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2009 06 09 CCeaf 4 4 adja City Council agendas are 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 ADJOURNED MEETING TUESDAY, JUNE 9, 2009 — 2:00 P.M. Beginning Resolution No. 2009- Ordinance No. CALL TO ORDER Roll Call: Council Members: Evans, Franklin, Henderson, Sniff, and Mayor Adolph PLEDGE OF ALLEGIANCE 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. CONFIRMATION OF AGENDA CONSENT CALENDAR - NONE 001 City Council Agenda 1 June 9, 2009 BUSINESS SESSION 1. CONSIDERATION OF FISCAL YEAR 2009/2010 PRELIMINARY BUDGET. A. MINUTE ORDER ACTION 2. CONSIDERATION OF FUNDING FOR THE WESTERN COACHELLA VALLEY REGIONAL HOMELESS MULTI -SERVICE CENTER OPERATIONS IN THE CITY OF PALM SPRINGS. A. MINUTE ORDER ACTION ADJOURNMENT The next regular meeting of the City Council will be held on June 16, 2009, commencing with closed session at 3:00 p.m. and open session at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta City Council special meeting of June 9, 2009, was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 111, on June 5, 2009. i ATED: June 5, 2009 ERONICA J. ONTECINO, City Clerk ity of La Q Inta, California 002 City Council Agenda 2 June 9, 2009 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 777-7103, twenty- four (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, arrangement should be made in advance by contacting the City Clerk's Office at 777- 7103. 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 for distribution. It is requested that this take place prior to the beginning of the meeting. Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. City Council Agenda 3 June 9, 2009 003 F �NOOFT COUNCIL/RDA MEETING DATE: June 9, 2009 ITEM TITLE: Consideration of Fiscal Year 2009/2010 Preliminary Budget RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt the Fiscal Year 2009/2010 Preliminary Budget and direct staff to prepare a Fiscal Year 2009/2010 Final Budget for the July 7, 2009 City Council Meeting. FISCAL IMPLICATIONS: All Preliminary Fiscal Year 2009/2010 revenues, operational appropriations and capital projects funding are included in this Preliminary Budget. Pursuant to City Council direction, staff has presented the City Council with a balanced General Fund with an estimated operating surplus of $25,309 for Fiscal Year 2009/2010. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Introduction As the City Council is aware, the Budgeting process actually starts in February when the City Council discusses the City Council Goals and the Annual Financial Management review. The Annual Financial Management review is the first component of the strategic planning process, and along with the discussion of the City Council goals are the building blocks of the Budget. The City Council has since reviewed and approved the Economic Development Plan, the Capital Improvement Program and the Marketing Plan for the upcoming Fiscal Year. Each of the implementation needs of these documents have been incorporated into the proposed budget. 004 This preliminary Fiscal Year 2009/2010 Budget is similar to the format implemented in previous years. This format utilizes two separate documents to develop the City, Redevelopment Agency and Financing Authority's Budget. The first of the two documents utilized for presentation of this year's budget is titled: "Fiscal Year 2009/2010 Preliminary Budget," and includes the total scope of operations for the City, Agency and Financing Authority. The second document is titled: "Supporting Document." This document provides the detail for each program operation and the justification for any of the changes requested. Executive Summary The following table shows a comparison of the revenues and expenditures in the General Fund from Fiscal year 2009/2010 and 2008/2009: 2009/2010 GPI 2008/2009 Chan e Estimated Budgeted Revenues Application of Reserves Transfers In Reimbursements 38,930,755 0 367,716 6,016,126 39,263,863 250,000 838,171 5,087,820 (333,108) (250,000) (470,455) 928,306 Total Sources 45,314,597 45,439,854 125,257 Estimated Operating Expenditures Transfers Out 40,562,993 4,726,295 44,689,748 715,454 (4,126,755) 4,010,841 Total Uses 45,289,288 1 45A05,202 115,914 Net income (loss) L 25,309 1 34,652 g 343 005 Summary of This Year's Budget Revenues - General Fund This year's General Fund projected revenues of $45.3 million are only slightly down from the $45.4 million from the prior year as projected in the following table: REVENUE TYPE INCREASES County Fire - Station 32 $ 4,145,841 Change in Reimbursements 928,305 Property Tax 724,100 Intergovernmental 34,254 County Fire Operations 15,100 Miscellaneous 5,201 Subtotal 5,852 801 (DECREASES) Sales Tax (1,572,000) Transient Occupancy Tax (1,449,100) Interest (719,678) Fees for Service (688,005) Change in Transfers in (470,455) Licenses & Permits (494,880) Application of Reserve (250,000) Franchise Fee (179,900) Document Transfer Tax (143,440) Motor Vehicle in Lieu (10,600) Subtotal (5,978,058) Total $ (125,257) Reconciliation Prior Year Revenues FY 2008/2009 $ 40,352,034 Previous Year Reimbursement FY 2008/2009 5,087,820 Budget Summary FY 2008/2009 Sources $ 45,439,854 Budget Summary FY 2009/2010 Sources Change 45,314,597 $ (125,257) 006 Revenue Increases Three major increases in revenue are (1) $4.1 million in County Fire Tax Credit Funding for the construction and relocation of the new Fire Station 32 in the Cove to provide better service to the residents in the Cove and surrounding areas. It is important to remember that this revenue increase is a one-time event and does not pay for on -going operational expenses, (2) an increase of $928,000 in reimbursements from other funds to the General Fund to pay for its services, and, (3) and increase of $724,000 in property tax and no -low property taxes from non -Redevelopment Area's in the City. The majority of increases in reimbursements come from the Gas Tax ($500,000), Capital Improvement Projects ($200,000) and Library/Museum ($150,000) Funds. Revenue Decreases Staff is projecting a continued slow down in the local economy in Fiscal Year 2009/2010, which began in the fall of 2008 and has continued through the date of this report. While the City has experienced down turns in the past that have impacted certain revenues categories, such as building activities or property values (mid 1990's), tourism (post 9/1 1) and low interest rates (2003-2004), this slow down has impacted most if not all City revenues categories and occurred quite suddenly. Staff is projecting a 17.35% decrease or a reduction of $1.572 million in sales tax revenue for Fiscal Year 2009/2010 and a 24.5 % decrease in transient occupancy tax or $1.45 million in Fiscal Year 2009/2010. The pooled interest earnings for Fiscal Year 2009/2010 are forecasted to earn 1 % and yield $700,000 less in interest income than last year. Planning/Public Works/Building related fees for service and licenses are anticipated to decrease by $688,000 and $495,000, respectfully for a total of $1.183 million. 007 Expenditures — General Fund This year's General Fund projected expenditures of $45.3 million are only slightly down from the $45.4 million from the prior year as projected in the following table which reflects by Department the increase and decreases from last year's budget: DEPARTMENT TOTAL EXPENDITURES CHANGES REIMBURSEMENTS CHANGES INCREASES Department Police $363,899 $363,899 Fire 6,535 8,542 15,077 Subtotal 370,434 8 542 378,976 (DECREASES) Departments Public Works General Government (2,023,276) (894,906) (667,643) (138,431) (2,690,919) (1,033,337) Community Services (465,258) (110,695) (575,953) Planning (456,533) (100) (456,633) Building & Safety (415,525) 1,623 (413,902) City Clerk (137,277) 2,000 (135,277) Finance (104,414) ) (23,601) (128,015) (4,497,189) (936847) (5,434,036) Net Decrease in Expenditures (4,126,755) (928,305) (5,055,060) Increase in Transfers 4,010,841 Total ($115, 914) Reconciliation Prior Year Expenditures FY 2008/2009 $44,719,498 Employee Computer Loan Program (29,750) Subtotal 44, 689, 748 Previous Year Transfers Out FY 2008/2009 715,454 Budget Summary FY 2008/2009 Sources $45,405,202 Budget Summary FY 2009/2010 Sources 45,289,288 Change ($115,914) 008 Decreases in General Fund Expenditures With the estimated reduction in revenues forecasted for Fiscal Year 2009/2010, the following reductions in over $50,000 in the Budget have been proposed with the intent to not decrease service level to the public, whenever possible. Some of the more notable planned expenditure decreases in this year's budget include: • Decrease in the three (3) Internal Service Fund charges for services of ($1.226 million) - Equipment Replacement Fund ($650,000), Park Maintenance Fund ($413,000) and Information Technology ($163,000). • Decrease in net General Fund expenditures of $(928,000) though increased reimbursements as outlined in pages C-5 and C-6 of the Budget. • Decrease in funding for the Palm Springs Desert Resort Convention and Visitor's Authority (CVA) ($533,000). • Decrease of ($400,000) in Planning Department special studies. • Final payment in Fiscal Year 2008/2009 to Cal State San Bernardino ($250,000). • Decrease of $(227,000) in Police Department Capital Equipment. • Decrease ($200,000) in Public Works Administration Division special studies for Washington St Corridor ($50,000) Underground Utilities Study ($75,000) and Dune Palms/Whitewater River Study ($75,000). • Decrease of ($200,000) in slurry seal program. • Decrease in salaries and fringe benefits ($183,000). • Decrease of ($150,000) in Building & Safety Plan Checking Services. • Decrease of $0 34,000) in Police Officers Training Fees • Decrease ($120,000) in Public Works Plan Checking Services. • Decrease of ($135,000) in sales tax reimbursements to developers\business\hotel. • Decrease of ($100,000) in Public Works Landscape and Lighting Division special studies. • Decrease in Personnel reserve and estimated claims ($60,000 and $50,000) respectively. • Decrease of ($100,000) for multi -use trails and medians. • Decrease of $(90,000) in Fire Department overhead costs. • Decrease in staff overnight travel ($86,000). • Decrease of ($77,000) in Public Works. Engineering Division contract inspections. • Decrease of ($75,000) in street signs. • Decrease in Fire Department Capital Equipment — ($60,000). • Decrease in Temporary Agency funding ($57,400) for scanning City documents. • Decrease in Police Booking fees ($50,000). 