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HomeMy WebLinkAbout1991 - MINUTES - 4/17/1991 CITY OF PALM SPRINGS CITY COUNCIL MINUTES APRIL 17, 1991 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 Canyon Way, on Wednesday, April 17, 1991, at 7:30 p.m. ROLL CALL: Present: Councilmembers Broich, Hodges, Murawski Neel and Mayor Bono Absent: None The meeting was opened with the Flag Salute and an invocation by Zhonna Parr, Practitioner in Training, Church of Religious Science. REPORT OF POSTING OF AGENDA: Report of City Clerk: Agenda posted in accordance with Council procedures on April 12, 1991; one item added at the study session, concerning graffiti . PRESENTATION OF UNITED WAY CERTIFICATES: Mayor presented silver, gold and platinum certificates of appreciation to employee team leaders representing various city departments. PROCLAMATION ARIAS FOR PEACE Mayor read the proclamation, and presented it to Irina Arkorpa, most honored metzo-soprano of the USSR, and Paula Menas of the United States, both of whom will be singing at the Desert Museum Annenberg Theater, as part of a cultural exchange between the two countries. COMMUNITY REDEVELOPMENT AGENCY: Mayor declared the meeting adjourned for the purpose of convening as the Community Redevelopment Agency; after which, members reconvened at the City Council . (Note Item 6 conducted in joint session at conclusion of City Council agenda). HOUSING AUTHORITY, FINANCING AUTHORITY, IDA: No business RECONVENE AS THE CITY COUNCIL APPROVAL OF MINUTES: It was moved by Broich, seconded by Neel , and unanimously carried, that the Minutes of February 20, March 20 and April 3, 1991 be approved PUBLIC HEARINGS: 1. SIGN APPEAL - 350 S. PALM CANYON (STAPLES OFFICE STORE) Consideration of appeal by Heath & Company representing Staples, the Office Super Store, from Planning Commission conditions for main identification signs at 350 S. Palm Canyon Drive. Planning Director reviewed the memorandum of Director ( 131- of Community Development, and displayed plans and colors, 001) noting that 2% foot high larger size letters were approved by the Commission due to the setback of the building from the street. ry Council Minutes 4-17-91 Page 2 1. SIGN APPEAL - STAPLES (Continued) Mayor declared the hearing opened. Tim Pitts, Heath & Company, stated that Staples agreed to reduce the sign letters from 4 feet, but asked for a 2' 10" height; and that Staples -is willing to work with city staff on the background color of a red-rust, and requested that the white letters be permitted, with illumination reduced by 50% Carl Robertson, Staples, stated that the company is attempting to maintain the sign criteria throughout its stores, and to obtain as much exposure as possible. There being no further appearances, the hearing was closed. Councilmember Murawski stated that he welcomed the company into the community; and that he felt the Planning Commission decision should be upheld, and he did not think the approved size or color would dramatically affect their business; and that it is advisable to keep overall aesthetics in mind in terms of the central business corridor„ Councilmember Neel agreed with Mr. Murawski , and stated that the standards should be upheld. Councilmember Hodges stated that she did not object to the 2' 10" size letters, nor has she ever been opposed to the use of red color, and felt it should be encouraged as a attractive, eye-catching color; that she was not opposed to the white letters, and the City should abide by company logos, and not interfere with what they are trying to accomplish; that Staples should be encouraged, and the Council should do whatever it can do in a positive way to help with their success. In answer to question by Council , Planning Director reported that the Planning Commission estimated that the size of the letters would be 2'z feet, however, the approval is worded to allow the maximum size, which might work out to be 2' 10". Councilmember Broich stated that he did not oppose the red background, and white letters. Mayor stated that the building is considerably set back and needs the attention; that it is an attractive sign, and the store needs every edge it can get. Motion by Murawski , seconded by Neel . to uphold the Planning Commission decision, failed to ca,rry by the following vote: AYES: Murawski & Neel NOES: Broich, Hodges & Bono ABSENT: None Res 17482 overruling the Commission and granting the appeal , in particular, maximum height letters up to 2' 10", red background, and white letters, was presented; after which, it was moved by Broich, seconded by Hodges , carried by the following vote, that R17482 be adopted: AYES: Broich, Hodges & Bono NOES: Murawski & Neel ABSENT: None Council Minutes -°' 4-17-91 Page 3 2. DETERMINATION CASE 10.386 - LOWELL WOODEN Consideration of appeal concerning Planning Commission determination on February 27, 1991 relating to non-vending machine sales for service station use at the P.S. Airport Car Wash (original CUP 5.0477). Planning Director reviewed the memorandum of Director of Community Development, which was reviewed in detail at the last meeting, noting that there was not a specific request in the original Planned Development District application; that this matter was continued from the last meeting, because of a tie vote; that if the Council wished to approve the use, it could refer a specific recommendation to the Planning Commission , or request that it be considered as an amendment to the POD, or direct the Planning Commission to look at the ordinance for possible amendment; that the applicant was given unlimited vending machine use, and the maximum 25 square foot non-vending machine use; that the ordinance as it is written is specific and not open for interpretation; and that the project includes (094- a service station. 