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HomeMy WebLinkAbout11/4/1987 - MINUTES CITY OF PALM SPRINGS CITY COUNCIL MINUTES NOVEMBER 4, 1987 4 10 A Regular Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor Bogert, in the Council Chamber, 3200 Tahquitz-McCallum Way, on Wednesday, November 4, 1987, at 7:30 p.m. ROLL CALL: Present: Councilmembers Apfelbaum, Birer, Foster, Smith and Mayor Bogert Absent: None The meeting was opened with the Flag Salute and a Moment of Silence. REPORT OF POSTING OF AGENDA: Report of City Clerk: Agenda posted in accordance with Council policy on October 30, 1987. PRESENTATION: Mayor presented award from the California Association of Public Information Officers Award to Julie Baumer, (74) Assistant to the City Manager and Public Information Officer; Fred Donnell , Police Department, and Greg Mandinach, Chamber of Commerce; and award to Marian Henderson, Desert Beautiful . COMMUNITY REDEVELOPMENT AGENCY: Mayor declared the meeting adjourned for the purpose of convening as the Community Development Agency. APPROVAL OF MINUTES: ' It was moved by Birer, seconded by Smith, and unanimously carried, that the Minutes of October 13 and 21, 1987, and September 2, 1987 Corrected Pg. 7, be approved. PUBLIC HEARINGS: 1. P.D. 189 & TTM 22396 - COMMUNITY NATIONAL CORPORATION Recommendation: That the Council approve a preliminary planned development district, and tentative tract map, to establish a master plan for a 12-acre site on the north side of Ramon Road, south of the Airport, for a mixed-use development, including drive-through restaurants, a carwash, a retail building, and a three-unit industrial building. (116 & 137) Planning Director reported that this matter had been reviewed in detail at the last study session; that the project contains multiple uses and a master plan for development of the site; that the Commission approval would limit the number of drive-throughs to two under this application, and any additional would be subject to a use permit; that the parcel would be lied to the Airport parcel to the east (TPM 22694) by an access road, or internal street system, with reciprocal easements, ' and a traffic signal at Paseo Dorotea; that each site would be subject to architectural approval at the time t of development, and final development plan approval by the Council ; that a single ingress and egress point for the property has not been explored, however, he thought there would be considerable negative impact, in particular, the creation of a 1,200 foot long cul-de-sac and a constricted entry. Council Minutes 11-4-87 Page 2 1. P.D. 189 (Continued) Mayor declared the hearing opened. Chris Mills, 121 S. Palm Canyon, stated that there was never any intent to designate four specific sites to be used for drive-throughs, but to demonstrate alternatives as to how they might be handled, but gives impression of "stacking" them in a row; and that approval of two ' is understood, as well as any further restaurant use being subject to a conditional use permit. Pat Meyers Community National Corporation, stated that access to the entire parcel is important, and he did not think a 12-acre business park could be serviced by a single entry, even from an emergency standpoint only; that they are willing to work with adjoining property owner on the alignment of access on the west end, and if that is not possible, it will be offset 10-12 feet until that property is developed; and that they did not have any problem with ingress and egress for the non-signalized access based on a right-in and right-out only condition. There being no further appearances, the hearing was closed. In answer to question by Council , Director of Transportation stated that the access to the Airport parcel is necessary; that the total piece was for Airport related uses, however, the FAA was convinced that only the north half should be so designated, and the south half fronting on Ramon Road could be released from the Airport related restriction, and developed along with whatever else is appropriate for that frontage, which would also create funds for the ' Airport; that without access to it off Ramon Road, it would be less desirable unless someone could be convinced to access it one block away; and that large trucks will need to access the flight kitchen, and a right-in only turn will be acceptable, provided the trucks can then turn left via a traffic signal at Paseo Dorotea; that the FAA probably would have a negative reaction to extending the internal street eastward into the clear zone, since it is not happy that Ramon Road, itself, crosses the approach area. Councilman Foster stated that the Council has not adopted a policy concerning Ramon Road improvement; that there would still only be one major access point; that perhaps more landscaping is required; that the possibility of a median island, and the attendant concerns regarding access for both sides of the street needs to be addressed, and should be accomplished before allowing anything to hamper that; and that he thought this 'matter should be continued until the Council can work with staff and the Planning Commission to address policy issues. He also stated that a right-out turning movement might be accept- able, however, he questioned how it will be enforced without a median island; and that ownership breakdown should be looked at for the entire one-mile strip. ' Councilmember Smith stated that he thought the issues { could be resolved quickly, and the proposal is not far off from what is being talked about; and that the focus should be on the streetscape, traffic and beautification, and what the median would look like, and how it would work. Council Minutes 11-4-87 Page 3 412 1. P.D. 189 - (Continued) Councilmember Apfelbaum stated that the review should also consider what the consequences would be of establishing a median island. It was moved by Foster, seconded by Birer, and unanimously carried, that this matter be tabled, pending review of ' Ramon Road streetscape, beautification, traffic circulation, and median island concept and policy. 