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HomeMy WebLinkAbout10/16/1985 - MINUTES CITY OF PALM SPRINGS CITY COUNCIL MINUTES OCTOBER 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, October 16, 1985, at 7:30 p.m. ROLL CALL: Present: Councilmembers Birer, Foster, Maryanov, Smith and Mayor Bogert Absent: None COMMUNITY REDEVELOPMENT AGENCY: Mayor declared the meeting adjourned for the purpose of convening as the Community Redevelopment Agency; after which, members reconvened as the City Council . HOUSING AUTHORITY: No business APPROVAL OF MINUTES: It was moved by Foster, seconded by Smith, and unanimously carried, that the Minutes of September 18, and October 2, 1985 be approved. COUNCIL COMMENTS: None PUBLIC HEARINGS: None PUBLIC COMMENTS a) Rent Control - Hardship Increase Guidelines: Pete Shapiro, E1 Dorado Mobilehome Park tenant, on behalf of tenants in the park, stated that the impact of hardship rent increase guidelines adopted by the Council in 1983 has only recently become clear to them as a result of communication from Tony Tweedle; that the tenants received information in March, 1985, that the park owner was ready to sell the park to them; that various offers were made starting in May, and the last offer on July 22, of $7.850 million; and that there has been no response to the last (85) offer, and was advised in August that the park was being sold to someone else for $500,000 less than their offer. He cited an example of a cross-buying by companies which can result in a hardship increase because of increased purchase price and mortgage interest; that it was not known whether that was indicative of this situation, however, the tenants have contacted the limited partners of the company and advised of their higher offer, which was not accepted by the general partners; and as an alternative, the tenants have requested that the Council adopt a retroactive amendment to the Guidelines to give the tenants the first right of refusal on re-sale. He also stated that the tenants have received legal and financial counsel , and cooperative financing is immediately available, which would be a cash transaction as far as the park owner is concerned. In answer to questions by Council , Assistant City Attorney stated that constitutionally a person may deal with whomever he pleases in terms of real property, with certain exceptions relative to rental ; that he would need to determine if retroactivity is possible, noting that in condominium conversions, there is a right of first refusal provision ; that hardship rent increases are not automatic, but approval is discretionary with the Rent Review Commission, including Council Minutes 10-16-85 Page 2 a) Rent Control (Continued) the power to look through the transaction to see if it was to circumvent the ordinance, and to disallow a particular entry; that the City would not have the power to prohibit an owner from selling his property; that he did not believe an amendment could be made that would void a contract legally entered into; and that the the Commission has discretion- ary power, and an abuse of it to deprive an owner from a reasonable return, could be subject to being overturned by the courts. Councilman Maryanov suggested that the Guidelines be changed to provide that when tenants are ready, willing and able to buy the park at the owner's price, and at comparable terms and conditions, but owner does not sell to them, the interest would not be made a part of any future rent increase. Assistant City Attorney stated that the Commission, based on facts that may exist, has the ability to disallow the interest as a part of the operating expense; and that Council has the power to amend the guidelines in that fashion, with the remaining question whether that would withstand a legal (85) challenge ; that it would not be removing the right to buy or sell property, but could significantly handicap a new buyer' s right to a reasonable return ; that the Guidelines provide that if financing could have been obtained through an alternative source, and purchaser did not use it, those figures would be used by the Commission; and that the Guidelines are used by the Commission to determine whether hardship increase should be granted. Councilman Maryanov stated that more study is needed, however, action at this time is also appropriate. Councilman Birer noted that tenants should be aware of caveat that the terms and conditions would have to be the same as those of the competing buyer. Councilman Smith stated that action would be tantamount to a giving notice that shams will not be tolerated. It was moved by Maryanov, seconded by Birer, and unani- mously carried, that the Hardship Rent Increase Guidelines be amended, effective immediately, but subject to further study, that in cases where a mobilehome park is offered for sale and the tenants of the park are able to purchase it at the same price, terms, conditions, credit rating, etc. , and the park owner chooses to sell it to someone else, the mortgage interest will not be considered as an operating expense; and that the Rent Review Commission may by-pass this guideline, if in its judgement there are other factors which warrant inclusion of said interest in the operating expense. b) George Goldberg, 1445 "Cesspool " Drive, commented about a "yellow sheet" publication, defined the word "vile," and criticized the Council and staff for attending out-of-town conferences. Councilman Maryanov stated that the League of California Cities provides support to cities through its various functions, including participation on its boards and committees, on which he and other officials serve, or have served. Council Minutes 10-16-85, Page 3 c) Banners: See Item #17 for public comments offered at this point. d) Dan Johnson, attorney representing Dr. Djordjevic, PM 20623, stated that the applicant is aware that the larger parcel would be subject to a new application, and is opposed to any additional conditions on the map at this time. LEGISLATIVE ACTION: 1 . WATER THEME PARK - DWA LAND ACQUISITION Recommendation: That the Council authorize purchase of approximately 112 acre from the DWA to be added to the East side of the Water Theme Park Parcel 1 , at a cost of $33,098. 