HomeMy WebLinkAboutCty Manager Report and Potential Direction in Responsse to Coronavirus/COVID-19 PandemicCITY OF PALM DESERT
CITY MANAGER'S OFFICE
INTEROFFICE MEMORANDUM
To: Honorable Mayor, Mayor Pro Tem, and Councilmembers
From: Lauri Aylaian, City Manager
Date: 26 March 2020
Subject: COVID-19 Pandemic Operations Briefing
This memorandum is intended to provide you with information regarding staff activity,
budget conditions, and other relevant information conceming the ongoing COVID-19
Pandemic. It is presented in bullet form so as to convey the most salient information
concisely. Much of this information will also be presented verbally at the City Council
meeting later today, and you will have an opportunity to ask questions and give direction
at that time. Because of the rapidity with which this declared emergency is evolving,
some of this information may be outdated within 24 hours. Nonetheless, it gives us a
starting point for discussions.
Work Accomalished to Date
• Proclaimed existence of a local emergency due to the COVID-19 pandemic
• Passed Resolution 2020-24, ratifying the proclamation of local emergency
• Closed City Hall to the public
• Continued work that can be performed remotely and kept a"skeleton crew" of staff
at City Hall to perform critical work that cannot be perforcned remotely, putting
remaining staff on paid administrative leave through 3 April 2020
• Launched a web page of information and resources on the pandemic and its
implication for Palm Desert residents and businesses, dramatically increased our
social media presence, and launched a City of Palm Desert Twitter account.
• Personally responded to hundreds of phone messages and emails from residents
and businesses
• Followed State and County orders to minimize spread of COVID-19 by cancelling
special events and committee and commission meetings, closing the Aquatic
Center, Desert Willow, the Portola Community Center, hotels and golf courses,
and implementing changes to ihe conduct of Council meetings so as to allow for
remote participation by Councilmembers, staff, and the public
• Fortned a task force to assist and support local businesses, focusing initially on
providing information and resources and facilitating in�reased signage for
businesses that provide essential senrices
f" �F
March 26, 2020
Memo to City Council
Page 2
• Paused discretionary spending, approving expenditures from General Fund
accounts on a case-by-case basis
• Commenced revising the 2020/21 budget to reflect a 20% reduction in previously
projected revenues
• Accelerated implementation of online services, focusing on work needed to
resume plan check and pertnitting of development projects
• Enacted a 90-day extension for business licenses coming due for renewal, and
provided an additional five working days for submissions of TOT payments to allow
for mailing
• Deferred wherever possible the production of public records requested under the
Public Records Act
• Processed payments for all critical work, including police, fire, payroll, utilities, and
contract payments, prioritizing next payments to small, financially vulnerable
vendors
• Rolled out technology to support a dramatic increase in teleconferencing and
working from remote locations.
• Paused ongoing recruitment efforts for nine vacant positions
. Filed the forms with FEMA for the disaster declaration and potential reimbursement
later
Assessment of Financial Condition:
Remaining Balances in Reserve Accounts
In September 201 S, the Cfty Council voted to divide the General Fund reserve into eight
separate reserve funds, with opening balances established according to the assessed
needs of, and risks to, the City's revenues and fund balance. As of the date of this report,
the current balances in these reserves is as follows:
� Committed to:
� Capital Improvement Projects Reserve
� Facilities Maintenance Reserve (From Reserve Study)
� Liability Reserve
I Other Fund Stability Reserve
�
� Emergency/Continggncy Reserve
� Employment Benefits Reserve
� Economic D�velopmenULand Acquisition Reserve
� Total Committed
12,534.707 I
16,112.690 �
4,000,000 I
5,553,000 �
12,134,744
8.862.082
2,000,000
61,197,223
Although iYs tempting to sum the reserves and act as if the total amount is available to be
used to offset the impacts of the current pandemic, iYs not advisable to do so. In truth,
March 26, 2020
Memo to City Council
Page 3
the COVID-19 pandemic is a classic example of the need for which the
Emergency/Contingency Reserve was established. Each of the other reserves was
created for specific circumstances that could still arise at the same time as we are
experiencing the current pandemic. Therefore, my forthcoming decisions and
recommendations will be based upon having $12.1 million in reserve for the impacts of
the coronavirus pandemic.
Predicted revenue and exqenditures for 2019/20
The Finance Department has been tracking revenue received to date for the current fiscal
year, and projecting changes in revenue predicted for the remainder of the year based
upon current stay-at-home mandates. The Finance Department now predicts a drop in
year-end revenue of $5 million dollars, from $60.6M to $55.6M. Expenditures before the
end of the fiscal year are more difficult to estimate. What is clear is that we can't reduce
expenses commensurate with the drop in anticipated revenue. Because Palm Desert is
a contract city, and more than half of our costs go to contracting partners who provide
police and fire services, we don't have the flexibility to alter course and significantly reduce
costs in short order. Annual staff salaries cost $11.1 million, so even a deep reduction in
staffing would not balance the budget, and staffing levels are already very lean.
Consequently, a transfer from the Emergency/Contingency Reserve at year end will
almost certainly be necessary to balance the anticipated shortage in revenue against the
expenditures. The magnitude of that transfer is likely to be several million dollars.
Some of the areas being studied for potential cost reductions — both for 2019/20 and
2020/21 -- are as follows:
• Leaving vacant current job openings. (Approximately 10% of approved staff
positions are currentiy vacant.)
• Reducing City Hall operations to four days (32 hours) per week, furloughing
staff on the fifth day.
. Temporarily suspending the Traffic Enforcement team or eliminating one or
more Traffic Team positions.
• Eliminating the K9 Officer position.
. After contractually required 120-day notice, discontinuing enhanced level of
Fire Marshall services. (Close office in City Hall and refer users to County
office on Washington.)
Recalibration of Goals for Fiscal Years 2019/20 and 2020/21
The COVID-19 Pandemic has had a dramatic impact on our lives and financial condition
in less than two weeks. The County Health Officer's closure of schools and businesses
will be in effect for a minimum of another five weeks, and some projections are that the
emergency directions could remain in place for months longer. Palm Desert's long
tradition of fiscal conservancy has served it well since the City was incorporated. In
March 26, 2020
Memo to City Council
Page 4
furtherance of this tradiiion, staff is planning for a worst-case scenario. This calls for
reshaping the goals, programs, projects, and service delivery methods to reflect new,
streamlined priorities, and new ways of doing business. It also calls for a reduced number
and scope of projects that have been planned, but not yet executed. In particular, projects
and programs funded by the General Fund will need to be reconsidered. However, even
projects funded by other sources, such as Measure A, need to be reconsidered because
of a reduction in the capacity of available stafl members.
With that in mind, I am proposing the following modifications to previously identified goals
and projects:
POSTPONE TO A DATE UNCERTAIN:
• Parkview Building refresh
• Neighborhood traffic calming
• Security plan for Civic Center
• Definition of the scope, budget, purpose of a broadband fiber master plan
• Update of the municipal code for evolving wireless cellular technology (small cell
and 5G)
• Circulation plan and land use optimization for Desert Willow Pad C, D, and E
• Development of strategy, then marketing of ihe 170-acre site
. Design and construction of parklets on EI Paseo
• Design and construction of modifications to the Development Services counter and
workspace
• Issuance of an RFP for a multifamily affordable housing project at San Pasqual
and Santa Rosa
• Fiscal analysis of territory annexation
• Design and construction of a Discover Palm Desert visitor center
• Comprehensive sign program throughout the City of Palm Desert
• Development of concepts for the redevelopment of Westfield mall to a more
sustainable land use
• CVA Tourism Business Improvement District formation
• Outreach and funding mechanism for Rule 20B undergrounding projects (This
could still be done response to a request from a specific neighborhood)
• Any significant change to the committee/commission member appointment
process
• Continuation of the Build Palm Desert staff development program
. Website redesign
• Employee Lounge renovation
• Monterey pedestrian crossing improvements
• Civic Center Park / EI Paseo utility improvements
March 26, 2020
Memo to City Council
Page 5
Although this looks like an extraordinary list of projects that would not be done, the list of
things that will still be done is even longer. For reference, the list of Fiscal Year 2020/21
Goals is attached, and a robust list of Capital Improvement Projects will be presented
during the budget study sessions.
Most things not named above will proceed; the ones listed below are mentioned here
because they are high profile or have been the subject of specific discussion.
PROCEED WlTH AS SCHEDULED:
• CV Link (except Hovley link)
• Local Roads Safety Plan (but not the projects themselves)
. Analysis of the impact of regional policing
• Phase 2 of San Pablo Avenue improvements
• Design for Haystack pedestrian crossing
. Alessandro Alley improvements
The following projects are being considered for further study before a recommendation is
made as to whether to pause or proceed:
STUDY FURTHER BEFORE PROCEEDING:
• New marketing plan for Economic Development Incentive Plan (what can we do
for $25K instead of $100K?)
