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1995 06 22 CC Minutes LA QUINTA CITY COUNCIL LA QUINTA REDEVELOPMENT AGENCY SPECIAL MEETING OF JUNE 22, 1995 MINUTES? Special meeting of the La Quinta City Council and La Quinta Redevelopment Agency was called to order by Mayor Pena and Chairman Sniff at 7:00p.m., followed by the Pledge of Allegiance. PRESENT: Council Members Bangerter, Cathcart, Perkins, Sniff, Mayor Pena ABSENT None CONFIRMATION OF AGENDA Confirmed APPROVAL OF MINUTES None PUBLIC COMMENT None BUSINESS SESSION None CONSENT CALENDAR None DEPARTMENT REPORTS None STUDY SESSION 1. REVIEW OF FISCAL YEAR 1995-96 PRELIMINARY BUDGET FOR THE CITY OF LA QUINTA. Mr. Genovese, City Manager, briefly reviewed the proposed operating budget for FY 1995-96 advising that the area of major enhancements include over $400,000 to the Police Department which adds one full shift and $100,000 for special enforcement; additional emphasis has also been added to code compliance and traffic, and economic and redevelopment. These increased service levels were made fInancially feasible due to increased revenues in the amount of about $1 million in TOT, property tax, building fees, planning and zoning fees and interest in the General Fund. The proposed budget is a result of close scrutiny at the staff level to provide a balanced budget that is lean. He noted that there is $90,000 in projected revenues available for allocation. BIB] 12-12-95-U01 03:55:50PM-U01 CCMIN-U02 06-U02 22-U02 95-U02 City Council 2 June 22, 1995 La Quinta Redevelopment Agency The outstanding issues that are policy related include: 1) request of Coachella Valley Concerts Assoc., 2) possible changes to the Chamber of Commerce contract; 3) possible changes to the Arts Foundation Contract; 4) request of the Historical Society and 5) request by the La Quinta Pageant. Mr. Genovese referred to the Five-Year Resource Allocation Plan and advised that it is intended to allow the Council to review anticipated challenges witiiin the next five years so that there will be a guiding plan to assist in decisions to be made in future years. It will be reviewed in more detail by consultant, Dan Miller. Mr. Falconer, Finance Director, proceeded to explain the budget process, budget format, City's organizational chart, community profile, breakdown of general fund revenue, general fund operating expense by department, expenditures by component, budget summary by fund, General Fund reimbursements by fund, summary of capital irnprovement projects and their funding sources. In response to Mayor Pena, Mr. Falconer advised that 9.4 cents of every dollar goes toward personnel, including salaries, benefits and boards?commissions costs. In further response to Mayor Pena, Mr. Falconer further elaborated on the project revenue sources and trends advising that a 2% increase is expected in TOT and Sales Tax. Mayor Pena referred to Page D- 1 and suggested a modification to the second sentence relative to the task of City Officials. In response to Council Member Cathcart regarding the impact of actions in Washington, Mr. Falconer advised that the City is not dependent on federal funds. Mayor Pens referred to the staffmg schedule and stated that he was not comfortable with adding the MIS position and suggested rolling it into another management position. Council Member Sniff concurred he did not see the necessity for a full-time MIS person. Mr. Falconer asked that if the MIS position is eliminated, that funds be left in the budget for continued part-time, contractural MIS assistance. Mayor Pena questioned the increase in salaries in the Parks & Recreation Budget and Mr. Genovese advised that the increase is due to moving the Senior Center function in the Parks & Recreation Department and partly due to an. increase in KidsLine because it isn't being funded as much by grants as it was previously. However, it is being monitored regularly and has recently been expended into the Indio schools and Indio will BIB] 12-12-95-U01 03:55:50PM-U01 CCMIN-U02 06-U02 22-U02 95-U02 City Council 3 June 22, 1995 La Quinta Redevelopment Agency be contributing $6,000 toward the program. Council Member Bangerter advised that they received 3,000 calls during 1994-95 which averages out to about 10 calls per day. Mayor Pena referred to emergency services and suggested that a mock drill be held to test the system and Mr. Genovese advised that one is planned. Mayor Pena then questioned the number of authorized positions in the