Loading...
HomeMy WebLinkAbout2000 - MINUTES - 12/19/2000 - SPECIAL MTG CITY OF PALM SPRINGS CITY COUNCIL MINUTES December 19, 2000 A Special Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor Kleindienst, in the Airport Conference Room, 3400 Tahquitz Canyon Way, on Tuesday, December 19, 2000, at 5:30 p.m. ROLL CALL: Present: Councilmembers Jones, Hodges, Reller-Spurgin, and Mayor Kleindienst Absent: Councilmember Oden REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was called and posted in accordance with Brown Act Provisions on December 15, 2000. HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: FINANCING AUTHORITY: COMMUNITY REDEVELOPMENT AGENCY - No Business PUBLIC COMMENTS on matters posted on the agenda – None LEGISLATIVE ACTION: 1. AIRPORT SPECIAL PROJECTS UPDATE (during dinner hosted by Airport) Recommendation: That the Council receive a report regarding special projects at the Palm Springs International Airport. Assistant City Manager-Operations stated that recently a two-day movie shoot was filmed using the airport terminal and added that site fees were charged at a nominal $1,000, but that Palm Springs will be featured in the credits. Acting Director of Aviation reviewed a progress report, copy on file in Office of the City Clerk, and explained the differences between a signatory and non- signatory carrier. Assistant City Manager-Operations showed a video of recent felony arrest during the embarking of an airplane; and in questions by Council added that the landscaping on Vista Chino and Farrell will be done to fill in the gaps; that the plans are 95% complete; that the theme will be carried through with natural desert landscaping; that the project on Gene Autry and Ramon is on line and that the second lift of pavement is schedule to occur within a few days; that the signals have been moved; and that the entire project should be done mid- January. City Manager added that Taxiway W will be completed in four phases, for a cost of $5 million; and that the project is 90% funded by the FAA, with the balance being paid from airport funds. Assistant City Manager-Operations stated that the AARF project was recently funded; that one truck will be retained as a spare, with the surplus being donated to the regional AARF facilities in San Bernardino, with the hope that the donation will be refunded in training for the AARF crews; that the Planning Department has approved the expansion of the AARF facilities; that the building will be the same, except taller to house the new vehicles; that the new vehicles will be bid; Council Workshop 12-19-00, Page 2 that the cost will be close to two million; that the vehicles include one snozzle; that on the airport side, the master planning process has started; that Coffman & Associates has started its process; that the planning stage will be approximately 14 months long; that there maybe a structure proposed on the south side of the terminal building; that there are two hold rooms that will be removed; that the airport does own the buildings; that they will need to be craned out of the location; that there are 5 trailers that makeup each building; that the foundation of the trailers will be used for the new buildings; that the walls of the new building will push into pockets to allow the buildings to be open during good weather; that the state of the current buildings is in disrepair and must be replaced; that the life expectancy was 6 years, and they have been in use for 8 years; that the replacement will be a permanent building; that the buildings will have jet way bridges; that the bridges will be ramped up on a gradual incline; and that the costs will be funded through grants at a cost of approximately $3 million. 2. 2000/01 FISCAL YEAR BUDGET Recommendation: That the Council discuss possible budget impacts regarding the LMI/SMG Tourism contract A3964, regarding marketing; possible budget impacts regarding reduced revenue to the City due to County Tax recalculations; give direction regarding hiring Lobbyists for State/Federal assistance with Legislative and Grant Programs; discuss possible impacts of projected increased Utility costs (electric and natural gas); possible solutions to curtailing decreasing parking balances; and give direction for unfunded budget requests. Tourism Director reviewed report, copy on file of Office of the City Clerk, and added that there is a need to open new markets; that the request being made will not cover a large market, but is a step in the right direction; that the economy is indicating signs of slowing down; that the advertising once done in trade magazines needs to be reinstated; that there are joint participations that the City Council take part in such as the PGA Tournament; that as the budget gets cut, the marketing for the City falls behind; that the City needs to look to the future; that marketing of the City does not impact the City for 2 to 5 years; that one area needing attention is the Los Angeles area; that there are three components that Palm Springs has that Japanese tourists like, shopping, golf and casino’s; that the German market is growing fast; as well as Latin