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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 Because of the rapidity with which this declared emergency is evolving, some of this information may be outdated within 24 hours.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. � / c' `%, �LAURI AYLAIAN, CITY MANAGER Attachment (as noted) �ITY C�iJNCILACTION APPROVEP DTN1Tn� RECEIVED �' �� �/� OTiIEP M[:ET�'I�_ O� •�{� • r�0�,0 AYI:Ss 1. V1YYN41'lIl �K�II�.I��Pj�or�.4 nle�cfaride NOE& �- .ABSENT: �� ABSTAIN:1������ VCRIFII:D BY: 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� Original oo File wfth City nFrrrFa O'IHER Oflice �..... �; �;� ,; `: d. ; � n� : ' ,,,;t� ``t vx,: 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: