HomeMy WebLinkAbout8/18/1987 - MINUTES CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
AUGUST 18, 1987
A Special Meeting of the City Council of the City of Palm Springs,
was called to order by Mayor Bogert, in the Large Conference Room,
City Hall , 3200 Tahquitz-McCallum Way, on Tuesday, August 18, 1987,
at 3:00 p.m.
ROLL CALL: Present: Councilmembers Apfelbaum, Birer, foster, Smith
and Mayor Bogert
Absent: None
LEGISLATIVE ACTION:
1. TAXICAB FRANCHISE
Recommendation: That the City Council select Country Club
Limousine as the exclusive taxicab franchise, and instruct
staff to negotiate the franchise agreement for City Council
consideration on September 2, 1987.
Director of Transportation & Energy stated that, in order
to allow time for requests for proposals to be prepared and
circulated, the taxicab franchise agreement with Desert
Transportation was extended to August 31, 1987 ; that the
proposals included: 1) a large vehicle, uniform in color
and make; 2) supervision at the Airport during busy times;
and, 3) a zoned-rate system. He stated that proposals were
' received from Desert Transportation dba Desert Cab, Country (89)
Club Limousines, and Zahir Shalizi , and that the Finance
Department thinks that any one of the applicants could handle
the franchise. He stated that staff reviewed the financial
information of each company; that interviews were held with
each company to clarify proposals; that the process is complete
with many issues covered, such as number and type of vehicle,
type of service, and rates and charges; that no weight was
given to any one of the bidders; and that staff thinks Country
Club Limousine would provide the best over-all service to
the community, and recommended it receive the franchise.
He stated that Country Club Limousine proposes a zoned-rate
system as well as the required meters, with the Valley broken
into zones, and rate cards and maps in each cab, and has
agreed to a flat rate of $3 for a mile or less within the
City limits; that although there has been no problem with
the meter system, the zone rates would eventually eliminate
meters; that the cabs will be white station vragons, or a
color of Council 's choice; and that Country Club Limousine
was the only applicant who proposed having a dispatcher at
the Airport, within their leased space, and that limousines
would be utilized if all cabs were in use; that vehicles
will be purchased within three weeks of receipt of the
franchise, and cabs would not be stored at the Airport; and
' that drivers will not be contract employees. He stated that
there never was a preconceived idea that Country Club Limousine
Services would receive the franchise.
Upon questioning by Council , Director stated that Desert
Transportation has had the franchise approximately seven
years ; that there have been no written complaints, and few
verbal complaints; and that, in his opinion, it would be
a gamble to go with a new company. He stated that staff
anticipated presenting the proposal to Council at the August
19, 1987, Council meeting, which has since been cancelled,
Council Minutes
8-18-87, Page 2
1. TAXICAB FRANCHISE (Continued)
and that there is some urgency in approving the franchise,
since the day after the franchise expires, the City would
be without cab service. He stated that the fee structures
of the three proposals are basically the same, and that Country
Club Limousine is considering a franchise fee of 5% plus
50t per trip; that about 50% of the cab business is at the
Airport, but during the summer, business slows considerably.
He stated that if there is a problem with people waiting
at the Airport for a cab, additional vehicles could be
required; and, that cab service would be a new operation
for Country Club Limousine Service.
Mayor declared the hearing opened.
