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HomeMy WebLinkAbout1990 - MINUTES - 9/4/1990 id1iiU ES—Of CITY OF PALM SPRINGS b , CITY COUNCIL AND COMMUNITY REDEVELOPMENT AGENCY SEPTEMBER 4, 1990 A Special Meeting of the City Council and of the Community Redevelopment Agency of the City of Palm Springs, was called to order by Mayor/Chairman Bono in the Large Conference Room, City Hall , 3200 Tahquitz-McCallum Way, on Tuesday, September 4, 1990, at 10:00 a.m. ROLL CALL: Present: Council Agency Members Broich, Murawski , Neel and Mayor/Chairman Bono Absent: Council/Agency Member Hodges REPORT OF POSTING OF AGENDA: Report of City Clerk: Agenda posted in accordance with Council policy on August 31, 1990 PUBLIC COMMENTS a) Jeremy Crocker, 330 W. Arenas, concerning Item I,stated that he was unable to find any discussion what the (139- operating loss is expected to be in order to enlarge 004-) the Convention Center; that the even though the existing Center expanded its operations each year, its losses increased to $1 million projected for fiscal 1990-91 which does not include debt service; that the dollar spent to operate the facility returns only 32¢ in revenue; that any move to increase the square footage to be operated, should provide specific details for the source of funds for most fixed expenses and operating losses; that he furnished a study to selected members of the Council , and discussed it over the past month, which come directly from five annual City budgets supporting the increased trend to lose money; that the proposal to spend the $300,000 appears to provide a mechanism to recover the advance payment if the expansion is underway to meet the needs of the IBM Convention in 1992, but does not appear to provide a mechanism for a cancellation after the budget scheduling is done; and he believed that such a financial commitment is unwise, without understanding the greater loss and additional taxation requirements. b) Allen Bayrack stated that in calling a special meeting on the day before the regularly scheduled Council meeting gives the appearance of trying to circumvent due process, and sets an undesirable precedent. Mayor stated that he asked for the special meeting because he would not be at the next meeting, and because there were several matters of business which he felt would best be represented by a full Council ; that everything has been conducted in the open, and there is no effort to deceive anyone; and that the Council ' s responsibility is to lead the community in the direction it wants to go. Council/CRA Minutes 9-4-90 Page 2 LEGISLATIVE ACTION: 1. AUTHORIZE EXPENDITURE OF FUNDS FOR CONVENTION CENTER EXPANSION Recommendation: That the Council authorize the expenditure (139- of funds for the schematic architectural design, project 003) budgeting and construction scheduling services related to the expansion of the Palm Springs Convention Center. Convention Center Director reported that the SENCA proposal , in line with ERA Study recommended expansion, necessitates request for $300,000 to fund architectural and preliminary planning costs; that $200,000 of the cost is backed up by the hotels involved with the IBM conferences guaranteed for 1991 and nine weeks in 1992, in the event the master plan does not go through; and that there would be no reimbursement if it is consummated by 1992; and recommended that Huntcor proceed with the construction. Jerry Augburn, SENCA, stated that the cost is 20% of the fee to be based on a guaranteed maximum price for construction. Councilmember Broich stated that the expansion is very important, and the Council must move ahead with it; and that the existing facility is not large enough, which is why it is experiencing losses. Acting City Manager stated that a convention center never makes enough revenue to cover the facility, until it is large enough to generate revenues from sales and room taxes at which point economics make it feasible; that studies are underway to provide the proforma to the Council to decide whether it wants to proceed with construction and then push to meet the 1992 deadline set by IBM. Councilmember Murawski stated that this Fall will be a crucial turning point for the City; that it must be looked at with objectivity, and not too much concentration on the past; that the Council may be criticized, but must move ahead; that the facility was undersized to begin with; and the expansion will make it competitive in the convention marketplace. Mayor stated that the City has committed to a convention center, and is between a rock and hard place, in that it does not meet the needs to move forward with the overall visitor plan; that the expansion is necessary, and the Council ' s task will be to tackle how it will be financed. Resolution 17233 authorizing expenditure, and Resolution 17234 amending the budget to appropriate $300,000 from (061- the Sewer Fund, as a loan, were presented; after which, 009) it was moved by Broich, seconded by Murawski , and unanimously carried, Hodges absent, that R17233 and R17234 be adopted. 