HomeMy WebLinkAbout9/29/1982 - MINUTES Y J.js l
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CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
SEPTEMBER 29, 1982
An Adjourned Regular Meeting of the City Council was called
to order by Mayor Bogert, in the Large Conference Room, City
Hall , 3200 Tahquitz-McCallum Way, on Wednesday, September 29,
1982 at 1 p.m.
ROLL CALL: Present: Councilmembers Doyle, Foster,
Ortner and Mayor Bogert
Absent: Maryanov (entered later)
LEGISLATIVE ACTION:
1 . CULTURAL CONVENTION CENTER
Purpose of meeting: Interview by Council of consult-
ants considered for feasibility analysis of the
cultural-convention center.
Housing and Economic Development Director gave a
brief overview of process to date and results of
recent study session, in which the Council indicated (139)
its desire to interview the two firms for which
the selection committee had a split recommendation.
Touche Ross Co. - Comments by representatives: Ed
Eschbach, Lois Evans, and Travis Selmier:
a) Study to conclude: If it makes sense, what kind
it should be, and how it would be financed.
b) Steering Committee is critical component.
c) Assumption is that consultant will assist in
taking project through to successful implement-
ation, whatever that may be.
d) It would be inappropriate to include architectural
firm at this point, but will be asking Leo Daily
firm to play a role when that time becomes appro-
priate; Touche Ross (T-R) has experience to
take project through to completion and city
would have those resources available; T-R knows
what questions will be asked and can make sure
that responses are included in the study.
e) Phase I will result in a "no" or "yes, there
appear to be options and Phase II should be
undertaken" ; "maybe" issue stems from fact that
with a quick look, it could not be said "abso-
lutely yes" and know what that would look like;
that it would be known if there appeared to
be one or more serious options; Phase II might
show that such options are not feasible or would
require a financial position which the City
would not be willing to take.
f) Phase I will include a use of current information,
perceptions and questions of steering committee,
gathering new data, and determining viability;
if feasible within general parameters, before
proceeding, need to spend time and effort to
get into next phase to define specifics of the
facility, involve architects and engineers at
that point; 3-week lead time prior to starting
study, thereafter, 30-days for Phase I ; lead
time is flexible.
Council Minutes
9-29-82 Page 2
1 . CULTURAL CONVENTION CENTER (Continued)
g) Kind of events of a convention-cultural center
which are available, as well as those which
are extant, will be determined, from which the
first blush of the kinds of facilities needed
to house those will be determined ; some of the
information or projections might already have
been done, but that would be examined.
h) Market study will be original research and more
detailed; Phase I framework will be built on
existing data.
i ) Study will indicate whether facility, or element
thereof, is feasible and defined in broad terms,
with specifics to follow.
j) Steering Committee would be a- , communication
vehicle; it would report back to whomever it
represents that which T-R is doing; will provide
policy decisions; recommendations will be made
by T-R, but final decision is that of City;
input on matters which are "close to the com-
munity" becomes a variable for T-R and at times
its recommendations may not be comfortable to
the Steering Committee; members should be those
which best represent the interest of the coin-
mu,nity;, T-R is not an analytical tool of the
committee, but has responsibility to make judge-
ments and recommendations as it deems appropriate;
policy of T-R is to do work on-site and 'i s not
unique to just this project.
k) If a "maybe" was inferred, what was meant was
"yes., probably," and not a case of "no" and
"don't know. "
1 ) Market demand will relate to Palm Springs, and
not to other communities; three major data -process-
ing system programs- will be used to evaluate
financial feasibility; implementation plan will
indicate specific steps of what would be next,
who would do it, timeframes, and other matters.
m) Consultant Service beyond Phase II : Assistance
could be provided, as a separate action, in
documentation of the feasibility study in con-
nection with pursuing financing; T-R not an
active equity participant, could facilitate
in bringing people together -and- doing background
analysis; can be included in review of concession-
aire/operating manager for the facility. -
T-R representatives responded to questions by Council ,
as follows:
a) Point would be reached in first phase of having
some idea as to the dollars involved, various
factors are looked at, including whether a partic-
r ular financing vehicle had ever been used for
that purpose, historic data is built upon; poss-
ible revenue sources would be developed - exact
amount and source would not be known until Phase
II.
Council Minutes
9-29-82 Page 3
I . CULTURAL CONVENTION CENTER (Continued)
b) Consultant could participate in processi which +
would result in defining what is wanted from
a hotel , and soliciting RFPs based thereon.
c) T-R study could be compressed around any deadline
which the City might have (focus - availability
of land) which would permit tying-up land, but
with recognition that it might be necessary
to back-off later.
d) Artec would be available to act as consultant
during design phase, including bidding process
and construction.
e) Study will include recommendations on site loca-
tion; and recommended financing, including fee
structure for use of facility.
MKGK INCORPORATED - Comments by representatives:
Sheldon Gains, President and Kent Meek, Vice-President
assigned to the project:
a) Mr. Gains comments are included in a Text of (139)
his remarks which is on file in the Office of
the City Clerk.
b) Company' s approach is designed not to waste
dollars ; its primary specialty is packaging
pubic/private developments; and its technical
methodology is proven effective.
c) Laventhal study has been reviewed and it contains
ample evidence, some of which should be modified,
and additional work needs to be done; it is
not necessary to discard the study completely.
d) A variety of financing tools are available and
using only one will riot be the method to use;
study will show what is feasible and what is
not, and why.
e) Project would be worked on by four senior staff
members, with expertise in market studies, compli-
cated financial packages, and management aspect
of cultural-convention centers.
f) Study will begin where Laventhal ended; alterna-
tives will be looked at - project should not
be limited to a single developer.
g) Computer program will be used to compare a number
of development strategies and scenarios ; a great
deal of analytical power is available; computer
program is special adaptation of a sophisticated
model ; will provide technical tool in arriving
at decision.
h) Existing project documentation will be reviewed;
data gaps that will have to be filled will be
defined; interviews will be conducted and a
work plan developed; initial analysis will take
information and define facilities and activities
which mmight be included at the center, and ,
various scenarios developed which will focus
on how much it would cost, who would be involved,
and what financial mechanism is available; Phase
I will take 12 weeks.
_ Council Minutes
9-29-82 Page 4
1 . CULTURAL CONVENTION CENTER (Continued)
i ) Unknown how many people from MKGK would be in
Palm Springs at one time, but it is conceivable
that there would be someone at all times, with
exception of those times when computer analysis
work being done.
j) Analysis of scenarios would be key interactive
process - meeting with staff, citizens and inter-
ested parties; after preliminary feasibility
run, need to review assumptions, and then recycle
with different assumptions; interaction needs
to be structured in manner that permits reaction;
• premature exposure may create more problems
than it solves; consultant available as resource,
and staff has ability to arrange meetings, at
which consultant would be willing to make presenta-
tion and discuss project; would not be cost
effective for consultant to organize and carryout
a citizen participation program.
MKGK representatives responded to questions by
Council , as follows:
a) Re: point at which could say that land should
' be acquired: study phasing would accomodate that;
would want to be sure that it was near size and
location phase; would like to be able to determine
date by which that information would be needed;
if needed four weeks into the project, and an answer
-' would be premature, then would so state, otherwise (139)
some adjustments could be made and that could be
worked into the project.
b) Futher consulting services, beyond Phase II ,
would depend on legal staff of City, some assist-
ance may be desired in developing agreements
with developers.
c) Cursory examination has been made of the Laventhal
report, unit prices are valuable tool , dollars
may need to be updated; will look at that data
as well as market study underway, some information
may need to be redone; do not find it necessary
to have theatre design - cost of theatres, varying
in size, is well documented - financial mechanism
" would have to be applied.
d) If way to finance it can be found, MKGK is pre-
pared to help make it happen.
Discussion by Council :
Councilwoman Ortner stated that after reviewing
information available and hearing the presentations,
she favored the T-R proposal ; that she believed
costs would increase with the MKGK proposal as the
project proceeded; that she was interested in a
wise expenditure of dollars, as well as a good final
project; and that the T-R proposal would provide
that which is needed.
[24
Council Minutes
9-29-82 Page 5
1 . CULTURAL CONVENTION CENTER (Continued)
Mayor stated that after reviewing the proposals,
he initially favored that of MKGK; that he was con-
cerned about the large difference between the two
contract amounts; and questioned how the consultant
would be paid. -
City Manager stated that the entire amount for both
phases could be appropriated from unappropriated
reserves, or only the first phase.
Mayor stated that he did not believe there would
be a "first phase" per se, since he felt it unlikely
that either consultant would not conclude that there
was a good possibility of proceeding; that if the
City were committed to spending the $50 million,
he would not be adverse to the $160,000; that he
was not certain a, way would be found to finance
it, and, therefore, was not that committed to spending
the $160,000; that the T-R presentation was very
smooth and first-rate, but he was not sure about
the end product; that he was hearing two different
things ; that it sounded to him like "either buy
everything, or nothing;" that the issue is not a
question of what is wanted, but how to get it; that
MKGK, with its experience and the City' s experience '
with it, can make it happen , that he was concerned
that the $185,000 ($160,000 plus expenses) will
turn-off the community as much as the facility might
appeal to it; and that he could see spending the
funds with MKGK for the first phase and second phase '
with T-R.
(139)
Councilwoman Ortner stated that the need has been
established; that she did not believe there would
be unanswered questions as a result of the T-R study,
and the project will proceed to implementation ;
that she does not have that confidence with MKGK;
that the Council needs to make the determination ;
that she is sensitive to the community, but many
people do not understand economics or what the Council
does or has to do.
Councilman Foster stated that effort is to look
at the facts and who will give the best report and
obtain the results which are sought; that detailed _
financial analysis its point where it will be deter-
mined if the project will ever "fly" and at which
the City may have spent $75,000, which he felt would
be well-spent; that if the $160,000 is spent, it
will be with assurance that the project will go
ahead.
,Mayor stated that assurance is needed that financing
can be obtained, and that there is a first-class
means of getting the job done.
City Manager noted that staff' s experience with
both firms has equally been more than satisfactory.
Councilman Doyle stated that he favors the T-R pro-
posal , but that it would be equally proper to approve
that of MKGK; that he believed T-R could provide
the information on which the Council will have to
base its decisions ; that he believed it important
that the community be brought on-board at the outset,
whether the project proceeds; and that T-R has the
capability and expertise to provide innovative finan-
cing methods.
Council Minutes >.
9-29-82 Page 6
1 . CULTURAL CONVENTION CENTER (('cr;l-inued)
In answer to question by Council , City Manager stated
that both firms are highly qualified and the City
has had a good experience with each; that both will
furnish what is needed ; and that with that recogni-
tion, he then considered cost, and recommended the
proposal of MKGK.
Following discussion, it was moved by Doyle, seconded
by Ortner, and unanimously carried, that Minute
Order 3145, approving agreement with Touche Ross
& Co. , For Phase I of its proposal for feasibility
analysis of a cultural-convention center in amount
• of $35,000 plus expenses, and Resolution I�391 ,
amending the budget to provide $42,000, there Fore,
be adopted.
Councilman Maryanov' s affirmative vote was to indicate
unanimity for the project, and although he sound
Touche Ross acceptable, he was not dissuaded from
` his previous position that MKGI( could have provided
the desired result at a lesser cost.
Project Steering Committee
' Representatives of Touche Ross joined the meeting
and discussion ensued regarding the make-up of a
steering committee. It was suggested to the Council
that the membership be limited to 5-7 members, and
include people who represent -the administra;,don, (139)
planning and finance areas, and the Council ; that
member' s views be relatively neutral on the project,
openminded, and spokespeople for the communr ty.
Anticipated that the consultant will meet with the
committee twice during the first phase, preferably
at the on-set.
Question was raised whether member of the Council
should be on the Committee; Councilman Maryanov
stated that he was not certain that would be produc-
tive; and Councilwoman Ortner stated that if such
is considered, she would recommend Councilman Doyle
be appointed.
ADJOURNMENT
There being no further business at 4:45 p.m. , Mayor
declared the meeting adjourned to Monday, October
4, 1982, at 7:30 p.m. , at Lyons English Grille for
a joint dinner meeting with the Planning Commissiase,
L JUDITH SUCH
City Clerk