009 Increases in General Fund Expenditures The following are some of the notable increases in the General Fund over $50,000: • Increase of $4.1 million in transfers out for the construction of the new Station 32 Fire Station and traffic signal. • Increase of $212,000 in Police Officers Salaries and Fringe Benefits. • Increase of $137,000 in Fire Department Salaries and fringe Benefits. • Increase in Bob Hope Classic Police costs of $105,000. • Increase in Police Department Mileage expenditures of $1 13,000. • Increase of $95,000 for the contract service agreement to operate the La Quinta Library. • Increase of $50,000 in liability and earthquake insurance for La Quinta Library. • Increase in JAG Grant Expenditures of $69,000 (offset by grant revenues). Personnel The following changes for Fiscal Year 2009/2010 are being recommended to the Authorized Positions list as detailed in Section H are as follows: • Four (4) positions are being recommended for deletion from the City authorized positions listing bringing the City-wide total from 105 in Fiscal Year 2008/2009 to 101 in Fiscal Year 2009/2010. • Community Service Department — Museum Manager Planning Department — Assistant Planner Public Works Department — Secretary Public Works Department — Traffic Engineer • With the deletion of the Traffic Engineer, staff is proposing elimination of the Traffic Division and the employees and activities be transferred to the Engineering Services Division. • The title of the Personnel/Risk Manager has been renamed to Human Resources/Risk Manager to be more in -line with the position's responsibilities and industry practice. • A transfer of the Office Assistant in Planning Department Administration Division to the City Manager Development Services Division (50%) Management Services Division (50%). 010 Police and Fire Department Budget Discussions Police Services — the overall budget for Police Services has increased by $364,000. This represents the largest service level cost in the proposed budget. Police Services represents 27.7% of total General Fund expenditures for Fiscal Year 2009/2010 as compared with 26.8% of the Fiscal Year 2008/2009 budget. Last year, the Police budget grew by six positions: four patrol deputies, one Community Service Officer and one dedicated Lieutenant, which was a $1.26 million increase in the Fiscal Year 2008/2009 Budget over the Fiscal Year 2007/2008 Budget. This year there is no increase in Police staff being proposed. Since the Indian Gaming Grant was not renewed for Fiscal year 2009/2010, staff is proposing the reduction of one grant funded motor officer which is estimated to occur at mid -year when the Indian Gaming Grant funds are gone. The original Police Budget had the motor officer funded for the entire year or $222,000, which has resulted in a reduction of $102,000 from the Police budget to a revised amount of $120,000. In addition, special enforcement funds were originally requested for $262,500 for Fiscal Year 2009/2010, which was a $12,500 increase from the $250,000 Fiscal Year 2008/2009 Budget. The City Manager has recommended a reduction of $10,000 to this line item for an increase of $2,500 over the prior year's budget. The largest factor for the aforementioned increase of $346,000 is $212,000 in rate increases for labor costs for the same level of service in Fiscal Year 2009/2010 as Fiscal Year 2008/2009. This increase has occurred based upon contract negotiations with the County and its employee bargaining units. Also included within the Police Department proposal is $105,000 for Bob Hope Classic costs for public safety, $70,000 for rent expenses for the Highway 1 1 1 Police sub -station, $69,000 in Justice Assistance Grant (JAG) funds, which are offset by Federal funds, an increase of $112,000 in estimated mileage costs, and a reduction of $227,000 for capital costs for the Highway 1 1 1 Business District Police Office. Fire Services — the overall budget for Fire Services has increased by $15,000 to a total of $4,985,910 for Fiscal Year 2009/10. This represents the third largest service level in the proposed budget. Fire Services represents 11.2% of total General Fund expenditures for Fiscal Year 2009/2010 as compared with 1 1 .1 % for Fiscal Year 2008/2009. The primary factor for the increase is an increase of $75,000 in the County Fire Contract, which is offset by a $60,000 decrease in equipment from the prior year. No change in Fire Services personnel is being recommended. Revenues for these services have come from the Fire Structural Tax and Property Tax increment from Project Area 1 and 2, which should exceed appropriations and continue to result in a surplus. Green and Sustainable Programs Included in the Fiscal Year 2009/2010 budget is a summary of City-wide green and sustainable environmental goals. Key green environmental programs include: • Manage the Green and Sustainable La Quinta Program, which is directed toward reducing energy consumption and conservation of resources; • Continue to partner with Coachella Valley Water District, Imperial Irrigation District, and the Gas Company to implement environmentally efficient programs that reduce greenhouse gas emissions; • Complete energy audits and implement conservation enhancements for City buildings; • Commence major update to City's General Plan that includes greenhouse gas and additional "green" programs and policies; • Implement LEED, water conservation and other green/environmental programs for the SilverRock Resort clubhouse, golf courses, and related infrastructures; • Install smart irrigation controllers at all City buildings; implement and monitor the City of La Quinta and Coachella Valley Water District Cooperative Landscape Water Management Program; and • Implement and monitor the City of La Quinta and Imperial Irrigation District Energy Reduction Program. Also included in the budget is a listing of department specific green and environmental projects totaling $590,282. Major projects include: Corporation Yard CNG fueling station ($197,000), turf replacement at City Hall and Fire Station 73 ($80,000 and $75,000, respectfully) and Cove Home Landscape and Irrigation Redesign ($40,000). In addition, staff is recommending continuing our cooperate efforts with CVWD on landscape conversion ($25,000) Publicity ($5,000) and Irrigation Control ($15,000) programs. Community Service Projects The following table lists Community Service items exceeding $5,000 as contained in the Preliminary Budget: Chamber of Commerce La Quinta Arts Foundation Boys & Girls Club - Facility Use (1) YMCA Pool Contract Grant Contingency Community Special Events Date Festival Coachella Valley Economic Partnership Jacqueline Cochran Regional Airport ( Airshow and dues) (1) $30,000 from Community Development Block Grant r• r 130,000 145,800 70,000 32,000 100,000 9,000 5,000 12,000 15,000 Overall, the City's General Fund Budget is a positive story. As identified on page C-1 of the Preliminary Budget, this year's budget is currently balanced and contains a surplus of $25,309. Some of the significant items or changes contained in the Preliminary Budget from Fiscal Year 2008/2009, which total ($5,073,060), are listed in Attachment 1. Other Funding Requests — La Quinta Chamber of Commerce The City received a request from the La Quinta Chamber of Commerce for Fiscal Year 2009/2010 totaling $196,000. The preliminary budget for Fiscal Year 2009/2010 has $130,000 funding budgeted for the La Quinta Chamber of Commerce, which was the amount included in the Fiscal Year 2008/2009 budget. In the past, the City Council has considered these funding requests at this time or referred, as deemed appropriate, the request(s) to the grant process. Attachment 2 lists Fiscal Year 2008/2009 Grants/Contingency/Contracts/Other activities funded by the City and Attachment 3 lists the Chamber of Commerce request. State Budget Impacts The Fiscal Year 2009/2010 budget does not contain any State mandated shifts, which have resulted in lost revenues to the City and Redevelopment Agency in the past. 013 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 7, 2009 City Council meeting. Summary 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 9, 2009 City Council special meeting. The City staff will be prepared with recommendations, and requests to report on, methods/suggestions to balance the operating budget. FINDINGS AND ALTERNATIVES: City staff is requesting: 1) Review and comment on the 2009/2010 Fiscal Year Budget and provide direction regarding any proposed changes to the document; and 2) Approval of the 2009/2010 Fiscal Year Preliminary Budget as amended at the June 9, 2009, City Council Special Meeting. (Any approved changes by the City Council to be incorporated into the Final Budget for adoption on July 7, 2009.) 3 4Reectfully submitted, MPi►- John M. alconer, Finance Director Attachments:. Approved for submissii�onnb%b �: Thomas P. Genovese, City Manager 1. Changes between Fiscal Year 2009/2010 & 2008/2009 General Fund Expenditures 2 Grants/Contingency/Contracts/Other & Dept Requests 3. Other Funding Requests - La Quinta Chamber of Commerce 4. Staff Outline 5. Major Highlights 6. Preliminary Budget - two documents 014 ATTACHMENT 1 y V O 00 V W M W W N N Y1 lA h N 1n In N N 'n Yl 'n 'n to N H 'n '[1 1n t7 � a0 m O T M O V W N N N aD M M M M M M M M M M M M M M M M M M a o a s E o'o20.0� nr' OJ O< H< V< Y O C N N N N N N N N N N N N M M M Q M d V 'O J v r...N... N v .M...M... v M...M_..M... v.M....M.. `M.. v.M.. a [h v.M...M_ m- v .M.. 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Q'LL raw .2 ro U) mO.w mN 0aEE c mOn m U E o m c j A H a o 2 A d a m w 2 '$ n E m n m m m c 2 _ UUm7HUO3i5z 0 0z zzaammmm0 w0 rym U y U C m � m C O N m N N E C .0 N 0 E n m D a O W ry> O N N E 3 t m O gn aJ 020 y m W m"-'m"m"m M M(7 th lh f+lM Mth O mMMr rn o0000000o m N 75 rnawIqnn m n N m m n n rn mmmmmmmmm n m m m m A N o$ o N E r°�' m o U 000000 �n000��000 n � O r o O O O V' N O N O O O 0 0 0 O O O O O O O N Cl ` ama O v 00000o r00000�oo e wm oio oro 00 oaomp m00000 Op o00pp m J N O O OoOi O O O N N n 00 0) m O O N m m N v M N m N N M m C N _ N rnY CLL 0 O O O O O o inoao m O O O O O O O O O000O000 N m N o ui yyo oiMNi m N h N O V m m n M'NNN Nr N m m .} p N N T LL m 0 0 N o O w N C O N d LL N E O N a a tp W y T O O C W c o E n L° N J LL m a �' Q C O p C_ C C._ N 0 E 2 i a a` to c U In N C ^'�����pn�p55 .d Eoy w 2 in c L O L N y N j15 {Up 0 N y W IF H d Q Q 2j N r C N 6 N t N C 0) C O .J O y 'c S�n o�md�(NLg6 o- E Uo OQa N �rz 'E 'E E7 oLry E f-ym A Ui� U Y U V f n O) yHj C U_ L 2 C w p J (7 N N Ol j n E O � c ` J a C w 0 O E E � n m o m O a' E2 d N 021 ATTACHMENT 2 City of Le Quints Granls/Contingency/COnbecb/AB939 Requesta/Olher 8 Dept Requests FY 09110 Through 01-Jun.D9 Foote 161 (3) Actual Budgeted FY OW9 Budgeted Requests Council Category FYO8N9 E nditures Committetl FV 09/10 FY09/10 Consideration Grants n Soap Box Derby 4,400 1,651 2,749 4,400Subtotal 4,400 0 0 4,400 1,651 2,749 Contingency ACT for MS 2,000 2,0g0 4000 - Alzheimees Association 2,000 2,000 2,000 Boys & Girfs dub of Coachella Valley -Le Quints Unit 5,000 5,000 5,000 Community Blood Bank 5,000 5,000 5,000 General Paton Center 2,000 2,000 2,000 The Living Desert 5,000 5,000 5,000 Prestige at PGA West 5,000 S,ODO 5,000 American Cancer Society 2,500 2.500 2,500 Coachella Valley Symphony 4,500 4,500 4,500 Ban Franklin Elementary School 1,000 1,000 1,000 CASA for Riverside County, Inc. 1,000 1,000 1,0D0 Desert Cities Pop Warner Footall and Cheer 1,160 1,160 1,160 Eisenhower Medical Center Desert Diabetes Club 1,000 1,D00 1,000 La Duane High School Debate Team 1,000 1,000 1,000 La Quints High School Mods Trial Team 1,000 1,000 1,000 Palm Springs Clutural Center Farmers Market 3,500 3,500 3,500 Soldiers Organized Services (SOS) 5,000 5,000 5,000 Family YMCA of the Desert 6,000 5,000 5,000 Family Sevices of the Desert 2,000 2,000 2,000 I-NeSiresm Foundation 2,000 2,000 2,000 La Quints LongHoms (Youth Baseball) 1,000 1,000 1,000 Fellowship of Christian Athletes (FCA) 5,000 5,000 5,000 Shelter from the Storm 5,000 5,000 5,000 Tools for Tomorrow 5,000 5,000 5,000 Carer training Institute 3,780 3,780 3,780 La Quints Entertainment B Cultural Organiza0on - 2,500 2,500 2,500 Somptomist International 4,050 4,050 4,050 La Dumb, High School WinterGusm 2,000 2,000 2,000 College of the Desert Foundation 1,000 1,000 1,000 Gems of the DesertlCity of Hope 1,000 1,000 1,000 La Quinta Rugby Club 1,000 1,000 1,000 Visiting Nurse Association of the Inland Counties 1,D00 1,000 1,000 Virginia Waring Intonation Plano Competition 1,000 1,000 1,000 The National League of American Pen Woman 1,000 1,000 1,000 Desert Cancer Foundation 1,000 1,000 1,000 Unassi nee 8,010 8,010 8,010 10D,D00 100,000 0 Subtotal 100,000 91,990 0 Contracts Chamber of Commerce 130,000 97,500 32,500 130,000 130,000 66,000 Bob Hope Chrysler Classic 100,000 100,000 100,000 100,000 Community Special Events 12,9D0 7,830 5,070 12,900 9,000 Boys 8 Girls Club - Facility Use 70,000 51,985 18,015 70,000 70,000 YMCA Fritz Bums Pool Contract 38,000 24,289 13,711 38,000 32,000 Desert Resorts Convention Visitors Authority 641.250 645,176 (62.499) 582,677 142,500 Marketing Services 570,000 388,291 181,709 570,WO 550,WO Desert R Tonal Resorts AirportAuthori 15,000 1.577,150 15,000 1,330.071 188,SW 15,000 1,518577 15,000 1,048,500 6Q000 0 Subtotal Department/Other Requests FIND Food Bank 250,000 0 250,000 250.000 CSUSB Palm Desert Campus 250,0W 250,000 250, 000 250,000 500,000 Subtotal 500.000 250,000 0 0 0 Written requests La Quints Arts Foundation -Arts Festival 1D0,000 100,000 100.000 100,000 La Quints Arts Foundation - Facility Rent 20,8D0 20,800 20,800 20,800 La Quints Arts Foundation - Other Events 25,000 25,000 25,000 25,000 Riverside County Date Festival 5,000 5,000 5,000 5,000 Coachella Valley Economic Partnership 12,000 12,000 12,000 12,000 Subtotal 162,800 162,000 0 150,800 162,800 0 0 Total E2,344,350 57,838,612 5447,265 E2,273,777 57,316,700 888,000 SO Note 1 - Gram represents reduction in facility fees Note 2 - $5,000 allocated for the Air Show and $10,000 allocated for membership Note 3 -Amount committed of $20.800 represents rent of City facilities during the festival 022 ATTACHMENT 3 78-275 Cane Tampico #B • La Quinta CA 92253 To: Tom Genovese, City Manager, City of La Quinta Phone: (760)564-3199•Fax: (760)564-3111 May 18, 2009 Cc: Scott Brooks, Chair of the Board, La Quinta Chamber of Commerce From: David S. Archer, President/CEO, La Quinta Chamber of Commerce Re: 2009-2010 City -Chamber Contract for Services Proposal Thank you for the opportunity to submit a proposal to continue to partner with the City of La Quints for the following services: Items Discussed Below: ❑ Contract for Services Increase Analysis ❑ GEM Production ❑ Member/Business Economic Development ❑ Village Sign Renovation ❑ Key Statistics ❑ Contract for Services 1. Business Retention and Promotion 2. The GEM Community Newsletter 3. The Visitor's Center 4. Annual Financial Review ❑ Attachment "A" Total Amount: $196,000.00 RECEIVE® MAY 2 6 2009 CITY OF LA OUINTA CITY MANAGER'S OFFICE Our request for City funding for the fiscal year 2009-2010 is $196,000.00, with a payment schedule reflected as follows: September 29, 2009 $49,000.00 December 29, 2009 $49,000.00 March 30, 2010 $49,000.00 June 29, 2010 $49,000.00 The Chamber will continue to provide quarterly reports prior to these dates as we have done in previous terms. We appreciate the opportunity to submit this proposal and look forward to continuing to provide these services for the City of La Quinta for the benefit of current and prospective residents and businesses. The Voice of Business cuw�usWgchamber. o • w Igchambermm 023 Contract for Services Increase Analysis: From a historical perspective the Contract for Services was at $170,000 in FY 99-00 reducing down to $155,000 in FY 00-01 and eventually down to $125,000 following the elimination of the "Main Street" festival and was increased up to the current level of $130,000 in FY 05-06 to include the annual review/audit. The increase in the current proposed Contract for Services Agreement for FY 09-10 is from $130,000 to $196,000 and is broken into three main areas; GEM Production $26,000, Member/Business Economic Development $25,000, and the Village Sign Renovation $15,000, will be discussed separately. GEM Production As outlined in Attachment A, the GEM Newspaper Production costs have increased by 74% or $66,000 between 2005 and 2009 due to an increase in volume, postage rates, printing costs, processing fees, and publishing costs while the Contract amount has remained constant for the past nine years. In addition, the quality of GEM continued to improve into the current "magazine" type periodical that could arguably have replaced LQ Magazine. From a standards perspective most "contracts" have an escalation clause or a CPI adjustment built in normal adjustments in the economic conditions. Member/Business Economic Development Regarding the $25,000 included for Member/Business Economic Development and equates to approximately $45.00 per member, the Chamber is implementing a number of initiatives not currently in effect. ❑ Band of Locals — a discount wrist band (Lance Armstrong) whereby the "Band Member" (Chamber Member) offers the "Band of Locals" (Consumer) a discount for the summer months. This will be promoted in the GEM, Social Networking, and by various other methods. ❑ Chamber outreach to the "Village" area as discussed in the City's Economic Development Plan, the Chamber has committed to contact every business in the Village and discuss ways to enhance their business through the Chamber and or by other means. ❑ The Chamber would like to be more effective in acting as a conduit to the local business for the City on items such as "Save Our City" campaign as desired by the California League of Cities and California Redevelopment and in "Pod Cast" summaries of pertinent business items arising from the City Council meetings. Village Sign Renovation In a continued effort to aid the businesses in and around the "Village" an amount of $15,000 is being requested to renovate the outdated and weathered "Village Signs" supported by the Chamber. Presently there are seven signs throughout the Village and they have become ineffective and confused with the similar Building Industry signs. It is the intent of the Chamber to have a similar look and feel as the City's "new" signage program. The amount requested is a quote/place holder from a Chamber member and we will do an official RFP as we move forward. 024 Key Statistics: La Quinta Chamber of Commerce Membership by City Ae M Apnl 2000 507 Member. La Quints, Chamber of Commerce Membership Added by Industry July On -April 09 12. Memb— w p.or wo%s. I... Norvproflt Count Monnal Coum a% a% Ro.vnenly conm FlrendaM-1 Eau. Count as,% ANomo.r. 2% x La Quinta Chamber of Commerce Memberships Dropped by Industry July 08 - April 09 258 Member. n pmlmslomiserviced Counl 1% R....,.rb C... I ex Ifl..l Est— )% ...Ninny x R.ull Count 12% ... "; 025 3 The areas of service to be provided under the proposed Contract for Services are defined as follows: 1. Business Retention and Promotion The Chamber surveys its membership on an annual basis and periodically as appropriate, to determine the most effective means of assisting the business community in La Quinta. What we found in our latest survey membership wanted the Chamber to continue to provide both skill enhancement and opportunities from a networking perspective as its number one response. Being a "resource" came in second. Additionally, the Chamber recognizes the potential for being a key conduit for the City to reach the Business community. The following pertains to how we have and are addressing the members' desires and programs that are in place which include: The Education Committee — Our Education Committee continues to support the existing networking opportunities i.e. The Breakfast Network and The Power Lunch. Additionally, in the plan are specific skill enhancement activities designed to enhance the members' basic and advanced skills. Recent programs include a template for members 30 second "personal commercial" and a lesson on "social internet marketing" with LinkedIn, Myspace, Youtube and others. We have received great feedback on our surveys following each event. Where's Gamby — Our program "Where's Gamby?" that allows our members the opportunity to apply and baby-sit Gamby free of charge is still a member favorite. In the monthly GEM, Gamby's location is reveled and over 23,000 readers from our community are encouraged to visit Gamby. When they ask to see Gamby they receive a special treat or reward like a free desert or granite coaster. This drives business to and creates awareness for our participating members. Member Pot -Luck — The member pot -luck was developed to bring the members, City staff, and the Chamber together on a periodic basis in a more social atmosphere for the price of a home cooked "specialty." This allows for the deepening of relationships and a chance to get to know one another better further enhancing everyone's business. Out Bound Call Campaign — Chamber Team members continue to make five outbound calls to members to reach out and touch the membership, say "hi" and inquire how the Chamber can assist them. This continues to build our bond without asking for a raffle prize or notifying them of an outstanding fee. La Quinta Chamber and City Radio Promotions — The La Quinta Chamber of Commerce has continues it's radio campaign that is aired on Sis Radio stations in the valley and promotes upcoming events, highlights the Chamber, and a nuber of spots are directly promoting the City. Our promotional spots run over 20 times a week on each of the six local stations and are valued at over $150,000. 026 rd Annual Rod & Custom Car Show — The Chamber held its Second and Third Annual events since last year and was a huge success in Village and specifically at the Frances Hack Park. The Chamber teamed with the Desert Recreation District at the park and in promoting the Annual Soap Box Derby. Next year anticipates to be an even greater event as both will work together to ensure an action packed weekend of "cars." The car show had over 110 cars and 20 vendors and attracted over 3,000 visitors. While it is too early to articulate, the Chamber is working with the Resort on an even larger event that will be held in either conjunction with or in addition to the current Car Show. The 111" Annual Mayor's Cup Golf Challenge — What has turned out to be one of the Valley's most anticipated golf events is the Annual Mayor's Cup Golf Challenge. The most recent event was held at SilverRock Resort for the first time and we had a terrific turnout of approximately 110 players. The John Stanley King Band was added this year, in addition to "Beat the Pro" with local lady pro Deb Dahmer. We anticipate this event growing year over year as new ideas are implemented. The Mayor's Luncheon — Always well attended and very interactive, the highlights include the City update from the Mayor, networking with the Chamber Board of Directors, upcoming Chamber events, and an educational speaker. www.lgchamber.com - Our website draws about 260,000 visits each year. We offer links to the City, members who participate, and other points of interest in La Quinta. RFP's have been requested to enhance the Chamber's website and will be acted upon in the coming months. Leadership Coachella Valley — For our latest fiscal year the Chamber was responsible for the administration of Leadership Coachella Valley. The program is designed to identify, motivate and develop future community leaders and encourages involvement by providing knowledge and perspective on valley wide needs and concerns. This allowed the Chamber to reach out to a different cross section of constituents further enhancing our ability to attract, retain, and act as a resource for our members. BizNet 2009 — In an effort to promote and enhance La Quinta businesses the Chamber decided to move away from the traditional BizNet format and team up with the City of La Quinta at its Annual Birthday Party and Community Picnic in 2009. The Chamber was responsible for soliciting local businesses and providing a means to promote the participating businesses at a more cost effective price than at pervious BizNet events. Additionally, the businesses were able to gain access to substantially more locals, over 3,000 in attendance, than they were able to at the tri Chamber events held at Fantasy Springs. City Map and Business Directory - The Chamber is in the process of compiling and completing the current directory for delivery to the residences in late 2009 or early 2010. Two well -produced, distinct publications with extensive information for residents, the business community and visitors are produced periodically. ,.... 027 2. The GEM Newsletter The GEM is only Chamber/City newsletter in the Valley distributed to each resident, Chamber member, and non -Chamber business in La Quinta every month of approximately 23,000. Feedback continues to indicate high readership and informative content. Additionally, the Publications Committee continues to oversee, enhance, and review the GEM's content and format. New feature articles and content are being considered to broaden the GEM's appeal. Articles like "How to Play Hole #1 at SilverRock" and each subsequent hole give readers something to look forward to for the coming months. Our intent is to keep the GEM fresh with new ideas for the Committee. As a benefit to new members they are featured in the GEM announcing their membership to all the readers. 3. The Visitor's Center The Visitor Center, located within the Chamber office, continues to draw people down Washington Street from Highway 111. Folks are encouraged to come visit with us at the Chamber and have a cup of coffee or on occasion have home baked cookies on Friday. We strive to make the center as user-friendly as possible with brochure racks and business card racks. We continue to receive well over 5,000 phone calls and approximately 800 visitors per year. 4. Annual Financial Review The Chamber understands the importance of its fiscal responsibility and is working constantly to ensure our books are in order. We are in the process of finalizing the required review and the results will be made available upon completion which should be in June 2009, prior to our contract effective date of July 1, 2009. Additionally, we proactively evaluate our processes and procedures to ensure the Chamber receives fees in a timely manner and payables are filed as appropriate. 5. Additional Items for Consideration As an ongoing process and in the spirit of information sharing with the City, the Chamber has several regularly scheduled meetings outlined below. There is a bi- monthly meeting with the appointed member of the City Council whereby City Staff and Chamber Team Members discuss key issues affecting the City. Commercial and residential development, capital improvement projects, Chamber operations/activities, and Member issues are a few of the topics. On a quarterly basis the Chamber meets with the "Marketing" Committee that includes the City Staff, and other local entities like the La Quinta Arts Foundation, "Old Town" Properties, and Landmark Development to discuss events and marketing strategies that impact the group. Over the past year the Chamber has been represented at the preponderance of City Council meetings and has been an active participant as appropriate. All of the activities described have helped the Chamber better understand the inter -workings of the City and given the City a better perspective regarding the Chamber. 028 Conclusion On behalf of the La Quinta Chamber of Commerce Board of Directors, we thank you for the opportunity to quote the City of La Quinta on a Contract for Services in the amount of $196,000.00 for the 2009-2010 year. We look forward to the continuing to collaborate on making La Quinta the greatest City and nurturing relationship between the Chamber and the City and sincerely appreciate your support. Respectfully, David S. Archer President/CEO La Quinta Chamber of Commerce Cc: Doug Evans, Assistant City Manager, the City of La Quinta 029 Attachment A City Contract Expense Analysis Year Percent Year Percent 2005 2009 Increase 2008 Increase Number Residents 16,663 20,784 25% Businesses 749 1,949 160% Total 17,412 22,733 31% 20,650 10% Postage Rate Residents $0.128 $0.142 11% Businesses $0.238 $0.270 13% Annual Postage Residents $25,594 $46,917 83% Businesses $2,146 $6,011 180% Total $27,740 $52,928 91% 34,258 54% Annual Processing $13,591 $22,943 69% 19,188 20% Publishing $16,500 $23,400 (1) 42% 21,141 11% Printing $32,290 $57,349 78% 59,604 -4% Sub -Total $62,381 $103,692 66% $99,933 4% Total GEM Publication $90,122 $156,620 a 74% $134,191 17% Other Contract Services Visitor Center Yes Yes Yes Business Retention Yes Yes Yes Business Promotion Yes Yes Yes Review/Audit $0 $7,000 $7,000 City Contract Amount $125,000 $130,000 4% $130,000 Additional Funding Request Revise Village Signage $15,000 Retention & Promotion $25,000 Sub Total $40,000 b Total Funding Request Yr 09-10 $196,620 a+b Note: (1) In 2005 an outside agency published the GEM. Currently the Chamber produces the GEM in house. The amount shown is an allocation of the amount of time spent on producing the GEM. 030 ATTACHMENT 4 June 9, 2009 Staff Outline for 2009/2010 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-7 - Review of community profile which compares changes in the categories listed. • 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. • C-1 - Review of the Budget Summary by Fund which brings together the financial activities of all the City, RDA and Financing Authority Funds. 031 • 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. • Section E - Explanation of Department by Department overviews of City operations. • H-1 & H-2 - Review of the City capital improvements approved by the Council in the Five Year Capital Improvement Plan. Question & Answer Period 032 All AGHNILN 1 D City of La Quinta FY 2009/2010 - Major Highlights Staff Resources: Reduced Funding for one (1) Grant funded Motor Officer Reduced Funding for an Assistant Planner Reduced Funding for a Museum Manager Reduced Funding for a Transportation Engineer Reduced Funding for a Secretary in the Public Works•Department Capital Spending -$ Major Projects - Washington St Apts Rehabilitation SilverRock Canal Jefferson Street Parkway Landscaping (Vista Grande to Westward Ho) Dune Palms Rd Street Improvements , Highway 111 Median Landscape Improvements REVENUES All Funds Anticipated Fund Sources Three Major Fund revenues: General Fund RDA PA#1 Debt Service 1 RDA PA#1 Debt Service 2 General Fund Anticipated Funding Sources (A) Major Sources of General Fund Revenues Sales Intergovernmental Hotel Room Tax EXPENDITURES All Funds Anticipated Uses Three Major Fund Expenditures: Capital Projects RDA PA 1 Debt Service Fund RDA PA 2 Debt Service Fund OTHER Green & Sustainable Environmental Goals .General Fund Anticipated Expenditures (B) Surplus/(Deficit) (A)-(B) 27-May-09 Department Police Planning Community Service Public Works Public Works $ 22,657,3141 $ 7,300,000 $ 6,000,000 $ 2,161,048 $ 1,812,199 $ 1,321,624 $133,618,670 1 1 $148,855,516 $38,930,755' $39,284,663 'W 378,400' $46, 178,500 $22,811,800 $ 23,490,800 $45,314,597 $45,439,854 19°h 23% 35% 24% 11% 15% $183,771,9241 1 $174,236,216 $ (353. $ (2,800, $ (679, $ (125, $23,235,768 $10,186,425 $ 13,049,343 $50,491,815 $51,068874 $ (577,059) $23,548,858 $23,485:564 $ 63,294 $605,282 $763,200 $ (157,918) $45,289,288 $ 45,405,202 $ (115,914) 033 T4ht 4 4 Qum& COUNCIL/RDA MEETING DATE: June 9, 2009 ITEM TITLE: Consideration of Funding for the Western Coachella Valley Regional Homeless Multi - Service Center Operations in the City of Palm Springs RECOMMENDATION: As deemed appropriate by City Council. FISCAL IMPLICATIONS: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: The County of Riverside is providing an annual contribution of $857,000 through funding from its two Desert homeless programs leaving an estimated $1,023,805 in operational costs to be funded by the Coachella Valley Association of Governments (CVAG) jurisdictions (which includes the Ague Caliente Band of Cahuilla Indians and the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs, and Rancho Mirage). The annual contribution from each of the jurisdictions is $102,380.50 per year for a ten-year period. In Fiscal Year 2009-2010, funding for a homeless shelter is currently not allocated and would need to come from the General Fund Unallocated Reserves (Account No. 101-0000-290.00-00). In order to be compliant with the California Debt Limitation contained in the California Constitution, the City's obligation to make the payments for future fiscal years must be contingent upon each future City Council's appropriating funds for said purpose as part of its annual appropriation process. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: The need for shelters in the Coachella Valley has been an ongoing concern that has been voiced by homeless service organizations and the cities of Indio and Palm Springs for the last five years. On June 26, 2006, CVAG created a Homeless Task Force that developed the CV - SOS Program (Coachella Valley Services and Overnight Shelter). This program, still in existence, uses faith -based organizations across the Coachella Valley, for overnight shelter. The Homeless Task Force, which was a subcommittee of CVAG's Human and Community Resources Committee, initiated the creation of a formal Homelessness Committee to develop a Strategic Plan (Attachment 1) of homelessness with the first priority being the creation of a Western CV Homeless Shelter. On September 28, 2008, the CVAG Executive Committee took action relative to the funding of the operations of the Western Coachella Valley Regional Homeless Multi -Service Center. It was moved and seconded to use an "across the board" method equally dividing the total remaining operations of $1,023,805 by the nine cities and the Agua Caliente Tribe; with each party taking into consideration the ability to "write or increase" their contribution; that the individual and equal contribution be limited "or capped" to the amount determined using the total estimated operations of a ten (10) year period that is congruent with Riverside County's Continuum of Care 10 Year Plan to End Homelessness; and that the Homelessness Committee continue to monitor the Multi -Service Center. At that Executive Committee meeting the cities of Desert Hot Springs, Indio, and Rancho Mirage voted no. The Agua Caliente Band of Cahuilla Indians abstained. In order to help offset the costs to the jurisdictions; CVAG has executed an agreement with the Regional Access Project (RAP) Foundation in Palm Desert to serve as CVAG's fiscal consultant who will allow staff to file major grant applications, which may include a regional application for funding for homeless shelters through the 2009 American Reinvestment and Recovery Act. As a result, grant applications have been recently sent to Senator Feinstein's office and well as other potential funders to seek operational support. On February 20, 2009, CVAG sent a letter (Attachment 2) to all City Mayors requesting financial contributions to operate the Western Coachella Valley Regional Homeless Multi -Service Center. The facility is 47,880 square feet located at 19533 McLane Street in north Palm Springs. The commercial warehouse building was purchased through a bond issuance using Riverside County Pass -Through Funds from the Riverside County -Palm Desert Finance Authority for $5 million dollars and will include approximately $2 million dollars in tenant improvements. The Center will feature emergency shelter beds for 120 men, women and families; 035 case management services; a full kitchen and dining area to provide three square meals per day; other core services, such as veteran's assistance; HIV/AIDS; women's services; job training and education. A "Mental Health Safehaven" for chronically homeless clients with a diagnosis of mental illness; and a mental health clinic are also part of the Center. Transportation will be provided to transport homeless clients to services, e.g., social security, DMV, and job search opportunities. Transportation pick-up and drop off points will be established to also transport homeless clients to and from the Center who do not desire emergency shelter. CVAG plans to hire a subcontractor to provide van service to Sunline transportation hubs. The Multi -Services Center (to be formally named the Desert Resource Center) is scheduled to open January 1, 2010. On May 5, 2009 the City Council discussed this item and requested that it be continued to the Fiscal Year 2009-2010 budget meeting scheduled for June 9, 2009. Councilmember Henderson asked if Redevelopment Agency funding could be used if multiple cities combined agency funds for homeless housing outside of the City of La Quinta. Rosenow Spevacek Group, Inc. researched this question and found that use of Redevelopment Agency funding for this type of project was approved by the 2008 State Assembly and Senate in Bill AB2097 but was vetoed by the Governor (Attachment 3). On June 1, 2009 the CVAG Homelessness Committee met with the Executive Committee to express concerns over the participation levels of cities regarding this issue. The CVAG Executive Committee voted unanimously to bring this request to their respective City Councils within the next month (Attachment 4). FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the Coachella Valley Association of Governments request for an annual funding contribution of $102,380.50 for the next ten years, contingent upon each future City Council's appropriating funds for said purpose as part of its annual appropriation process, to operate the Western Coachella Valley Regional Homeless Multi -Service Center in the City of Palm Springs; or 2. Do not approve the Coachella Valley Association of Governments request for an annual funding contribution of $102,380.50 for the next ten years to operate the Western Coachella Valley Regional Homeless Multi -Service Center in the City of Palm Springs; or 3. Provide staff with alternative direction. 036 3 Respectfully submitted, _ - . Nl Edie Hylton Community Services Director Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Strategic Plan 2. Letter dated February 20, 2009 3. Letter from Rosenow Spevacek Group, Inc. 4. June 2, 2009 CVAG Letter 037 ATTACHMENT 1 COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS' (CVAG) HOMELESSNESS COMMITTEE a'O Go�Do STRATEGIC PLAN to END HOMELESSNESS ty�`J� p• July 2007 through July 2010 Summary: During the spring of 2007 CVAG's Homelessness Committee (see Appendix A) embarked on a series of planning and resource exploration initiatives. The Committee made the strategic decision to coordinate valleywide planning efforts for homelessness under the broader recommendations developed as part of the County of Riverside's 10 Year Plan to End Homelessness (see Appendix B). Initially, two phases for the strategic planning process have been established. The first phase focuses on the development of two (2) Multi -Service Centers (MSC). Cook Street was determined to be the geographic east/west boundary to serve as a context for sharing the burden of serving Valley homeless. One MSC will be developed east of Cook Street to serve the eastern Coachella Valley jurisdictions and the other MSC will be located west of Cook Street for service to the western Coachella Valley. Th-emiss:iian.of-thelno_ 48r,"llbe_ to pro_v_ide-cQW ehensive_support seNices to promote progress towards permanent housing and self-sufficiency. Both MSC's will be designed to provide one -stop access to resources for individuals and families experiencing, homelessness or are at -risk of homelessness. Awide array of supportive services are envisioned including but not limited to basic amenities such as showering/personal care and laundry, to street outreach, transportation, childcare, medical care, mental health services, integrated case management, food and housing. The Homelessness Committee is currently supported by four subcommittees that have been established to work on the objectives detailed under each of this Plan's four Strategic Goals. These subcommittees are: Site Planning; Program Planning; Finance; and, Public Relations. - CVAG Homelessness Committee 36 Month Plan Phase Two of the planning will commence at such time. that the activities in the. first phase have moved towards implementation: Phase Two will focus on the recommendations in the County of Riverside's 10 Year Plan to, End Homelessness that were not addressed during Phase One. Encapsulated within a thirty-six (36) month timeline, this Plan will be operationalized in July of 2007 and is scheduled to conclude in July 2010. The Strategic Plan includes: 4 Strate-gic Goals 92 Ob ectives in support of the goals, and 28 Methods that will achieve the objectives and lead toward goal attainment Each goal has been given a timeline for completion and oversight responsibility has been assigned to CVAG's Homelessness Committee in order to carry out the work and to evaluate the measure of success associated with each unique Strategic Goal. cVAG Homelessness committee 36 Month Plan `,2� f Objedfve(s) Method(s) Timellne for . Responsibility Completion ei.i supportme 48. Identify 3-5 sites 4a. September 2007 CVAG creation/development " 4b. Acquire best 4b. December 2007 Homelessness of the Western Valley s)tes(s) Committee & Multi -Service Center 4c. Develop MSC 4c. December 2009 Subcommittees #1.2 Support the la. Identify 3-5 sites 1a. September 2007 CVAG creation/development 1b. Acquire best s)te(s) 1b. December 2007 Homelessness of 225 shelter beds 1c. Develop shelter ic. June 2010 Committee & (50% for indhrpcW* end 50%for families) _ Subcommittees of 225 units of transitional housing 060% for NulWuals and crealiion/development of 200 units of permanent supportive housing (90%for individoab and 2b. Acquire best sttes(s) 2c. Develop units 3b. Acquire best sttes(s) 3c. Develop units 2b. December 2007 2c. June 2010 3b. December 2007 3c. June 2010 subsidies for 200 funding source(s)� units of permanent 5b. Determine vehicle 5b. June 2009 affordable housing (o to for implementing and 3 bedroom FWts) managing subsidy CVAG Homelessness Committee 36 Month Plan Homelessness Committee & Subcommittees Homelessness Committee & Subcommittees Homelessness Committee & Subcommittees 040 Objectives) I Method(s) I Timellne for I Responsibility Completion IrL1 Support the 13a. Identify 3-5 sites 13a. September 2007 I CVAG creafionldeve)opment 3b. Acquire best sites(s) 3b. December 2007 Homelessness_ of the Western Valley 3c. Develop MSC 3c. December 2008 Committee & Mufti -Service Center Subcommittees creatiortldevelopment 1 b. Acquire best site(s) 1b. December 2007 of 100 shelter beds 1c. Develop shelter 1c. June 2010 (60%for hxWlduab and - A09G for fam�s). #2.3 Supportthe 2a.identify 3-5 sites 2a September 2007 creation/development 2b. Acquire best sites(s) 2b. December 2007 of 250 units of _ 2c. Develop units 2c: June 2010 . Homelessness Committee & Subcommittees Homelessness Committee & 1 CVAG Homelessness Committee 36 Month Plan .�. , 41 Objectives) I Method(s) I Timeline for I Responsibility s.i ueiwer awloe array la. Services providers will be 1a. June 2008 CVAG . Of supportive services recruited to provide include: Homelessness in each of the two Committee & MKS. • Day to Day Site Mgmt. Subcommittees • Intake and Assessment • Commercial Meal Prep. - - • Child Care • Laundry • Showers and Personal Care • Mailboxes • Learning/Resource Center _ Physical Health - • Behavioral Health • Dental Care • Mainstream Benefits Storage Lockers • Security • Food Pantry • Clothing • Job Training/Day _ -- -- Placement — I ansportaflon-- -- • Kennels for Pete • Parking • Sobering Unit • Bus stop • Immigration Services • Recreation Services • Cottage Industries 3.L Secure funding to 3a. Secure revenues to fully September 2008 CVAG support the annual pay for service delivery and Homelessness. operating costs of each administration of programs for Committee & of the two MSCs. each of the two MSCs. I Subcommittees CVAG Homelessness Commales 36 Mordh Plan n�? objecave(s) I , Method(s) I rime►ine for Completion support for both Hail Meetings MSCs within the 1b. To develop 1b. May 2008 Coachella Valley. policies that will govern the MSCs to demonstrate effective oversight 1c. Promote pro- 1c. Immediate and homeless articles in On -going valley newsletters id. To create CVAG 1d. December2007 website on projects for public to track progress le. Hold Ile. Immediate and informational On -going workshops for valley faith -based partners 1f. Encourage 1f. December 2007 broader 211 linkage marketing campaign 1g. Make 1g. immediate and presentations to On -going valey Chambers of h 1--. Make e - Mak 1h. gecember2007 presentations to valley City Councils 1i. Make 1i. Immediate and On - presentations to going Desert Resorts and Tourism trade associations tj incorporate any ij Immediate changes from public input into the Strategic Plan Responsibility Committee & Subcommittees CVAG Homelessness Committee 36 Month Plan 043 Appendix A CVAG's Homelessness Committee Members Last Name First Name JurlsdletioNAeenev Tittle - Subcommittee VOTING MEMBERS: Ramos -Watson Lupo Indio Mayor Pro Tern Public Relations, Chair Committee Chair Vasquez - Chuck Cathedral City. Councilmember Site Planning _ Committee Wce Chair Villarreal Jesse Coachella Mayor Pro Tern - Public Relations Parks Yvonne Desert Hot Springs Councilmember Site Planning - Mullany Patrick Indian Wells Councilmember Program Planning Osbome Lee La auk" - Councilmember None Selected Benson Jean Palm Desert Mayor Pro Tem Public Relations .. Foat Ginny Palm Springs Councilmember Site Planning, Chair . Saman Alan Rancho Mirage Counclimember None Selected - DeLars Leticia County of Riverside Legislative Assistant Finance Planning Riddle - Burkett Johnson Frankle Darla Chuck City of Palen Desert CV Rescue Mission -Episcopal Com. Service Dir. of Social Services Executive Director Program Manager Public Relations Program Planning, Chair Program Planning Bass Dan Jewish Family Service Executive Director Program Planning Castorona Claudia Martha's Village Division Director Program Planning MCAdara (6107) Kathy SareHouse of the Desert Executive Director Public Relations (Merritt) _ (Caren) Kramer is*" Shelterfrum the Stone Chief Financial Officer Finance Planning McMieheaux Tahllb The Well in the Desert Dir. of Social Services Site Planning STAFF SUPPORT: - Kerr Aurora CVAG Community Resource Dir. Finance Planning - Stewart, PhD Ron County of Riverside. DPSS Admin Manager Process Facilitator CVAG 4omelessness Committee 36 Month Plan in CVAG's Homelessness Committee Members Last Name First Name STAFF SUPPORT coned! • Marquez Maria Lundquist, PhD David . Hutchinson Jon Ramertz Emilio White Jody Cook Dole JurisdicdordAcencv Tme Subcommittee County of Riverside Mental Health Servioe Mgr. FNance Planning County of Riverside Mental Health Reg. Mgt. Program Planning County of Riverside Dep. Dir. Real Estate Site Planning County of Riverside Econ. Development Finance Planning, Chair County of Riverside Staff Analyst None Selected Palen Springs Community Dev. Amin. Program Planning CVAG Homelessness Committee 36 Month Plan 0 4F 0 Appendix B Riverside County's 10-Year Plan to End to Homelessness (draft and not yet adopted by the County Board of Supervisors) The First Five Years of Implementation (2007-2012) Area of Core Focus Recommendations Target Date for Completion Preventing New 1. New Prevention Strategies (including 2007-2012 Homelessness Multi -Service Centers 2. Diiis;cha a Planning Coordination 2007-2q0y12 y�.SxTi' ;e Ci -Yr {{Y6.-. �1�1 �1� ��Nie}u �{S�F..x.~� 'l i"t � .:"� �rv'4�. StF��•�A�i. :: Ending Chronic 3. Street Outreach Teams (1+ in each 2007-2012 and Episodic Su eivisorial District Homelessness 4. Shelter Bed Creation (150 beds 2007-2012 County -wide) 5. Transitional Bed Creation (225,beds 2007-2012 County -wide) . 6. Perm. Supportive Housing Creation 2007-2012 500 beds County -wide) 7. Permanent Affordable Housing 2007-2012 8. Provider Participation in HMIS (all. 2007-2008 HUD funded beds firstpriority) 9. Mainstream Resources — Benefit 2007-2009 Application Streamlining (County) Creating 10. Housing Trust Fund Creation 2007-2008 Resources to 1 Unclusionary Housing Policy Adoption 2007-2010 Combat Homelessness (County -wide and Locally) CVAG Homelessness Committee 36 Month Plan 040 Appendix C Notes on Site Selection and Capital Development • East and West MSCs & housing products (shelter, transitional and permanent supportive housing) may be on one large site or divided up and scattered. • If on one site- site should be 10 acres or more. • Ideal zoning includes commercial, high density, mixed use. • Sites must be appropriately located to community amenities in order to score points for funding applications (e.g. markets, transportation, libraries, employment, etc.). • County unincorporated land would be preferable. • First priority to be the development of the Western MSC. I MSCs may require 16,000 square feet of usable space and require ample on -site parking for customers and staff. 047 CVAG ATTACHMENT 2 COACHELLA VALLEY ASSOCIATION of GOVERNMENTS Blythe • Cathedral City • Coachella • Desert Hot Springs • Indian Wells • Indio • Le Quints • Palm Desert • Palm Springs • Rancho Mirage County of Riverside Agua Caliente Band of Cahuilla Indians • Cabazon Band of Mission Indians • Torres Martinez Desert Cahuilla Indians February 20, 2009 The Honorable Don Adolph, Mayor City of La Quinta' 78-495 Calle Tampico La Quinta, California 92247 RE: Contribution to Operations of Western Coachella Valley Regional Homeless Multi - Service Center Dear Mayor Adolph: At their meeting of September 28`h, the CVAG Executive Committee took action relative to the funding of the operations of the Western Coachella Valley Regional Homeless Multi -Service Center (MSC). Two funding formula recommendations were considered: (See attached staff report dated September 29, 2008). 1) One from the CVAG Technical Advisory Committee which recommended Option 2A using employment, population and standardized credit as criteria to determine each jurisdiction's contribution. 