGRAM
The FY 2002/03 Preliminary Budget incorporates the planned capital
expenditures for next year. The projects can be found on Pages H-1 and H-2
and include funding for five (5) major CIP projects - Phase 2 of Jefferson St
Widening between 1-10 and Hwy 1 1 1, The Ranch property development,
Museum expansion, Phase 1 Library construction and Fire Station
construction.
FIVE YEAR RESOURCE ALLOCATION PLAN
City staff is currently completing the Five Year Resource Allocation Plan
(RAP). This five-year plan forecasts the operating expenditures and the
anticipated revenues to pay for these expenditures. Staff will incorporate
any changes between the Preliminary Budget and the final budget into the
Five Year Resource Allocation Plan which is scheduled for presentation at the
July 16, 2002, City Council meeting.
fSIILTA I►yiIR-ri
This memorandum is intended only as a summary of the issues and details of
the budget. We look forward to these discussions with the City Council at
the June 20, 2002 City Council meeting.
FINDINGS AND ALTERNATIVES:
City staff is requesting:
1) Review and comment on the 2002/2003 Fiscal Year Budget and
provide direction regarding any proposed changes to the document. 007
004
2) Approval of the 2002/2003 Preliminary Budget as amended at the
June 20, 2002, City Council Meeting. (Any approved changes by the
City Council to be incorporated into the Final Budget for adoption on
July 16, 2002.)
RespectftAly submitted,
Johh M. Falconer; Finbnce Director
Approved for submission by:
Thomas P. Genovese,
City Manager
Attachments: 1. School/Grant/Contract Contributions/Department
Requests
2. Bob Hope Chrysler Classic Request
3. Chamber of Commerce Request
4. Staff Outline
5. Major Highlights
6. Preliminary Budget
I
005
ATTACHMENT 1
City of La Quinta
School/Grant/Contract Contributions/Dept Requests
FY 01/02 Actual and FY 02/03 Budgeted Through
37,417
Budgeted
Actual
Total
Budgeted
FY 01/02
FY 01/02
Actual &
FY 02103
Category
Expenditures
Committed
Committed
Grants
Soap Box Derby (Franchise fees)
1,600
1,500
1,500
1,600
Bob Hope Chrysler Classic - (Note 1)
0
25,000
25,000
0
Soap Box Derby (Traffic Control)
2,800
1,612
1,612
2,800
CV Economic Partnership
5,000
5,000
5,000
6,000
CVRPD - Octoberfest
2,200
2,205
2,205
2,200
CVRPD - Pool hours - (Note 2)
3,000
0
3,000
Holiday in the Park
3,000
500
500
3,000
Date Festival
5,()00
5 000
5,000
5,250
Subtotal
22.600
40.
0 817
0
40 817
23,850
A/C 101-251.663-000
Contingency
LQ Arts Association
4,000
4,00C
Vets Express
2,000
2,000
Riverside County Sherriff Pistol Team
1,500
1,500
Lions Club
1,000
1,000
Soroptimists Club (rent)
4,070
4,070
LQ HS Cheerleaders
2,500
2,500
LQ HS Junior ROTC
2,000
2,000
CARE Program
2,499
2,499
Veterans of Foreign Wars (rent)
1,125
1,125
Living Desert
1,000
1,000
LQ HS Band Boosters
2,499
2,499
United Cerebral Palsy
1,250
1,250
Community Blood Bank
1,000
1,000
LQ Desert Wildcats
2,499
2,499
LQ HS Football
2,499
2,499
YMCA of the Desert
5,810
5,810
CV Park & Rec Building Permits
14,000
14,000
YMCA of the Desert - Permits
2,500
2,500
Meals on Wheels
525
525
Subtotal
56 200
37 776
16,500
54,276
55 000
Contracts
Chamber of Commerce
125,000
125,000
125,000
125,000
Boys & Girls Club - Facility Use
30,000
30,000
30,000
30,000
Boys & Girls Club - Floor Repair
6,000
0
6,000
6,000
6,000
LQ Arts Foundation
75,000
75,000
75,000
75 000
Subtotal
236.000
230,000
6,000
236.000
236,000
AB939 Requests
Unallocated
10,000
10 000
10,000
10,000
Subtotal
10,000
10 000
0
10,000
10.000
Department Requests
I
Office Assistant - Public Works
0
0
0
Back hoe
0
0
0
Phase 2 - Update Flood Plan
0
0
75,000
Community Action Team - Police Priority 1
0
0
0
Additional Patrol Hours - Police Priority 2
0
0
0
Subtotal 1
0
0
0
0
75,000
Requests
FY 02/03
50,000
125,000
30,000
46,629
80,000
125,000
426,045
427.708
Total 324 800 318 593 22 500 341 093 399 850 1 365 382
During FY 01/02 the City Council appropriated $25,000 from the Police Services Special Projects Account to fund
Bob Hope Chrysler Classic - (Note 1) this request.