Keith Shibou, Certified Public Accountant for Mrs. Grannis,
stated that it appeared to him that questions had been
presented to Country Club Limousine Services after the Director
of Transportation and Energy received Desert Transportation's
report, and questioned why Mrs. Grannis was not given the
opportunity to respond to any purported deficiencies in her
proposal , if it was determined by the Director of
Transportation that there were deficiencies.. He stated that
the implication that Desert Transportation was "cash-thin"
is erroneous ; that the July 1, 1987 financial statement
presented to Council indicated that Desert Transportation
currently has available approximately $50,000 in cash assets ,
vs. $1,800 in accounts payable, with outright ownership of
21 vehicles, and $1,062 owed on only one cab;, that the company
contributes to an employee pension fund, which has a very
substantial amount of assets, and Mrs. Grannis, in her own
right, has personal financial assets. He stated that the
report of the Director of Transportation and Energy indicates
that Desert Transportation is a decaying business with ancient
vehicles, but in reality the company is a. well-maintained,
growing fleet of vehicles, with continuous plans for
modernization which have been held up only because of the
delay in granting the renewal of the franchise, and that
Mrs. Grannis was unprepared to commit to two additional
vehicles, due to that uncertainty; that Desert Transportation,
unlike the other franchise applicants, recognizes from
experience that there is a need to provide additional vehicles,
and from Mrs. Grannis' experience the requirements of the
franchise proposal are inadequate to meet the need for a
15 minute response time; that Desert Transportation' s vehicles
are owned, and not leased, and, in his opinion, Mrs. Grannis
has made a permanent commitment to provide a high quality
of service for all areas of Palm Springs; that Mrs. Grannis
has received a commendation plaque from the former Director
of Transportation, Mike Merrey, for her services to the City;
that based on her commitment, the members of the Council
have a clear duty to make the words on that plaque a reality,
and not a hypocrisy; and he questioned if a franchise should
be taken from an established, experienced company, operating
virtually commplaint free for nine years, and given to Country
Club Limousine, a company with no cab experience, and he
questioned if Country Club Limousines should be given a
monopoly on all ground transportation in Palm Springs, which
would prohibit the public from having a choice between meter
rates or limousine rates.
Mike Harris, attorney for Mrs. Grannis, stated that the City
has been fortunate in having the Desert Transportation, which
is a young company with dedicated people ; that during the
r: a
Council Minutes
8-18-87, Page 3
1. TAXICAB FRANCHISE (Continued)
franchise period there were no written commplaints brought
to Mrs. Grannis' attention, but that if there had been, they
would have been corrected; that vehicles have been continuously
inspected for mechanical problems; that the commpany is a
proven, quality resource; and, that Mrs. Grannis has stayed
with the City for seven years, increased the number of
vehicles, and committed her financial resources; and that,
in his opinion, there is nothing wrong with the City remaining
with a company that has performed well . He stated that he
hoped the Council would remember the statement of the Director
of Transportation, that it would be a gamble to go with another
company; and, that for Council to grant something as important
as the taxicab franchise on a gamble, when the City has an
existing, proven company, would be a difficult decision,
and would make no sense; and that the City should seriously
consider indicating to Mrs. Grannis that what she has done
is exemplary, and it knows she will continue to do so, and
that the City will remain with a proven resource.
Ruben Carbajo, 43376 Cook Street, Palm Desert, Desert
Transportation driver, stated that, from his previous
experience driving non-metered cabs in Washington D.C. , the
zoned-rates do not work; that a cab company operates on
reliability, utilizing employees who work each day and are
on time; that he has been employed by Mr. Miller in the past
' and, in his opinion, Country Club Limousine employees remain
only a short period of time; that Council is not only gambling
with a new company, but also with a company that, in his
opinion, cannot retain its employees; that the cab business
is difficult, and drivers are not willing to do anything
extra if they are poorly paid. He stated that cabs cannot
be at the Airport continuously, and that he is not aware
of any problems with the current cab service at the Airport,
nor with the drivers.
Hobert Clay Wehir, 39501 Bellaire, Desert Transportation
driver, stated that Mrs. Grannis is a lady with much dignity;
that the cab drivers are aware of the people in the community;
that Palm Springs is an international resort; that cab drivers
are the first people visitors see, and it is the driver's
job to see that people are happy; that all the drivers try
to Find a better way to serve the people; and that Mrs. Grannis
cares for the community, and makes sure everyone receives
fair treatment.
