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2009 06 09 CC MinutesLA QUINTA CITY COUNCIL SPECIAL MEETING MINUTES JUNE 9, 2009 An adjourned meeting of the La Quinta City Council was called to order at the hour of 2:00 p.m. by Mayor Adolph, who led the audience in the Pledge of Allegiance. PRESENT: Council Members Evans, Franklin, Henderson, Sniff, Mayor Adolph ABSENT: None PUBLIC COMMENT Council Member Henderson reported the League of California Cities has reviewed the latest proposal from the State regarding highway users' tax; stated it is unknown how much the State's take or "borrowing" will affect the City of La Quinta. She reminded the Council the League of California Cities Summit will be held July 17 & 18 in Sacramento, and encouraged other Council Members to attend. CONFIRMATION OF AGENDA City Manager Genovese requested Business Item 2 be taken up first. CONSENT CALENDAR -NONE BUSINESS SESSION Council concurred to take up Business Item No. 2 at this time. 2. CONSIDERATION OF FUNDING FOR THE WESTERN COACHELLA VALLEY REGIONAL HOMELESS MULTI-SERVICE CENTER OPERATIONS IN THE CITY OF PALM SPRINGS. Community Services Director Hylton presented the staff report. In response to Mayor Adolph, Community Services Director Hylton stated both the Cities of Palm Springs and Palm Desert have included funding in their budgets for this. City Council 2 June 9, 2009 Special Meeting Minutes In response to Council Member Henderson, Community Services Director Hylton explained redevelopment funds cannot be used as funds cannot be used outside the project area or jurisdiction. Mayor Adolph confirmed the funding request is not included in the Fiscal Year 2009-2010 budget and is a request fora 10-year commitment of funding. In response to Council Member Evans, Community Services Director Hylton stated the City of Desert Hot Springs has expressed concern about available funding and has not included it in their budget as of yet. Mayor Adolph noted those cities with economic problems will find it difficult to fund the request. Council Member Henderson stated the City of Indio has a legitimate argument regarding having two facilities in their own community and providing for additional facility in the Valley. In response to Council Member Franklin, Community Services Director Hylton confirmed the City Council cannot impose the 10-year funding commitment on future City Councils. Council Member Henderson stated much of the increment funds are paid to the County of Riverside instead of the City, and there can be a reasonable argument that the City has already contributed. Council Member Sniff stated this funding request could be a budget buster; the City cannot afford to do this, and it is not appropriate to proceed with this request during the current economic situation. Council Member Franklin stated this is a difficult issue as there is a need for the service, and much work, time and money has gone into planning the project. Council Member Evans asked if disapproval of the funding allocation will delay opening of the facility. Aurora Wilson, representing Coachella Valley Association of Governments, explained it will not delay the opening but will reduce the number of clients that can be served. Council Member Henderson suggesting postponing this issue for 45 days to observe the outcome of the State budget issues. She agrees there is a need City Council 3 June 9, 2009 Special Meeting Minutes for the service, but it is difficult to justify that the homeless from La Quinta will travel to this facility; and there is a need to look at the facilities in the east end of the Valley. Mayor Adolph noted the City has allocated 5200,000 to FIND, and it will be difficult to obligate the City with additional funding. He agrees it is difficult to believe that the homeless from the east valley will be transported to the western facility. MOTION - It was moved by Council Members Henderson/Franklin to bring this matter back in approximately 45 days. Council Member Sniff conveyed uncertainty about the State budget improving after 45 days and stated delaying this issue is inappropriate; the City needs to deal with homelessness in the eastern part of the Valley; and the City should make a decision and move forward. Motion carried (3-2) with Council Members Evans and Sniff dissenting. 1. CONSIDERATION OF FISCAL YEAR 2009-2010 PRELIMINARY BUDGET. Mayor Adolph commended staff for their efforts of reducing department budgets. City Manager Genovese gave a brief introduction and explanation of the budget process; and Finance Director Falconer presented an overview of the preliminary budget. In response to Council Member Henderson, Finance Director Falconer confirmed the motor vehicle license fee formula benefited the City because property tax assessments were going higher than the sales tax collections. He explained that recently the State temporarily increased the motor vehicle fees, then decreased them, and then back-filled with property tax funds to the cities. City Manager Genovese provided a brief summary of the budget report. Council