2. DOWNTOWN VISION PLAN - CITY & REDEVELOPMENT AGENCY COMMITMENTS Recommendation: That the Council and Redevelopment Agency (133- grant to Vision Palm Springs Consortium (SENCA) a 180-day 005) exclusive right to acquire certain City and Agency properties; to represent City in O'Donnell leasehold negotiations, and to initiate negotiations with the County for use of the Tachevah Dam debris basin. Council/CRA Minutes 9-4-90 Page 3 2. VISION PLAN (Continued) Planning Director reviewed the memorandum of the Director (133- of Community Development, and noted that the Vision Flan ) will be presented on September 16 in study session; that 005 the exclusive right commits the city/agency owned lands to SENCA to negotiate them at fair market value or cost, whichever is greater; that funds from any sales might be used to acquire other properties that might be needed for the Vision Plan; and that there is nothing in the action proposed that would involve City costs without specific approval . Councilmember Broich stated that he preferred the action to be a first option for SENCA rather than a total commitment that if they come up with the money, the land is SENCAs. Mayor stated that if the deal does not proceed, SENCA does not own the land. Councilmember Murawski stated that nothing is being transferred, and the entire project will have to be put together and approved by the Council . Councilmember Neel stated that he is a member of O'Donnell Golf Club, and serves on its Board, and will abstain from discussion and voting. Councilmember Murawski stated that his unclerstanding is that negotiations will include priority tee-times for O'Donnell members, and efforts to make the deal good for O'Donnell as well as for the city. Mr. Ogburn stated that several offers have been made, and the intent is to give something of value besides money that the members can agree to. Mayor stated that SENCA has met with O'Donnell , and he has met with their attorney; that the Vision Plan is a big bite and a tremendous change for the future of Palm Springs; that the Council must consider the greatest good for the greatest number, which are not always easy choices to make; that he recognizes that the O'Donnell Golf Club wants protection for as long as it can, and if the city were flourishing that might be possible; that it would be wonderful to have O'Donnell as a part of the downtown that the Council is trying to achieve; that every negotiation effort will be made to include O'Donnell as a part of downtown and the future of Palm Springs. Resolution 17235 as recommended, was presented; after which, it was moved by Broich, seconded by Murawski , and unanimously carried, Hodges absent, and Neel abstaining, that R17235 be adopted, subject to adding "". .as approved by the City Council . " to the last sentence of the second paragraph in Section 1. Resolution 721 as recommended, was presented; after which, it was moved by Broich, seconded by IMurawski , and unanimously carried, Hodges absent, and Neel abstaining, that R721 be adopted, subject to adding ". .as approved by the Community Redevelopment Agency." to the last sentence of the second paragraph in Section 1. Council Minutes 9-4-90 Page 4 3. HIRING FREEZE UPDATE Recommendation: That the Council lift the hiring freeze (061) on the vacant positions that are currently frozen and which were approved in the 1990-91 budget. Acting City Manager stated that the item was on the agenda at his request, in an effort to address concerns of Department Heads about the impact the freeze has on operations, on top of the position which were cut in the budget. Personnel Director highlighted her report, noting that the Council needs to appoint an acting treasurer, and recommendation that the Acting Director of Finance be so designated. Councilmember Broich suggested waiting until a new city manager is retained. Councilmember Murawski suggested that each position be considered on a case-by-case basis. Councilmember Neel stated that if the Council does not give some incentive, there will not be any key staff remaining, and he moved to lift the hiring freeze, and the salary freeze. Mayor stated that Councilmember Broich expressed concern to him about the number of city employees resigning; that he did an investigation and believed that it was a mistake to impose a hiring freeze, and to take a so-be-it position; that this is the busiest and most changing time in the City's history with everything the Council is trying to put together; that a request of itself may seem simple, but results in extensive staff work added to an already heavy load; that staff is over-stressed and needs help; that the Council is hindering and short-staffing under the auspices of budget cutting, and the real cost may be more than what the Council wants to pay; that he spoke with the former Director of Finance, who indicated one of his reasons for resigning related to reducing his staff below recommended standards for delivering what was required by the Council ; that the loss of the Director will be greater to the City than the budget cut; and that the City is not in a desperate cutting situation right now, and the shortfall would have been $600,000, and if the wind energy industry is annexed, it will generate $1.6 million. Councilmember Murawski stated that he hoped the City will be in a position