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2005 06 20 CC Minutes LA OUINT A CITY COUNCIL SPECIAL MEETING MINUTES JUNE 20, 2005 A special meeting of the La Ouinta City Council was called to order at the hour of 4:00 p.m. by Mayor Adolph. PRESENT: ABSENT: Council Members Henderson, Osborne, Perkins, Sniff, Mayor Adolph None PLEDGE OF ALLEGIANCE PUBLIC COMMENT Kay Hammond representing the La Ouinta Playhouse, requested funding. They are submitting a request for Community Services Grant but this is a separate request for funds in excess of the $2,.000 grants. City Manager Genovese stated the policy limits grant requests to $2,000. He advised if an organization is requesting more than that, their request will have to be considered separately. Mayor Adolph requested the City Manager contact Ms. Hammond regarding when this request might be considered. CONFIRMATION OF AGENDA The agenda was confirmed with no changes. BUSINESS SESSION 1 . CONSIDERATION OF FISCAL YEAR 2005/2006 PRELIMINARY BUDGET. City Manager Genovese presented the staff report, and Finance Director Falconer reviewed the Executive Summary prepared for the staff report consideration of the preliminary budget. He reviewed the document and explained the sections contained within. He pointed out the budget is balanced and there is a surplus of $87,767 for Fiscal Year 2005/06. City Council Minutes 2 June 20 2005 Mayor Pro Tem Sniff questioned if item C-5 of Attachment 9, (Reimbursements to the General Fund from other funds) represents revenue as opposed to a transfer. Finance Director Falconer responded it is a source of funding to the General Fund. He said in the truest sense it is not a sale of a product but is a source for reimbursement of costs. Council Member Henderson questioned the same page, dealing with the library, and asked for clarification of the $843,000. Director Falconer explained items listed on Pages 40-44 in the supporting document showed there was funding at one time for a loan to the RDA but it was switched to the library services fund as an advance. This reimbursement deals with operations through a contract with the County Library Systems for purchasing books, utilities, maintenance and repair and the Contract Services with the county, and this will be an ongoing expense and will come from the 100% increment pass-through from the County Library Fund. Council Member Osborne commended Mr. Falconer on a great budget and asked if the proposed budget operating surplus is $87,767. Director Falconer stated that is correct. He questioned from the Expenditures side of $4.5 million, if staff has researched the past year's actual versus what was budgeted in the prior year. Director Falconer referenced D-7, first column for actual was $23.1 million last year and during the year up through the end of May it was amended to $23.5 million. He said for the year 2004/2005 it is estimated to be $30.5 million plus reimbursements. This year the projections are for $27.4 million for a difference this year of about $3 million. Council Member Osborne asked if the reduction in proposed revenues due to the City's conservative point of view on building permits and Development Impact Fees (DIF) of projecting only 500 permits per year. Director Falconer said the DIF is a separate fund but building permit fees are responsible for the major difference. That accounts for the $3 million based on 500 building permits and only 1,000 square feet of retail. Council Member Osborne asked if the 500 building permits each year IS based on any trends. C,ity Manager Genovese said based on the years in the 1990's it is not a conservative estimate but more than that has certainly been the case in the 2000's, probably the City has averaged 700-800. Council Member Osborne asked about the interest on RDA loans from the General Fund. He specifically asked if this budget reflects interest coming back from the RDA loans. City Council Minutes 3 June 20 2005 Director Falconer referenced page D-7 which shows two interest amounts, approximately $190 million coming from actual cash and investments in the City's portfolio and non-allocated interest of $2.275 million which is the interest that will be generated on the loans to the Redevelopment Agency next year. Council Member Henderson asked on page C-3, under emergency reserves, where the Council's policy is 30% and with a one-time $4 million contribution she is showing $12.860 million based on a $31 million budget which is about a $1 million difference. Mr. Falconer said he used $27 million to calculate without the reimbursements so that would account for the difference they are showing on that. He said that can be changed if Council wishes. Council Member Henderson asked if the previous budgets have used it without reimbursements, and wonders if the amount could change based on actual reimbursements. City Manager Genovese explained this changes each year depending on the budget so the constant is the percentage not the amount. Mayor Adolph said he also had the