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HomeMy WebLinkAbout2003 - MINUTES - 3/5/2003 SPECIAL MTGCouncil Minutes (Special Mtg) 03-05-03, Page 1 CITY OF PALM SPRINGS CITY COUNCIL MINUTES MARCH 5, 2003 A Special Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor Kleindienst, in the Large Conference Room, 3200 Tahquitz Canyon Way, on Wednesday, March 5, 2003, at 4:30 p.m. ROLL CALL: Present: Councilmembers Hodges, Oden, Reller-Spurgin, and Mayor Kleindienst Absent: Councilmember Mills The meeting was opened with the Salute to the Flag. REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with the Government Code for Special Call Meetings. HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: FINANCING AUTHORITY: COMMUNITY REDEVELOPMENT AGENCY: No Business Councilmember Mills entered at this time PUBLIC COMMENTS ON MATTERS LISTED ON AGENDA: The following persons spoke in support of the Convention Center expansion. Craig Blough, Chase Hotel Aftab DaDa, Hilton General Manager Charlie Robless, Hotelier Dwayne Ronbaugh, Wyndham Hotel LEGISLATIVE ACTION: 1. CONVENTION CENTER EXPANSION – PHASE II Recommendation: That the Council discuss and provide direction to staff regarding the budget and financial options for the Convention Center Expansion – Phase II. Convention Center Manager stated that funding is needed to start the marketing portion of the expansion; that most bookings for conventions occur 3 – 4 years out, and that the estimated appropriation need is $98,755. Mayor questioned if there were partnerships formed for advertising; that the rest of the industry should be included and that the CVA should parallel with the City’s advertising. Councilmember Hodges stated that it seems that there is micromanaging being done; that the Tourism Department has been trusted in the past to do its job and that it should be able to continue in doing its job. Council Minutes (Special Mtg) 03-05-03, Page 2 Mayor stated that the Council should be aware of all partners. Councilmember Hodges stated that at this point it is too early to know. Convention Center Director stated that as the process moves forward there would be as many avenues incorporated as possible; that the commitment to funding will allow forward movement. Executive Director – Airports reviewed various handouts, copy on file in Office of the City Clerk; that there are many options that have been offered; that the pricing does exceed the bonding amount; that space is critical; that many of the options are possible and that direction is needed to determine the option the Council desires. Councilmember Hodges stated that if the Convention Center is not expanded to meet what is required at this time, then the expansion is wasted; and that it may be prudent to wait on the expansions until the City can do the job it needs to do. Executive Director – Airports stated that the gap is $4.5 million at this time. Councilmember Reller-Spurgin stated that initially the expansion was quoted to be $20 million and at this time it is at a $32 million expansion. Convention Center Director stated that the expansion is needed to stay a step ahead of the larger hotels; that at this time the larger hotels can book the same conventions that the Convention Center can and that it is imperative that the Convention Center stay ahead in the larger bookings. Mayor stated that something needs to govern the decision on expansion, whether it is dollars or need; that the building does need to be built up to edge; that interest rates are at a premium at this time and it is not certain which way they may go. Director of Finance & Treasurer stated that the rates could fall somewhat lower but not enough to bridge a $4.2 million gap. Councilmember Mills stated it is more conceivable that the rates will go up; that now is the optimum time to move ahead with the expansion; and that the expansion does need to solve problems. Councilmember Hodges stated that if the expansion was postponed 4 – 5 years, the City might be in better financial position to build what is needed. Councilmember Oden stated that there have been 11 options offered; that out of the 11 there should be one that is within budget. Executive Director – Airports stated that there none within the budget that include the 20,000 square foot ballroom space. City Manager stated that the ballroom could be excluded from the plans and use of the Wyndham Hotel ballroom space could be utilized. Council Minutes (Special Mtg) 03-05-03, Page 3 Mayor stated that a recommendation does need to be provided with all alternatives that are needed for the project to include options for the Council to examine; and that the marketing plans should move forward. City Manager stated that staff would prepare an amendment to the budget for the March 19, 2003 regular meeting in the amount of $98,755 for marketing efforts related to the Convention Center expansion for Council consideration and that the Executive Director - Airports would revisit site plans for reduced construction costs to be presented at the same meeting. ADJOURNMENT: There being no further business, Mayor declared the meeting adjourned. PATRICIA A. SANDERS City Clerk