2. TPM 22694 - CITY OF PALM SPRINGS (AIRPORT) Recommendation: That the Council approve a parcel map to subdivide a 13 acre parcel of Airport property located on the north side of Ramon Road into four parcels of 3 to 3% acres each; one of which is proposed to be used for a flight kitchen, and the remainder to be leased or (119) sold. (See also P.D. 189 & TTM 22396) Mayor declared the hearing opened; there being no appear- ances, the hearing was closed. It was moved by Smith, seconded by Apfelbaum, and unani- mously carried, that this matter be tabled, to trail con- currently with P.S. 189 and TTM 22396, as also tabled this date. A2. AA CASE. 3.0272 - VOSS INVESTMENT PROPERTIES On October 20, 1987, Council requested that the action of the Planning Commission be reviewed, concerning a retail commercial complex on the NE corner of Avenida Caballeros and Tahquitz Way. Note: Due to conflicts of interests by Councilmembers Birer, Foster and Smith because of interests in other real property, a random drawing was (111) held at the study session to determine which of the three members should not abstain in order to constitute a quorum, and Councilmember Foster was selected. Planning Director reported that this matter was reviewed in detail at the last study session, and Council ' s questions responded to in-depth by the Architect, Hugh Kaptur. Mayor declared the hearing open, there were no appearances, and the hearing was closed. It was moved by Apfelbaum, seconded by Bogert, and unani- mously carried, Birer, Foster and Smith abstaining, that the Planning Commission action be upheld. PUBLIC COMMENTS: Note: Public Comments concerning Item A4 (Rent Review Guideline) were taken at the beginning of the meeting, and are reflected in the excerpt related to said item. There were no other Public Comments. ' LEGISLATIVE ACTION: Council Minutes 11-4-87 Page 4 3. CONVENTION CENTER - CHANGE ORDERS 21 THROUGH 24 Recommendation: That the Council approve Change Orders 21 through 24 to contract with McDevitt & Street, for a total increase of $35,245. This matter was reviewed in detail at the last study session; Change order, 21 was not ready For approval , and is to be presented at a future (139) ' date. In response to question raised by Council at the study session, Assistant Fire Chief reported that the Desert Hospital is a good example of how the annunciator is used, in particular, it is connected to the Fire Department dispatch, and ideni:ifies the location of the fire; that in the case of the Hospital , once the alarm is sounded, a manual inspection is made of the annunciator, and the location of the fire is reported to the Fire Department. Councilmember Foster stated that, in his opinion, the prices on the change orders are too high, and the City is being taken advantage of. MO 4057, approving Change Orders 22 through 24, was presented; after which, it was moved by Apfelbaum, seconded by Birer, and carried by the following vote, that Minute Order 4057 be adopted. AYES: Apfelbaum, Birer, Smith and Bogert NO: Foster ABSENT: None 4. MUNICIPAL CODE AMENDMENT - AIRPORT Recommendation: That the Council amend the 'Municipal Code to repeal Chapter 11.29 - P.S. Municipal Airport, and add new provisions relative to the P.S. Regional Airport (Chapter 11.33) , and new Ground Access Regulations (Chapter 11.34) , reserve Chapter 11.35 for Airfield Regulations; (103) and amend Section 3.84.030 to provide an exemption for out-of-town ground transportation operators, but subject to a per-trip charge in-lieu of a business license tax. This item was reviewed in study session, and no further report was given. City Clerk read title of the Ordinance, as follows: AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, REPEALING CHAPTER 11. 29 OF THE PALM SPRINGS MUNICIPAL CODE AND ADDING THERETO CHAPTERS 11.33' AND 11.34 TO PRESCRIBE REGULATIONS FOR THE MANAGEMENT, OPERATION AND USE OF THE PALM SPRINGS REGIONAL AIRPORT, STATING PENALTIES FOR VIOLATION THEREOF; RESERVING CHAPTER 11.35, AIRFIELD REGULATIONS; AND AMENDING SECTION 3.84.030 EXEMPTING TAXI/LIMOUSINE OCCASIONAL AIRPORT ACCESS FROM BUSINESS LICENSE TAX REQUIREMENTS. ' It was moved by Smith, seconded by Apfelbaum, and unani- mously carried, that further reading be waived, and that the Ordinance be introduced for first reading. Council Mintues 11-4-87 Page 5 A4. RENT REVIEW GUIDELINES - AMENDMENT Recommendation: That the Council consider amendment to the hardship increase guidelines to allow consideration of purchase money interest as an allowable expense for those who relied on preexisting guidelines. City Attorney reported that rent control was approved ' by the voters in 1980, and the guidelines adopted by the Council in 1984, which previously had been approved by the Rent Review Commission; that the Council directed (85) that additional guidelines be prepared to cover three subjects, which were included in the guidelines adopted by the Council in 1986, which were subsequently questioned, and the specific repeal of 101 C I xii was the subject of a meeting held at the High School auditorium, at which both tenants and property owners spoke; that the Council did repeal the guideline, and directed that the City Attorney address the question of some compromise or relief that might be available to those persons who had purchased property in reliance on that guideline; that he developed language which addressed several concerns that had been brought out at that time, and at other discussions, objecting to including purchase money financing in consider- ing hardship increases; that the language was submitted to the Rent Review Commission for consideration, and it held public hearings and ultimately developed separate opinions from each of the Commissioners - basically, three concluded to leave things alone and not adopt new guide- lines, and two favored adopting some of the modified guide- line which would not be limited to only those who purchased property during the interim period, but to all purchasers present and future; that the matter was ready to come back to the Council in June, however, it was delayed until after the summer; and that his report details the guideline. In answer to question by Council , City Attorney stated that Judge Moore made several rulings; that the first mandate of the Superior Court led to the guidelines initially; and that he was not certain if Judge Moore' s most recent ruling on the Palacio de Anza occurred before or after the repeal of the guideline, however, it is currently under appeal by the landlord; that the decision stated that the guidelines were of a discretionary nature, and within the discretion of the Commission to decide not to apply that guideline, and it did not specifically decide the validity of the guideline. He also stated that the appeal could take 6-9 months in court; that the guideline is a compromise between the old guideline and the lack of such a guideline, and in one sense, a compromise between the Commission' s split. Percy Aucoin, 131 Calle del Callado, stated that Judge Moore said he would not approve rent control unless there were guidelines; that the guidelines were submitted, and he approved the rent control ordinance; and that the 1984 ' guidelines were created later. He read a prepared comment, opposing guidelines which allow pass-through of purchase money interest, a copy of which is on file with the City Clerk. 41 Council Minutes 11-4-87 Page 6 A4. RENT REVIEW (Continued) Odie Lee, President of the Desert Political Action Associa- tion, resident of Sahara Park, agreed with Mr. Aucoin, and spoke in opposition to decontrol of rents through vacancy, and problems which would occur in being able to know what the base rent should be for new tenants, and his opinion that apartments would have a higher vacancy ' rate. Peter Shapiro, 344 San Domingo Drive, speaking on behalf of tenants at El Dorado Mobile Park, stated that in the San Carlos vs. Rent Review Commission case, the original guideline prohibited any use of mortgage for rent increase purpose; that the City's guideline was changed in 1983 and again in 1984, which he considered to benefit only Mr. Goldstein; that the Palacio de Anza was tried under the pass-through guideline, and a 40% increase was asked for, and under the proposed guideline, there could be a 100% increase in rent in 7.3 years; that the Superior Court did not address the issue of validity of the guide- line, but that the owner (Mr. (lakes) has a fair return and there is no hardship; that the Initiative was passed by the people, and provided fair increases up to 3/4 of the CI'I on annual basis, and addressed legitimate hard- ship, that the courts have upheld N.O. I . (net of income) without pass-through, -in particular, in an Oceanside case, debt service was ruled not to be a part of the N.O. I . formula, and to do so would be to convert to fair market value; that under Section 10 of the initiative, the Council cannot diminish rights of the tenant, and the Commission has upheld that; that the new owner of El Dorado paid ' $7 million for the property, but borrowed $8 million to finance it; that the purchase price was $350,000 less than what the tenants had offered as a purchase price; that Mr. Goldstein had an escape clause from the purchase, in the event there was reversal of the law, and he questioned why he should be "bailed out" just because, in his opinion, he made a bad judgement; and that he spoke with the City Attorney's office in 1985, and he believed there was no pass-through, and agreed with the City Attorney that because of a governmental mandate, e.g. , sewers in Golden Sands Mobile, the owner should not be punished. He stated that the City has thus far avoided litigation. Paul Selzer, Best, Best & Krieger, attorney representing Mr. Goldstein, stated that in terms of