same question and he felt the Council is getting closer to their goal for reserves each year. Dori Quill, 51-245 A venida Rubio, of La Ouinta High School spoke requesting $10,000 for educational purposes and not just for the International Baccalaureate Program as stated in the staff report. She stated the request is to help the High School with various requests and not have to compete through the grant program. Mayor Adolph asked if Council has any questions of individual staff members on items listed in the budget. Council Member Osborne questioned the public safety issues on page 4 of the staff report which represents an increase of $1,369,737 due to an overall rate increase and new positions. Chief Meyer outlined the reasons for the two positions to be added to the target team who are charged with addressing the major problem areas such as burglary and auto thefts. He said the other position is a motor officer which is specifically targeted to decrease traffic enforcement. Council Member Osborne questioned if the grant funds received last year could be used for another motor officer. City Council Minutes 4 June 20 2005 Chief Meyer said the department received two this past year and they anticipate continued funding from the Augustine grant to support the costs of the two officers put in place in 2004-05. Council Member Osborne questioned the cost of another motor officer. Chief Meyer responded it would cost $176,000 plus the cost for the motorcycle and a $27,000 one-time training fee for a total estimate of $233,000. He said the cost does go down in future years when there wouldn't be a new motorcycle or training cost. He said they do try to estimate high to ensure coming in under or at budget. Mayor Pro Tem Sniff asked who prepares the police department budget. Chief Meyer responded the budget is prepared at the station level, in this case Lt. Walker was assigned to develop it as a team effort and the recommended level of increase was 4.5% but they actually used 6% in case of changes. Council Member Henderson asked where the allocation for the Police Volunteers is contained. Chief Meyer stated there is a new line item of $50,000. Finance Director Falconer referred her to page 71, the line item for La Ouinta Police Volunteers is $50,000; above that is $100,000 for Federal COPS Program and $125,000 for special enforcement; and $50,000 for the Bob Hope Classic. Council Member Henderson said she was interested in the overhead for the Community Policing Station. Director Falconer said the itemized utilities are in the budget, with the major expense for Air Conditioning and there is also some depreciation involved. Council Member Henderson asked if the City now has two motor officers supported by grants and if those grants are guaranteed for next year. Chief Meyer stated he is not sure how many years are left on the grants, but the Augustine Grant was accepted as a five-year grant. Council Member Henderson asked, if it is necessary to apply for a grant each year, is it possible the City would have to pick up that cost from the General Fund or police budget in the future. Chief Meyer replied, should that be the case, the yearly cost for each motor officer is approximately $196,000 City Council Minutes 5 June 20 2005 Council Member asked if that is the County-wide rates for all cities under contract for police services. Chief Meyer responded it is the same for all cities, and noted the Sheriff's Department is not allowed to make a profit on the services they provide under contract. Council Member Perkins stated he is a strong supporter of motor officers and feels the City doesn't have enough. He said if the Native American grants drop off, the City will have to pick up the costs because of the need for them. He said he has suggested adding another motor officer beyond what the police are requesting and commented on the benefits of having motor officers. Mayor Adolph stated the City is adding three more officers this year and has to do so to keep up with the demand. He said the City is working not only with its residents but with people from outside the City who are utilizing the retail areas. Chief Meyer said a high percentage of the calls are for perpetrators from outside the City, because of the increase in the retail segment. He said this is a proactive budget and is based on the fact that proactive cost is less than reactive in the long term. Mayor Pro Tem Sniff noted motor officers can't work in all weather. Chief Meyer responded that in inclement weather motor officers can be used in patrol cars. They are dedicated to serving the City regardless of the method of transportation they are utilizing. He also said, in response to Mayor Pro Tem Sniff, that coverage is predicated on the time needed the most, including weekends and up to 2 AM. He said the motor officers are not on duty every day at the some hour. Council Member Osborne stated he had some questions regarding the Fire Services Budget and asked for an explanation of the ladder truck agreement with the City of Indio. Chief Dorian Cooley said a multitude of factors can trigger the need for a ladder truck not just the higher story buildings. He advised the Embassy Suites doesn't necessarily create a requirement for the City to have its own truck. He explained that when another city is expected to have one, such as Indio, which has established the need, they frequently are looking for assistance in financing one specialized unit. He explained the "big box stores" call for this kind of vehicle based not on height but on the expanse of City Council Minutes 6 June 20 2005 roof. He said a ladder truck can be described as a large rolling tool box with specialized certified training required for its operators. Council Member Osborne asked about the detail on the revenue side of fire services. Director Falconer directed him to Page D-7 which shows two revenue sources, the County Fire Services Credit and the County Fire Service Credit Applied which comes to an approximately 8 % increase from the prior year, even after applying $368,000 which is expected to exceed revenues. Council Member Henderson asked if it is anticipated that a draw against the Applied Credit will occur every year. City Manager Genovese stated unless there is a request to add additional fire stations or extra man-hours the City would still only be manning three stations and therefore fire services probably will remain more consistent. Battalion Chief Cooley spoke to the increased benefits issue and costs during the past few years and said he doesn't expect that kind of significant cost in the future. Mayor Pro Tem Sniff asked if the City has entered into an agreement with the City of Indio for the ladder truck joint use. City Manager Genovese stated no agreement with Indio, Coachella, and/or the County has been formulated at this time. He said the best estimate of the cost is $150,000 per year once an agreement is reached. He also said the City Council will ratify any agreement before it is entered into. In response to Mayor Pro Tem Sniff, Chief Cooley said the City's 5 minute response time will not apply to the ladder truck which would be on scene within 10 minutes. He also responded the aerial ladder is 100 foot in length. In response to Mayor Adolph, Chief Cooley said the ladder truck would respond to the Fantasy Springs Casino, if needed. He said even if it is out of Indio's jurisdiction it would come under the mutual response agreements. Council Member Osborne questioned the Community Services projects on Page 5 of the staff report and stated the Chamber of Commerce has requested more than listed in the budget. He noted they are asking for $180,000 or be allowed use of portion of new library for their office needs. David Howard, 78371 Highway 111, Chairman of the Board spoke on behalf of the Chamber of Commerce and noted they have not had an increase from the City in some time. He said the City has grown and their mailing costs '1'. ....--."',: '. City Council Minutes 7 June 20 2005 have increased, they need more space and find their space needs will cost substantially more. He pointed out that they are now looking for space from the City or financial assistance to assist in the increased cost of commercial office space. He explained the amount requested would be close to a 10% increase for each year since the last increase from the City of La Quinta. In response to Council Member Osborne, Mr. Howard said the Chamber needs about 2,500 square feet and is willing to pay for tenant improvements and use for three years. He said after a period of time he would be in a position to secure another location for a permanent home. Mayor Pro Tem Sniff asked staff what could be ups or downs in their use of the library expansion facility. City Manager Genovese said, when the improvements to the second phase of the Library were presented to the Council, the expansion area was intended to provide facility use for rentals by community groups and individuals. Building and Safety Director Hartung reviewed the three main components of phase 2. It contains 1,000 square feet intended for classroom use, 2,000 square feet for a community room, and the remaining portion (7000 square feet) for all-purpose rental use. In response to Mayor Pro Tem Sniff he said the community room has access to restrooms, has outside access and is isolated from the other areas. Mayor Pro Tem Sniff asked if that room could possibly serve the Chamber of Commerce's needs with some retrofit. Director Hartung said anything is possible but that is up to the Council. Mayor Pro Tem Sniff asked if they have any other options if they don't stay in their current location. Mr. Howard replied they have looked at SilverHawk in their Commercial Building but Eisenhower Drive is not a beneficial location. He said to stay at current location is not really an option since they only have 1,200 sq. ft. and everything they have looked at with Highway 111 frontage is out of their financial range. He said they still don't have a solid