Member Evans asked if there are any other internal service funds that can be suspended temporarily for a year similar to the information technology fund. Finance Director Falconer explained charges for the three internal service funds are comprised of operation expenses plus the depreciation of the assets. City Council 4 June 9, 2009 Special Meeting Minutes David Archer, 81-900 Mountain View Lane, CEO, Chamber of Commerce, stated their request fora 566,000 increase in funding is comprised of three areas: Village sign revamp - 515,000, Economic Development - 525,000; and increase in printing costs and additional distribution of The Gem- 526,000. Council Member Henderson questioned why no dialogue addressing internal changes was included in the request for additional funding; and why the financial report previously requested by the City Council was not included. Mr. Archer explained reductions have been made in the areas of employee hours, printing costs, insurance, consultants and general overhead and supplies. He stated the financial review for Fiscal Year 2007-2008 will be completed by the end of this week, and bringing the bookkeeping function in-house will make future reports available in amore-timely manner. Council Member Henderson suggested staff establish guidelines for requests for increased funding. She commended the Chamber of Commerce for implementing the "Blue Band" program; and inquired about the ratio of membership. Mr. Archer explained 50% of the total membership is from La Quinta; the regional membership including La Quinta, Palm Desert and Indio is 75%; and 97% of the membership is from the Coachella Valley, with 3% from outside the Valley combined. Additionally, he explained the Chamber is focusing on increasing membership from the businesses in the Village area. Council Member Henderson recommended the Chamber reduce their distribution to six newsletters a year; and suggested the City Council consider a grant to assist with the rent for the Chamber facility. Council Member Sniff expressed concern about a possible violation of the Brown Act in regard to the percentage of funding provided by the City in relation to the Chamber's total budget amount. Mr. Archer explained the funding allocated by the City is approximately 20% of the Chamber's total budget. Council Member Franklin noted the City newsletter is published three times a year at an approximate cost of 512,000 per issue. She feels that is a waste because it does not help businesses in the City, and that the information could be included in The Gem. She stated she supports the Chamber's increased funding request. Council Member Evans explained the primary expense of the contract between the City and the Chamber is to publish The Gem which directly City Council 5 June 9, 2009 Special Meeting Minutes benefits La Quinta residents, and not just the membership both within and outside the City. Mayor Adolph stated he is a proponent of the Chamber of Commerce but feels it should be self-sufficient and provide its own offices. He conveyed concern about not being provided accurate information when he had previously asked about the Chamber's financial status, and about the lack of interaction between the City and the Chamber; he noted both have the same goal toward retaining and promoting new businesses. Mr. Archer apologized for the lack of communication and stated he will attempt to improve the accuracy and frequency of information exchange with the City. Council Member Franklin expressed agreement with a comment made previously by former Council Member Kirk regarding the use of reserve funds to promote businesses in the community. Council Member Sniff noted The Gem has a singular focus. He asked why the Chamber did not communicate their drop in membership to the City, and inquired about their personal contact with the membership. Mr. Archer explained that over atwo-month period over 20% of the membership was not renewed because of businesses going out of business. He stated the Chamber has implemented acall-out program to monitor business and to offer assistance. Council Member Evans further explained the Chamber has looked at ways to generate additional revenue; stated the funds provided by the City have been allocated through a contract for services; and explained the funds are not used to subsidize the Chamber's budget. Council Member Franklin questioned agencies under a contract for services having an obligation to notify the City of budget problems. Council Member Henderson noted the Chamber's contract for services is for business retention and outreach as well as for the newsletter, and they are a non-profit organization, which is different from a contract for services such as gardening. She is supportive of the Chamber of Commerce, and suggested improved financial reporting be implemented. With regard to the City newsletter, she noted the City's marketing plan references communication to the community but suggested reducing publication of the City newsletter to twice a year. She suggested the Chamber decrease the number of