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2008 06 19 CC MinutesLA QUINTA CITY COUNCIL SPECIAL MEETING MINUTES JUNE 19, 2008 An adjourned meeting of the La Quinta City Council was called to order at the hour of 6:00 p.m. by Mayor Adolph. PRESENT: Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph ABSENT: None Mayor Adolph led the audience in the Pledge of Allegiance. PUBLIC COMMENT Dori Quill, 51-245 Avenida Rubio, stated she is excited about many of the programs proposed for the Community Services department budget; conveyed appreciation for the addition of a drinking fountain; requested shade be provided for the skate park and a comfort mist station near the bathroom area at La Quinta Park. Lucia Moran, 54-545 Avenida Cortez, provided an update to the 2008 Soap Box Derby in Akron, Ohio; thanked the Boys & Girls Club of Coachella Valley for their support and Coachella Valley Parks and Recreation District for taking over the derby for next year. John Soulliere, President/CEO of the Coachella Valley Economic Partnership (CVEP1, explained the proposed increase of request for funding is minimal; explained the 550,000 will pay significant dividends back to the Valley; stated the private sector has carried the budget in the past; explained the services provided and the impact made to the community; encouraged the City Council to program 550,000 in the budget; and stated CVEP is appealing to every city in the Valley for their support. Jim Ferguson, Chairman of the Executive Board, Coachella Valley Economic Partnership, stated both Palm Desert and Desert Hot Springs are committing 550,000 funding in their budgets; explained their services to provide higher education opportunities; stated the organization is poised to represent the entire Valley; stated the private sector has contributed 5500,000 in the past 12 years and have inquired on the public sector's involvement. In response to Council Member Kirk, Mr. Soulliere explained the request for additional funding is to be used toward the establishment of the organization City Council Minutes 2 June 19, 2008 following completing a strategic plan. Mr. Ferguson further explained that Palm Desert is supporting the organization for one year with a report of the results at the end of the year. CONSENT CALENDAR -NONE BUSINESS SESSION 1. CONSIDERATION OF A RESOLUTION ADOPTING THE INVESTMENT POLICY OF THE CITY OF LA QUINTA FOR FISCAL YEAR 2008/2009. Finance Director Falconer presented the staff report. Council Member Sniff conveyed his uncertainty to the prudence of the policy due to the current economic situation; commended staff for their efforts; and stated he cannot support the recommendation at this time. Council Member Osborne stated one reason the City has a good standing budget is because of the work of staff and the Investment Advisory Board; explained there will be no investment in stocks and the policy maintains a conservative approach; and conveyed his support of staff's recommendation. Mayor Adolph conveyed his agreement with Council Member Osborne's comments; stated this item has been presented to the City Council previously, and questioned if changes have been made to the policy. Finance Director Falconer stated the change to the policy include authority of the City Treasurer to utilize a professional portfolio manager, upon City Council approval. In response to Mayor Adolph, Finance Director Falconer stated LAIF has a conservative philosophy similar to the City and the investments have increased the City portfolio to 5220 million; and LAIF provides a competitive rate. Finance Director Falconer stated the State pool of funds is not subject to the State budget process; explained there are 3,000 different participants; explained the pool is very liquid and is not an investment fund but ashort- term money market fund which enables smaller cities the opportunity to participate without a professional portfolio manager. Council Member Kirk stated the issue has been the professional management portion of the policy; stated the policy is giving the Treasurer the choice to City Council Minutes 3 June 19, 2008 utilize the tool of a professional portfolio manager; and stated it is important to have this tool available to the City. Council Member Henderson thanked staff and the Investment Advisory Board for their efforts in preparing the policy; stated a number of the public has spoken against investing in LAIF in the past; and stated the investment is a blind trust. Finance Director Falconer explained most small cities invest 100% into LAIF and stated staff attended the LAIF conference annually, met with the State Treasurer's office to observe the investments made. Council Member Henderson stated she is supportive of a professionally managed account being in the policy as the matter will be brought before the City Council prior to any actions taken; and referred to page 59 of the staff report, second paragraph, regarding the wording "the City shall endeavor to reserve ..." City Manager Genovese explained the intention is that the City shall make its best effort and stated the language is required to be included in the policy. Finance Director Falconer explained the City has a number of tools available that staff does not utilize due to the uncertainty of certain investments. RESOLUTION NO. 2008-044 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AND ADOPTING THE AMENDED INVESTMENT POLICY FOR FISCAL YEAR 2008/2009. It was moved by Council Members Kirk/Sniff to adopt Resolution No. 2008- 044 as submitted. Motion carried unanimously. 2. CONSIDERATION OF FISCAL YEAR 2008/2009 PRELIMINARY BUDGET. City Manager Genovese provided a summary of the financial condition of the City, the Preliminary Budget, and revenues. He also thanked the City Council for their indulgence of relocating the meeting from the Council Chambers to the Study Session room due to the air conditioning being inoperable; and commended staff for transferring the set-up expeditiously. Finance Director Falconer presented the staff report. Council Member Osborne addressed the Green Sustainability Program and conveyed his concern about expending funds without obtaining something tangible or measurable; and questioned how the 5763,000 budget was City Council Minutes 4 June 19, 2008 established. Finance Director Falconer explained the bulk of the budget is allocated for the Golf Cart Program. Council Member Osborne stated the City has worked on this program previously and questioned if a S400,000 budget for the Golf Cart Program is necessary at this time. City Manager Genovese explained the bulk of the programs will be conducted with other utilities that will hopefully give a savings in return; stated the Golf Cart Program was initiated prior to the introduction of the green approach; and stated an analysis was conducted on the Golf Cart Program prior to implementing; explained the bulk of the green programs would have been necessary to implement at some point in the future; and the Golf Cart Program is facing some challenges in critical areas for implementation. Council Member Osborne stated not all requests were granted to the police budget, and confirmed the Police Chief is comfortable with the proposed budget. City Manager Genovese stated a balanced budget is presented for the City Council's consideration; gave a summary of the increases to the budget and requests from organizations and the business community. In response to Mayor Adolph, the City Manager confirmed the approximate total of requests for funding is 585,000, but there is no amount included for the Desert ARC Foundation request. Finance Director Falconer explained the total amount of the request is 572,800 which includes 57,000 for Coachella Valley Economic Partnership; and that there is 552,000 in surplus. Kay Wolff, 77-227 Calle Ensenada, stated the budget is tight but it provides community services; explained the function of the CERT program; and conveyed her concern of the lack of funds budgeted for emergency supplies. Lucia Moran, 54-545 Avenida Cortez, encouraged the City Council to include funding for assisting with installing covers at the bus stops; conveyed her support for the police substation on the Highway 111 corridor, and stated the property owner is willing to work with the City and set a cap on the lease amount. J. Paul, 55-585 Cherry Hill, explained he has built two projects in the City; stated he was approached by the police department for the potential of establishing a substation in one of his developments on Highway 111 at Dune Palms Drive; presented designs for the use of one of the suites and stated he would personally oversee the tenant improvements; and stated a letter was submitted to the City which included the proposition of establishing the lease amount. City Council Minutes 5 June 19, 2008 Mark Weber, 78-795 Wakefield Circle, stated he is proud to be a citizen of a city with a balanced budget and the continuation of the services provided; addressed the green sustainability program and cautioned the use of funds for building green for future projects; discouraged the City Council for increasing funding for CVEP prior to observing tangible accomplishments, stated their core focus is the integration of the business community, and suggested the City Council provide funds in the amount of 517,500 to enable the restructuring of the organization. Jim Ducatte, representing President Gerald R. Ford Boys and Girls Club, stated the organization has received substantial support from the City in the past; requested an increase in funding of S 10,000 for this fiscal year; and explained added and proposed programs. David Archer, CEO of La Quinta Chamber of Commerce, stated he looks forward to the new service agreement, funding, and support of the City Council. Ed Alderson spoke on behalf of the Desert ARC Foundation, and explained the organization needs the support of the City due to a reconstruction of the organization and the current economic situation. Council Member Kirk stated many may be confused with the increase of the property taxes increasing although values may not be increasing and requested staff to explain. Finance Director Falconer explained the increase is due to the adjustment made at the mid-year budget review and the historical data received from the Auditor-Controller; and explained the decrease in reimbursements is due to the improvements made at the library and the museum. In response to Council Member Kirk, Police Chief Vigue stated his recommendation for the substation is based on the concept, needed space, and that the commercial corridor is one of the busiest areas in the City. City Manager Genovese explained the reason for the investigation of the substation was simply to identify the cost and need for direction to pursue and expend funds. Police Chief Vigue further explained staff will be implementing a trial period of enforcement in the area and may be back next year with a report and request for funding to continue the project. City Manager Genovese further explained the enforcement at the substation is being implemented as a pilot program. Community Services Director Hylton explained the part-time Museum Aides are City employees working 20 hours per week and not included in the City Council Minutes 6 June 19, 2008 union, in response to Council Member Kirk. City Manager Genovese further explained the part-time workers will be covered under Workers' Compensation Insurance, in response to Mayor Adolph. In response to Council Member Kirk, Community Services Director Hylton stated the decrease of the budget for adult soccer league is due to the cost of doing business being less at this time. In response to Council Member Kirk, Public Works Director Jonasson explained the additional Maintenance Worker II will be utilized to assist with street sweeping, drainage maintenance and traffic signal staff; explained the landscape contractor does not provide all the services needed to maintain the area; and ensured the City Council the streets will continue to be maintained in good condition with the decrease of the slurry seal and street improvement budget. Council Member Kirk thanked staff for compiling the green projects which are important to promote the City to being green; and questioned if the marketing budget is $1.2 million. City Manager Genovese confirmed. Council Member Henderson pointed out the decrease of licenses and permits along with personnel in the budget. City Manager Genovese explained the personnel is provided by contract services in those particular divisions which have been reduced, such as the utilization of contracted Building Inspectors; and stated changes will not be requested at the mid-year budget process.. Council Member Henderson stated the 51.2 million budget for marketing does not include new funds but is the totality of several programs; conveyed her support of the green program as it stimulates the Village area; stated her concern of no-low tax funds from the State; and remains impressed with the budget process and the progress of the City. Council Member Henderson conveyed her support for the Boys and Girls Club; and stated she does not support an increase of funding for Coachella Valley Economic Partnership (CVEP), but does support one-time funding for the organization. City Manager Genovese explained the conflicts of interest regarding the requests from the Coachella Valley Economic Partnership and Approval of New Job Descriptions for Museum Aide and Economic Development Project Manager DT Desert Development, and requested these items be discussed separately to allow Council Members Osborne and Kirk to abstain from participating in these items respectively. City Council Minutes 7 June 19, 2008 Council Member Henderson stated she is impressed the City has utilized some of the services provided by the Desert ARC Foundation; stated she supports Item No. 6, funding support of 55,000 for a bus, and encouraged the Community Services Department continue to utilize their services; conveyed her support of funding for the Jacqueline Cochran Airport Air Show; supports the continuing partnership and funding for the La Quinta Arts Foundation, renewal of the facility use agreement, and 524,000 for additional events; and recommended the information referenced on Attachments H-1 and H-2 be explained to the community. Finance Director Falconer stated staff can provide background information regarding tax revenues in the final document. Council Member Osborne stated staff has done a tremendous job on the budget and is very happy with the proposed budget; is supportive of the addition of a substation on Highway 1 1 1; agreed with the comments made by Council Member Henderson regarding the Boys & Girls Club; supports funding for the La Quinta Arts Foundation; conveyed his appreciation for staff's efforts and the services provided by the Police Department; stated the increase of property tax revenue is partly due to the quality of life the City provides to the community; stated it is good to see the diversity in our revenue sources which helps the City during difficult financial times; and further stated he will abstain for participating during the discussion of the funding request from the Coachella Valley Economic Partnership as they are a client of his accounting firm. Council Member Sniff conveyed his desire for a balanced budget; supports the police substation in the commercial corridor; expressed his concern in the decline of sales tax; explained a number of the homes in the City will lose their value and conveyed his concern of the forecast of the property tax revenue; questioned the gas tax revenue as the reduction of the consumption of gasoline is due to the rising costs; supports the La Quinta Arts Foundation request; stated the Date Festival does not have any direct benefit to the City; stated he does not support funding for the Coachella Valley Economic Partnership; stated it is important to provide a balanced budget and retain a conservative approach to investments, and will not allow a budget deficit; supports funding for the Boys and Girls Club; stated the Chamber of Commerce is an important contractual component to the City and supports their funding; stated additional police support in the Cove area is necessary; and complimented staff for an excellent job in compiling the budget. City Council Minutes 8 June 19, 2008 Mayor Adolph conveyed his agreement with the comments made by the City Council; and complimented staff for providing the budget document every year. Mayor Adolph stated his understanding of establishing a Museum Curator and conveyed his concern of the addition of two part-time Museum Aides. Community Services Director Hylton stated the staffing at the museum is a cooperative effort between the City and the Historical Society; explained the majority of the staffing will be provided by volunteers; and stated it is not staff's desire for the City to provide staffing at the facility. In response to Mayor Adolph, Police Chief Vigue explained the additional officers will be situated in critical areas of the City; and stated some of the officers will already be