cost with SilverHawk, but first indications are the Chamber would have to look at only 2,000 square feet. He said if the City could provide 2,500 sq. ft. that would keep them close to the hub of the City. Mayor Adolph stated the managers of SilverHawk have indicated to him they would work with the Chamber. He noted the Chamber wanted to be on Highway 111 and now it's not economical for them to do that. He also commented that on Highway 111 they generate a lot of foot traffic. Mr. Howard responded they would prefer Highway 111 frontage or to have City Council Minutes 8 June 20 2005 signage there for a space that doesn't front on the highway but that will depend on the amount of funding they receive. Lou Pieper, Incoming Chairman of the Board and Chamber Facilities Chairman spoke regarding their growth, and said they have solicited proposals to meet their space needs. He said their cost would be $2,000 per square foot with no triple net, so their cost would be a $12,000/month increase to $60,000/year which is significant at SilverHàwk and that's the best quote they have at this time. He said frontage in the Highway 111 corridor would be even higher plus triple net would be approximately $75,000/per year. He also pointed out they don't have a profit built into their contract for services but rather have just recovered the cost for the delivery of the Gem cost. Mayor Pro Tem Sniff asked if it is feasible for the Chamber to use the City Library facility for no more than a three-year period. Director Hartung responded it won't infringe on library operations but could on other community efforts. He said the Council would probably want to dedicate the Community Room space and use modular cubicles for desks to minimize hard construction costs. This would mean room wouldn't be available for other uses - would still have classroom that would hold up to 50 people and the other room for up to 250 people. Mayor Adolph asked if it would curtail any expansion of the library. Director Hartung said the library expansion is slated to go into the large room and it only entails putting in the stacks. The reception area actually will move from the rotunda into that area as well. He said there is very little left to be done for the Phase Two library expansion and what needs to be done is relatively minimal. Mayor Pro Tem Sniff said he feels like use in the Phase Two expansion area is the most feasible and the best solution, plus it reduces the request from $180,000 to $130,000. Council Member Perkins said the Chamber has recently raised dues about 25% and he doesn't believe the City should be in business with the Chamber. Chamber has greater membership than the City has employees. He said he is not sure City should be picking up the costs for the Chamber's space needs and he doesn't want to see the library used by anyone else for any other purpose, because it's difficult to get someone out once they are entrenched. Council Member Henderson said the Chamber had a place in the Village for $1 .00 per year but were adamant about moving to Highway 111 and City Council Minutes 9 June 20 2005 adamantly didn't feel they should be in the Village and now they come back with a request to move to the Village. The City has looked at higher and lower levels of sponsorship for the Chamber and the Chamber has asked for more and not gotten it. She said the significant amount of dollars given to the Chamber is for publishing the Gem and if the Gem is a burden on the - - Chamber she would be willing to discuss whether it should be continued. The City has raised the amount of the contract because of postage increases and maybe should review your budget to see where it is currently. She pointed out the City was funding a non-profit entity and felt the Chamber should not be looking for profit. She felt the Chamber has had growth but that should have increased its revenues. She said she like Council Member Perkins cancelled her individual membership because of the increase in membership dues. Addressing the Chamber's audit, she felt uncomfortable with the City reimbursing that cost simply because the City requires an audit prior to giving grants. She also feels uncomfortable with having the library space used for this purpose and agrees with Council Member Perkins' reasons. She recommended the Chamber continue to negotiate with SilverHawk and feels the Chamber Board needs to look at a long-range answer. Lastly, she stated she is comfortable staying with $125,000 if the Chamber is comfortable with continuing to do the Gem. She asked if they are also looking for new Executive Director. Mr. Pieper said the Chamber is in sort of a quasi mode because they provide the Gem which has information from the City and from the Community and it's their most valuable tool. He said they don't want to eliminate it and the Chamber recovers the cost of producing and mailing it through the City's annual sponsorship. He agreed that they receive revenue selling ads and from membership but it's not enough to