American, such as Brazil or Venezuela; that the tourist from that area do have a comfort level in Palm Springs due to the language being understood; that the American Embassy verifies the funds being expended; that the travel trade shows provide itineraries and leads; that the German Representative’s contract will be based on a pay for performance; that the trade shows that staff attends are difficult to track an immediate payoff, but the shows do generate leads; that the hotels do not keep records that indicate where the lead comes from when someone books a room; that most hotels do have a regulation against disclosing that type of information. Hodges stated that the CVB does furnish statistics; that there is no tangible proof of whether the numbers are correct; that there should be some type of system to determine how someone heard of Palm Springs, where they are coming from and that the information could be gathered when the reservation is made. Tourism Director stated that conventions are not difficult to track; that blocks of rooms are booked; that most hotels have a policy of Monday through Wednesday is corporate business, Thursday through Sunday is leisure; that most do have some type of tracking of where they get business from; but that none are Council Workshop 12-19-00, Page 3 consistent; that Mr. Paul Zack is proposing a Visitors Center to be located in the Cal Trans building located on I-10 that is vacant; that the opening of that Center will impact the City’s Center; that the hotels will participate where they think they can get the most referrals out of; that the concept for the visitors center was to assist the small hotels with referrals, and that the CVB would handle the large convention hotels; that the visitors center does generate some revenue through retail sales; that the upgrades to the Center are in conjunction with a community effort; that with the increase in funding there will be additional television spots that can promote the City; that the Travel Channel is currently running a show that is on Palm Springs modernism architecture; that the exposure is nationwide; that there is support for an increase in the TOT from the hoteliers; that each 1% will generate $1.2 million; that the rack rates are higher than ever; that most guests don’t worry about TOT and the impact it has on a room rate; that the only impact is through large groups and only if the TOT is significantly higher than surrounding availabilities; that the increase could be shared with the General Fund; that the future projects are predicating a flat economy, thus the necessity to market now; that the promotion will help to bring tourists here; that a letter of support could be gathered from the hoteliers to indicate a willingness to support the increase in the TOT; that it is an increase in taxes and therefore would need to go to the voters; that due to the slowing of tourism and the increased electric costs, two hotels, Marquis and Rivera will close down in August; that there has been no indication that the other hotels will close during the summer months; and that in order to maintain what the City is doing today and increase must be given to the Tourism Division to allow an expanded marketing campaign. Director of Finance & Treasurer reviewed a handout, copy attached, concerning property tax estimates and the miscalculation by the County; that there are some Cities that were overpaid; that the City of Palm Springs will experience a reduction in revenue, but that the hit will not occur all at once; that the project is $200,000 lower than anticipated; and that the UUT is still at 5%. City Manager stated one of the things for Council consideration is the lobbyist that it utilizes; and that the performance thus far has not been that impressive. Assistant City Manager-Operations stated that a RFQ is being let for the lobbyist; that it is important to be able to jockey for available funds; that Airport funding does pay $9,000 of the $28,500 for Alcade & Fay, lobbyist, that the agreement does expire this month; that the Belardo Bridge project is one that money has been earmarked for; that the airport is in need of having the PFC raised; that Alcade & Fay are familiar with the projects; that in addition there is the issue of the relocation of the post office; that all of these matters can be handled by Alcade & Fay with favorable results and that the agreement could be focused on the four projects with a specific time frame; that the projects could be the airport PFC charge, Belardo Bridge funding, the relocation of the post office and grants for the fire department; that the accountability could be review in the weekly DOGS meeting; that the agreement could include a 30 day cancellation clause; that contact could be made through conference calls and written reports to the Council; that the company does have a good profile in Washington D.C.; that it does have incredible access; that for the funds that the City/airport are expending, it will get back many times over; that it may be time for the Council to visit Washington D.C.; that the visit usually produces well for the City; that it has been some time since the last visit; that in the case of the Sacramento lobbyist, issues such as rail and transportation grants need to be focused on; that the funding is in the budget, but the Council needs to authorize the spending; that Council Workshop 12-19-00, Page 4 there is some question on the relocation of the post office; that past efforts have failed in the relocation; that the lobbyist in Sacramento would be instrumental in getting the approval; that there have been library funds that have been obtained through the Sacramento lobbyists; that there are growing concerns for utility rates; and that the City needs the representation more than ever. Director of Finance & Treasurer stated that all fueling costs are rising; that diesel, natural gas, electric are all on the rise; that CNG costs are increasing; that increases in the budget were projected, but that the costs may have a bigger impact than anticipated; that cogen may prove to be one of the best futuristic projections that Council planned on; that the plants are operating at maximum capacity and seeing the excess; that although the sales from the excess are not high, it does in fact offset what the City uses; that the budget is good stead, but that there are factors that are occurring in the economy that simply were unforeseeable; that the addition of Loew’s will help in the revenue department; that the parking fund does have a deficit of $72,000, and the parking problem downtown is getting worse; that the contractor that the City hired for traffic citations costs about $160,000, and the revenue produced is causing a gap; that the Council has indicated a need for more parking and the desire for a group to be formed to investigate how to get what the downtown needs; that there has been one committee of which Reller-Spurgin and Jones are a member of; that one of the suggestions was to limit parking in the Muni lots to 3 hours; that the Council did not support the suggestion; that the employee parking is a main issue; that the private lots are filling up; that security remains a first concern; that the committee feels if its suggestions are not acted on, the committee should not make suggestions; that the Desert Fashion Plaza parking is being more utilized, but could be even more beneficial; that the PD could offer the security needed; that some years ago, muni lots did have a two hour maximum for parking, that there is no maximum now; that the parking plan put forth by the City did not include communication to all involved, and therefore was not embraced by all parties concerned; that the total plan needs to be addressed, with options presented for Council consideration; that a pay for parking plan of some sort would help to build a parking fund to purchase land and build a structure; that the downtown merchants have addressed some sort of assessment district funded by its own members; that the end result is that if a plan can not be found by the merchants, the final decision will rest with the Council; and that the Rudnick lot is now vacant and some type of structure can be looked at for that location. City Manager, in response to comments by Council restated that the Tuskegee Airman Mural is in need of financial assistance; that the Film Festival is requested additional funding; that there will be a dedication of the James O. Jesse Desert Highland Center in January; that the Highland Center needs increased funding to be open on Saturdays and to increase programs; that thus far the Council would like to add $1612,265 to the Tourism Budget; add $15,000 to the Easter Bowl; Fire station #2 improvements for $45,000; Tuskegee Airmen Mural for $5,000; Downtown improvements for police, street cleaning and the like for $45,000; that the Desert Museum has been indicated for $1,500; that the issues of the Historic Site survey, resurfacing of muni parking lots; Senior Center, Youth Center are all issues that need to be address; that the Council further commented that the Mizell Senior Center should be funded at $52,000, Skate park at $50,000; Youth Center at $35,000; and that the skate park would be through matching funds; that the concern of considering some items at a later date is heard; that next quarter some of the additional items could be brought forward; that it is clear that the Fire Department overtime will exceed its budget; Council Workshop 12-19-00, Page 5 that the downtown must be kept looking good to keep drawing tourists; and that the contract with LMI/SMG needs to be renegotiated 3. COUNCIL REQUESTS Recommendation: That the Council discuss communication and interaction between Members of the City Council and City Staff. Assistant City Manager stated that direction is needed when a member of the Council requests something directly from staff, if the materials should be furnished to all members or is the request should go directly through the City Manager. Council consensus: That all requests should go through the City Manager, with all members of the Council copied with the materials furnished. ADJOURNMENT: There being no further business, Mayor declared the meeting adjourned. PATRICIA A. SANDERS City Clerk