2) The other recommendation came from the Homelessness Committeewhich recommended an "across the board" method equally dividing the total remaining operations of $1,023,805 by the nine cities and the Agua Caliente Band of Cahuilla Indians; with each party taking into consideration the ability to "write or raise" their contribution. The amount therefore is $102,380.50. Minutes from the September 291h Executive Committee meeting are as follows: "It was moved by Mayor Pougnet and seconded by Mayor DeRosa to use an "across the board" method equally dividing the total remaining operations of $1,023,805 by the nine cities and the Agua Caliente Tribe; with each party taking into consideration the ability to "write or raise" their contribution; that the individual and equal contribution be limited "or capped" to the amount determined using the total estimated operations of Phase 1 for a ten (10) year period that is congruent with Riverside County's Continuum of Care 10 Year Plan to End Homelessness; and that the Homelessness Committee continue to monitor the Multi -Service Center' There were three cities that voted no: Desert Hot Springs, Indio and Rancho Mirage. The Agua Caliente Band of Cahuilla Indians abstained. 048 73-710 Fred Waring Drive, Suite 200 • Palm Desert, CA 92260 • (760) 346-1127 • FAX (760) 340-5949 COACHELLA VALLEY ASSOCIATION of GOVERNMENTS Letter to Mayor Don Adolph Page 2 of 2 Pages February 20, 2009 In follow-up to that action and in consideration of your jurisdiction's preparation of its budget for fiscal year 2009-10, we ask that your City Council agendize this item to determine your jurisdiction's financial participation in the operations of the MSC. At the September 2008 meeting, discussion also ensued relative to the ability of one or more cities to contribute their fair share while one or more cities may be able to contribute over and above the $102,385 annual operations amount. As the County begins tenant improvements to the MSC, it is critical that we know how much funding will be available for the operations of this facility. CVAG recently released a Request for Proposals for an operator or operators of the three main components of the shelter: food, transportation, and shelter. Initial indications are that the estimated $1,023,805 that is needed for the complete operations is not far from what the actual costs will be. In order to help offset the costs to the jurisdictions, CVAG staff is moving forward with execution of an agreement with the Regional Access Project (RAP) Foundation in Palm Desert to serve as CVAG's fiscal sponsor which will allow staff to file major grant applications. Also, a second federal appropriations application was recently sent to Senator Feinstein's Office requesting funds for operations. The Multi -Services Center (to be formally named the Desert Resource Center) will be ready to open beginning January 1, 2010. We hope to have the operator(s) of the MSC in place by May or June. Staff is available to attend your City Council meeting to provide additional information relative to your consideration to participate in the MSC (Desert Resource Center). Feel free to contact me or Aurora Wilson at 346-1127 for further information. I look forward to hearing from you soon. Interim Executivia Director :attachment cc: The Honorable Kristy Franklin, Councilmember and Homelessness Committee Member Tom Genovese, City Manager 049 September 29, 2008 COACHELLA VALLEY ASSOCIATION of DATE: TO: FROM: RE: GO.V6KIRNMENTS 0op"b repo a 8Wn 41, appeal r oes"Cledna Ivec011 Shea. thl t a 10 rea'�o� betthe . !Jh n Aer1o� �tf Qair-lcloi EXECUTIVE COMMITTEE, TECHNICAL ADVISORY COMMITTEE AND HOMELESSNESS COMMITTEE Aurora Wilson, Director Department of Community Resources Funding Formula Recommendations for the Western Coachella Valley Homeless Multi -Service Center STAFF RECOMMENDED MOTION: That the Executive Committee consider the two recommended Technical Advisory Committee and Homelessness Committee funding formula options listed below and determine which formula will be used for the funding of the .operations of Phase I of the Western Coachella Valley Multiservice Center (MSC). Technical Advisory Committee: The funding formula presented as Option 2A using employment, population and standardized credit. (9112108). Homelessness Committee: That an alternative formula beconsidered of using an "across the 805 by the nine board" method equally dividing the total remaining oper atiointo consideration the ability to cities and the Agua Caliente Tribe; with each party t "write or raise" their contribution . The TAC should also be prepared to formally discuss what they are able to commit for fiscal year 2009-10 (9/17108). BACKGROUND: The joint meeting of the Executive, Technical Advisory, and Homelessness Committees as approved on June 2nd by the Executive Committee at the request of the Homelessness Committee to take action on funding of the Phase 1 of the Western Coachella Valley Homeless Multi -Services Center (MSC). Phase I includes up to 150 emergency shelter beds (which includes a temporary expansion for the hot/cold weather shelter), a full service kitchen, dining room, and an Access Center as well as the County's SafeHaven Program and its accompanying full service partnership clinic. The total estimated cost of operations for Phase I is $1,880,584. The County (pending Board ofsupervisors homeless is providing an annual contribution of $857,000 through funding from its two Desert homeless programs (the gram nal costs S be Program and b the ig CVAGI ur anor) leaving an estimated 81 OZy 3 805 in ACTION BY THE TAC (7/11/08 & 9/121081: In preparation for this joint meeting, the Technical Advisory Committee (TAC) held two workshops: July 11"' and September 12th; to discuss and recommend a funding option. roposed CVAG membership funding formula (ut sthe ing ass essed valuation and population) and repcommended that CVAG Staff create additional formulas as options. TAC jobsiunemployment rates; and credit for cities with emergen following factors s� that the shelterswithin and adjacent to their ITEM 9AC 050 COACHELLA VALLEY ASSOCIATION of GOVERNMENTS Executive, Technical Advisory & Homelessness Committees Page 2 of 3 Pages September 29, 2008 jurisdictions. (For credit explanation, see Attachment 1.) At the September 12`^ TAC Workshop, a total of six (6) formulas were presented: three basic formulas with three variations. Following a lengthy discussion, Option 2A was selected by the- TAC. Option 2A uses employment, population and standardized credit to determine the contribution (See Attachment 2). The nine Coachella Valley cities, the County and the Agua Caliente Tribe were present. Three cities voted no: Indio, Desert Hot Springs and Cathedral City. With regards to their no vote, several issues surfaced: 1) Indio: Although the credit was created by TAC to address the burdens to cities such as Indio with more than 100 emergency shelter beds, the 25% credit was insufficient; 2) Desert Hot Springs: Parolees in the cit/s boundaries remain a high priority and need to be addressed first before considering the homeless issues; 3) Cathedral City: The use of the credit creates a benefit for the City of Palm Springs but does not apply to Cathedral City forcing their contribution to be the highest ACTION BY THE HOMELESSNESS COMMITTEE (91171081 At the September 17th Homelessness Committee meeting, staff presented an overview of the presentation made to the TAC on September 12th, the discussion and concerns expressed by TAC members and the recommendation for Option 2A with a no vote from the three cities. The following are major discussion points brought up by the Homelessness Committee: Concern was expressed that buy -in and ownership of the homeless issue by each community and their residents is critical to the success of the MSC. Homelessness is not a county problem, it is a valleywide problem that all cities should accept. Members added that fundraising is an important component that cities should consider in order to diminish their contribution. Cities should not have to bear the entire burden. No matter the amount of the contribution, given the current. economy, there may be a jurisdiction that may be able to provide a portion of their contribution or does not have the ability to pay any amount of their contribution. An ability for each jurisdiction to "write or raise" their contribution was also encouraged to help offset those jurisdictions that cannot provide the equal contribution. The fairness of the "credit' allowance in option 2A recommended by the TAC. The Committee recommended motion passed with the cities of Desert Hot Springs, Palm Desert and Rancho Mirage voting no. The cities of Coachella and La Quinta were not present. Attachment 3 shows the TAC recommendation of Option 2A and the Homelessness Committee's recommendation of equal contributions. (See Attachment 3). 