cover the rent increase they are now facing. Mr. Piper said they represent 700 businesses in the community and have been working with their members and staff to find a solution. He stated he is not sure they are solely a grant agency. He sees them as services agency, providing a service to the City via the Gem and trying to recover costs so they can maintain a competitive edge. Council Member Henderson suggested perhaps they need to provide a proposal for doing the Gem so the Council can see where those costs are included with some of those costs include depreciation figures for capital equipment, etc. Mr. Pieper said they have been recruiting for a new Director and should have someone on-board by August 5th. Council Member Henderson said she is still a little uncomfortable with some of the Chamber's presentation and is glad they want to continue with the City Council Minutes 10 June 20 2005 Gem. She would like to find a way that works for both the Chamber and the City and she needs more details first. Mayor Adolph said a long time ago he asked the Chamber to be more self- sufficient and hasn't seen anything being done. He asked if they are looking for other ways to fund the Chamber. David Howard said they presently do fund raisers but most are charity events. The Chamber helps the member businesses through events but tries not to charge members more than necessary. Some events require a large cash out~ay for the members. He said raising dues $20 for each of 700 members would not produce a substantial amount in light of the increases they are looking at. Mayor Adolph said he remembers street fairs the Chamber sponsored and the City was very supportive of those events and assisted in financing them. He suggested the Chamber could earn additional revenues by resurrecting that program. Mr. Pieper stated they generate funding but he hoped the City could work with them to bring things together. He felt the Council is aware of how other cities operate together with the Chamber. Mayor Pro Tem Sniff stated the City has had a long-term relationship with the Chamber. He has watched the Chamber grow and feels it is not a money maker and won't be. He thinks the most logical action is to offer a location at the library for a three-year period for $1 year. He feels the Chamber should pay any reasonable cost to fix their office location and work on a mutually agreed-upon contract for an amount of $130,000 for the year 2005/2006. He said the Council needs to make a decision. Mayor Adolph doesn't want to disturb the library operations. Director Hartung said the 2,500 square feet under discussion was also seen as providing a place to hold the Chamber's Board meetings. He said tHere will be other rooms that could be used for those meetings if they could use less area for administrative purposes. In response to Council Member Henderson, he said he can't break out utility costs because there is only one meter for each of the utilities. Council Member Henderson said if the Council is serious about doing this there needs to be discussion regarding what the City's cost will be in the building. City Manager Genovese said cost allocations can be determined but staff would need to look at the building layout and determine how it City Council Minutes 11 June 20 2005 might affect the City's plans such as the need for lock off areas. He said the City needs to be sure this is taken into consideration. Council Member Henderson said she feels staff could come back to the Council with some details worked out. Mayor Adolph asked when the Chamber of Commerce needs to be in a new facility. Mr. Howard said they have not been told anything by their new landlord yet but he believes they are about to be put on a month-to-month basis. Council Member Henderson pointed out that anyone wishing to use the facility for a meeting, wedding reception, etc., would be charged the City's approved facilities fee. She felt the Chamber should do the same and sees nothing wrong with charging more than $1 .00 per year since they are currently paying $12,000 a year. She would be uncomfortable approving it if it were not more equitable. Council Member Osborne recommended staff come back with something for the Council to act upon. He noted the Chamber of Commerce has helped bring small businesses to the City. Mayor Pro T em Sniff said he has no objection to a reasonable charge for the space and sees nothing wrong with $1 per year to pay for utility costs. He asked staff to bring this matter back by the first meeting in July. City Manager Genovese said the second meeting would be a better date because, technically, staff only has a few days before having to put the agenda together for the July 5, 2005 meeting. RECESS The Council recessed for a short break at 6:32 p.m. The meeting was reconvened with all members present at 6:56 p.m. Council Member Osborne asked with respect to the Community Services projects an item on page 6 of the staff report with respect to the Cal State University San Bernardino campus