publications for The Gem, apply for a Community Services Grant for the rent expenses, split the costs of the new signs with assurance they will not conflict with the City's new wayfinding signs, and negotiate the cost with the contractor utilized for the City's sign project. City Council 6 June 9, 2009 Special Meeting Minutes Council Member Sniff spoke in support of the Chamber, and increasing the funding to 5175,000. Mayor Adolph questioned where the funds would come from because the additional request is not included in the proposed budget. Council Member Sniff suggested reducing the grant program from 5100,000 to 550,000. Mayor Adolph conveyed concern about eliminating funding for community programs. Council Member Sniff commented on the need to prioritize the expenditure of public funds. City Manager Genovese explained the Chamber's contract for services will be before the City Council for consideration at a later meeting. Council Member Henderson stated she can agree with 5130,000 plus a 512,000 grant for rent expenses. MOTION - It was moved by Council Members Sniff/Franklin to approve the allocation of 5150,000 (520,000 from surplus funds) to the La Quinta Chamber of Commerce with the understanding that the Chamber can apply for a Community Services Grant for office expenses. Council Member Henderson stated she does not understand how everyone reduces their budgets, but the City increases the funding for the Chamber to 5150,000 plus the 512,000 grant. She stated she cannot support the motion. Motion carried (3-2) with Mayor Adolph and Council Member Henderson dissenting. In response to Mayor Adolph, Police Chief Vigue explained the proposed increase to the Police Department budget is due to a 5% increase in staffing pay levels. Council Member Sniff noted the City has added 25 officers over the last five years, and the only position in question at this time is for a motor officer because of elimination in grant funding. He asked how many officers are assigned to the City of La Quinta, to which Chief Vigue responded, "56." He .stated there is some question as to whether the Indian Gaming Grant terminates on the fiscal year or calendar year. He confirmed there will be no reductions in patrol, and the only position in question is one of five motor officers. Mayor Adolph referenced incorrect information being reported on local television channels today, and stated he did not appreciate the scare tactics. He noted the grant covered 5177,000 for a motor officer for five years, but City Council 7 June 9, 2009 Special Meeting Minutes it actually cost the City 5225,000 per year. Chief Vigue confirmed the City paid for the difference between the actual cost and grant funds received. Mayor Adolph stated the City has supported all requests from the Police Department in the past, but this year the City is experiencing financial challenges. Chief Vigue stated the department has special programs, including traffic, and has funding available to provide traffic services. Council Member Sniff pointed out the City is not reducing its police force and there is no change in the public safety protection. Chief Vigue agreed. Council Member Sniff suggested a reduction of 525,000 to 530,000 to the Community Services Grant Contingency fund, and a reduction to 510,000 for the Jacqueline Cochran Regional Airport funding. Council Member Henderson questioned the need to reduce the budgeted amounts for any of the community service agencies. Council Member Evans stated the concern is what is the true benefit to the community, and asked if the air show brings in outside visitors in addition to local residents. Council Member Franklin stated air show staff provides reservations for hotel and restaurant referrals for both out-of-town and local residents. Council Member Franklin questioned the purpose and funding of the Cdachella Valley Economic Partnership (CVEP-. Council Member Henderson explained the inception and purpose of CVEP, and inquired about the membership dues amount. Assistant City Manager-Development Services Evans stated a proposal has not yet been submitted by CVEP but an invoice for the membership dues of 56,000 was recently invoiced. MOTION - It was moved by Council Members Sniff/Franklin to approve all agency amounts and reduce the budgeted amount for the Coachella Valley Economic Partnership to 56,000 to maintain the membership. Motion passed unanimously. Council Member Henderson commended the City Manager for his efforts in the budget process; and thanked staff for their support. MOTION - It was moved by Council Members Sniff/Henderson to adopt the Fiscal Year 2009-2010 Preliminary Budget, as amended, and direct staff to prepare a Fiscal Year 2009-2010 Final Budget for the July 7, 2009, City Council meeting. Motion carried unanimously. City Council 8 June 9, 2009 Special Meeting Minutes ADJOURNMENT There being no further business, it was moved by Council Members Sniff/Franklin to adjourn. Motion carried unanimously. Respectf Ily submitted, ~Z% ~%72,~1ti VERONICA J. NTECINO, City Clerk City of La O ~nta, California