Ray Greene, 888 West Drive, No. 363, Morongo Valley, supervisor
for Desert Transportation, stated that the cofipany employs
six or seven drivers who were previously employed with Country
Club Limousine Services; that Desert Transportation does
not tolerate lying from any of its drivers; that he has been
in the cab business for 20 years, and is proud to work for
Mrs. Grannis. He stated that the City cannot expect a company
to pay $15,000 to $20,000 for extra cabs if there is a
possibility that it would not receive the franchise, and
not be able to recover the money; that there is a problem
when people wait for a cab and receive false information;
that if planes arrived staggered the company could handle
Vr
e .1
Council Minutes
8-18-87, Page 4
1. TAXICAB FRANCHISE (Continued)
the number of people requiring cab service; and, that if
the need is there and the company has the franchise, the
need can be handled, but it takes time to get people to their
destination.
Dennis Bazanet, 66953 Buena Vista, stated that, in the 26
years he has lived in Palm Springs, he has seen growth and
problems in the area; that he has worked for Desert
Transportation for over three years, and the cab company
has grown; that if the City would look at Mrs. Grannis'
maintenance and growth record, the business has tripled and
grown by approximately three cabs per year; that this is
not a cab city, and there are times when more cabs are needed
for short periods of time than are available. He stated
that the Airport has been covered in recant years because
there are limousine companies who are acting as "glorified"
cabs; that hotels have shuttle systems competing with the
cab company; that Sun Bus tried to improve business and give
service every half' hour, but did not get people to ride the
bus; that most people are not accustomed to taking cabs;
that with a five-month tourist season, a business cannot
continue for only five months out of the year, and be expected
to stay in business; that a business must grow on an annual
basis and, in his opinion, Mrs. Grannis has accomplished
this. ,
Zahir Shalizi , franchise applicant, stated that he feels
that he was not given enough time to prepare a proper proposal ;
that he thinks the recommendation to give Country Club
Limousine Services the franchise was pre-arranged; and, that
he thinks Desert Transportation should be given the franchise,
since they have been doing a good job with no complaints.
There being no further appearances, the hearing was closed.
It was the consensus of the Council that the company operates
well , and there is no reason to change.
MO 3994 selecting Desert Transportation d,ba Desert Cab as
the exclusive taxicab franchise and authorizing staff to
negotiate a franchise agreement for City Council consideration
on September 2, 1987, was presented; after which, it was
moved by Birer, seconded by Apfelbaum, and unanimously carried,
that MO 3994 be adopted.
Councilmember Apfelbaum stated that there is a difference
of opinion between the staff and Council which needs to be
clarified, and the Council should not overrule staff's
recommendation without knowing what transpired during the
review process. '
City Manager stated that, although staff' s recommendation
differs from the Council ' s decision, it was based on what
was thought best for City services, and that the issue that
needs to be clarified is that there appears to be different
information.
Council Minutes
8-18-87, Page 5
1. TAXICAB FRANCHISE
Director of Transportation stated that interviews were not
previously held with every Desert Transportation driver,
but staff does not think it is incorrect in its decision;
that it was a difficult choice for staff, but it is a Council
decision; that all three companies would benefit the City;
that there was no preconceived idea who would receive the
franchise, and an opportunity was given in interviews for
each company to clarify its capabilities; that the process
of selection worked the way it was designed to; and, that
staff would go with Council ' s decision.
Councilmember Smith stated that it was a difficult choice;
that after reading the report, Desert Transportation' s
financial position seemed precarious, but after listening
to responses to questions, that matter has been clarified;
and, that he did not think Council was actually going against
staff recommendations.
2. DISPOSITION OF WELWOOD MURRAY LIBRARY
Recommendation: That Council find the sale of the Welwood
Murray Library in the public interest and convenience and state
its intention to sell and set the time of hearing of protests
to the sale for September 2, 1987 at 7:30 p.m. .
Director of Redevelopment stated that on July 15 Council approved
Resolution 16250, directing staff to proceed with the steps
necessary to take action on the property; and, that the City
Attorney has studied the Government Code, and hasi set out the
method by which the City should proceed to consider the sale
of the property. He stated that the issue is that if Council
wishes to proceed, it must adopt a resolution stating its
intention to sell , and setting a time and place for protests, �99)
and he reviewed the proposed resolution; that Council would
still need to clarify other issues, such as the specific design
of the Library, but these issues do not need to be a part of
the proposed resolution; that the deed restrictions relative
to maintaining a portion of the library also need to be a part
of any future agreement; and that proposed action is not to
finalize the sale of the property, but whether the Library
should be sold.
City Attorney stated that there is some urgency in obtaining
Council approval , since John Wessman has a December i deadline
to meet to obtain financing.
Councilmember Foster expressed concern that the Council meeting,
to be held September 2, 1987, would be part of the Labor Day
holiday; that the Council has been criticized in the past for
handling important issues in the summer when few people are
in the City; that Council has taken a position that no important
issue would be decided while people are out of the City for
the summer; that many people would be returning after the Labor
Day weekend; and, that many people would like to be at the
hearing, and that postponing it is not critical , and the hearing
should be scheduled for September 16, 1987.
City Manager stated that staff appreciated Council ' s concern,
however, it was understood that Council had made a policy
decision and, based on that decison, it is the recommendation
of staff that the issue be heard on September 2; and that further
delay might endanger the project.
Council Minutes
8-18-87, Page 6
2. DISPOSITION OF WELWOOD MURRAY LIBRARY (Continued)
Alex Jablow, 140 Primavera Drive, stated that he hoped the
Council still had an open mind; that the City would have to
consider the property surplus, and he questioned how the City
could come to that conclusion; that an impartial pool of 1,100
citizens responded to a survey, and stated they would like
the Library to remain as it is; that the Library Board has
made a unanimous recommendation to maintain the Library as
it is; that he questioned how the fair marlket value of the
property was arrived at; and that he considered September 8
or September 9 a more appropriate date for the hearing.
Ruth Licata, League of Women Voters, 530 North Calle Marcus,
stated that the League urges postponing the meeting of September
2 to September 16, but would be satisfied with holding the
meeting on September, 9; that she has difficulty accepting the
opinion of the lawmakers, no matter how justified or beneficial
that decision might appear, and that: the Council leaves itself
open to the charge that important issues are heard when people
are out of town; and that -the meeting should be held on September
9, 1987.
John Wessman, 72200 Clancey Lane, Rancho Mirage, stated that
if the meeting is postponed beyond September 9, it will create
a financing problem for him.
Jeremy Crocker stated that Section 3 of the proposed Resolution '
of Intention contains the words ". . .design now approved by
the Planning Commission. . . " ; that the design proposed for the
Welwood Murray Memorial Library pertains to a. Class 7 historic
site as previously designated by the Council , and the proposed
design would change the structure, trim, glazing and lettering;
that Section 8.05. 125 of the Municipal Code states that a Class
7 historic site may not be modified, nor objects removed; and
that, therefore, the Planning Commission' s action would be
contrary to the ordinance, and to retain its ratification in
the present resolution would bring into question the entire
proceeding.
Mayor stated that comments should be made at the hearing on
the issue at hand; that the Council has the authority to change
a historic site classification ; and that (he City Attorney
has given his opinion that the Council can reduce the historic
site category, or approve changes to the exterior but, with
respect to changes to a Class 7 historic site, the Council
must first approve the change.
Resolution No. 16272 finding the sale of the Welwood Murray
Library in the public interest and convenience and stating
its intention to sell the Library, and setting the time of
hearing of protests to the sale for September 8, 1987, at 3:00 '
p.m. was presented; after which, -it was moved by Apfelbaum,
seconded by Foster, and unanimously carried, that Resolution
No. 16272, be adopted.
ADJOURNMENT:
There being no further business, the meeting was adjourned.
UUITH SUMICH
City Clerk
By: PATRICIA JONES
Assistant City Clerk