Building and Safety Departrnent and Mr. Genovese advised that a part-time position is being rolled into a full-time position, addition of a building maintenance position and a senior secretary. In response to Mayor Pena?a, Mr. Genovese advised that the revised range assignments of Parks & Recreation Director, Senior Center Supervisor and Animal Control Officer will be reflected in the final budget document. Mayor Pena wished to see each departinent develop a savings plan an incentive program to save money). He also wished to see a goal of eliminating out-dated codes and also some sort of a yard-stick to measure performance in each department. Council Member Perkins complimented the City Manager on this year's budget presentation he felt that it's the besthe's seen. DISCUSSION REGARDING VARIOUS FUNDING REOUESTS Discussion re: Coachella Vallev Communitv Concerts Assn. Council Member Perkins felt that at some point in time, the Council is going to have to start trying to reduce the cost of government, specifically addressing contributions to various organizations. He stated that he's supportive of C.V. Concerts and the work they're doing in the schools; however, in trying to reduce the cost of government, he would support a 50% reduction in their requested amount of $10,000 and a 10% reduction in the funding to the Arts Foundation and to the Chamber of Commerce. Council Member Sniff felt that the Council needs to support the institutions that have been indigenous to the City for the last several years and have done an excellent job and not take in any additional funding requests such as Community Concerts. He pointed out that the Council has a contingency fund" from which the Concert Association could be funded. BIB] 12-12-95-U01 03:55:50PM-U01 CCMIN-U02 06-U02 22-U02 95-U02 City Council 4 June 22, 1995 La Quinta Redevelopment Agency Discussion re: La Ouinta Chamber of Commerce Council Member Sniff advised that he and the Mayor served on the sub-committee that met with representatives of the Chamber of Commerce to review their contract. The main thing to come out of that meeting is that there is a shortfall in the newsletter lunding as they're currently printing 7,000 copies and need an additional 1,000 to meet the increased population demand. An additional $5,500 is needed to produce the additional 1,000 copies. He felt that the newsletter has been an extremely effective tool for the City and is well done and well read and responded to. The recommendation of the sub-committee is to approve the requested increase. The only other alternatives are to have a shortfall or to reduce the number of issues. The Mainstreet Marketplace will be hinded at the same rate as last year $17,500 and all other numbers will remain the same as will the services to be provided. Council Member Bangerter asked if staff has ever researched what it would cost to produce the newsletter in-house. Mrs. Juhola, Administrative Services Director, advised that cost figures were obtained a couple of years ago, but she didn't have any recent figures. She added that if it were produced in-house, it would be submitted to the printer as camera-ready copy as opposed as to having the printer type-set" it as is currently being done. Council Member Bangerter stated that she was extremely supportive of the Chamber, but wished to see some analysis as to how the costs of the newsletter could be reduced. Council Member Perkins stated that he is definitely pro-business, but the City is making a substantial contribution to the Chamber with the requested increase, the City's contribution will be up to $150,000 per year and didn't feel that the City can afford to contmue that kind of support. He felt that they need to take a hard look at their expenses. In response to Council Member Perkins' query concerning method of measuring their success, Mayor Pena advised that while we don't know what businesses have located here as a result of the Chamber, they have added members and they do the Business Expo, which is very successful. He felt that they are one of the better chambers in the valley. Council Member Perkins agreed, but continued to be concerned about the amount of the City's contribution. Mayor Pena felt that they are attempting to reduce their dependence on the City. He didn't know what portion of their budget the City funds and Council Member Sniff advised that it's about half. BIB] 12-12-95-U01 03:55:50PM-U01 CCMIN-U02 06-U02 22-U02 95-U02 * City Council 5 June 22, 1995 La