CVRPD - Pool hours . (Note 2) Program not offered last fiscal year
007
UfFICERs:
BOB HOPE
CHAIRMAN OF THE BOARD
STEVE MORTON
PRESIDENT AND
TOURNAMENT CHAIRMAN
JOHN.. FOSTER
FIRST VICE PRESIDENT AND
ASST. TOURNAMENT CHMN.
ROBERT P. BRENNAN
TREASURER
ERNIE DUNLEVIE
SECRETARY
DONALD B. POOLEV
ASST. SECRETARY/TREASURER
DIRE( 'IYJRN:
ROBERT P.BREN`AN
JOHN CCRCI
TONS' DEL GIORGIO
DAN DUNLAP
ERNIE DUNLEVIE
JOHN EGER
JOHN E. EVENSON
JOHN M.FOSTER
ROBERT J. FRAIMAN
JERRY GOU"ER
JOHN LANE
VICTOR LuBUE, Jr.
STEVE MORTON
DA V ID PEAT
DON.ALD B. POOLEY
WILLIAM T POWERS
BRADQUAYLE
LAMES R. REED
WILLIAM G. SALATICH
EUGENE WEISBERG
I M It\ \\IE\"1' DIRT( UOR
MICHAELMILTHORPE
�IIYIl\I�fR.\'1'1\ F: DIRFC1OR
DAWN SUGGS
ATTACHMENT 2
BOB HOPE CHRYSLER CLASSIC
Post Office Box 865. Rancho Mirage, California 92270
Bob Hope Classic Building, 39000 Bob Hope Drive. Rancho Mirage. California 92270
(760) 346-8184 - 1-888-MR B HOPE - FAX (760) 346-6329
Web Site: www.bhcc.com - E-Mail Info@ bhcc.com - bhccadmin@top2host.com
May 2, 2002
The Hon. John Pena MAY 6 ^'
Mayor of the City of LaQuinta
Post Office Box 1504
LaQuinta, CA 92253
Dear John:
As you may recall, we appeared before the City Council last
December to request the sum of $50,000 to defray certain city
and county mandated costs. The Council agreed to reimburse the
Classic for $25,000 of these costs, for which the Board was very
grateful.
You will note from the enclosed schedule that our costs for land
preparation, soil stabilization, and sworn security greatly exceeded the
$25,000 granted by the city by nearly $50,000.
We are currently working on the budget for 2003. Given continued
heightened security requirements, on -going land prep costs, and the
event being played at two courses with the city of LaQuinta (PGA
West as host and LaQuinta Country Club), we expect our costs to be
similar or higher in '03.
We seek your advice on how best to approach the City Council to
increase their funding to $50,000.
I will look forward to hearing from you. As always, the Board and
staff deeply appreciate the City's cooperation and support of our
desert charity fund raising event.
Sincerely,
�J
_—I
Michael Milthorpe
Tournament Director
Enclosure
cc: John Foster, President _Z 0
and Tournament Chairman
1
ATTACHMENT 3
OFT
r f� ��IKILIC(/
OF c004
June 10, 2002
To: Tom Genovese, City Manager
Mark Weiss, Assistant City Manager
From: Dr. Kurt Spurgin, President
Re: 2002-2003 City -Chamber Contract for Services Proposal
We are pleased to submit the La Quinta Chamber of Commerce contract for services
proposal for the period July 1, 2002 through June 30, 2003.
We propose to continue with the current Scope of Services to include:
A. Business Retention and Promotion
B. The `Gem" Newspaper
C. The Visitors Center
A. Business Retention and Promotion: The growth of La Quinta has had a positive
impact on the rising number of our membership base. The Chamber has positioned itself
for membership retention and growth by clearly defining and constantly improving the
value of membership benefits and services provided.
By the end of this fiscal year, we anticipate a record high increase in membership of over
140 new members. Our Membership Services Committee has recommended continuing
with the same dues structure as last year. We did increase our dues last year, however,
valley -wide we will still remain the most economic Chamber to join. Our focus on
membership retention has resulted in important staff adjustments to continue a high level
of service to our members.
The Chamber Bi-Monthly City/Chamber Meetings and the Chamber Executive Director's
involvement in the quarterly city marketing meetings have aided the chamber to work in
conjunction with the city on business retention and promotion. We support continuation
of these two effective means of communication.
The contract for service dollar amount for Business Retention and Promotion will remain
constant.
01-1
La Quinta Chamber of Commerce
�8-3) 1 Highway 111 La Quinta, CA 92253 Phone:-60-364-3199 Fax760-364-3111
vww.iaquintachamherorc,)inmerce.com 009
Page Twin
2002-2003 City -Chamber Contract for Services Proposal
C. The "Gem" Newspaper. This past year we increased our circulation to include all La
Quinta residents and businesses as well as our members and prospective members. We
have also upgraded the quality of paper and purchased new computer programs and
equipment to improve the newsletter. Overall feedback on this publication indicates the
newsletter is well received and of value to members and residents alike.