• Construction of PresidenYs Plaza improvements (may need up to $2 million from
General Fund)
• Refinancing bonds, or creating a new Facilities District for BlackRock (need to
determine market and interest)
And finally, some work areas have been identified as being necessary, but which were
not previously included in the plans and goals for the 2020/21 fiscal year.
NEWLY IDENTIFIED WORK:
Lobby for Cal State campus development
Strategic reduction in number and cost of special events (short and long term)
Reorganization and redeployment of current staff to most efficiently execute
revised priorities without filling any of the nine positions currently vacar�t.
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�LAURI AYLAIAN, CITY MANAGER
Attachment (as noted)
�ITY C�iJNCILACTION
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Original on File with City erk's Office
STAFF REPORT
CITY OF PALM DESERT
CITY MANAGER'S OFFICE
MEETING DATE: 13 February 2020
PREPARED BY: Lauri Aylaia�, City Manager
REQUEST: Approve the Fiscal Year 2020/21 Goals for the City of Palm Desert
Recommendation
Approve the Fiscal Year 2020/21 Goals for the City of Palm Desert, establishing goals for
work to be accomplished by City staft during the fiscal year and allocating staff and
financial resources during that period.
Strateqic Plan Obiective
The goals defined for the 2020/21 fiscal year represent measurable progress towards
many of the Results Areas in the 2013-2033 Envision Palm Desert Strategic Plan. The
attached exhibit entitled 2020/21 Goals for the Citv of Palm Desert identifies the specific
Results Areas and Prioriry Numbers associated with each city-wide goal for 2020/21. As
can be seen on the same exhibit, some of the goals established for the coming year do
not tie directly to the 2013-2033 Strategic Plan, however ihey are necessary to support
the achievement of these goals. The Strategic Plan is outward facing, and doesn't
recognize the commitment of resources necessary to execute routine operations and
implement new technology in response to public demand, and secondiy, it is nearly ten
years old and may need to be updated in order to reflect changes in technology, the
economy, community values and the community itsei(. The adoption of the 2020l21
proposed goals is intended to marry reasonable growth towards strategic goals with
development of the intemal systems necessary to deiiver traditional high-quality services
to constituents.
Backaround Analvsis
In order to define the specific goals for the fiscal year 2020/21, the Cify Manager and
executive staff worked to identify City goals from the 2013-2033 Strategic Plan, IT Master
Plan, and Economic Development Strategic Plan, and from informal guidance and formal
directives received from the City Councii since the Strategic Plan was adopted. Staft
focused on providing a work plan that is ambitious but achievable, provided that eftoAs
are not diluted by assignment of new prioriiies or additional projecis over the course of
the year.
In a half-day study session held on January 15, 2020, the members of the City Council
pertormed a detailed review of the draft goals. They considered each proposed task in
13 February, 2020 — Staff Report
2020/21 Goals for the City of Palm Desert
Page 2 of 2
the context of the overall program, and provided guidance to better reflect their overall
goals.
The resulting Fiscal Year 2020/21Goals for the CiN of Palm Desert is attached to this
staff report and is hereby submitted for approval by the City Council. Accomplishment of
some of the goals will require appropriation of additional funding or augmentation of staff
resources; most of these allocations wiil be contatned in the budget proposal for Fiscal
Year 2020/21, which will be presented to the City Council over the next three months.
Palm Desert has achieved great success over the years by delivering on creative long
range pianning. Adoption of this plan, followed by careful execution of the tasks within ft,
will continue the tradition of well-conceived, deliberate, and strategic progress that
delivers a premier quality of life for Palm Desert residents and visitors alike.
LEGAL REVIEW DEPT. REVIEW FINANCIAL
Approved as to Form Q REVIEW
Content
N/A N/A
Robert W. Hargreaves Lauri Aylaian Janet M. Moore
Citv Attomev Citv Manaqer Director of Finance
ASSISTANT
CITY MANAGER
Andy re tine
Assist Citv Manaqer
�
City Manager, Lauri Aylaian: /
�--
ATTACHMENTS:
City of Palm Desert Fiscal Year 2020/21 Goals
Meeting Notes from 15 January 2020 Goal Setting Study Session
CiTYCOUNCQ.�CTION
APPROVEP �
RECEIVED
NOES: �
ABSENT.
VERIF(ED BY:�iL�
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FY 2020l21 CITY OF PALM DESERT GOALS
The foflowing nvelve goals are broader, require more resources, and impact a greater
num6er o( residents, visitors, and businesses than do the departmental goals described
on the lollowing pages.