trained and will begin in July 2008; explained there will not be any reduction in overtime as it will take three years to obtain the proposed standards needed; and further explained police services are provided by zones and the staff for each zone. In response to Council Member Sniff, Police Chief Vigue confirmed the additional officers will have completed training upon the start of their employment and will receive additional two-week training specifically for the area. Police Chief Vigue stated he is hopeful there will be a decrease in crime with the added police officers; and explained the traffic division has maintained the level of patrol with less motor patrols, and stated there has been a reduction of traffic collisions compared to the amount reported last year. Council Member Sniff stated part-time personnel at the museum are a good addition to the volunteers which will provide stability at the facility. Mayor Adolph conveyed his concern of the museum becoming a City program. Council Member Kirk stated he concurs with the majority of the requests discussed; supports funding for the La Quinta Arts Foundation, Boys and Girls Club, and Chamber of Commerce; stated it is encouraging the City is focusing on the big picture; supports the request from Desert ARC Foundation, but it should be considered through the Community Services Grant Request process; conveyed his concern of the assumptions related to the property tax revenue. Finance Director Falconer explained staff looks at revenues every year and makes an adjustment at mid-year. City Manager Genovese explained staff is not suggesting an increase, but is suggesting the amount of 52,838,620 which is a 30% overall increase from City Council Minutes 9 June 19, 2008 the Fiscal Year 2007-2008 Budget and the Fiscal Year 2008/2009 Budget is based on the estimated actual from the Fiscal Year 2008/2009 Budget. Council Member Henderson apologized for not addressing the Police Department budget; stated she would like to see serious discussions regarding the facility on Highway 111 and whether to call it a substation; and stated an understanding should be addressed of how many activities will take place in La Quinta. Police Chief Vigue stated the idea is for police presence in that area, the facilities are called storefronts or offices, and that the services and length of establishing the substation has not been defined. Council Member Osborne stated emergency reserves are almost 524 million and the City continues to do very well. City Manager Genovese suggested the City Council take up the funding request from the Coachella Valley Economic Partnership at this time, discuss other requests in general, and then take up the request from TD Desert lastly. Council Member Osborne recused himself due to a potential conflict of interest as the Coachella Valley Economic Partnership is a client of his accounting firm. Council Member Kirk stated he has been perplexed on the direction of the Coachella Valley Economic Partnership; stated the City should send a message to the organization by stating the City supports their cause without funding; stated this City does not have an Economic Development Department and does not desire one; stated there are cities that have a department or an economic development team which is costly; stated he is generally supportive of the organization and should give one year to prove their efforts. Council Member Sniff stated funding should not be provided until they prove themselves. Council Member Kirk stated if the City and others do not fund them, they may disappear and suggested to provide funding in the amount of 517,000 and review at the mid-year budget to reconsider an increase if they have proven their efforts. Council Member Henderson stated they will be conducting a study and it will take longer than six months. Mayor Adolph stated he is supportive of a minimal amount. Council Member Henderson conveyed her support to provide 517,000. Council Member Sniff stated he does not support any funding for the organization. City Council Minutes 10 June 19, 2008 Council Member Osborne returned to the meeting at this time. City Manager Genovese reviewed the requests, stating there was consensus to fund the La Quinta Arts Foundation request, the Coachella Valley Economic Partnership at $17,000; it was suggested to send Desert ARC Foundation to the Community Services Grant Request process; Jacqueline Cochran Air Show at the same amount as last year; Boys and Girls Club with the additional $10,000; suggested to refer the Date Festival request to the grant program; and suggested to balance the $10,000 deficit from the Personnel Reserve account, with no other changes to the budget. City Manager Genovese requested the City Council take up the request from T.D. Desert Development. Council Member Kirk recused himself from the meeting due to a potential conflict of interest as T.D. Desert Development is a client of his firm. MOTION - It was moved by Council Members Henderson/Sniff to approve the funding request of T.D. Desert Development in the amount of $186,900. Motion carried 4-0-1, with Council Member Kirk abstaining. Council Member Kirk returned to the meeting at this time. MOTION - It was moved by Council Members Kirk/Osborne to adopt the Fiscal Year 2008/2009 Preliminary Budget with the changes agreed upon by consensus of the City Council, and direct staff to prepare a Fiscal Year 2008/2009 Final Budget for the July 15, 2008, City Council meeting. Motion carried unanimously. ADJOURNMENT There being no further business, it was moved by Council Members Sniff/Kirk to adjourn. Motion carried unanimously. Respe ully submitted, VERONICA . MONTECINO, City Clerk City of La Quinta, California