and their request for $1 million. He spoke in favor of the benefits the University brings to the whole area not just to the City of la Ouinta. He also discussed breaking down the $1 million over a four-year period at $250,000 per year. He said he felt there are areas within the budget that can be rearranged in order to maintain council's and " City Council Minutes 12 June 20 2005 staff's priorities but also to make room for an allocation of $250,000 to work with Cal State University. Mayor Pro Tem Sniff pointed out that there are other issues that proceed this item on page 6 and he feels they need to consider the others first since there is only an $87,000 surplus to deal with for the other requests. She felt the Council should address the other ones first to establish a "bottom line". Mayor Pro Tem Sniff pointed out that the La Ouinta Arts Foundation request is funded in the budget already and the Boys and Girls Club is also funded. , City Manager Genovese clarified that in the case of the Boys and Girls Club, $30,000 is funded by the General Fund and $30,000 from the Community Development Block Grant Funds. He also said all of the Agencies making requests and listed on Page 5 are funded currently in the budget. Mayor Adolph stated he would not support the $50,000 budgeted allocation for the Bob Hope Chrysler Classic. Mayor Pro Tem Sniff stated he agreed based on the actions of the Bob Hope Classic this year. Mayor Adolph said none of the charitable entities receiving funding last year from the Bob Hope Classic are from La Ouinta. Council Member Osborne questioned if the $50,000 for the Bob Hope Chrysler Classic is the amount contained in the Police budget. Mr. Genovese said that is correct, the monies budgeted are for police services such as traffic direction. Council Member Henderson asked if the Arts Foundation Representative, who is present, wished to make any comments. Christi Salamone, Executive Director of the La Ouinta Arts Foundation, in response to Council Member Henderson said the Foundation paid $20,400 for City facilities use this year for the five-day Festival. She said current discussions have not touched on the cost of using City facilities in the future. They have just been about negotiating a long-term commitment to hold the Festival on the Civic Center Campus. Ms Salamone said the Festival Committee would like to have a three-year commitment with an option for an additional two years. She said the Festival this year awarded $68,000 to 41 local students pursuing college education in the visual arts and related fields and the total amount to-date, awarded to local college students, is approaching $700,000. Mayor Pro Tem Sniff said he thought the long-term commitment was 3-1-1, with a one-year commitment after the first three years of the agreement and City Council Minutes 13 June 20 2005 then the possibility of another one year. Christi Salamone said they just need to have stability regarding the site because they work from one Festival to the next with a very brief period of time between planning. The Council by consensus indicated unanimous approval of the budget allotment for the Arts Foundation and the Boys and Girls Club. Mayor Pro Tem Sniff said he is not in favor of the $50,000 budget allotment for the Bob Hope Chrysler Classic (BHCC). Council Member Henderson said she feels the City has made a great deal of progress working toward meeting the concerns of the BHCC and that the fact remains the Tournament will be playing at two venues in La Ouinta next year. She noted they are high profile on a national basis and she feels if the Council was comfortable with a grant of $200,000 for an amateur tournament it should certainly understand the value of $50,000 for traffic control during a nationally televised event. Mayor Adolph objected to giving the Bob Hope Chrysler Classic a check for $50,000. The City Manager said the simplest way to handle this would be to let the BHCC know they don't have to pay the $50,000 to the Sheriff's Department because the City has taken care of it internally. Finance Director Falconer clarified the BHCC has the need for public safety services and each year it is somewhat different based on where the tournament is being held. He explained last year when it was held at the La Ouinta Country and PGA West the cost was $48,000. He said the City has handled the reimbursement of the costs both ways and they can handle it in- house rather than having the Sheriff issue an invoice to the BHCC and having them invoice the City showing proof of the expenditure. Council Member Perkins said personal feelings about the issues with the Bob Hope Chrysler Classic are not appropriate for discussion and he would not like to see those expressions relayed to the BHCC as representing the feelings of La Ouinta as a whole. The City Council concurred on the YMCA Pool Contract, the Contingency that covers ten grants at $2,000 each, Community Special Events, the AB 939 Unallocated, CV Economic Partnership, Facilities Dedications