56, which will be applied against the loan made by the City to DWA for the original purchase. Director of Community Services reviewed his report. (109) Resolution 15662 authorizing purchase, as recommended, was presented; after which, it was moved by Maryanov, seconded by Smith, and unanimously carried, Birer abstaining, that Resolution 15662 be adopted. 2. WATER THEME PARK - LEASE AMENDMENT Recommendation: That the Council amend i;he lease to add approximately 112 acre on the east; side of Parcel 1 , and to increase lease payments by $2,750 per year - Aqr #2118. Assistant to the Director of Community Services reviewed her report, noting that amendment will also clarify the buffer zone on Crossley (109) Road, required as a part of the project approval . Minute Order 3652 amending lease, as recommended, was presented ; after which, it was moved by Smith, seconded by Maryanov, and unanimously carried, Birer abstaining, that Minute Order 3652 be adopted. 3. FPM 20623 - DJORDJEVIC On October 2, 1985, Council continued consideration of Final Parcel Map 20623 to combine property on Araby Drive and Jacaranda Road, Section 25, pending clarification of imposing conditions. Director of Community Development reported that this matter (119) was reviewed at the last study session, and since the Tenta- tive Map was approved, there is no option For the Council to add conditions to the Final Map. Resolution 15663 approving FPM, as recommended, was presented ; after which, it was moved by Birer, seconded by Smith, and unanimously carried„ Maryanov abstaining, that Resolution 15663 be adopted. CONSENT AGENDA: 4. Res 15664 amending the budget to appropriate $3,810 for purchase (61 ) of a Velo Bind binding machine. Council Minutes t 10-1,6-85 Page 4 5. Res 15665 cancelling agreement with CVAG for administration of (123) the RSVP program, effective July 1 , 1985. 6. MO 3653 awarding contract to Cordes Data Systems for maintenance of Hewlett-Packard microcomputer software and hardivare, in amount (117 ) of approximately $1 ,047 per month, for term ending June 30, 1986, and providing option for renewal up to three years - Agr #2260. 7. Res 15666 approving license agreement to Earl & Mary Hall to erect walkway covering over right-of-way at 894 N. Palm Canyon (P.S. (136) Florist) - Agr #2261. 8. Res 15667 approving amended agreement for subdivision improvements in Tract 12848 to grant a 4-year extension for completion. (137) 9. Res 15668 authorizing participation in County contract for purchase (123) of lubricating oils and greases. 10. MO 3654 ratifying emergency purchase of a circuit breaker for the Sunrise Cogeneration Plant in amount of $7 ,632, from Johnson (52) Industrial . It was moved by Smith, seconded by Birer, and unanimously carried, that Resolutions 15664 through 15668 and Minute Orders 3653 through 3654 be adopted. 11 . SPECIAL CENSUS Recommendation: That the Council authorize conducting a special 1986 census, at a cost not to exceed $95,414. Economic Development & Housing Director reviewed his report, and responded to questions by Council , noting that the census (66) will establish a new base, on which State subventions would be based. He stated that the incremental increases in the census by the State Dept.of Finance are based on the 1970 Federal Census. Resolution 15669 authorizing the census, as recommended,was presented; after which, it was moved by Maryanov, seconded by Smith, and unanimously carried, that Resolution 15669 be adopted. 12. HIGHLAND-GATEWAY STREET IMPROVEMENTS - SAN RAPHAEL, ET AL Recommendation : That the Council amend agreement with KWL Associates, engineers, for designwork for the above project, to delete professional liability insurance requirement. Report highlighted by Director of Community Development. (136) Minute Order 3655, approving amendment as recommended, was presented ; after which, it was moved by Smith, seconded by Birer, and unanimously carried, that Minute Order 3655 be adopted. 13. FPM 20326 Recommendation: That the Council approve FPM 20326 for lot configuration (Desert Fashion Plaza leasehold interests) for property on the west side of Palm Canyon, between Tahquitz Way and Amado Road, Section 15. (119) Resolution 15670 approving the map as recommended, was presented ; after which, it was moved by Smith, seconded by Birer, and unanimously carried, that Resolution 15670 be adopted. _�5� Council Minutes 10-16-85 Page 5 14. FTM 19467-1 AND 19467-2 Recommendation: That the Council approve FTM 19467-1 and 19467-2 for property on west side of Avenida Caballeros, between Saturnino Road and Arenas Road , Section 14 - Hallmark/Pori-Mel I . Report (1137) highlighted by Director of Community Development Resolution 15671 approving the map as recommended, was presented ; after which, it was moved by Smith, seconded by Birer, and unanimously carried, that Resolution 15671 be adopted. 