001) City Attorney stated that the ordinance is fairly clear in terms of sales uses in connection with service stations, but is not so clear regarding car washes; that it seems to suggest that a car wash and a gasoline service station cannot be on the same site, in that the same uses are not allowed; and that staff needs to receive basic direction from the Council , and then to develop clarification of the ordinance for future amendment; that the appeal should be denied, and if the Council felt the uses would be acceptable, Council direction as to how it feels about mini-markets, gasoline service stations, and car washes should be sent to the Planning Commission to be processed. Mayor stated that an uncontrolled situation could evolve, and clearer definition is needed. Mayor declared the hearing opened. David Erwin, attorney for appellant, stated that the problem remains in that there is a conflict with the multiple uses that have been granted for this project, and which have been built - full service car wash, full and self-serve gasoline, and car rental ; that the limitation on sales relates to service stations, and there is no other similar provision in the Zoning Ordinance concerning car washes; that the principle function on the site is a car wash, containing a waiting room, and the word "carwash" is a part of the name of the business; that the ordinance permits the Planning Commission to determine resolution to conflicts in the ordinance when they do exist; that the sales area is an economic issue, and is an anticipated profit center for the project; that the facility is open; that the applicant wants to resolve the issue without filing an amendment to the PDD; that if the determination is denied, it be without prejudice so the applicant may return to the Planning Commission as quickly as possible; and that the sales area is needed for competition with other car washes in nearby communities. Lowell Wooden, owner and appellant, stated that the car wash represents 90% of the facilities profit centers, followed by the sales area, the detail shop, the gasoline sales; that their gasoline sales is incidental , and there are no service bays. Council Minutes 4-17-91 Page 4 2. DETERMINATION 10.386 (Continued) There being no further appearances, the hearing was closed. Councilmember Murawski stated that he has prejudice in that the ordinance is clear; that the applicant applied for a car wash and a gasoline station , and should have said if a mini-market was desired; that he is concerned for those who operate mini-markets ; that a cross-over in uses of this type will set a precedent for others, particularly in this area, who will want the same consideration; that the facility should be concerned with auto related matters, and not a grocery store; and that he did not have a problem with a car wash classification, only if that also implied a car wash and mini-market. Councilmember Neel stated that a similar request was recently denied for a project on South Palm Canyon ; and that approval would set precedent for every gasoline station in town to also have a mini-market. In answer to question by Council , Mr. Wooden stated that there will be three cashiers - one outside for the gasoline only purchases; one inside for the car wash; and possibly one for the merchandise inside. Councilmember Hodges stated that the business is a car wash; that persons purchasing gasoline only will not know that goods may be purchased inside; that the facility is being misclassified, in that it is a car wash and riot a service station; that there is room for the sales area; that people will be waiting for their cars, and there is nothing adverse about browsing and purchasing convenience items; and that she did not consider it to be a competition with mini-markets. In answer to question by Council , Planning Director stated that there are no listing of accessory vises under a conditional use permit for a car wash; that each could be applied for and considered on a case-by-case basis; and that the project is both a car wash and a gasoline service station. Councilmember Broich stated that the Planning Commission Chairman asked for the matter to be returned to the Planning Commission to look at the question of mini-markets; that they are a way of life, today; that he did not have a problem denying the appeal , without prejudice, and allowing the Commission