Quinta Redevelopment Agency Council Member Perkins didn't see any effort being made on their part to reduce their budget. Council Member Bangerter was not in favor of reducing the City's contribution to the Chamber, but felt that there could be a beneficial way to reduce the cost of the newsletter, because she felt that the costs will continue to increase year after year. Council Member Cathcart asked if we have the total cost of the newsletter advising that he's never seen their entire budget. He wished to see a breakdown of how the additional $5,500 is going to be used. Council Member Perkins wished to see how the $150,000 is being used. Council Member Cathcart wished to see their entire budget. There was a brief discussion regarding a proposed satellite office in which Council Member Sniff stated that it is no longer an issue. Council recessed while copies of an abbreviated budget of the Chamber was duplicated. Council Member Sniff proposed that the newsletter? be pulled from the Chamber completely and published in-house in the Administrative Services Department. Council Member Cathcart felt that Mrs. Juhola should be given an opportunity to obtain some costs for in-house printing. Mayor Pena also felt that the Chamber should also be asked to provide a detailed breakdown of the newsletter costs. Council Member Perkins pointed out that the Chamber also receives income from the advertising. Council Member Sniff suggested asking Mrs. Juhola to obtain costs of producing a newsletter and whether or not additional staff would be required. Council concurred on directing the Administrative Services Director to obtain costs on producing an eight page newsletter. Council Member Cathcart also wished to see the detailed breakdown of income and expenses from the Chamber relating to the newsletter. Council concurred. BIB] 12-12-95-U01 03:55:50PM-U01 CCMIN-U02 06-U02 22-U02 95-U02 City Council 6 June 22, 1995 La Quinta Redevelopment Agency Council Member Sniff felt that the philosophy of this City Government for a long time, has been to support its business community and its Chamber of Commerce on a contract basis wherein they produce a certain amount of contract services and he didn't wish to see that go away. He felt that we probably have one of the best Chambers in the valley. In response to questions regarding advertising and taking in news from outside organizations, Ms. Honeywell, City Attorney, advised that if the City were to take back the newsletter and include information relating to the Chamber's activities, the Council needs to be cognizant of the fact that whatever the rule is, everyone needs to be able to participate. We could limit outside news to that of non-profit organizations. Regarding outside advertising, all advertising would have to be accepted, whereas the Chamber, being private, can be selective in their advertising. She qualified that comment however, stating that if over 50% of their budget is provided by the City, there is a question as to whether or not they are truly a non-profit organization. Discussion re: La Ouinta Arts Foundation Council Member Perkins felt that along with other organizations, it's time the City start reducing its support of these organizations. Of all of them in town, the Arts Foundation probably has the greatest ability of raising funds and he wished to see their requested amount reduced by 10% as well as the Chambers. Council Member Cathcart concurred. Council Member Sniff stated that they produce two showcases" annually for the City and they are eminently successful and felt that the money is well-spent and that the City gets value received well in excess of the $50,000 the City provides fQr those two events. Mayor Pena concurred. There was no further discussion. Discussion re: La Ouinta Historical Society Mayor Pena advised that the request of the Historical Society is to look at some kind of participation in acquisition of their building. BIB] 12-12-95-U01 03:55:50PM-U01 CCMIN-U02 06-U02 22-U02 95-U02 City Council 7 June 22, 1995 La Quinta Redevelopment Agency Council Member Bangerter wished to go on record as being very supportive of the Historical Society and in doing something to help them grow like we have with the Arts Foundation and Chamber of Commerce. She also supported $5,000 to the Concerts Association as without the City's help, they may not be able to grow. Council Member Sniff stated that he was very supportive of the Historical Society and noted that it will be discussed