15. AIRPORT IDP - AIP-04 CHANGE ORDER NO. 3 Recommendation: That the Council approve Change Order No. 3 to contract with Massey Sand & Rock, for an increase of $307 ,300, for soil reclamation. Report of Transportation Director highlighted by Assistant City Manager, noting that cost detail was reviewed at the study session ; and that as a result of study session discussion, Dennis Hoffman, engineering consultant, obtained verbal quotes from other sources on this date, ranging ( 51 ) above and below the bid of Massey' s subcontractor. He stated that the Council may approve the change order as recommended, deny it, or give the engineer time to validate the verbal quotes, which if the low is acceptable may mean a savings of $50-$70,000. He suggested that this matter be continued to October 22. Councilman Foster stated that he was not critical of the process, but concerned about the cost of the work, and stated that perhaps the specs were too rigid and should be reassessed and other methods explored. It was moved by Foster, seconded by Birer„ and unanimously carried, that this matter be continued to October 22, 1985. 16. P.D. 147 - MAGNIN SIGN Recommendation: That the location of the I . Magnin sign facing Museum Drive meet requirements of the Sign Ordinance as to height from grade. Planning Director reported that subsequent to the Council ' s (116) action to approve an altered location and a maximum height of 28 feet, the applicant resubmitted plans for the new location at a 38-foot height; and that the Planning Commission recommends approval of the sign at the maximum 28-foot limit. It was moved by Smith, seconded by Foster, and unanimously carried, that the sign meet the height requirement of the Sign Ordinance, i .e. , 28 feet. 17 . DESERT CIRCUS BANNER During the Public Comments portion of the meeting, the follow- ing persons spoke in support of allowing a banner across Palm Canyon Drive at Tahquitz Way, for Desert Circus Week: (114) Barbara Foster, 603 La Mirada, requested approval of a two-sided banner, to be installed in about four days, and to meet City standards. She stated this would be a one-time request, although the Council might wish to consider appointing a task force to study the subject for possible guidelines and recommendation. � Council Minutes .41 s 10-16-85 Page 6 17 . DESERT CIRCUS BANNER (Continued) Ken Parker, 2246 Blando, stated that hundreds of volunteers are working to put the Desert Circus back together, and people need to be aware that there is a festival celebrating the City. David Green, 1049 Via Altamira, submitted a paste-up of the banner to the Mayor. Don Brown, 940 Calle Laura, speaking as an individual , stated that a great deal of effort has gone into the project, and it may be the forerunner to extending the season, by starting (114) earlier. Marilyn Visell , spoke in support, and suggested a marquis at the entrance to the City advertisng events, as well as providing information to local retailers and restaurants for dissemination to tourists ; and suggested that a task force be created to explore these and other festivities, and expressed her willingness to serve on such a committee. Mayor suggested that perhaps the Council should consider window placards/posters simultaneously with banners. Councilman Foster stated that he would need more study and discussion on posters and placards before it is presented for Council consideration. In answer to question by Council , Mr. Green stated that the Desert Symphony will be sharing in the cost of the banner, and its concert is the kick-off of the week, which is why it was selected to be included on the banner. Councilman Maryanov stated that the week includes many events, and he questioned picking out one event. Councilman Smith recalled the problem of allowing banners, and facing requests by multiple organizations to be given the same opportunity; and if the Council is going to allow them, then it should not restrict them. Councilman Birer stated that he supported encouraging the economic health of the community, and did not oppose the banner for Desert Circus week, but did not favor selecting one event to be included. Mr. Green stated that Tennessee Ernie Ford will be the main attraction at the concert and requested that the Council allow including his name, because he believed it would add to the overall interest of people from out-of-town. He also stated that the P.S. Project Steering Committee considered the possibility of a task force for special events, and perhaps it could recommend a policy to the Council as to events that would qualify for a banner. Councilman Foster stated that he would support approval of the banner for only the Desert Circus Week and for only this occasion, unless the Council establishes a uniform policy. Following discussion, including cost of installation, it was moved by Birer, seconded by Maryanov, and carried, Smith voting no, that the banner, as described, be approved, limiting advertising to the Desert Circus Week only and not to include any other event, and subject to condition that the applicant shall pay the full cost for installation and removal , with the potential for future reimbursement of one-time costs that may have been incurred by the City. t Council Minutes 10-16-85 Page 7 REPORTS & REQUESTS : 18. COUNCIL reports or requests - None 19. PUBLIC reports or requests - None 20. STAFF reports or requests - None ADJOURNMENT There being no further business at 8:50 p.m. , Mayor declared the meeting adjourned to Tuesday, October 22, 1985, at 3 p.m. , in the Large Conference Room, City Hall . JUDITH SUMICH City Clerk