GOAL
STRATEGIC PLAN REFERENCE
Implement the changes required by the
Califomia Voting Rights Act-related legal
settlement and conduct public outreach and Not addressed in the strategic plan
education to fulty inform voters and prepare to
successfully participate in a two-district election
process that includes ranked choice voting.
Analyze the impact of a regional policing
contract, accounting for proposed Shariff
staNing redistribution model [o improve
efticiency.
Define purpose, scope, reach, and budget for a
broadband fiber masterplan.
After balancing scope with available funding,
complete design of a new Discover Palm Desert
center.
Public Safety & Emergency Services,
Prioriry 1: Enhance the delivery of public
safety services.
Economic Development, Priority 1:
Expand job and business creation
opportunities. Develop a plan to
encourage businesses to relocate to
Palm Desert to bridge the gap between
June and September with year-round
residents and jobs.
Tourism 8 Marketing, Prioriry 1: Improve
access to Palm Desert and its attractions
to enhance he ease oi lifestyle, and
Priority 4: SuppoA the city's tourism
industry through enhancement of its
maAceting efforts with an allocation ot
additional City resources, the
development of partnerships, and
coordination of existing eNorts.
Complete the comprehensive Fee Study, and
upon Council approval of a new, simplified fee Not addressed in the strategic plan
structure, prepare implementation strategy.
Fiscal Vear 2020/2021 Ciry of Palm Desert Goals
13 february 2020
Page 2
GOAL
STRATEGIC PLAN REFERENCE
6 Improve public accessibility of City Council
meetings by constructing the Council Chamber Not addressed in the strategic plan
Rehabilitation and the Civic Center Parking Lot
Upgrades projects.
7 Enhance staff safety by construction of the Main
Lobby Improvements Project. Not addressed in the strategic plan
8 Parks & Recreation, Priority 4: Develop
Select a protessional consulting firm to begin the NoAh Sphere Regional Park, which
conceptuai site plan of North Sphere Paric and will be bordered by Portola Avenue to the
adjacent 10-acre attordable housing project. west, Dinah Shore Drive to the south, and
Interstate 10 to the north.
9 Compiete construction of Phase 1 of the San Land Use, Housing & Open Space,
Pablo Avenue Improvements and begin Priority 4: Create a mixed-use city core
construction of Phase 2. integrating shopping, dining, lodging, and
housing.
10 Land Use, Housing & Open Space,
8egin construction of the multi-year Presidenfs Prioriy 1: Enhance Palm Desert as a
Plaza Parking Lot Rehabilitation Project. first-class destination tor premier shipping
and national retail businesses.
11 Oevelop and implement a five-year Digitization
Master Plan.
12 Go live with web portal for application, payment,
and issuance of certain permits, and for
scheduling inspections and checking status oi
building pertnit reviews. Include permits for RV
parking, garage sales, gotf cart registration,
temporary uses, grading plans, and
encroachment permits. Develop a limited pilot
program for certain over-the-counter building
permits.
Not addressed in the strategic plan
Not addressed in the strategic plan
Fiscal Year 20Z0/2021 City of Palm Desert Goals
13 February 2020
Page 3
2020/21 DEPARTMENT GOALS
CITY MANAGER
Set up and make functional within Laserfiche the Executive Management review and
approval of staff reports. Within each department, begin to develop and design e-forms
and workflows peculiar their own operations.
Investigate streamlining processes for administrative contracts for contracts valued at
less ihan $25,000.
Develop and adopt a comprehensive sign program to create consistent visual theme
throughout city.
Prepare designs and coordinate multi-year construction schedules to accommodate
potential development projects at Desert Willow while minimizing impacts on golf course
operations. Include consideration of future access and traflic volumes associated wrth
potential development projects in this work."
ADMINISTRATIVE SERVICES
Determine the feasibility of enacting a false alarm ordinance to recover of costs from
repeated police- and fire-related nuisance alarms.
Build Palm Desert — Phase 2: Design and implement a new employee performance
appraisal system that incorporates the City's vision, mission, and core values
Design and adopt a digital onboarding portal with supporting videos, messaging, policy
documents, and training resources.
Enhance the City's public outreach and communication through updating of ihe City
website, further development of eTRAKiT, and introduction of the Laserfiche public portal.
' Added during 15 January 2020 City Council study session.
Fiscal Year 2020/2021 City of Palm Desert Goals
13 Feliruary 2020
Page 4
BUILDING 8 SAFETY
Facilitate effective training and cross training programs for 2019 building codes,
Bluebeam software, and residential and commercial plan checking.