fairness, Mr. Goldstein relied on discussions with the Assistant City Attorney that the purchase money was available under the guidelines; that his contract allowed him to back out of the deal if the guideline was withdrawn ; that the guideline was available when escrow was closed, and was allowed when the increase was asked for under the hardship guideline, and that it was only after the hearing started that the City changed the rules; that the tenants claim that any interest pass -through is riot fair to them, however, the tenant offer was not a cash purchase, but ' included interest rate at a higher level than was offered by Mr. Goldstein; that if he were granter,) every increase, the rents would be comparable to what other parks are paying -in the desert, for the same amenities; that from the time of purchase to closing, he has lost about $600,000 until 1986, and although the proposed guideline would give him far below what he believes he is entitled to under the guideline at the time of purchase, he is willing to accept it. 11-4-87 Page 7r A4. RENT REVIEW (Continued) 4 1 G He stated that Mr. Goldstein, in his opinion, has justifiably relied on the guidelines, and acquired a vested right to them, and if he is correct, the potential liability to the City and to the tenants is staggering; that if the Court ruled in that direction, it would mean an immediate increase based on 100% of the interest for 100% of the amount financed with no limit how much could be ' increased in a given year - possibly $128 per tenant, per month; that there is liability to the City as well , and each day that passes, the potential liability increases; that court cases are upholding that a more sensible approach be taken to rent control affecting mobilehomes and apartments with respect to governmental regulations; that in the Lutheran vs. Los Angeles case, it was ruled that there must be compensation if property is taken, even for a short time; that since the decision was made that the guidelines are not binding, two other court decisions have been made in the Valley that said discretion cannot be substituted for guidelines, and their plain meaning must be given. He stated that the initiative does not provide for guidelines, and it was the Court which said if there are no guidelines, the initiative is not valid; that a favorable court decision for either Mr. Oakes or Mr. Goldstein would have a disastrous effect on the community; that the compromise only affects two property owners, particularly, since it has been one year and no one has come forward and said they relied on it and want an increase; that the increase is limited to 10% per annum, and Mr. Goldstein would be giving up $150,000 per year forever; that if the compromise is not approved, damages are accruing daily which Mr. Goldstein is entitled to ' recover, and to recover it from the City. Allen Perrier, 3001 Tahquitz, attorney representing George Oakes, stated that Mr. Oakes purchased the property in June, 1985, at a price of $6. 285 million, with $2 million in cash; that he had discussions with the Assistant City Attorney and was assured that the Commission had an obliga- tion to rely on the guidelines; that he lost $100,000 in the first year, and he believed the Commission performed an irresponsible act in holding the pass-through invalid; that Judge Moore's ruling that the Commission had discretion and was not obligated to follow the guidelines was announced before December 15; that in the Indian Springs case in Rancho Mirage, the court ruled that the Commission applied discretion when it had to follow the guidelines, and the case is clear that the rules mean what they say and must be followed, and it established a formula approach to rent control ; that Mr. Oakes is not going to disappear, " and he believes that what he did was reasonable and that he will prevail ; that he was satisfied that he had a vested right, and acquired the property; that on December 15, three Councilmembers said that what happened to Mr. Oakes was unfair and directed the City Attorney to develop regulation that would propose a compromise; that he should receive a 10% return on his investment; that when he moved ' onto the property, he said he would limit rent increases to amounts less than 10%, and there is no evidence of gouging; that he has a lawsuit against the City on hold until this meeting takes place, and if there is no action, he will proceed to recover his losses. Council Minutes 11-4-87 Page 8 A4. RENT REVIEW (Continued) George Oakes, Hayward resident, stated that he spent $70,000-$80,000 to reroof the property, and reworked the parking lot and landscaping; that he purchased the property because he considered it a sound investment; that he considers this a matter of ethics, good taste, and judgement, and it is wrong to get a person to join the community, and then "pull the rug out. " He stated that the Commission completely wiped out his expense of improvements to the roof, parking lot, and increased taxes; that he has replaced more than one-third of the carpets, and repainted; that he is convinced of his correctness, and believes the court will prove him right; and that he is agreeable to almost anything reasonable, as long as it is fair. Morton Cam, 117 Alisso Drive, E1 Dorado, stated that within days of Mr. Goldstein's purchase, he was told the rents would be increased $140 or more, and that a 10% increase would be in addition to the 3% increase in December. Deyna Hodges, 2122 Baristo, member of the Rent Review Commission, stated that the City Attorney may consider his proposal a compromise, but the Commission did not look at his recommendation, and she did not think it was necessarily a compromise of the Commissioner's views, rather a staff recommendation. She asked that the Council make a specific decision. Councilmember Birer stated that the original ordinance was adopted by the people, and he would not favor vacancy decontrol unless the voters wish to do so, and it is up ' to them to make that known; that the guidelines were estab- lished by a prior Council , and the period under question is that during which it was available for use by the Commis- sion; that he does not favor its continuance; that it was a guideline and not a rule; that the Commission operated within its own right and purview, and he believes the Court will have to decide it; that he preferred no decision by the Council until the Court rules on the pending case; and hoped there might be a better form of compromise between the two specific cases. Councilmember Smith stated that he agreed with Councilmember Birer, and he voted to repeal the guideline; that it would be unusual to add it back again, or to do anything until the Court decision is made; that if the Court rules in favor of the lower Court's decision, no change is needed and there would be a status quo; that if it is overturned, then the City would have to do something, but action should not be taken simply in anticipation of that.. It was moved by Birer, seconded by Smith, and unanimously carried, that this matter be tabled, and no action be taken until the appeal litigation concerning Palacio de Anza is ruled on by the Court. 5A. CONVENTION CENTER - CONFERENCE CHAIRS Recommendation: That the Council authorize purchase of leather conference chairs for the Board Room of the Conven- ( 139) tion Center from Access, Palm Springs, 'in the amount of - $11,649.40. This; item was reviewed in study session, and no further report was given. Council Minutes 11-4-87 Page 9 5A. CONVENTION CENTER (Continued) MO 4058 authorizing purchase was presented; after which, it was moved by Smith, seconded by Birer, and unanimously (139) carried, that MO 4058 be adopted. 5B. CONVENTION CENTER - KITCHEN EQUIPMENT Recommendation: That the Council authorize purchase of kitchen equipment from G & H Interests, developer, for an amount not to exceed $250,000 (vendor: Food Facilities) . This item was reviewed in study session, and no further report was given. (139) MO 4059 authorizing purchase, with payment directly to vendor, was presented; after which, it was moved by Birer, seconded by Foster, and unanimously carried, that MO 4059 be adopted. CONSENT AGENDA: 6. MO 4060 approving participation in County contract for purchase (123) of gasoline and diesel fuels, at varying prices. 7. Res 16328 amending the Comprehensive Fee Schedule to increase (114) Council Chamber rental rates. 8. MO 4061 approving Change Order No. 1 (Final ) to contract with (128) Hendrickson Construction Co. , for a decrease of $7,442. 23, for replacement of broken sewer mains at various locations, CP 86-28, Agr #2447, final contract amount $54,207.77. ' 9. Res 16329 authorizing the elimination of five accounting funds (86) no longer required and the transfer of remaining balances to the General and Airport Funds. 10. MO 4062 awarding purchase of three used station wagons to Grand (84) Rent-a-Car Corp, dba Avis, for $9,220 per vehicle. 11. MO 4063 approving purchase of a runway sweeper from Public (84) Works, Inc. , for $39,829. 50. 12. Res 16330 and 16331 approving Payroll Warrants and Claims & (86) Demands. 13. Res 16332 granting utility easement to SCE to serve the Skywest ( 147) Maintenance Facility at the Airport (subject to verification of legal description) " It was moved by Birer, seconded by Foster, and unanimously carried, that MO 4060 through 4063 and Res 16328 through 16332 be adopted. 14. COMMISSION APPOINTMENTS Mayor announced his appointment of Ray Hutchison and John (123) Mealey to the Riverside County Fair Housing Task Force; after which, it was moved by Foster, seconded by Smith, and unanimously carried, that said appointment be approved. ADDED STARTERS (By unanimous approval at the last study session, the following items were determined Eligible for Consideration) t� 11-4-87 Page 10 15. AIRPORT CONCOURSE/PATIO STAIRCASE Recommendation: That the Council award contract to J.M. Builders for construction of a concourse/patio staircase, for $17,964, CP 87-58, Agr 2514. This item (51) was reviewed in study session, and no further report was given. MO 4064, awarding contract as recommended, was presented; after which, it was moved by Birer, seconded by Smith, and unanimously carried, that MO 4064 be adopted. REPORTS & REQUESTS: COUNCIL reports or requests - None PUBLIC reports or requests - None STAFF reports or requests - None ADJOURNMENT There being no further business, Mayor declared the meeting adjourned to Tuesday, November 10, 1987, at 2 p.m. , in the Large Conference Room, City Hall . 4�, --L. \----/ JUDITH SUMICH City Clerk