to deal with the subject further; and that he agreed it should be classified as a car wash. It was moved by Neel , seconded by Murawski ., and carried by the following vote, that the appeal be denied: AYES: Murawski , Neel & Bono NOES: Broich & Hodges ABSENT: None City Attorney stated that the staff will bring back a resolution denying the appeal ; and questioned the Counci'l ' s intent regarding a referral to the Planning Commission, and whether the applicant could go through the CUP process for that use. Council Minutes 4-17-91 Page 5 2. DETERMINATION 10.386 (Continued) Councilmember Neel stated that he felt it was a denial without prejudice, and the applicant could go through the process and resubmit if he wished to do so. Mayor stated that he understood the staff to state that it was willing to look at the ordinance and any clarifications that might make the situation clearer, rather than the Council trying to structure what the ordinance should be; and that in doing so, staff will work with the applicant to see what can be developed, and will sort the issue and see what the alternatives are. Planning Director reported that the Commission and Council will be meeting jointly in the next few weeks, and this subject may be a topic for discussion; that he can discuss the options with Mr. Wooden as to the possible changes to the Zoning Ordinance, but will be looking to the Council and Commission discussion for leadership. In answer to question by Council concerning a new processing fee, he stated that there is a fee for a CUP, but there would not be a fee if the discussion resulted in Zoning Ordinance changes that permitted the use by right-of-zone. Councilmember Hodges questioned whether anything had been resolved. City Manager stated that staff will develop alternatives for the Council to consider. 3. PD 116-A - CVHC Recommendation: That the Council approve planned development district 116-A for a 140-unit apartment complex on Sunrise Way, north of San Rafael , for low and very low cost housing. Planning Director reviewed the memorandum of the Director of Community Development, and stated that 58 projects competed for State authorization for funding, of which 8 were approved, and of those 8, this project was ranked third. (116- 008) Councilmember Murawski asked that staff provide a report as to how many low and moderate income housing units are needed to satisfy the City' s requirement, how that requirement is determined, and by whom. Mayor concurred in the request. Planning Director displayed and reviewed the exhibits and site plans. Mayor stated that the Council may be duplicating a problem that it encountered with a recent residential project on North Palm Canyon; that the Vision Plan suggests one kind of project, and what comes forward is drastically different; and that there needs to be a cohesive kind of growth occurring. Mayor declared the hearing opened. John Nealey, CVHC, stated that the agency has worked with city staff since last summer, and reiterated the comments concerning approved funding, and that the project must be under construction by November, in order to not loose that funding; that the project falls far short of the number of units to meet the City's Housing Element, and he urged that the project be approved; that it is a well-designed project, and one to be proud of; that; they Council Minutes 4- 17-91 Page 6 3. PD 116-A (Continued) offered to meet with Inter-Cal , and the City staff is very much aware of its relationship to the project, and design considerations were given with that relationship in mind. Ruell Young, Architect, stated that he took into consideration the Sunrise frontage, 'landscaping and project configuration as that may relate to the Inter•-cal project., and would be happy to discuss Council concerns in study session format. Karen Aguilar, 1975 Mark Leslie, questioned what the Council expected to have developed in this area, and the project could be in process for so long without the Council being aware of it. Mayor stated that the Council is open-minded:, and pleased with the direction that the previously mentioned project has taken; that he has concerns about the cohesiveness of the community, and wants to be more informed. Councilmember Murawski stated that he is very concerned, and has begun to feel that Palm Springs is the onlly community addressing the low income housing issue; that some projects go through many steps before the Council becomes aware of them, and others may take up to two years before the are brought to the Council . There being no further appearances, the hearing was closed.. Councilmember Broich stated that the project has come before the Council in many different steps, and it 'is a good project, and a lot of care has been taken in its design in terms of the Intercal project, and 'it is assured of being funded; that the City is short on its housing requirement; and that the recommendation should be approved. He stated that he recognized the Council also needs to look at the housing requirements, and supported staff coming back with a detail review. Councilmember