and Holiday in the Park, and the Date Festival allocations. The Other Issues portion of the staff report were acted upon as follows: City Council Minutes 14 June 20 2005 · Request from the La Guinta Chamber of Commerce - Council Members were in favor of $130,000, with Council Member Henderson in opposition. · The allocation for the Jacqueline Cochran Regional Airshow in the amount of $10,000 was unanimously approved to be funded from the $87,000 operating surplus amount. · A request for $10,000 from the La Ouinta High School PT A was considered and the Council approved an allocation in the amount of $5,000 to be available for draw down by the Principal of the La Ouinta High School. Funding to come from the operating surplus amount. · A request from Safe House of the Desert from the City in the amount of $25,000 was not approved. A second request was for $125,000 with some of the funding coming from CDBG funds. The City Council unanimously denied that request since its CDBG funding for the year has been allocated. · A request for $5,000 from the American Red Cross was not approved however, the Community Services Director was given direction to communicate with the Red Cross and inform the CEO that the City Council recommended they apply for a Community Services Grant. · A request for a $200 per month increase in compensation for the Mayor and City Council was approved for a total of $12,000 per year plus added costs of benefits. Funding to be provided from the General Fund Reserve. · The request for $1,000,000 for the Cal State University San Bernardino campus for a capital improvement on campus was approved for a $250,000 allocation per year for four years. To be funded pending the execution of an endowment agreement with the University. Council Member Henderson requested her comments regarding the $1,000,000 contribution to Cal State University San Bernardino be included in the record. She stated she could not support the request using the City's General Funds but would be willing to consider using the anticipated Teeter Funds up to $1,000,000. She also stated she would consider using the $331,000 that the State of California is taking from the City this year as they did last year, when they pay it back. She stated the money was taken from the City by the State for education. Council Member Henderson felt the City also is supporting education through RDA pass-through monies. She appreciated the fact that this is a capital improvement and is therefore a one- time rather than an on-going request. Council Member Henderson stated because this is the first of two requests of this size that the City Council is or will be asked to consider and she feels the City Council Minutes 15 June 20 2005 City Council needs to weigh the two requests against the City's ability to fund them both. She spoke about the need for vocational education as well to serve those students who would not be going to college. She expressed her discomfort making this kind of a contribution when the City's Lighting and Landscape District is in arrears, and the resident's request for Avenue 58 to be rehabilitated immediately, and the need for sound walls. She related an incident that instilled her with enough confidence to maintain a sense of her own philosophical belief in municipal funding. She reiterated the reason for the City having reserve funds is because the City Council and Staff planned for it, they planned for the City's future. Mayor Pro T em Sniff suggested a ~ontinuance to such a time as the request for funding from the hospital comes in. He said he would be willing to commit to $100,000 this year and let next year's Council take care of another request. He said at this time he cannot support $250,000 this year and cannot support committing future City Councils to $250,000 per year of funding. Mayor Adolph spoke to the City's current growth and success and that he feels he can support the $1 million contribution for four or five years. Council Member Henderson asked about Council Member Perkins' request for an additional motor officer. Mayor Adolph stated he has spoken with the Police Chief and was assured that the one motor officer he has requested will be adequate for this year. Council Member Perkins said he had also discussed this with Chief Meyer and if it doesn't prove to be enough patrol coverage, it can be brought back at the mid-year. Council Member Henderson also questioned the percentage used to calculate the reimbursements. Finance Director Falconer responded that there has been discussion about funding a full year's reserves and it will still take a number of years to calculate that. Council Member Henderson recommended that the policy of the Council be changed from the goal of 30% to 35% and it be based on the full operating budget plus the $4 million, one-time money plus the reimbursements. Council Member Osborne questioned if that would move the monies from the General Fund Reserve to the Emergency Reserves. City Manager Genovese noted on page 3C