HomeMy WebLinkAbout12/6/1989 - MINUTES 444
CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
DECEMBER 6, 1989
A Regular Meeting of the City Council of the City of Palm Springs,
California, was called to order by Mayor Bono, in the Council
Chamber, 3200 Tahquitz-McCallum Way, on Wednesday, December 6,
1989 at 7:30 p.m.
ROLL CALL: Present: Councilmembers Apfelbaum, Broich, Foster,
I Neel and Mayor Bono
Absent: None
The meeting was opened with the salute to the Flag, and invocation
by Shauna Segundo.
REPORT OF POSTING OF AGENDA:
Report of City Clerk: The agenda was posted in accordance
with Council policy on December 1, 1989.
PRESENTATIONS:
HUD Presentation to the City - Regarding Joint Venture Affordable
Housing Program.
Earl Fields, Santa Anna office manager, stated that HUD did not
expect Palm Springs to be a front runner to embark on this type
of program; that affluent cities do not put the low income housing
concerns first; and that the example that Palm Springs has put
forth is one to be proud of.
Robert De Monte, Regional Director, San Diego, stated that the
I definition of affordable housing is when you can live close to
where you work; that it takes local jurisdiction to allow
affordable housing and concern to take the stand to help its
citizens; and that without the support of the City Manager,
Coachella Valley Housing Coalition, Mario Rodriques, and City
Council affordable housing in Palm Springs would not be a reality.
Mayor Bono stated that it was an honor to receive the award;
that without dedicated city staff, such an award would not be
possible; and that special credit belonged to Economic Development
Specialist.
PUBLIC HEARINGS:
Al. PA1B7 - SALE OF PROPERTY TO JOHN WESSMAN
Recommendation: That the Council approve the sale of
the Community Redevelopment Agency's interest in property
at 124 and 132 South Palm Canyon to John Wessman, subject
to specific terms and conditions.
Director of Economic Development reviewed the staff report
given in detail at the last study session, and added that
the sale would not be consummated until June 1, 1998;
I that a participation agreement was entered into between
the City/Redevelopment Agency and the Wessman Development
Company concerning the subject property in November 1988,
which provided that the property would be acquired, and
sold to Wessman; that the Agency entered into a lease
purchase agreement for the property with the intent of
disposing of the Palm Canyon frontage to Wessman
Development, in accordance with the participation agreement;
that the Wessman Development Company agreed to remodel
the Plaza Theatre, at no profit, and donated $50,000 cash
44
Council Minutes
12-6-89, Page 2
Al. PA1137 - SALE OF PROPERTY TO JOHN WESSMAN (Cont)
towards the restoration consistent with Agency action
Feburary 1, 1989; that all costs of improvement on the
sales property are the responsibility of Wessman, with
the exception of the Plaza Theatre courtyard for which
the Agency shall reimburse Wessman Construction fifty
percent of the cost from tax increment revenues; that I
the rental income from the property will accrue to the
Agency during the term of the lease, until June 1, 1990;
that a lot line adjustment will be conveyed in 1998 to
allow windows on the second floor overlooking the Plaza
Theater property; that an easement will be required to
allow garbage removal from the Plaza de las Flores to
Indian Avenue; and that the sale will not occur until
June 1, 1998 in the amount of $400,000.
Mayor declared the hearing opened.
a) John Wessman, 72200 Clancy Lane, Rancho Mirage, stated
that he understood that the property in front of the
Plaza Theater was to be purchased by his corporation ;
that the property in question has been talked about
for a long time; that a wall separating the properties
would be unattractive; that the area being considered
for easement is needed; that the area will function
as a patio area for dining, when the Plaza Theater
is not in use; that the Fire Department was in agreement
with the easement, which gives the ability to remove
trash from the building; and that it does not matter
if he is given fee title, or easement, but that the
area can only be designated open space if both parties I
agree.
b) George Goldberg, 1445 "Cesspool " Drive, stated that
the property at 124 and 132 South Palm Canyon should
have been offered for competitive bidding; that the
area is of prime value; that a contract should not
be issued without competitive bidding, and questioned
the legalities of doing so; and commented on various
employee expense accounts.
c) Deyna Hodges, 3122 E. Baristo, stated that it is
questionable whether the City has the right to sell
the property at 124 and 132 South Palm Canyon , and
who now has the title to it; and that a price fixed
now would not reflect the property value in 1998.
d) Sean Sontag, 124 South Palm Canyon., owner of Louise's
Pantry, skated that the property had not been offered
to him, and that he and Mr Gorham, owner of Karen' s
Corner, were willing to offer the City $500,000 for
it; that Louise's Pantry was established -in 1946,
which should be considered; that Mr. Wessman plans
to tear the building down; and that since the City
has a budget deficit a higher cash offer would be I
substantially more beneficial .
e) Don Frank, 550 N. Cahuilla Road, stated that the square
foot price being paid by Mr. Wessman for two properties
is too low; that the downtown area is depressing;
and that the sale of the property should be continued
to the next meeting.
Mayor declared the hearing closed.
Council Minutes
12-6-89, Page 3
Al. PA1B7 - SALE OF PROPERTY TO JOHN WESSMAN (Cont)
Director of Economic Development stated that specific
laws govern the Redevelopment Agency; that the quidelines
are not the same as for the City' s; that the Agency does
not require the competitive process; that the issue is
what Mr. Wessman will do with the property, rather than
I the sales value; that Mr. Wessman has proven his
architectural ability in the past, and now with the Plaza
de ]as Flores; that the remodel of Louise' s Pantry will
be at Wessman' s expense, and he will not receive any revenue
from the property until 1998; that high-quality developments
are the future of Palm Springs; that the Redevelopment
Agency will continue to administer the leases of Louise' s
Pantry and Karen' s Corner; that the lease for Karen 's
Corner will not be renewed; that appraisal of the property
was made by Joe Gallagher; that the established value
of the property is $212,000, including the easement rights;
and that depreciation of the buildings must be considered.
City Attorney stated that there is an agreement with John
Wessman regarding the property, and in view of that fact,
a higher offer could not be accepted.
Councilmember Foster stated that the entire community
will benefit from Wessman's purchase; that Wessman
developments could not be better; and that some of the
details regarding easements need to worked out now to
avoid future misunderstandings.
Councilmember Apfelbaum stated that the development is
I a joint venture between Wessman and the City; and that
when completed this will help revitalize the downtown
area.
Don Frank stated the issue was an ethical one; that there
could be a conflict of interest for the Counci]members;
that there may be feelings of owing Wessman something
for the effort spent on the downtown area; and that if
there is a pre-existing or business relationship, it would
constitute a conflict of interest and a Councilmember
should not vote on this issue, but rather abstain; and
he questioned each Councilmember regarding their potential
conflict.
Councilmember Foster stated that Wessman has done a great
deal for the community in the past three years; that he
did not have a conflict dealing with any issues concerning
Wessman; and that the time for public comments had past
since the hearing was closed.
Mayor Bono stated that he had no conflict of interest;
that the improvement of the downtown area has been part
of the Council thrust; that resistance mounts for every
improvement effort considered by the Council ; that a
committment has been made to the downtown area; and now
I is the time to pursue ideas, while momentum is high; that
the benefits to the community as a whole must be weighed;
that it is time to move forward; and that the Council
has never tried to deceive the public, but has only acted
in its best interest.
City Attorney stated that Section 4 of the Resolutions
would be amended to read: "That the sale price shall
include a means of access to and from the rear exit of
Plaza de las Flores to Indian Avenue, to include such
property interest, whether easement or fee title, as is
necessary to provide such access, all contingent upon
the Agnecy's ability to acquire that property through
any means legally available to it. "
r
4 47 Council Minutes
12-6-89, Page 4
Al. PA1B7 - SALE OF PROPERTY TO JOHN WESSMAN (Cont)
Resolution 16956 and Resolution 666 each as revised was
presented; after which, it was moved by Apfelbaum, seconded
by Neel , and unanimously carried, that: R16956 and R666
be adopted.
NOTE: See CRA Minutes for Res 16955
PUBLIC COMMENTS: I
a) John Wessman, 72220 Clancy Lane, stated that he had
started the Plaza de la Flores project four years
ago; that the City Council has supported the endeavors
for the project; that the Community conception is
that the project is netting his company a large sum
of money, but that in fact it is turning out to be
a losing proposition; that there are members of the
City that have spoke against the project; that these
citizens own properties that are in a state of
disrepair; that the downtown area has become a haven
for tee-shirt shops; that the downtown merchants are
responsible for upgrades to their own properties ;
and that redevelopment is needed in the downtown area.
b) Dee Dee Stone, 142 Eastlake, stated that in 1985 she
moved to Palm Springs; that she dedicated herself
to be the Council conscious; that her vow was that
Palm Springs would not be treated as free goods, but
rather protected; that she has been verbally, abused
by friends and family for not picking up the gauntlet
concerning Council issues; that the pace of the City
needs to be slowed down; that Jani/Jerde was hired
to find the image of Palm Springs; that local residents I
could have told the Council that the City rieeds to
retain its village atmosphere; that obviously the
Council does not listen to the residents ; that money
has been spent For consultants , when there are qualified
residents willing to donate their time; and that the
direction of the City needs to change.
c) Frank Banks, P.O. Box 902, stated that he has been
treated poorly by City Administration; that he worked
for the City for three years; that he had received
an Employee Recognition Award during that time; that
he had filed grievances against the City; that the
City placed him on medical leave; that his medical
insurance is not being paid for by the City; and that
Council should investigate the treatment of employees
by management.
MESA WIND FACILITY COMMENTS
d) Peter McKenzie, 14110 Whitewater Road, stated that
he was a member of the Wind Energy Task Force; that
Palm Springs is the only governing body that has voiced
an opinion of the turbines; that even though the area
is out of the sphere of influence of the City, an I
endorsement concerning the noise of turbines would
be beneficial ; that the most dramatic affect for the
homeowners in the area is noise pollution ; that the
additional turbines will be situated to create a funnel
of noise in the Bonnie Bell community; that the
topography of the area increases the noise; and urged
the Council to include a sound study with its
recommendation on Item 2.
44S
Council Minutes
12-6-89, Page 5
MESA WIND FACILITY COMMENTS (Cont)
e) Bob Gates, stated that 'there should not be a large
change in the sound generated by the turbines ; that
the project will produce more power; that wind power
does not have the side effect of carbon dioxide; that
there has been support from residents in Bonnie Bell ;
I and by supporting the addition of the turbines, a
win-win situation is created for all involved.
f) George Goldberg, no address given, stated that various
claims and demands against the City do not have
breakdowns; that Wessman builds beautiful arches,
but questioned the inspections and advised the City
Inspectors to monitor the Plaza de la Flores project.
g) John Warner, 61601 Smoke Tree Road, stated that
windmills surround his property; that Bonnie Bell
is an impacted area; that the area does need relief;
and that a noise study should be done.
h) Sandy Carmichael , 15919 Snow Creek Road, stated that
she had a direct view of the windmills; that if the
entire State was covered by windmills, the amount
of positive impact would not outweigh the negative;
that he would like to commend the Council for the
action they have taken in the past regarding the
windmills.
i ) Ross Killian, North Palm Canyon, stated that there
is an adverse visual impact by the windmills but that
' using power created by wind is better that releasing
chemicals in to the air.
LEGISLATIVE ACTION:
1. PUBLIC ARTS COMMISSION GUIDELINES
Recommendation: That the Council adopt basic guidelines
and responsibilities for the Public Arts Commission. (060
023)
Director of Community Development reviewed the staff report
given in detail at the last study session, and no further
report was given.
Councilmember Apfelbaum stated that the Commission will
be a responsible group, and will help attract high-quality
art centers, in turn helping the City become more of a
destination point for the arts.
Resolution 16957 as recommended was presented; after which,
it was moved by Apfelbaum, seconded by Foster, and
unanimously carried, that R16957 be adopted.
449
Council Minutes
12-6-89, Page 6
2. MESA WIND FACILITY -- PROPOSED MODIFICATION
Recommendation: That the Council conditionally recommend
that the BLM approve a proposed modification to the Mesa ( 123
Wind Facility Plan of Operations , dated September, 1989, 002)
for the relocation of 63 wind turbine generators, for
project located approximately 1 mile North of I- 10, west I
of '.J =.water Canyon.
Assistant Planning Director reviewed the staff report
given in detail at the last study session, and added that
the area is outside the City' s sphere of inFluence; that
a recommendation will be sent to the Bureau of Land
Management about a noise study; and that the ridge line
should block the view of the turbines from the highway.
Resolution 16958 as recommended was presented; after which,
it was moved by Foster, seconded by Broich, and unanimously
carried, that R16958 be adopted.
3. VINTAGE GRAND PRIX - CONCRETE BARRIERS
Consideration of request from PS Vintage Grand Prix, Inc. , 050
to leave the concrete barriers in place, along with the 005)
in-field section of the race course.
Director of Aviation reviewed the staff report given in
detail at the last study session , and added that a revision
could be made to the Resolution specifing that removal
of the barriers shall be within 30 days after a City
request.
Resolution 16959 as recommended was presented; after which,
it was moved by Foster, seconded by Broich, and unanimously
carried, that R16959 be adopted.
4. PLAZA THEATER
Recommendation: That the Council authorize contract for
the completion of construction drawings i-or a more extensive ( 124
remodelling of the theater; and sanction establishing D74)
a nonprofit corporation for fundraising, therefore. Richard
McCann A#2796.
Assistant Director of Economic Development reviewed the
staff report given in detail at the 1st study session
and no further report was given.
Councilmember Foster stated that Phase II should be
contingent on starting when all loans are paid back to
the General Fund; that the City is in a deficit; that
good economics indicate that, one repays a loan before
taking another; that Phase II will cost another million
dollars to complete; that the Council ' s target is to improve
the downtown area, but considering the budget situation,
the loan should be repaid before advancing any more money.
Councilmember Apfelbaum stated that Councilmember Foster' s
concern is an important one; that the Council goal is
to rejuvenate the downtown area; that. the Theater is a
keystone; that Phase II needs to start; that Spring is
the time to do fund-raising; and that the momentum is
now, and any delay could hurt the fund-raising efforts.
Resolution 16960 as recommended was presented., after which;
it was moved by Apfelbaum, seconded by Neel , and carried
by the following vote that R16960 be adapted.
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Council Minutes
12-6-89, Page 7
AYES: Apfelbaum, Broich, Neel and Mayor Bono
NOES: Foster
ABSENT: None
ADDITIONAL LEGISLATIVE ITEMS: (Satisfied Agenda Posting
I Requirement)
5A. CREATION OF AN AGGRESSIVE STATE TOURISM COMMISSION
Recommendation: That the Council approve proposing the (098
creation of an aggressive State Tourism Commission. 001)
City Manager stated that the Commission could be funded
from a uniform State-wide transient occupancy tax of
one-half of one percent, estimated to produce in excess
of $25 million per year; that the Commission ' s Board of
Directors would include a representative from the California
Hotel/Motel Association, the Western Association of
Convention and Visitors Bureaus, the California Tourism
Corporation, and several members or staff of local
convention and visitors bureaus in the State; that in
addition to the funding generated by the proposed transient
occupancy tar., the State would maintain its present level
of tourism funding of approximately $5 million per year.
Resolution 16974 as recommended was presented, after which;
it was moved by Apfelbaum, seconded by Broich, and
unanimously carried, that R16974 be adopted.
1 CONSENT AGENDA:
6. MO 4493 approving purchase of a street flusher water truck (084
from E.W. Equipment Co. , for $53,889. 006)
7. MO 4494 approving CO#1 to PO 94353 to Len Morgan Motors, to (084
add a staff car for the Police Chief for $11,928. 006)
8. MO 4495 approving purchase of computer equipment from various (117
vendors for the Airport for $19,907.20. 011)
9. MO 4496 awarding contract for room tax audits to Lind & Gutry, (058
CPA' s, at $60 per hour - Agr #2797. 001)
10. MO 4497 awarding purchase of a 1500 GPM Custom "A" pumper fire (117
truck, with 55-ft telescoping water tower, from Beck Fire 011)
Apparatus, for $333,301.33.
11. Res 16961, 16962, 16963, 16964 approving Payroll Warrants and (086
Claims & Demands. 007)
12. MO 4498 approving agreement with the Desert Division of the (087
American Heart Association for CPR training; and Res 16965 001
amending the Comprehensive Fee Schedule to establish Fire (114
Department fees, therefore. Agr #2798. 001)
13. Res 16966 approving sub-recipient agreement with Desert (085
Transition House, a nonprofit corporation, for the opening 001)
of a transitional shelter for the homeless (required prior
to the dispersal of CDBG funds) - Agr #2799.
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Council Minutes
12-6-89, Page 8
CONSENT AGENDA (Cont)
14. Res 16967 approving 12-month time extension for final development ( 116
plans for PD 170 for 192-unit resort hotel on NE corner, E. Palm 039)
Canyon Drive and Camino Real - new expiration date August 5,
1990.
15. MO 4499 approving Convention Center Rate Schedule increase, (139
effective January 1, 1990. 001)
16. Res 16968 suspending the Sign, Noise and Zoning Ordinances (C)50
for the 1990 Film Festival events. CI10)
17. Motion concurring in CRA Res to date (Res 660 - 666)
18. MO 4500 awarding contract to Aero Tech Surveys, Inc. , for flying, (056
photographing, and mapping to assist in A.D. 157 street. design, O11)
and golf course design for area in the wash area adjacent to
the Municipal Golf Course - Agr #2800.
19. Res 16969 amending the Allocated Positions & Compensation Plans (061
for adjustment to three allocations, and one addition ; and 006)
Res 16970 and Res 16971 amending the budge1t to provide funds, (061
therefore - relates to Community Services & Promotions 007)
Department, and Economic Development Department.
20. Res 16972 designating December as Smoke Detector Month. (087
001)
It was moved by Broich, seconded by Foster, and unanimously
carried, that Resolutions 16961 through 16972., Minute
Orders 4493 through 4500, and motion in Item 17 be adopted. I
ADDED STARTERS: (Eligibility for Consideration determined upon
unanimous approval at the study session)
21. TM18087-FINAL MAP 18087
Recommendation: That the Council approve final Tract (137)
Map 18087, to divide property located along Bogert Trail
east of South Palm Canyon Drive, Section 35 & 36.
Resolution 16973 as recommended was presented, after which;
it was moved by Apfelbaum, seconded by Broiich, and
unanimously carried, that R16973 be adopted.
22. LIBRARY MICROFILM READER/PRINTERS
Recommendation: That the Council approve the purchase (iD99
of two microfilm reader/prinf.ers from Mino-Mircographics, 001)
Inc. , not to exceed $16,000, and waive the formal bid
process.
Minute Order 4501 as recommended was presented, after
which; it was moved by Apfelbaum, seconded by Broich,
and unanimously carried, that M04501 be adopted.
I
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Council Minutes
12-6-89, Page 9
REPORTS & REQUESTS:
DEPARTMENTAL REPORTS - Received & Ordered Filed
a) Treasurer' s Monthly - July, August, September, 1989
b) Wastewater Treatment Plant - Annual report, 1989
CITY COUNCIL reports or requests
SB1880
a) Councilmember Apfelbaum requested the Council endorse (098
Senate Bill 1880, which allows for competitive cable 098
franchises to be considered by Cities.
01)
City Manager stated that the item could be added to
the agenda, that the Council could informally support
the Bill ; that a letter could be sent to the local
legislators or that the item could be considered at
the next study session.
It was moved by Apfelbaum, seconded by Broich, and
unanimously carried, that consideration of SB1880
be added to the agenda; after which, it was moved
by Apfelbaum, seconded by Broich, and unanimously
carried, that the Council formally endorse SB1880.
PUBLIC reports or requests
ISTAFF reports or requests
ADJOURNMENT
There being no further business, Mayor declared the meeting
adjourned to Wednesday, December 12, 1989, at 2 p.m. ,
in the Large Conference Room, City Hall .
JUDITH SUMICH
—C--�ty Clerk—
By:
,
'By: PATRICIA SANDERS
Assistant City Clerk