Hodges stated that the project has been before the Council , and she agreed with looking at the housing requirements, however, there are still people that will fill up these units, and probably many more; that the applicant has done a good job in securing funding at a time when that is very difficult, and has considered their neighbors as well ; and that a delay may result in a loss of that secured funding. Mayor asked that the staff consider the Council 's vision which has changed in the past two years, so that projects are consistent with those goals. Resolution 17483 as recommended, was presented; after which, it was moved by Broich, seconded by Hodges , and carried by the following vote, that R17483 be adopted: AYES: Broich, Hodges, Neel & Bono NO: Murawski ABSENT: None 4. INTERIM ORDINANCE - VENDING CARTS IN CBD ZONE (103- Recommendation: That the Council approve a 10 month and 041) 15 day extension of the Interim Zoning Ordinance concerning use of vending carts in the CBD Zone. Councilmember Broich stated that he would abstain from discussion and voting, since he is a participant in the program. , ;r Council Minutes 4-17-91 Page 7 4. INTERIM ORD - VENDING CARTS (Continued) Planning Director reviewed the memorandum of the Director of Community Development, noting that since the adoption of the urgency ordinance, two concepts have surfaced, which have been referred to Jerry Ogburn and Main Street, i .e. , creating a master event land use permit for The Center (Zelda's) including a wide variety of promotions, entertainment, art and craft shows, food carts, etc. ; and a single vendor to provide all of the carts or the downtown and to lease them to individual merchants. He stated that no significant experience has been achieved yet, and staff recommended the ordinance be extended to allow time for the ordinance to process through the full public hearing procedures, as well as to work through the various issues involved. Director of Community Services & Promotions reported that in January, staff was directed to put together a street faire and farmers market, with the intent of giving residents a weekly event, and to reacquaint them with the downtown; that 90 vendors have signed up for the program, and at least two entertainer groups each week, as well as 12 food vendors tying in with the merchants downtown, and the farmers market will be added on April 25; that the event has developed a sense of community within those who attend; that the "look" of the event is continually upgraded to keep as high a quality as possible, and Jerry Ogburn has been involved in that aspect; and that a continuance of the ordinance will give the opportunity to go through the normal process of review, and to see if the program should continue. Mayor stated that he was trying to determine the goal of the program, and could understood it was originally to create a festival or party downtown; that it appears to be to open business at night, and to expand to a farmers market; that he questioned if the quality of the product today was representative of the quality that will satisfy everyone; and that he recognized there are "growing pains" in getting a project up to speed; and questioned if it can occur in 60 days. Director of Community Services & Promotions stated that the program started as a reacquainting residents with the downtown, and has evolved to also include benefiting the downtown economy, and providing a tourism tool for marketing downtown, i .e. , providing a draw for a day earlier, thereby picking up two room nights and extending the week visit; that some steps are being taken to make the event look better, e.g. , no clothing allowed, and efforts will continue to address the quality appearance issues; and that she felt the evaluation could be made in 60 days, and that the review committee would like to have input from the Council . Councilmember Murawski stated that he enjoyed seeing a number of families, children, and more affluent people looking and buying, and having a good time; that the event generates impulse buying; that it needs a little more time to get started; that it is a focal point for the community, and provides a "village square" feeling, and an opportunity to meet neighbors, and others. Councilmember Neel stated that because of the rain, and interruption by Spring Break, he favored a continuance. Mayor declared the hearing open. Council Minutes 4-17-91 Page 8 4. INTERIM ORD - VENDING CARTS (Continued) The following persons spoke excitedly about the program, although some indicated they had initial concerns that it would not work., and requested that the Council grant the extension of the Ordinance: Rick Service, Las Casuelas Terraza, 222 S. Palm Canyon, indicating that he had trepidations, none of which have happened; and that a sense of community happened that is rarely seen today; and that there should not be any carts in the community, except at these kinds of events. Wayne Dewey, retailler, submitted a petition asking for the continuance; and stated that 'the event has resulted in extending his business week, and increased his business by 250% over last ,year, when he was also open at night; that the food service aspect needs to be enhanced. Gann Carter, Don Nelson, an unidentified woman, and Barbara Foster, Rick Bedford (an entertainer) , Terry Lortz and his two children, Patricia Peterson (Property Manager of the Vineyard, also on behalf of all its tenants) , Frank Rosvold of Desmonds. Ted Grofer, DBID, reported the DBID continues to support the event, particularly, because there have been five events at which 3,000-8,000 people attended, and many stores are staying open; that a goal was to enliven the downtown, and that has happened; and that the [Desert Fashion Plaza advertising committee has also unanimously endorsed it. Bob Weithorn, Orchid Tree, read letter of the Hotel Association in support of the program, and urging merchants to remain open at night; and stated that Vie is also a member of the review committee, and the committee spends a great deal of its time concerning itself with the quality issues, and has had to deal with what was presented to it, however, as the event builds, it will be able to be more selective about the participants; that the purchase of high quality carts will evolve as the program becomes more permanent; and that cancelling it could mean a loss of income to many local people, and severely injure the credibility of the community. Jerry Ogburn stated that he was pleased about the quality consciousness, and felt the program was moving in the right direction, although he was not pleased with the quality so far, i .e. , the food services, but there is the attitude needed to make it better; that it has been too dark, too strung out, and in some cases, poor quality merchandise, and setup; that the event is producing successes, and it will get better in time; that 60 days would be a minimum amount of time in which to evaluate it; that critical mass has only just been achieved; that high quality carts, limited in number, and selectively placed, would be a significant addition; that there has been discussion about permanent open festival areas possibly converting some "dead space" areas; that there is a person interested in maintaining, storing, and leasing carts, which is a good concept, and one that needs to be under control from the beginning. There were no further appearances, and the hearing was closed. Council Minutes 4-17-91 Page 9 4. INTERIM ORD - VENDING CARTS (Continued) Mayor commended Mr. Ogburn for being aware of the problems, and for trying to improve the product, and that he felt comfortable that the improvement is the prevalent point of view. Councilmember Hodges stated that food carts cannot be kept downtown, because the Health Department will not permit it; that if a person invests $10,000 - $15,000 in a cart, they are not going to either leave it unprotected downtown, or abandon it; and that that quality of cart will not be seen until people know that the Villagefest will a permanent situation. City Clerk read title of Urgency Ordinance 1379, as follows: AN INTERIM ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, TO AMEND SECTION 9209.01.132, 9209.01.13.3 AND ADDING SECTION 9209.01.6.4 OF THE ZONING ORDINANCE TO ALLOW THE USE OF VENDING CARTS IN THE CBD ZONE INCLUDING ALLOWANCE TO LOCATE ON PUBLIC PROPERTY AND DECLARING THE URGENCY THEREOF. It was moved by Murawski , seconded by Hodges, and unanimously carried, that further reading be waived, and that 01379 be adopted, providing an extension of the ordinance not to exceed sixty days: AYES: Hodges, Murawski , Neel & Bono NOES: None ABSENT: None ABSTAIN: Broich PUBLIC COMMENTS: a) George Goldberg, criticized the restaurant service provided for the Spring Break volunteer party, and stated that he would not attend next year if it is not held elsewhere; and stated that the City should pursue violators who permanently park RVs in town; and opposed any compensation for Councilmembers. LEGISLATIVE ACTION: 5. CONVENTION CENTER LAND ACQUISITION Recommendation: That the Council approve the acquisition of Lots 103, 105 and 106 (Tract 1009) in Section 14, comprising property on the NW corner of Amado Road and (139- Avenida Caballeros, for $2.405 million, to accommodate 004) various Convention Center related uses. Assistant City Manager highlighted the memorandum of the Director of Community Development, and stated that the parcels comprise approximately 7% acres. Resolution 17484 as recommended, was presented; after which, it was moved by Broich, seconded by Murawski , and unanimously carried, that R17484 be adopted. Council Minutes 4-17-91 Page 10 6. SECTION 14 SUB-LEASE - VOSS INVESTMENT Recommendation: That the Council authorize the execution of certain documents necessary for Voss Investment (117- Properties to secure a new loan for its project located 035) on 3.01 acres subleased from the City, as successor, under Master Lease PSL-315. Assistant City Manager highlighted the memorandum of the Director of Community Development. City Attorney stated that his office has been involved in making certain documentation is consistent with the prior bank loan, and for protection of the City; and that provisions have been included to provide for reimbursement of the City's legal costs. Resolution 17485 as recommended, was presented; after which, it was moved by Broich, seconded by Murawski , and unanimously carried, that R17485 be adopted. 