that it will be able to pay employees good salaries, as they are very good and deserving of it; that the City is about to enter a new era, with a new leader, and he did not think it was appropriate to lift the freeze on a blanket basis; that the Council is about to hire a new city manager, who will provide a planned approach, and a vote against a total lifting of the freeze is not a vote against city staff, rather a vote for caution to proceed in a timely manner. Councilmember Neel stated that he was not suggesting a wholesale hiring, but to give the staff incentive, and give them a vote of confidence. He stated he did riot object to reviewing department needs. Council Minutes 9-4-90 Page 5 3. HIRING FREEZE (Continued) Councilmember Broich stated that the Council will not be hiring a city manager without experience, and it may take a time for the person to become familiar with the organization, but it will not take two years. Mayor stated that the nuts and bolts of running the organization includes an understanding of the environment before decisions are made, and it will take up to a year for the new manager to be fully cranked up; that there was rhetoric in the community that the city manager was running the town; that the Council should be instructing the city manager what it wants done; that the staff recommended over thirty positions which could be cut, and still allow the departments to function, and the frozen positions were those which were felt to be essential ; and that by having the staff come back at each meeting, the message is to ask staff to give up the positions they said they could not do without, and which are needed to get the job done. Councilmember Murawski stated that a department-by-department review, in which 'the department and the Council could talk out the issues, would lead to a proactive decision; and he was not willling to support simply going back to the old system. Mayor read from a prepared text, the full copy of which is on file with the City Clerk, concerning his investigation over concerns about rapid, and ongoing loss of key employees, and declining morale. He also read a letter from Mayor John Pena of La Quinta, expressing concern about Palm Springs isolating itself from the rest of the Valley; and a letter from Kathy Fragnoli of American Airlines, who represents the airlines iin the Airport Terminal expansion project, expressing concern about the loss of city officials, and that additional loss of personnel might cause a re-evaluation of the airlines participation in the expansion project; and that there is an exodus, and staff should feel free to say what they feel , and recommend. Councilmember Broich stated that the Council only has the power to dismiss the City Manager or City Attorney; that the budget was balanced, without arty preconceived ideas as to what would or would not be cut, rather going through it line-by-line; and that no one"s job was in jeopardy. Councilmember Murawski stated that he felt the discussion was inappropriate, and the Council should proceed immediately to review and analyze each department' s situation. Discussion followed as to intent of motion by Neel , seconded by Bono, to lift the hiring and salary freeze, and to work with department heads. It was the consensus of the Council , prior to calling for the question, that the intent of the motion was to begin at the next si;udy session to review with each department head the staff needs in order to determine the extent to which the hiring freeze would be lifted; said motion was amended to appoint Tom Kanarr as the Acting City Treasurer, and was unanimously adopted, Hodges absent. Council Minutes 9-4-90 Page 6 - 4. VISITOR INFORMATION CENTER PROJECT & BUDGET UPDATE Recommendation: That the Council review the temporary visitor center project and approve a budget resolution (117) for $258,413; or direct staff to pursue other alternatives. (061) Acting Assistant City Manager reported that the cost estimate was originally $190,000+ and significant changes have evolved in terms of aesthetics, grading, ingress and egress, and other items, as noted in the chart attached to the memorandum of the Director of Community Services and Promotions, this date and on file with the City Clerk; and that the project might be phased, in order to permit opening in mid-November, 1990. City Engineer explained the two phases, significantly affecting costs - ingress, grading and egress; that there are a number of city projects which could be affected in terms of engineering and inspection services, or as an alternative the Council could provide funding to contract for them; and suggested that if the project proceeds, recognizing that items which must be bid will require Council approval for awarding contracts, that should such bids come under estimate, the staff be allowed to proceed with the respective low bidders in order to expedite contracts, bonds and preconstruction work. Councilmember Murawski stated that he was shocked by the increase, however, if the deceleration lane, trees and lighting were phased later, the project could get started and help to bring revenues back into Palm Springs; that it will take time to see how far