There will be an increase in the cost for postage for the new fiscal year. Overall costs will
also increase as our membership and the number of residents in La Quinta continues to
rise. The newspaper is our most effective resource to reach a target audience promoting
the City and Chamber. We will continue to investigate the possibility of future expansion
to include circulation to the residents in the annexation survey areas.
Anticipated increases in the total cost to produce ten issues of the newspaper during FY
2002-2003 will be approximately $5,500. Restructuring our ad rates should absorb the
majority of this amount.
Costs to increase the newspaper an additional four pages (1 spread) and to publish the
Gem on a year round basis have been reviewed by the Chamber staff and Executive
Committee. During this next fiscal year we would like to discuss the City's interest in
increasing this publication to 12 issues.
The contract for service dollar amount for The "Gem' Newspaper will remain constant.
C. The Visitors Center: This is a vital service we will continue to provide for the City.
The continued media attention La Quinta is experiencing because of our growth and
development justifies the staffing of our facility seven days a week during the season.
Exposure from our improved website, the demand for more information and service from
visitors, and the increased number of residents continues to have a significant impact on
staff and facilities.
Improvements to the facility combined with additional equipment/technology and a
professional staff and volunteers contributes to what we believe is an efficient and
effective operation.
We are pleased to report that we anticipate continuation of operating at this capacity with
no increase in cost to the City.
012
010
Page Three
2002-2003 City -Chamber Contract for Services Proposal
Summary
Operating under the same contract dollar amounts as last year, our request remains at
$125,000 for FY 2002-2003.
Last year the Board requested consideration be given to adjust the payment for services
schedule to reflect the months of greatest impact to our budget created by The "Gem'.
The payment schedule we requested worked well within our budget and we suggest
payments to continue as follows:
July Payment $41,500
October Payment $21,000
January Payment $41,500
April 15 Payment $21,000
Thank you in advance for your supporit We look forward to our continued
relationship with the City.
013
011
ATTACHMENT 4
June 20, 2002
Staff Outlined for 2002/2003 Preliminary Budget
City Manager - 5 minutes
• Summary of Financial Condition
• Summary of Preliminary Budget
• Summary of Revenues
1. Expenditures
2. Review Items Listed on Transmittal Letter
Finance Director - 15 minutes
• A-2 - Review of budget process
• A-5 - Review of budget format
• B-1 - Present Organizational Chart
• B-6 - Review of community profile which compares changes in the categories
listed.
• C-2 - Review of the Budget Summary by Fund which brings together the
financial activities of all the City, RDA and Financing Authority Funds.
• B-3 - Present General Fund Revenue Pie Chart which shows percentages.
Mention that Pages D-1 through D-5 graph major revenue items and we are
prepared to go over them if requested.
• B-4 - Present General Fund Operating Expenditures Pie Chart - not net of
reimbursement. This indicates in what areas the City is directing its efforts.
• B-5 - Present City, RDA, Financing Authority expenditures by component -
this is how each dollar of total expenditures is broken down.
• Section E - Explanation of Department by Department overviews of City
operations
012
• E-9 & E-10 - Explanation of format of the two budget documents which are
tied together by the schedule of expenditures schedules. As an example,
pages E-9 and E-10 are contained in each budget document.
• C-5 - Review of reimbursements to the General fund from other funds - other
funds pay for personnel and operating expenditures that are recorded in the
General Fund.
• H-1 & H-2 - Review of the City capital improvements approved by the
Council in the Five Year Capital Improvement Plan.
Question & Answer Period
013
ATTACHMENT 5
FY 2002/03 - Major Highlight
Full Year Funding for Second Motor Officer
Full Year Funding for Gang Task Force Officer
Capital Project Spending for FY 02/03 - $15,184,012 plus $43,500,000 in FY 2001/02 for the
Ranch Property Land
Major Projects - Phase 2 Jefferson Street - $2,610,183
Museum Expansion - $1,675,000
Phase 1 of Municipal Library - $4,676,676
The Ranch Development - $2,500,000 plus $43,500,000 for Land
appropriated in FY 01/02
Revenues
All Funds Anticipated Revenues . FY 02/03 $72,144,253
FY 01/02 $145,568,188
Comments: FY 01/02 RDA Project Area Capital Project Fund included $88,000,000 in Bond
Proceeds from (RDA 2001 Bond Issue - $48,000,000 and 2002 Bond Issue - $40,0000,000)
General Fund Budgeted Revenue - FY 02/03 $16,523,670
FY 01/02 $15,647,159
Major Sources of General Fund revenues
Sales tax - 23% Last year 23%
Hotel Room tax - 21 % Last year 27%
Expenditures
All Funds Anticipated Expenditures - FY 02/03 - $66,648,980
FY 01/02 - $129,849,016
Comments: Increased debt service payments to pay for capital projects and payment for The
Ranch property
General Fund Budget Expenditures - FY 02/03 - $19,799,351
FY 01/02 - $15,988,579
Surplus
FY 02/03 General Fund $8,114
016
014