7. AIRCRAFT RAMP EXPANSION CP91-07 Recommendation: That the Council award contract for the (OEil- Aircraft Ramp Parking, Alternate A., to Tarmac California, n 5) Inc. (formerly Massey Sand & Rock) for :$1,266,488.50, CP91-07, A2987. Director of Aviation reported that six bids were received, and award is recommended subject to FAA approval . He noted that the project is 90% grant funded. Resolution 17486 as recommended, was presented; after which, it was moved by Neel , seconded by Broich, and unanimously carried, that R17486 be adopted. 8. SWIM CENTER POOL DECK REPLACEMENT - CP90-14 (115- Consideration of recommendation to award contract to Allred 004) & Kyser for replacement of the pool coping, stanchion poles and diving boards at the Swim Center., for $93,897 continued from April 3, 1991. A2981 Director of Community Services reported that the scope of work is about one-half of that originally proposed, and the pool decking replacement will be budgeted in a future year. Minute Order 4751 as recommended, was presented; after which, it was moved by Broich, seconded by Murawski , and unanimously carried, that M04751 be adopted. ADDITIONAL LEGISLATIVE ITEMS: (Satisfied agenda posting requirement.) 9A. AIRPORT TERMINAL EXPANSION - BAGGAGE BELT SYSTEM (051- Recommendation: That the Council award contract to Glide 055) Path-USA for an all new baggage belt system, base bid plus Alternate 1, for $384,553 - CP90-19, A2982. Report reviewed by Director of Aviation. Resolution 17487, as recommended, was presented; after which, it was moved by Murawski , seconded by Hodges, and unanimously carried, that R17487 be adopted. Council Minutes 4-17-91 Page 11 9B. AIRPORT MODULAR HOLDING ROOM Recommendation: That the Council award contract for modular (051- holdroom facilities to PBS Building Systems, Inc. , including 055) Alternates 1 and 2, for $1,188,120; deny protests, and approve Change Order No. for a deduction of $165,120. Director of Aviation reported that a second bid was submitted two minutes after the bid closing, and was returned unopened, that the bidder filed a formal protest; that letter from Gensler & Associates substantiates the inappropriateness of the protest, and is attached to his report on file with the City Clerk; that the lone bid from PBS exceeded the pre-bid estimate; and that in order to avoid delay in the Terminal Expansion by rebidding the project, the staff and engineer worked with the bidder in an attempt to bring down the price without materially changing the scope of the project, which is detailed in the Change Order No. 1. Resolution 17488, as recommended, was presented; after which, it was moved by Neel , seconded by Broich, and unanimously carried, that R17488 be adopted. 9C. AIRPORT TERMINAL EXPANSION CONSTRUCTION Recommendation: That the Council award contract for (051- construction of the Airport Terminal expansion to Turner 055) Construction Company for $6,326,100, including Alternates 2 and 4, CP90-17, A2984; and authorize the Director of Aviation to approve change orders up to a total of 5% of the original contract, subject to ratification by the Council . Director of Aviation reviewed his report, and explained the purpose of Alternates 2 (an addition of $17,100, ) and Alternate 4 (a net saving of $9,000) ; base bid $6.399 million. Resolution 17489, as recommended, was presented; after which, it was moved by Broich, seconded by Murawski , and unanimously carried, that R17489 be adopted. 9D. TM 176/2-1 DECLARATION OF PUBLIC STREET (137- Recommendation: That the Council declare the east 920 ) feet of Lot C of TM 17652-1 (Section 35) a right-of-way for streets, highways, underground services and public utility installation purposes. Director of Community Development reported that the right-of-way will provide access to Desert Water Agency for development of wells on Lots 5 and 6 previously deeded by the City to DWA. Resolution 17490, as recommended, was presented; after which, it was moved by Neel , seconded by Broich, and unanimously carried, that R17490 be adopted. 10. CUP 5.0290 - ANGEL VIEW THRIFT SHOP Recommendation: That the Council approve a series of (078) 12-month time extensions for Conditional Use Permit for thrift shop use at 462 N. Indian Canyon, for Angel View, until a master plan for the subject area is approved (Item pulled from Consent Agenda). Director of Community Development reported that a series of one-year extensions is recommended, in order to avoid conflict in uses with the Vision Plan for downtown. Resolution 17491, as recommended, was presented; after which, it was moved by Neel , seconded by Murawski , and unanimously carried, that R17491 be adopted. Council Minutes 4-17-91 Page 12 CONSENT AGENDA: 1.1. MO 4752 approving assignment of contract for procurement of (139- a 250 ton gas fired absorption chiller (York International 004) A2960) to Walsh Construction (A2968) . 