in ftrther detail in Closed Session. Council Member Perkins stated that he would be willing to cut 10% from both the Arts Foundation and Chamber of Commerce and give half of that to the Historical Society. Discussion re. La Ouinta Council Member Bangerter advised that the committee will probably be asking for approximately $5,000 in seed money, as without some assistance, they probably will not be able to proceed further; She advised that there's a lot of interest and enthusiasm for this pageant. The La Quinta Hotel has been selected as the site and the Frank Capra family has indicated a willingness to be involved, as well as the V!VA Foundation. Council Member Perkins commented that the Fire Department is upgrading their services at no additional cost to the City. Dan Miller, Consultant with Rosenow, Spevacek Group, proceeded to review the Five Year Resource Allocation Plan advising that it is only a fiscal planning document. It takes into consideration the budget before the Council at this time, as well as the recently adopted Capital Improvement Program, and the reorganization and reclassifications recently approved. The format is basically an individual breakdown of each program showing the program expenditures over a five-year period and includes some staffmg assumptions based on growth, added facilities and infrastructure and new programs. The expenditures are projected to increase based on inflationary increases, cost-of-living, and based on analysis of historical spending. In terms of revenues, staff took a very conservative approach most of the revenue accounts show only a 2% 3 % increase with some showing no increases in certain years. This was done based on historical perspective. Some of the revenue accounts are related to new developments, which is not static. In 1997-98 expenditures begin to exceed revenues by about 7 1/2% which is BIB] 12-12-95-U01 03:55:50PM-U01 CCMIN-U02 06-U02 22-U02 95-U02 City Council 8 June22, 1995 La Quinta Redevelopment Agency caused by adding facilities and infrastructure as the City grows; however, as stated, revenue projections are very conservative. There are 15 new positions being added over the next five years, primarily in areas that deal with population growth. Generally, expenditures are expected to increase at the rate of less than 5% with revenues increasing 2%. Even though it shows a deficit, he believed that there's time to deal with it. He concluded that this document should be updated annually. Council Member Perkins wished to see some kind of projections for future capital improvement projects, which would bring those projects on-line automatically at their projected point. Council Member Cathcart felt that the forecast is good, but in some areas is far too low, especially in police services in light of the increase in low-mod housing. He felt that the revenue projections are probably more accurate than we might want to believe. Council Member Perkins noted that the City of Palm Desert is adding a sergeant and three officers due to their newly annexed area. The impact this could have on La Quinta is that anytime you increase police services and increase visibility on the street, oftentimes, it will push crime into adjacent areas, which we might have to consider. In response to Mayor Peia, Mr. Genovese advised that we have been adding an officer in one capacity or another) each year. An officer costs about $200,000 annually including the mileage. MOTION It was moved by Council Members Perkins/Bangerter to refer the budget document back to staff for corrections finalization and bring it back to the Council for adoption. Motion carried unanimously. MOTION It was moved by Mrs. Bangerter, seconded by Mr. Cathcart that the meeting of the Redevelopment Agency Board be adjourned. Motion carried unaniinously. CLOSED SESSION A. CONFERENCE WITh REAL PROPERTY NEGOTIATOR NED MILUS PURSUANT TO GOVERNMENT CODE SE?ON 54956.8 REGARDING POTE?AL ACQUISITION OF PROPERTY LOCATED AT 77-885 AVENIDA MONTEZUMA APPLICANT: LA QUINTA HISTORICAL SOCIETY. BIB] 12-12-95-U01 03:55:50PM-U01 CCMIN-U02 06-U02 22-U02 95-U02 City Council 9 June 22, 1995 La Quinta Redevelopment Agency The Council reconvened with no decision being made which requires reporting pursuant to Section 54957.1 of the Government Code Brown Act). There being no further business, the meeting was adjourned. Re submitted, SAUNDRA L JUHOLA City Clerk City of La Quinta California BIB] 12-12-95-U01 03:55:50PM-U01 CCMIN-U02 06-U02 22-U02 95-U02