HomeMy WebLinkAbout1991 - MINUTES - 2/13/1991 3b CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
FEBRUARY 13, 1991
An Adjourned Regular Meeting of the City Council of the City of
Palm Springs, was called to order by Mayor Bono, in the Council
Chamber, 3200 Tahquitz Canyon Way, on Tuesday, February 13, 1991,
at 3 p.m.
ROLL CALL: Present: Councilmembers Broich, Hodges, Murawski ,
Neel and Mayor Bono
Absent: None
REPORT OF POSTING OF AGENDA:
City Clerk reported that the agenda was posted in accordance
with Council procedures on February 8, 1991; and that
matter concerning architectural services for the Convention
Center Expansion was not ready for action.
PUBLIC COMMENTS:
a) Don Frank, stated that notice was received for a hearing
on a resolution of necessity on February 20 (refers
Redevelopment Agency and Leibling property) , and that
they are prepared to go to a fair hearing scheduled
at that time; to allow the public to be heard in an
open forum; and that it will inconvenience and damage (124)
people involved if there is a delay; that they have
paid for an attorney, and there are tenants with lease-
hold interests, as well as employees involved, and
he asked that the hearing be held on schedule, and
a decision made at that time to either condemn the
property, or desist; and that they want to get started
on improving the property, beautifying Palm Springs.
LEGISLATIVE ACTION:
1. CONVENTION CENTER - STRUCTURAL STEEL
Recommendation: That the Council award bid for the purchase
of structural steel components for the Convention Center
expansion, from Riverside Steel for $653,000, having
submitted the lowest responsible bid meeting the
responsibility requirements described in the bid documents,
and having agreed to assignment of contract as required
under the supplementary general conditions of the bid
document. (Agr 2955)
Purchasing Manager reviewed his report in detail , noting
that assignment of the contract, including responsibility
for payment to the supplier, will be made at the time
of award of bid to the general contractor - expected to (139-
occur on March 20. He stated that the low bidder is not 004)
a fabricator, rather a broker, did not sign the bid, is
not licensed by ICBO or the City of Los Angeles, did not
provide the surety guarantee required, and he recommended
that the Council determine Diamond Steel to be a non-
responsive bidder, and award the contract as recommended.
Council Minutes _ _ _�.
2-13-91 Page 2
I. CONVENTION CENTER EXPANSION - STEEL AWARD
Mayor stated that although he considered this the "eleventh
hour," he has great trepidation in moving forward with
the project at this time; that he is in favor of the expan-
sion of the Convention Center, and thinks it is needed;
that he prefers the full expansion, and has concerns about
only making it a litter bigger in size; that since the
proposal was made, the research he has done has shown
him that, with the exception of the Las Vegas facility,
all convention centers operate in the red, as will the
City's facility; that it is an assumption that it will
pay for itself in T.O.T. ; that the projected cost is $12
million, but he thought it more likely to bein the $12-$15
million range; that there is only a one-year buffer in
terms of IBM, but after that time, it will require $300,000
annually from the General Fund; that the motivation for
moving ahead with the project was that there would be
a commitment from IBM for seven years oP convention
business, ranging from 5-13 weeks each year; that in its
last letter, the only commitment of substance is for next
year, and after that it is based on hope that future
commitments could be solved by having another hotel in
place to take care of their needs; that there is nothing
binding beyond the one year, only a letter of intent;
that the facility will be in place without the support
system in place; that it is a bandaid approach, and is
an expansion of business without the business to require
it; that the Council has said that downtown is in need
of assistance, and it will not move forward without a
big assistance in some form from the City; that the density
situation necessitates pulling in an independent developer,
yet makes that possibility more difficult to accomplish;
that efforts have been made in that regard, but the problem
remains the same; that the City must either go at risk
to do something, or get someone else to do it, which would
be bleak without incentives; that if the Convention Center
is expanded, and there is still the same town, the facility
will remain a white elephant; that it has been presented
that the City will lose $20,000 annually if there is no
expansion, which is based on assumption that IBM would
fulfill its intent for the next seven years, but if it
does not do so, the cost will be high and can only come
from the General Fund; that he felt the money would be
better spent reshaping downtown, and developing something
physically exciting; and that the City is putting $12
million and $300,000 annually at risk, based on impression
that the IBM business could be guaranteed, which is not
in place.
Councilmember Broich stated that he hoped the expansion
was not being based solely on the IBM commitment, or non-
commitment; that the expanded facility will mean opening
the opportunity to new markets, and make it more saleable;
that it has not been run as a business; that he firmly
believes that with the new management staff, it will be
staffed with sales people who will be selling and marketing
it; that there has been only one lead in the last four
months from the CVB; that the sales staff needs to be
increased; that he did not want to stop what is being
done downtown because the Convention Center is being
expanded; rather that both need to be done together, and
in harmony; and that he believed the payoff, like the
special events, will come later.
Council Minutes
2-13-91 Page 3
1. CONVENTION CENTER (Continued)
Councilmember Murawski stated that he has been working
on this project for months; that no company will make
a commitment to a convention for years out, but only
indicate its intent; that companies make decisions on
a yearly basis; that there are new concepts coming out
of the Convention Center staff and commission, and they
have been asked to come forward with an entire plan; that
he did not think it helpful to vacillate in the decision
process, that all of the information needed to be studied,
a goal and direction set, and commitment to make it happen;
that he felt there were mistakes made in the past about
the convention center, and has nothing to do with the
downtown; that the existing facility is competing with
hotels; that the Council must have the ability and nerve
to move ahead with a number of things at the same time,
and must be totally informed to be able to make sound
business decisions; and that the downtown plan should
stand by itself, and when developers come forward, the
Council can try to help make it work.
Mayor stated that his opinion is based on his research,
and what he believes is in the best interest of the City;
that he agrees with the expansion, but not necessarily
the order of it, and felt there is still no product; that
he hoped all of the product could be accomplished; that
he would like to see the Convention Center expanded to
its maximum potential ; and that from his analysis, he
felt the liability was too high to encounter at this time.
Councilmember Neel stated that he did not want: to lose
the IBM business, and has concerns that the City will
lose business if a perception develops that it does not
uphold its commitments; and that the current state of
the economy may have a bearing on the situation.
Councilmember Murawski stated that he felt the new
convention center management and the Commission are putting
together an aggressive program, which he was pleased about;
and that he was also afraid that if positive actions are
not taken soon, the economy of the community will go down
the drain.
Minute Order 4713, awarding steel contract as recommended,
was presented; after which, it was moved by Hodges, seconded
by Murawski , and carried by the following vote that MO
4713 be adopted, and that Diamond Steel be declared a
non-responsive bidder to the project:
AYES: Broich, Hodges, Murawski & Neel
NO: Bono
ABSENT: None
ADJOURNMENT
Mayor declared the meeting recessed to a Closed Session,
after which, upon reconvening, there was no further busi-
ness, and he declared the meeting adjourned.
JUDITH SUMICH
City Clerk