CITY CLERK'S OFFICE
Work with the County Registrar of Voters Office to implement CVRA changes to the
election process tor the 2020 (or 2022) General Municipal Election and to educate voters
aboutthese changes.
COMMUNITY DEVELOPMENT
Continue working with the Parks and Recreation Commission to locate and install active
fitness equipment within one park utilizin9 Proposition 68 funds.
Implement a pubiic art (mural) plan for the San Pablo corridor according to the design
manual developed for the project.
Initiate the 2021-2028 Housing Element update by awarding a professional services
contract to prepare a draft plan.
With the support of Economic Development, work with Westfield to develop concepts for
a master plan for evolution to a more sustainable land use.
Initiate and present for adoption a zoning ordinance amendment for the San Pablo
Overlay District to promote unique local businesses within the corridor.
Prepare and issue an RFP and select a developer for a multi-family aftordable housing
project at San Pasqual and Santa Rosa Way.
With Public Works, review and update municipal code to respond to evolving wireless
cellular technology, such as small cell and 5G, and the potential expansion of cellular
facilities within the city, including the public right-of-way.
ECONOMIC DEVELOPMENT
Develop marketing plan, then market and implement new Economic Development
Incentive Program.
Facilitate the disposition and development oF Lot Pad E at Desert Wiltow.
Fiscal Year 2020/2021 City of Palm Oesert 6oals
13 February 2020
Page 5
Wfth Community Development, analyze circulation, parking, and land use optimization of
Desert Willow Lot Pads C, D, and E; then develop disposition strategy.
Facilitate the disposition and development of a mixed-use project at the southeast corner
of San Pablo and Fred Waring.
Promote Business Retention and Expansion and the Economic Development Incentive
Programs, and educate brokers, business owners, and property owners about them.
Work with Westfield and Seritage to fill vacancies at the mali, and support Community
Development in development oi future master plan concepts.
Identify strategy, then market the 170-acre site.
Implement the DSRT Surf DDA and close escrow on Desert Willow Lot Pad B.
FINANCE
If requested by the majority property owner, refinance the University Park Community
Facilities District bonds.
Set up templates and forms for digitization o( all records within Finance Enterprise to
searchable records in Laserfiche.
Establish an asset capitalization policy.
Establish a surplus asset disposal policy.
PUB�IC WORKS
Complete design and bid of the Paricview Office Building Refresh Project.
Design and impiement a neighborhood traffic caiming program.
Upon CVAG's completion of design, manage the bid, award, and construction of CV-Link
in Palm Desert.
Complete Local Roads Safety Plan.
Develop plan and scope for compliance with the State Organic Waste Requirements.
Prepare a security plan for the Palm Desert Civic Center, including a physical and
technological plan to enhance City Hall security.
Fis[al Year 2020/2021 City of Falm Desert Goals
13 February 2020
Page 6
Support the County and Caltrans led I-10/Portola interchange project while identifying
and capturing opportunities to incorporate the Palm Desert brand into the bridge aesthetic
and preserving opportunities for a potential future art installation.
Prioritize utility undergrounding locations from the Master Plan and identify location and
funding mechanism for a project for City-initiated Rule 20A and 20C project, including the
development of a potential bailot measure.
Conduct outreach and identify funding mechanism for resident-initiated Rule 20B
undergrounding projects, and identify neighborhoods with greatest support for the
formation of assessment districts.
Conduct pavement survey to update the Pavement Management Plan in support of ihe
annual street maintenance program.
Provide support for regional transportation projects, including ihe Coachella Valley iraffic
signal synchronization plan project.
Prepare update to Engineering and Traffic 5urvey Report and carry forward
recommendations for speed limit changes, where appropriate, responding to any
legislative changes on the calculation of speed limits.
Initiate and complete design of modifications and changes to the Development Services
counterand workspace.
Conduct signal warrant analysis for selected locations; design and bid targeted
intersection signals.
initiate and complete a refresh of the Desert Willow perimeter landscaping.
Design and bid EI Paseo improvements selected at the conclusion of the demonstration
project.
Initiale design for Haystack pedestrian crossing at SR-74.
REGULAR PALM DESERT
CITY COUNCIL MEETING MARCH 26, 2020
This item is meant to be for discussion purposes. If there is any distributable material, it
will be provided.
XIV. NEW BUSINESS
A. CITY MANAGER REPORT AND POTENTIAL REQUEST FOR DIRECTION IN
RESPONSE TO'THE CORONAVIRUS/COVID-19 PANDEMIC.
Rec: Discussion and potential confirmation of direction, as requested.
Action: