HomeMy WebLinkAbout1/16/1985 - MINUTES P9;3
CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
JANUARY 16, 1985
A Regular Meeting of the City Council , of the City of Palm Springs,
was called to order by Mayor Bogert, in the Council Chamber, 3200
Tahquitz-McCallum Way, on Wednesday, January 16, 1985, at 7:30 p.m.
ROLL CALL: Present: Councilmembers Birer, Foster, Maryanov, Smith
and Mayor Bogert
Absent: None
The meeting was opened with the salute to the Flag and a moment of
silence.
COMMUNITY REDEVELOPMENT AGENCY: Following conclusion o%= the Council ' s
business, Mayor declared the meeting adjourned for the purpose of
convening as the Community Redevelopment Agency; after which, members
reconvened as the City Council .
APPROVAL OF MINUTES:
It was moved by Smith, seconded by Maryanov, and unanimously
carried, that the Minutes of December 19, 26 and 31 , 1984
and January 2, 1985 be approved.
PUBLIC HEARINGS:
1 . A.D. 148 - SEWERS
On December 11 , 1984, Council declared intent to order certain
improvements and set this as time and place for hearing, i .e. ,
installation of sewers in remaining areas not exe€aipted.
Director of Community Development provided background informa-
tion relative to the completion of the city-wide sewer require-
ment, including reference to conditional State grant, Council
action to comply with the condition of the grant, sewer plant
capacity problems and moratorium on connection by new develop-
ment, and formation of assessment district d;o comply with (56)
condition of the grant to provide sewers for the remaining
portion of the city not sewered, and removal from that district
of areas, basically west of Palm Canyon, considered rocky
and for which additional study would be given. He stated
that a letter was sent to property owners in those three areas,
indicating that further study would be given, and portions
would comprise a new district; that in April , another letter
was sent indicating that analysis was being made, and those
not recommended for exclusion, would be recommended to be
included in a new district to be formed in Fall , 1984; that
the study was completed in June, 1984; that i;he three areas
were divided into ten sub-areas, so they were homogeneous as
to difficulty of installing the sewers ; that the Council
established hardship criteria in August, 1984, to limit the
cost of the public portion to $5,000 and the cost of the private
connection to $3,000, and an excess in eithe , would enable
a property owner to request an exemption; that r press release
was issued in October, indicating State had approved the
criteria; that bids were solicited and opened November 15,
1984, and of the ten areas, only two were within the cost
criteria for the public portion; that in November, 1984, the
Council exempted those areas; and 'thereafter in December adopted
the procedural resolutions necessary to proceed with the
District, and set this as the date of the hearing; that notice
of the hearing was mailed December 12, 1984; chat bids are
good for 120 days, and that award must be made. by March 26,
1985. He stated that the cost comparison for the areas, between
A.D. 143 and A.D. 148, is as follows:
b
Council Minutes
1-16-85 Page 2
1 . A.D. 148 (Continued)
A.D. 148 A.D. 143
Area A 4,606.52
Area E 5,505
Area F 4„554.35
Area I 7,883
He stated that there were eighteen covenants applicable to
properties on which homes were built since 1975, relative
to formation of an assessment district.
Mackenzie Brown, legal counsel , stated that two hearings have
been noticed (Res. of Int. and Res. of Necessity) and testimony
should relate to the boundaries of the district, extent or
location of the 'improvements, or spread of assessment formula;
that all property owners were notified of the estimate and
individual assessment; that bids were received for the sale
of the bonds, and if the district proceeds, he recommended
awarding the bonds to Stone & Youngberg, at 83 5%; and that
the Council may continue the hearing; abandon proceedings;
amend the boundaries; or overrule protests and proceed with
the district.
John Sanborn, Sanborn-Webb, Engineers, reviewed the Engineer's
Report, noting that no right-of-way is required; that the (56)
protests represent 60.53%; and that the low bidder is A-C
Construction, in amount of $760,619.
In answer to question by Council , Director of Community Develop-
ment stated that if the private portion exceed $3,000, an
exemption could be requested, however, the public portion
would still have to be paid through the assessment district.
In answer to question by Council , Mr. Brown stated that the
assessment would be paid over fifteen years, at 'the rate estab-
lished, payable in one annual principal , and two semi-annual
interest payments; that there would be a 5% early payment
penalty; and that there is a 30-day cash period, which provides
a 4% discount.
Director of Community Development stated that once exempt,
there is no requirement to connect in event of a future septic
tank failure, however, the property owner would have the option
to do so, or to replace the septic system; that the connection
must be made within 45 days after completion of the sewer
installation, or apply for a deferral up to 'five years, in
which case, the property owner may pay the $400 facility fee,
or the fee in place at the time of connection; and that the
study showed that the private portion would probably be less
than the $3,000.
Mayor noted that the Council has received copies of the protests
letters; and declared the hearing open.
Jack Stafford, 440 Chino Canyon, questioned why the Council
would proceed with the district if more than one-half of the
people did not want: it, and expressed his belief that the
law did not permit the Council to proceed.
Mayor stated that the Council may overrulle the protests; that
the State has agreed to the hardship criteria; and that
properties which did not have that hardship, could be exempted.
Council Minutes
1-16-85 Page 3
1 . A.D. 148 (Continued)
Councilman roster stated that the decision to install sewers
was made many years ago, and the City agreed '� o live by the
condition of the grant; that this area is the last area, and
in fairness to everyone, property owners must consider helping
to pay for the facilities and complying with the grant.
Mr. Colbert, 2875 Bahada Road, stated that if it is the law
that properties must connect, which he understood to be the
case., he questioned the purpose of the hearing.
Councilman Birer stated that in order to rec=ive the money
to install the necessary facilities for the sewers,
promise had to be made that everyone would connect; that in
an attempt to satisfy all of the problems, it was recognized
that because of the nature of the assessment district, the
hillsides would have to pay more than those on the flat levels,
and as one moved further up the hillside, the more the costs
became prohibitive; that the State agreed to an economic hard-
ship cut-off point, and the hardship criteria was, established,
but the City was to come as close to 100% compliance as it
could, which is why A.D. 148 was formed; that everything that
has been done has been extremely fair; and that the Council
may overrule the protests, even though it :s more than a (56)
majority.
Councilman Maryanov stated that this is a democratic system
and people have the right to be heard; that it gives an oppor-
tunity for the Council and the Staff to receive information
that it may not have, and to learn from that; 'that this area
is a small part of a larger picture, and doers not represent
the majority of it.
Mr. Brown stated that when a majority protest is filed, a
"super" majority or the Council is required to overrule the
protests, i .e. , 4/5 vote.
Culver Nichols, 899 N. Palm Canyon, stated that he was convinced
the Council is making every effort to be Fair and just,
evidenced by the exemptions that have been granted. He also
stated that he owns 100 acres of undeveloped, undivided land,
and his property should not be included in the district, in
that the State does not require large acreage to be connected,
and he did not believe it should be assessed as If there were
a number of homes on it.
In answer to question by Council , Director of Comiiiun'i'ty Develop-
ment stated that the portion of the 100 acres adjacent to
the sewer line, is zoned residential , and there could be seven
lots fronting Vista Grande; that there will not ;w� any laterals,
nor will 'there be a charge for that; and that 'the per unit
charge was determined based on zoning and the ability to sub-
divide according to the zoning.
Mr. Nichols stated that he will not subdivide iru'to seven lots;
and that the spread of assessment is supposed to be on benefit,
and the property should be exempt under the criteria.
Loray Stafford, 440 Chino Canyon, questioned hors the district
area was determined.
Jeremy Crocker. 330 W. Arenas Road, stated that. the relation-
ship of engineering costs for A.D. 148 is not the same as
for A.D. 143, and if the same ratio as if the district were
"starting from scratch" were charged to A.D. 1118, the costs
for all of the parcels would exceed the $5,000 For the public
portion and, therefore, exempt the remaining areas.
Council Minutes
1-16-85 Page 4
1 . A.D. 148 (Continued)
E.H. Graham, 2111 Camino Alturas, spoke in favor of the
district, and questioned if one area could protest another
area.
Mr. Sanborn stated) that Area "F" had a 49% protest.
Al Rey, 2732 Cardillo, questioned how many bids were submitted;
why other properties paid $2,200 (Junipero) ; and stated that
the costs are too high.
Director of Community Development stated that bids were received
for each of the ten areas; that a lesser bid was received,
but not in proper order, and request to make the document
comply, was rejected by the contractor, and thus rejected
by the Council .
City Attorney stated that in addition to not completing the
bid, the contractor requested relief from an inopportune bid,
in that the contractor had omitted approximately $200,000
of labor costs, which accounts for the low amount.
Nick Caraucus, 572 Santa Elena, stated that his connection
will emceed $3,000. He was advised that if that were the
case, he could apply for an exemption, however, he would have
to pay for the assessment. He requested that the proposal
be rejected. (56)
Councilman Maryanov stated that an average assessment would
be equal to about $65 per month for the first year, and a
declining amount over the term of the assessment.
Philip Avila, 2669 Girasol , stated that his original assessment
was $6,842; that his area -is 600 ft away from Area B, which
was exempt; and requested that the Council delay action, to
re-evaluate the terrain and perhaps obtain another bid. He
stated there is a big difference between the low and high
bids, and that he was concerned about the quality of the work.
City Manager stated that the City is required to go through
the bid process; that another bid would not be possible, without
starting over with the assessment process; and that low bidder
must submit bonds, and other documents, and he did not antici-
pate any problems with the contractor.
Gordon Collenberg (?) , 2243 Cardillo, stated that the bids
are too high, and people would not mind paying for the sewers
if the -figures were reasonable; and quuestioned what would
be the effect on the water table if the sewers were not
installed.
City Manager stated that there are financial issues, in that
35,000 units are on sewers, which has been a long-standing
policy, and if that had not been enforced over a long period
of time, there would be a major water problem; that to default
now in carrying out that policy, would cause water problems
and be inequitable, and that it is appropriate to require
as close to 100% connection as possible to protect everyone's
water supply; and that Palm Springs is a single city, with
single policies.
Council Minutes
1-16-85 Rage 5
1 . A.D. 148 (Continued)
Mayor stated that the water table is at a maximum 1 ,000 feet
deep, and in many cases 250 ft; and that thc� 4iater Quality
Control Board has said that if 05,000 units n_--,re on septic
tanks, there would be a water problem.
Councilman Smith stated that these kinds of questions were
raised a number of years ago, and based on the information
received, the Council believed -i'aa to be in th: bent interest
o? the City to move toward a 100% connection.
Bill Howlett, commented on soil percolation in the area, and
noted that his assessment is less than it was originally.
Mr. Brown stated that Mr. Nichols property does 'receive benefit,
in that it directly abuts the sewer line.
There being no further appearances, the hearing nos closed.
In answer to question by Council , City Manager stated that
a question was raised if the contractor who had submitted
the defective bid could be forced to abide fa,, it, and the
answer from legal counsel was no he could not.
In answer to question by Council , Director of Community Develop-
ment stated that it was a contractor's option to bid one or
more of the sub-areas, although most did bid all of the areas; (56)
that a retired sewer contractor was retained to assess the
areas to estimate what the costs might be, and there was no
question about the costs increasing for the {nigher terrain;
that he could not respond to Mr. Rey' s question, without more
particulars about the project to which he made reference.
City Manager stated that the issue is whether u:he costs have
been properly spread, given the total costs of the bid.
Director of Community Development stated that the sub-areas
were based on the best professional advice received, regarding
where there were terrain changes, and then the bids were
solicited.
City Manager stated that there is a financial relief program,
and anyone wishing information as to criteria for that program,
may contact the City staff.
Councilman? Foster stated that he recognized there is a majority
protests in Area "A", but in keeping with the remainder of
the community and policy established over many years, he did
not think there was much choice but to proceed; that the Council
is not being unreasonable, when one considers what is being
done for the overall good of the community; L:.nd that there
are many properties in need of the sewers.
Resolutions 15400 through 15406, approving Engineer's Report,
as modified, overruling protests, finding public interest,
convenience and necessity, confirming the assessment, providing
for issuance of bonds, awarding contract to A• Construction,
Inc. , and awarding sale of bonds to Stone & Youngberg, respec-
tively, were presented; after which, it was iirrled by Foster,
seconded by Smith, and unanimously carried, that Resolutions
15400 through 15406 be adopted.
Council Minutes
1-16-85 Page 6
2. HISTORIC SITE CASE V9 - LYKKEN'S DEPARTMENT STORE
Consideration of designating 180 N. Palm Canyon formerly known
as the Lykken Department Store, and currently operated as
"The Alley," as a Class 7 Historic Site.
Planning Director stated -that this matter had been continued
from previous meetings at the request of the property owner;
that supplemental staff report was provided at the steady
session, and additional report this date; that a Class 7
is the most, restrictive designation, in that change to the
exterior requires Council approval , and preempts demolition
without Council approval , however, the Council can change
the designation; that the second supplemental report outlines
the reasons for the Historic Site Preservation Board recommenda-
tion; that if in the final analysis, the building does not
contribute to the overall goals of the city, it may have to
be concluded that it cannot be saved; that the designation
is a long-term benefit to the community and not for one property
owner; and that it is a premium old building, and one that
should be worked around., when considering redevelopment of
the block.
Mayor declared the hearing open.
Kitty Hayes, member of the Historic Site Preservation Hoard,
urged that the Council approve the Class 7 designation, and (76)
stated that Mr. Lykken was an important pioneer of the city,
that the building was the center of activity, supplied all
of the necessities of life in 'those days, served as the Post
Office, telegraph, and for many years the location of the
only telephone; that the site is deserving of the designation,
and ii; will he'll) the property value; that there are certain
tax incentives for the owner, through IRS, upon improvements;
that many historic sites in the downtown area have been lost
already; and that the Board hopes to get the site included
on the State Register and ultimately on the National Register,
through the Parks Service.
John Doyle, 1102 Q Street, Sacramento, co-owner of the property,
stated that: his first reaction to the proposal was one of
enthusiasm for honoring the property in that fashion, however,
people in the development business have 'indicated to him that
the Class 7 is an onerous designation and diminishes the
potential for the property; that there is a plaque on the
building now, which serves as notice to the public that the
building has been significant in the past; that he does not
intend 'to sell the site; that the designation; preserves the
race of the building, but the other three sides abut other
buildings, and the chances for improvement are nii ; that he
did not believe the designation was appropriate for a commercial
building; that the Class 7 ties the hands of the property
owner, and is a stumbling block to sale or to 'those who inherit
it; and that it should be restudied.
Councilman Smith stated that there have been discussions regard-
ing the redevelopment of the block, and it was his understanding
that this building and that north of it would remain; and
questioned what the owner might see happening, in light of
redevelopment and his intent not to sell .
Mr. Doyle stated that he has not seen anything 'in writing
regarding redevelopment, nor has he been approached:, that
he has a good tenant, who is happy with the location ; that
the building goes "to the inch" all around, with a 7-ft ease-
ment abutting the Tackett estate.
Council Minutes
1 -1G-05 Page 7
2. HISTORIC SITE CASE #9 (Continued)
Councilman Foster stared that this could set a trend for what
happens on that block.
Councilman Maryanov stated that he empathized with the owner' s
position, but the Council ' s view is to loop at lung term affect,
and possibility that someone else may acquir the site and (70)
demolish the structure, which would be a real value loss to
the community.
Councilman Birer stated that he was abstaining, because he
negotiated the lease on the site.
Mark Doyle, stated that he represented the other family members,
as well as Dill & Craig Stahl , and that there is a great amount
of pride and ownership in the old P.S. Dept. Q hardware Store,
that there is no interest in selling it; tfuttt a Class 7
paralyzes on-going business as to what can or cannot be done
with the site.; that he would like a less restrictive designa-
tion, that he would like to see the block mocl:.11ed after the
building; that several real estate persons h:ava told him tht
the value of the building could go up or down; Chat flexibility
is desired relative to saleability of the property; and 'that
sale of it would only be considered under W same condition
that it carry on in the P.S. Hardware Store tradition.
In answer to question by Council , Ms. Hayes stated that the
Board is 'trying to designate those sites whricri� it feels are
the most important, before 'it 'is too late, Lind that is why
it may appear that all of its recommendations are for a Class
7.
There were no further appearances, and the hearing was closed.
Mayor stated that he would like to see the block redeveloped,
and that it is critical for that area; th l: there may be
problems with underground parking and other things if this
building remains in place, however, it is an historic building
and he would like to see it preserved.
Councilman Foster stated that the designation ,night, in fact,
be a. favor to the property owner, in that it is his intent
to preserve what is there, and this is one way of doing that;
that he sees benefits to the designation, a7 though realtors
or developers may tale a different view; thsa-: this is about
the last historic thing downtown, and it woule� be hard not
to try to preserve it.
Resolution 15407 establishing designation, a3 recommended,
was presented; after which, it was moved by Faster, seconded
by Smith, and unanimously carried, Birer abstaining, that
Resolution 15407 be adopted.
PUBLIC COMMENTS: Norse
LEGISLATIVE ACTION:
3. Z/C 5.0333 - PIROZZI (Ord Intro. 1--2-85)
City Clerk read title of Ordinance, as follows:
AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMEND- ( 149)
ING THE ZONING MAP FROM "0" (OPEN SPAI;E) TO R-1-C
(SINGLE-FAMILY RESIDENTIAL) FOR 1 .4 ACRES LiICATED ON THE
BEST SIDE OF VIA MIRALESTE SOUTH OF FRANCIS DRIVE, SECTION
2.
It was moved by Foster, seconded by Birer, : ,odd unanimously
carried, that further reading be waived, must, 'the Ordinance
be reintroduced for first reading. Note: Ordinance redrafted
to correct format. no channr3 in rMpni
Council Minutes
1-16-85 Page 8
CONSENT AGENDA:
4. Res 15408 accepting 40-acre parcel deed of hillside as a gift (109
from Abe Fl. Siegel .
5. Res 15409 approving agreement with CVB for computer services (86)
for 1984-85, in amount of $12,000.
6. Res 15410 amending i Allocated Positions & Compensation Plan to
delete one Engineering Aide III and add one Engineering Technician, (61 )
at salary range G31 .
7. Minute Orders (7) 3520 through 3525A exempting certain properties
from requirement of sewer connection based on criteria previously (128
established by Council .
8. Minute Order------_-approving Judgement and Final Order of Condem-
nation including fair market value of $100,870, for SCE facilities (52)
in connection with the Cogen Plants.
9. Res (6) 15411 through i5416 approving Payroll Warrants & Claims (86)
& Demands.
It was moved by Smith, seconded by Foster, and unanimously
carried, that Resolutions 15408 through 15416 and Minute Orders
3520 through 3525A be adopted; and that Item 8 above be continued
to January 22, 1985.
10. MULTI-FAMILY HOUSING - EAST PALM CANYON
Recommendation: That: the Council adopt Resolutions of Induce-
ment for Contractors Development Corp. for construction of
multi-family rental housing on East Palm Canyon at Farrell ,
and authorize agreement with Fiser Financial & Investment
Services, for underwriting services for tax exempt bonds ;
and adopt Resolution of Inducement for Springs Housing Partner- (85)
ship for similar project on East Palm Canyon Drive at Escoba,
and authorize agreement with Jones, Hall , Hill & White, as
bond counsel .
Economic Development & Housing Director reviewed his reports,
noting that the Planning Commission and Economic Development
Commission recommend approval .
Resolution 15417, authorizing issuance of bonds, and Minute
Order 3526, approving agreement with Fiser, relative to
Contractors Development Corp. , were presented; after which,
it was moved by Birer, seconded by Maryanov, and carried by
the following vote, that Resolution 15417 and Minute Order
3526 be adopted:
AYES: Birer, Maryanov, Smith & Bogert
NOES: Foster
ABSENT: None
Resolution 15418, authorizing issuance of bonds, and Resolution
15419, approving agreement with Jones, relative to Springs
Housing Partnership, were presented; after which, it was moved
by Birer, seconded by Maryanov, and carried by the following
vote, that Resolutions 15418 and 15419 be adopted:
AYES: Birer, Maryanov, Smith & Bogert
NOES: Foster
ABSENT: None
34.
Council Minutes
1-16-85 Wage 9
11 . CO-GEN - SO. CA!_11 GAS CO GRANT
Recommendation: That the Council accept 440:000 grant from
Southern California Gas Co. for development of a cogeneration
manual for use by other governmental agencies.
Building & Safety Director reported that page A of the grant
agreement had been revised to reflect joint- ownership for (52)
the document, to permit the City to copyr%hu, it, and the
gas company to reproduce and use it. 11c also nui ed that the
term of the agreement commences January 16, 190, rather than
December 15, 1934, ,as originally noted.
dMinute. order 3527, approving the grant agreement, as recommended
and amended, was presented; after w1k ch, it: was caved by
Maryanov, seconded by Foster, and unanimously carried, that.
Minute Order 3527 be adopted.
12. FTH 17470
Resolution 15420, approving FTM 17470 for proporty on Bogert
Trail , North of Andreas lulls, for &B. Epstein,
attorney-in-fast, was presented; after which, it was moved
by Smith, seconded by Birer, and unanimously carried, that
Resolution 15420 be adopted.
(137)
13. A.D. 146 - BOND SALE
Recommendation: That Council approve Purchase: Agreement for
bonds for Assessment District 146, by Birr, Uilson & Co. ,
at 10.220
Resolution 15421 , approving bond sale, as recommended, was presented; after which, it was moved by SmPA, seconded by 956)
Maryanov, and unanimously carried, Bogert abstaining, that
Resolution 15121 be adopted.
14. P.D. 14.5 - ANDREAS COVE
It was moved by Foster, seconded by Birer, ,and unanimously
carried, Maryanov and Smith abstaining, that the Planning
Commission review and make recommendations to the Council
on the various suggestions by the Tribal Cou4�ril (its letter ( gl6)
of January 15, 1905) relative to the AndreL�.s Cove Country
Club project, and submit its recommendation to the Council
as quickly as possible.
REPORTS & REQUESTS:
15. CITY COUNCIL reports or requests
a) Request progress report on Balloon Race (to be at next
study session) .
b) Report on status of policy regarding sh`°seld for street
lights.
c) Staff investigate possible removal of chainlini< fence
at westerly end of Ramon Road, originally installed a
number of years ago in anticipation of development.
d) Status report requested relative to air-conditioning equip-
ment on roofs (cited Sheraton Plaza and Best, Lest & Krieger
buildings)
e) P.S. Project Steering Committee: It was moved by Foster,
seconded by Birer, and unanimously carried, that the Mayor's
appointment of Caryl Williamson, Sue Morrison and Dick (03)
Cromwell to the P.S. Project Steering Committee, be
approved.
A
Council Minutes
1--16 85 Page 10
16. PUBLIC reports or requests None
17„ STAFF reports or requests -- Nome
ADJOURNMENT
There being no further business at 10:20 p.m. , Mayor declared
the meeting adjourned to Tuesday, January 22„ 1986, at 3 p.m. ,
in the Large Conference Room, City Hall .
JUDITN SUMICVI
City Clerk