it can proceed, and how much can be spent; that the project offers something different than what the Chamber of Commerce did, and will help bring visitors into the City. Acting Assistant City Manager reported that subsequent to his report he was advised that the foundation for the solid wall recommended by the Planning Commission is estimated by the City Engineer at $20,000 - $50,000, which was not included in the above amount; and that the Council may allocate the funds, reduce the scope of work, find another site, or consider an existing building, Councilmember Murawski stated that the Planning Commission' s initial review was valid, and some kind of identification sign on I-10 and 111 can be provided, and whatever steps that can be taken, be taken quickly to make it happen. Councilmember Neel stated he thought it wrong to spend so much money on a temporary project; that the City has vacant property at Frances Stevens and it could be used for visitor services in the downtown, without spending $300,000-$400,000. Councilmember Murawski stated that the Stevens site would require spending possibly $150,000 in redoing the parking; that it is a nice building, but the effort should be to catch people before they go down town, and to capture booking hotel rooms. Mayor stated that if the Council wants to proceed, it should go for the best product that it card get; that it would be a mistake to hedge on it; and questioned if it will be operated by the VPB. Council Minutes 9-4-90 Page 7 4. VISITOR CENTER (Continued) Councilmember Broich stated that he wanted to give it to the VPB to operate. Resolution 17236 amending the budget to appropriate $308,413 (includes $50,000 for the wall foundation) was presented; after which, it was moved by Murawski , seconded by Broich, and carried by the following vote, that R172:36 be adopted; that staff proceed with preconstruction meetings with low bid contractors as long as bids are not in excess of reported estimates; and that acting city manager contract for surveying and 'inspection services estimated at $5,000, from contingency funds: AYES: Broich, Murawski & Bono NO: Neel ABSENT: Hodge 5. AIRPORT VISITOR INFORMATION COUNTER UPDATE Director of Aviation reported that the Airport Commission and staff have spent a lot of time over the past few years (051- working on the Airport' s credibility, which is at a high ) degree, and explained the role the Airport plays in terms of visitor information - local and regiiona1 , ground transportation, and special events; that he has spent the majority of his time in the recent past trying to figure out whether rumors about ground transportation and visitor service providers is correct or incorrect; that unsolicited proposals are destroying morale at the Airport; that he requested the Council reject the question of whether a commercial operator should operate that facility, and that if the VPB or CVB cannot, or do not want to, operate that desk, it is important that the service be provided and the Airport staff is capable of doing SO. In answer to question by Council , Director of Aviation stated that it is not wise to place a commercial operator in that position, because eventually information may be given out that will return money to the operator; that he is more concerned about the credibility of the Airport than money in the pocket of the commercial operator; that the commercial operator has never come to the staff or Commission and said they needed to move the Notation, but went directly to Councilmembers, yet knows very well that the Airport is in the process of designing the baggage claim area; that the car rentals bring in about $1.5 million per year, and the limousine services about. $500,000, and the baggage claim area design will first address the car rental needs, then the limousine service. Councilmember Murawski stated that the CVB and VPB should withdraw from the visitor service counter, and let the Airport Commission decide how it should be handled; and that the savings from VPB could be used for purchasing advertisement. It was moved by Neel , seconded by Murawski , and unanimously carried, that recommendation to allow the Airport to operate the visitor information counter be referred to the VPB, CVB and Airport Commission for input. Council Minutes 9-4-90 Page 8 REPORTS & REQUESTS: CITY COUNCIL reports or requests a) Councilmember Murawski stated that the Council need to send positive public relations images, and that he would like to work with staff in working out this type of release; additionally, that the VPB needs to work towards "taking an American vacation in Palm Springs." b) In answer to question by the Mayor, Acting City Manager explained the process that was followed in declaring surplus a computer previously used by the former city attorney, which otherwise would have been junked was subsequently purchased by employees and presented to him at a breakfast given for him. Mayor asked if the Council was satisfied with the decision; there was no opposition. STAFF reports or requests: None PUBLIC reports or requests: None ADJOURNMENT There being no further business, Mayor declared the meeting adjourned. r + 3 ; JUDITH SUMICH' City Clerk