HomeMy WebLinkAbout1990 - MINUTES - 4/17/1990 - 059
CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
APRIL 17 , 1990
An Adjourned Regular Meeting of the City Council was called to
order by Mayor Bono in the Council Chamber, 3200 Tahquitz-McCallum
Way, on Tuesday, April 17, 1990 at 2 p.m.
ROLL CALL: Present: Councilmembers Apfelbaum, Broich, Foster,
Neel and Mayor Bono
Absent: None
REPORT OF POSTING OF AGENDA:
Report of City Clerk: Agenda posted in accordance with Council
policy on April 13, 1990.
APPROVAL OF MINUTES:
It was moved by Broich, seconded by Foster, and unanimously
carried, that the Minutes of March 27 and April 4, 1990,
be approved.
PUBLIC COMMENTS: (refer to Item 1)
PUBLIC HEARINGS: None
LEGISLATIVE ACTION:
1. AIRPORT TERMINAL EXPANSION - UNDERWRITING
On April 4, 1990, the Council continued consideration
of agreement for underwriting services in connection with
the financing of the expansion of the Airport Terminal ,
until this time - Agr #2827.
During the Public Comments portion of the agenda, the
following persons spoke concerning this matter.
Mike Bell , Kemper Group, (also Jim Bolan and Pam Newcombe
of Bateman-Eichler in audience) stated that the one time
cost differential between the Bateman-Eichler proposal
and the Seidler-Fitzgerald proposal is $45,000, and over
time, $100,000; that those estimates were refined in the (051-
past week, and copies sent to the Council ; that he held 055)
to all prior statements; and offered a counterproposal
to joint-venture with Seidler-Fitzgerald, provided that
the firm will reduce its fees to those of Bateman-Eichler;
and that such sharing is not an uncommon practice.
Duke Kosslyn, Chairman of the Airport Commission stated
that the Commission unanimously recommended
Seidler-Fitzgerald; has not seen the figures, nor the
new offer disclosed by Mr. Bell ; and that Lhe Commission
was comfortable with the Seidler-Fitzgerald proposal .
Director of Finance stated that Mr. Bell contended that
the more brokers available, the lower the rate, which
is not true because the City does not sell through brokers,
rather through consortiums of bankers or brokerage houses,
and if it based the award on the number of brokers, neither
Seidler-Fitzgerald or Bateman-Eichler would have been
recommended; that Mr. Bell commented on the use of Thompson
International , and an inference that the wrong kind of
firm had been selected, however, the firm was selected
based on recommendations of bankers, underwriters, and
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1. AIRPORT TERMINAL EXPANSION (Continued)
others who were not involved in the final decision; that
the inference was made that a financial consultant :should
have been hired, but the City does not hire a consultant
to review the work of a consultant; that: while the City
has a very good credit rating, the Airport Fund showed
a loss last year, and continuing this year, and the major
question in considering the financing did not relate to
how much it would cost to issue the bonds, rather how
would they be paid for; that Seidler-Fitzgerald offered
the working relationship with Municipal Services Inc. ,
which is the premier firm in the State specializing in
developing costs and fees to pay for increases in those
costs; that a 1% increase in fees could result in $150,000
in revenue; that both rated and non-rated bond issues
are very close in terms of interest at the present time;
that the difference in the two proposals was explained
by the Director of Aviation at the last meeting, and there
are no changes to those figures; that the Council is being
placed in an almost "auction" setting, and if it favorably
considers the Bateman-Eichler proposal it will set a prece-
dent for other firms, which are not recommended as the
number one or two firm, to raise side issues not relevant
to the primary concern; and that if the Council does not
wish to proceed with the Seidler-Fitzgerald proposal ,
he strongly recommended that it start the process over.
Resolution 17091 approving agreement with
Seidler-Fitzgerald, as recommended, was presented; after
which, it was moved by Broich, seconded by Neel , and unani-
mously carried, that R17091 be adopted.
2. MUNICIPAL ELECTION, 1990
Recommendation: That the Council declare results of the
1990 General Municipal Election. (083-
OOi')
City Clerk highlighted the resolution reciting the facts
of the election; declaring Deyna Hodges and Charles Murawski
elected to serve four year terms as members of the City
Council ; declaring that the Measure G was defeated by
the voters; and declaring that Measure H was approved
by the voters.
Resolution 17092 declaring results was presented; after
which, it was moved by Foster, seconded by Broich, and
unanimously carried, that R17092 be adopted,
3. COMMENTS BY OUTGOING COUNCILMEMBERS
Councilmembers Apfelbaum and Foster each thanked City
staff members for their support and work over the past
years; and expressed their hopes for the future of the
community.
4. SWEARING-IN CEREMONY
City Clerk administered the Oath of Office to Deyna Hodges (On-
and Charles Murawski , and presented each with a Certificate DOI)
of Election.
Councilmembers Hodges R Murawski each expressed appreciation
to the voters for their support, and pledged their efforts
to the needs and betterment of the community.
ADJOURNMENT
There being no further business, Mayor declare the meeting
adjourned.
JUDI'TH SUMICH