the money would be moved from there to the Emergency Reserves. Council Member Osborne said he would agree with that as well. City Council Minutes 16 June 20 2005 In summary as to the City Council's action, Director Falconer asked for clarification on the $250,000 if that is to be Council's direction should it be taken from the Continuing Projects Operations Reserve Account or some other operations account. Mayor Adolph and Council Member Osborne agreed that was the funding source they were most comfortable with. City Manager Genovese clarified the other amounts as follows: $ 5,000 $10,000 $ 5,000 $ -0- $ -0- $12,000 $32,000_ additional to the Chamber of Commerce - from $125,000 to $130,000; for the Jacqueline Cochran Airport Airshow; for La Ouinta High School; for the Safehouse of The Desert; for Red Cross; approximately for additional compensation for City Council, that does not include the PERS calculation. = $50,000 to $55,000 left in surplus. Council Member Osborne asked if the studies on Page 11 from Annexation to Housing can be funded during mid-year. City Manager Genovese said he expects the City to get them started prior to mid-year and they are either essential or sorely delayed. Mayor Pro Tem Sniff asked what the effect of these actions will have on the balanced budget. City Manager said if the Council's intent is to fund the $250,000 for the University from the reserves, this would have no effect on the balancing of the budget. Mayor Adolph addressed the issues about the additional proposed positions. He questioned the need for an additional staff person in Community Services for the purpose of issuing Resident Golf Cards for SilverRock. He asked if there is an easier way to issue the cards to residents who already have their cards for this year. He suggested notifying the cardholders and ask them to renew the annual fee by check and send their cards back with payment. He felt the cards could be punched or marked in some way and returned. Community Services Director Dodie Horvitz responded that it was Council's direction and policy that has been used to issue cards and if they wish to change the policy that requires staff to establish residency before the cards can be issued they will abide by that direction. She noted the cards are of value because in the season it results in a $105 per round decrease. She says they have found that non-residents do come in and try to obtain a card. City Council Minutes 17 June 20 2005 It was Council's consensus that a simpler system for renewals needs to be developed with a two-year life span for a resident card. City Manger Genovese brought up the matter of the costs for the City's landscaping of the medians and other areas and it is anticipated that the cost will increase. He said staff met with the contractor who advised that he was not able to keep within the contract amount and was not able to keep all the City's landscape areas in the manner that the City Council desires. He said although the City has not gone out to bid yet, it may go up as high as $200,000 to $300,000 in total for the entire contract. Mayor Adolph said his second concern deals with the condition of Avenue 58. He asked what the status of the final improvements to Avenue 58 and when it will be started. Director Jonasson said it is in the FY 2006-07 pavement management system year. The action to make the final improvements doesn't actually get adopted until that years' budget is approved. He said that will cover repairing the portions that have failed and capping the street. He cautioned that there are also alignment issues so the improvements will not be to the ultimate street width. Mayor Adolph inquired about the bad sections of Avenue 54 and Madison Avenue asked when they are slated for road repairs. Mr. Jonasson replied there is an STP application in for Avenue 54 for the south side and since it is the only application the City has made for those grant funds they are hopeful it will be funded. He also confirmed Madison Avenue is scheduled for repairs shortly. Mayor Pro Tem Sniff, said he would assume in light of the proposed contribution to Cal State there would be some form of recognition for the City in return. Fred Jandt, dean of the campus, said each major contribution is recognized with a naming opportunity. He said a donation in this size would be a substantial room such as a science lab. He said the plaques are made of acrylic with etched lettering that is backlit. MOTION - It was moved by Council Members Sniff/Perkins to approve the Preliminary Budget for Fiscal Year 2005/2006 as amended and direct staff to prepare the final 2005/2006 budget for final approval at the July 5, 2005 City Council meeting. Motion carried unanimously. MINUTE ORDER NO. 2005-58. City Council Minutes 18 June 20 2005 ADJOURNMENT There being no further business, it was moved by Council Members Sniff/Henderson to adjourn at 8:28 p.m. Motion carried unanimously. Respectfully submitted, ~-ef~ JUNE S. GREEK, City Clerk City of La Ouinta, California