10 051 COACHELLA VALLEY ASSOCIATION of GOVERNMENTS Executive, Technical Advisory & Homelessness Committees Page 3 of 3 Pages September 29, 2008 OTHER ITEMS: The County's participation in the formula as recommended by TAC and as recommended by the Homelessness Committee: The County s contribution to the Western Coachella Valley MSC includes: 1. As of September 12'h, the County is now the legal owner of the McClane Building funding the $4.9 million purchase through a bond issuance; 2. The County will fund Phase 1 of the tenant improvements, approximately $1 million; 3. Provide an annual operational contribution of approximately $857,000 through funding from its two (2) current homeless programs in the Desert: the SOS Program and Nightengale Manor (pending the Board of Supervisors approval for fiscal year 2009-10) Given the County's substantial pledge (in operations and their capital expenses for the building and tenant improvements), they will not consider any additional operational contribution. The County has also expressed a willingness to explore concerns expressed at the TAC relative to eastern Coachella Valley cities contributions and support of homeless services in the eastern Coachella Valley and redirecting those funds to the Western Coachella Valley MSC. Participation by Tribal Members: Staff have been unable to identify a fair way to directly assess the Tribes in this formula without duplicating counts of employment, population or assessed valuation. Therefore, in accordance with past action, the Tribes will be asked to participate in the amount equal to the lowest jurisdiction. This is the current practice for their CVAG membership. The contribution will vary based upon which formula is chosen. To date, only the Agua Caliente Band of Cahuilla Indians has participated in discussions regarding this funding formula. A request to consider financial participation will be sent to the three Tribal members. Due to their past participation and ability to pay, of the three tribes, only the Agua Caliente Band of Cahuilla Indians has the financial capability to consider a contribution. Funding Sources: Sources of funding for cities to use for their contribution to the operational costs include: 1) amendment of RDA pass through agreements, 2) CDBG funds and 3) general fund or Special Assistance funds and 4) Coachella Valley Tourism Business Improvement District (BID). Other.Funding Sources: Staff continues to look at other funding sources from state and federal sources, as well as private foundations. A Request for Proposals (RFP) has been issued for a "fiscal sponsor" or 501(c)(3) to be selectad by CVAG. This fiscal sponsor will accept grant funding on behalf of CVAG to be used for homeless services relative to the Homelessness Strategic Plan. :Attachments 11 052 ATTACHMENT 1 STANDARDIZED CREDIT FORMULA FORMULA OPTIONS 1A, 22A 3A At the July 11'" Technical Advisory Committee meeting, it was recommended that a credit of 25% be awarded to jurisdictions bearing the greatest burden from the Emergency Shelters with 100-250 beds throughout the Coachella Valley. NOTE: Emergency Shelter Beds are defined by the U.S. Department of Housing and Urban Development as: ,any facility with overnight sleeping accommodations, the primary purpose of which is to provide temporary shelter for the homeless in general or for specific populations of homeless persons. The length of stay can range from one night up to as much as three months. " According to the city managers, the premise for awarding this credit is that jurisdictions that have emergency shelter beds within or adjacent to their boundaries have/will have significant strain or burden on their resources, including police, fire and emergency services, etc. As this cost cannot be fully determined, a standardized format or standardized credit formula is being used to award credit. It was also discussed that a portion of the 25% credit be awarded based on a jurisdiction's proximity to shelters. Therefore, those jurisdictions whose boundary lines or spheres of influence are adjacent (less than 1 mile) from a shelter with emergency shelter beds will receive a 12.5% credit. The credit baseline is assessed upon the jurisdiction that currently has the presumed maximum amount of burden: the City of Indio. Indio has 100 Emergency Shelter beds located within its boundaries through Martha's Village and 80 other beds adiacent to their city through the Coachella Valley Rescue Mission. Therefore, given the presumption that Indio has the greatest burden; the remaining member jurisdictions will be assessed within a formula based on Indio's assessment. TWO TYPES OF CREDIT: 1. CREDIT FOR JURISDICTIONS WITH 100 — 250 EMERGENCY BEDS WITHIN A JURISDICTION = 25% a. All cities with 100-250 shelter beds within their jurisdictions will receive a predetermined amount based on 25% of Indio's assessment. b. FOR EXAMPLE: if the City of Indio is to be assessed $100,000, their credited amount would be $25,000; other jurisdictions with 100 — 250 emergency beds within their individual jurisdiction will receive the same amount of credit and no more. c. The following jurisdictions eligible for a 25% Credit: i. The City of Indio for 100 Emergency beds at Martha's Village & Kitchen ii. The City of Palm Springs for 150 planned Emergency beds at the Western Regional Homeless MSC. 2. CREDIT FOR JURISDICTIONS WITH 100 — 250 EMERGENCY SHELTER BEDS ADJACENT TO THEIR BOUNDARIES = 12.5% a. All cities with 100-250 shelter beds adjacent to their jurisdiction or sphere of influence boundaries will receive a predetermined amount based on 12.5% of Indio's assessment. (Adjacent = less than 1 mile from jurisdiction/sphere of influence boundaries). b. FOR EXAMPLE, if the City of Indio is to be assessed $100,000, the adjacent jurisdictions will receive 12.5% of Indio's assessment, or a $12,500 credit. c. The following jurisdictions eligible for a 12.5% Credit: i. The City of Coachella for 100 Emergency Beds at Martha's Village & Kitchen; .75 miles from City limits ii. 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O y m o c E E d m Z c �+ U_ O C f6 O E— in a O. L 0 0 IO m .r d N E t G a m E m N m r o 0 m d rno5� w U �Z 0U >,m 'O O C L 0 .y c E C E Q ym « '; K p Q C 0 m 0 o v m E m 0 v 0 C o co E-- 0 co Cm>� 3mm a ¢ o o on mZcoZ a?v0oL00` U w 0 m LL U m , Cn �• 0 U c a N w C C N J N m N C m N C C O o E m -O N N ..% -6 O« N m •aa p amo o mw c�a> �m E E a a m c a 16 a o o U E 0 E 0 t 0 Q m o E L c 0a-LU = c L 0 Q mV) r mU)T O N O Q N m V .0 O .0 Ln (O Q N J 14 055 ATTACHMENT 3 PRSG INTELLIGENT COMMUNITY DEVELOPMENT ROSENOW SPEVACEK GROUP INC. T 714 541 4585 309 WEST 4TH STREET F 714 5411175 SANTA ANA. CALIFORNIA E INFO@WEBRSG.COM 92701-4502 W EBRSG.COM Via Electronic Mail Date: May 21, 2009 TO: Doug Evans, Assistant City Manager LA QUINTA REDEVELOPMENT AGENCY FROM: Frank Spevacek SUBJECT: USE OF LOW AND MODERATE INCOME HOUSING FUNDS ON HOMELESS UNITS OUTSIDE OF THE CITY'S JURISDICTION In response to Council Member Henderson's comments at the May 5, 2009 City Council meeting, RSG researched the use of the La Quinta Redevelopment Agency's Low and Moderate Income Housing Fund revenue ("Housing Funds") to: (1) underwrite the development of homeless housing outside of the City of La Quinta, and (2) pool Housing Funds with other Valley redevelopment agencies to develop homeless housing. The California Redevelopment Law ("Law") allows the expenditure of Housing Funds on extremely low income households who earn less than 30% of the area median income; homeless persons fall within this category. In order for the Agency to gain inclusionary housing credit, it must fund either new construction, substantially rehabilitate existing dwellings, or purchase very low or low income affordability covenants in existing multi- family development. Per the Law, these units must be either in one of the Agency's Project Areas, or within the City's jurisdiction. When expending Housing Funds, the Agency must make findings that the Housing Fund expenditures are used to increase, improve, and preserve the community's supply of affordable housing (§33334.3(c)). The Agency could not make these findings if Housing Funds were expended outside of the Agency's jurisdictional territory and thus would not comply with the Law. In 2008, the State Assembly and Senate approved AB 2097 that permitted Santa Clara County redevelopment agencies to use redevelopment housing funds for supportive services for new permanent homeless housing units. This legislation would have allowed these agencies to use redevelopment funds for support services that are not currently a permitted expenditure (§33334.2). Governor Schwarzenegger vetoed AB 2097 because he believed the bill would finance supportive services, including staff salaries and other ongoing costs, rather than new affordable housing development, thus undermining state and local efforts to increase the affordable housing inventory. Prior to REDEVELOPMENT PLANNING REAL ESTATE ECONOMICS HOUSING FINANCING REAL ESTATE ACOUtS1TION ECONOMIC DEVELOPMENT GOVERNMENT SERVICES 056 Doug Evans, Assistant City Manger CITY OF LA QUINTA June 4, 2009 Page 2 the Governor's veto, the Coachella Valley Association of Governments ("CVAG") requested Senator Ducheny to author similar legislation that would allow the Coachella Valley redevelopment agencies to use and/or combine funds for homeless housing services located outside of their jurisdictions. She elected to not do so because of the Governor's veto. We hope that this memo addresses the points raised at the May 5'h meeting. Please do not hesitate to contact me if you require additional information or additional explanation. 051 06/03/2009 10:42 7603405949 CVAG PAGE 02 ATTACHMENT 4 CVAG = COACHELLA VALLEY ASSOCIATION of GOVERIMMENTS Blythe • Cathedral City • Coachella • Desert Hot Springs • Indian Wells • Indio • La Duinte • Palm Desert • Palm Sprinoe • Rancho Mirage County of Riverside • Aqua Cellenta Band of Cahuilis Indians • Cebazon Band of Mission Indians • Torres Martinez Desert Cahuifl Indians ��M� 1 CC�It� June 2, 2009 _ jLIN3 2A09 Gh OF iAUUIUTA d The Honorable Mayor Don Adolph 'I _CTrMAXAGI�_ ( FAX: (760) 777-7101 City of La Quinta Hard Copy to Follow P.O. Box 1504 La Quinta, California 92253 RE: Contribution for Operations of the Desert Resource Center Dear Mayor Adolph: On June 111, the CVAG Executive Committee voted unanimously to request every member agency to place on one of your June La Quints City Council agendas, participation in the regional homelessness program. Specifically, the following question should be addressed: Will the City of La Quinta commit $102,380 for fiscal year 2009110 to support the annual operations of the Desert Resource Center? In the event the City of La Quinta chooses not to contribute $102,380, please identify what, if any, amount it is willing to contribute. CVAG staff, specifically Aurora Wilson, can provide background to you or your staff before or at your city councll's meeting. Your city eouncil's prompt consideration of this request will help CVAG gauge the level of support for this regional program. Thank you for your consideration of this program. Sinpowly. Kirk Ti xecutive Director cc: Kdsty Franklin, Councilmember and CVAG Homelessness Committee Member Tom Genovese, City Manager .�.: 058 -- --- - - r..:. nnrn . oeh,,. nomevr r.A Ap7fn • r7601346-1127 • FAX (7501 340.5949