12. MO 4753 approving extension of agreement with O'Linn Executive ( 139- Security Services for the Convention Center, for one year, 001) as provided in Agr 2622. 13. Res 17492 authorizing City Manager to approve construction (139- change orders for amounts up to $25,000, for the Convention 004) Center Project. 14. MO 4754 approving a contract (subject to City Attorney final ( 139- form) with Soils Testing & Engineers Inc. , to provide soils 004) testing and geotechnical services at its standard rates, up to $50,000, for the Convention Center Expansion project A2985. fly. Res 17493 authorizing filing for a grant agreement with Office (113- of Criminal Justice Planning for second year funding of the 001) Youth Court Program. 16. Res 17494 approving Claims & Demands. (086) 17. Motion concurring in CRA Resolutions 764 - 770. (124) It was moved by Broich, seconded by Neel , and unanimously carried, that Resolutions 17492 through 17494 and Minute Orders 4752 through 4754, and motion in Item 17, be adopted. ADDED STARTERS: 18. GRAFFITI REMOVAL PROGRAM Recommendation: That the Council approve an urgency ordinance amending the Municipal Code declaring graffiti to be a public nuisance, prohibiting possession and sale (103- of aerosol containers of paint to minors, prohibiting O01) graffiti , and providing for its removal by i:ity officials at city expense; and establish a reward program for persons offering information leading to the apprehension of graffiti vandals. Upon motion duly made, seconded and unanimously carried, this matter was determined eligible for consideration and added to the agenda. Streets & Facilities Manager reviewed the details of the proposed amendments, as outlined in his report on file with the City Clerk, and the guidelines for graffiti removal on private property, i .e. , clear notification to the property owner that cooperation can result in removal at no cost to the owner, and failure to cooperate will result in all costs being charged to the owner, with the possibility of a lien against the property. He stated that the staff wi lI contact surrounding cities; in an effort to get them to adopt similar programs; and will work with the Public Relations Manager to quickly inform local merchants and residents. Councilmember Hodges stated that she will also bring up the subject at the CVAG Executive Committee, with the possibility of considering a task force to deal with the gang issue. Council Minutes 4-17-91 Page 13 18. GRAFFITI (Continued) Ordinance 1380 was presented, entitled: AN URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING SECTIONS 11.72. 172 AND 11.72.174 OF THE PALM SPRINGS MUNICIPAL CODE DECLARING GRAFFITI TO BE A PUBLIC NUISANCE AND ADDING CHAPTER 11.70 TO THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE POSSESSION AND SALE OF AEROSOL CONTAINERS OF PAINT TO MINORS, PROHIBITING GRAFFITI , PROVIDING FOR ITS REMOVAL BY CITY OFFICIALS AT THE CITY'S EXPENSE AND ESTABLISHING A REWARD TO PERSONS OFFERING INFORMATION LEADING TO THE APPREHENSION OF GRAFFITI VANDALS. and Resolution 17496, as recommended; after which, it was moved by Broich, seconded by Hodges, and unanimously (114- carried, that further reading be waived, and that 01380 004) and R17496 be adopted. 19. CANYON PARK RESORT & SPA Recommendation: That the Agency/Council approve terms of an exclusive agreement to negotiate with Canyon Development and direct staff to prepare Development Agreement for consideration. (133- Councilmember Hodges stated objection to adding this matter 006) to the agenda at this late date, and that the public has not had an opportunity to see it; and that she considered it totally wrong to proceed with its consideration at this time. It was moved by Broich, seconded by Murawski , and carried by the following vote that this matter be determined eligible for consideration and added to the agenda: AYES: Broich, Murawski , Neel & Bono NO: Hodges ABSENT: None City Manager reported the following correction to the proposed Council resolution: Section 1 ". . .40 years, to the extent legally permitted. " and Section 2, ". . .Canyon Development agrees to pay to. . . . . .for paid advertising . . . . . .for the promotion of the City of Palm Springs". r yip Council Minutes 4-17-91 Page 14 19. CANYON PARK RESORT & SPA (Continued) Director of Economic Development reported that the Canyon Development has undertaken the acquisition of leases and lands surrounding the Canyon Hotel in the southern portion of Palm Springs; has designed a resort/spa unparrelled in the history of Palm Springs; has funded the environmental studies necessary to identify impacts which need to be mitigated in order to develop this project; and has funded the redevelopment studies for the area in preparation for consideration of the adoption of a redevelopment area - the primary purpose will be to leverage future tax revenues in making the project a possibility; secondly, to assist, if needed, in acquiring private property to make the private development possible. He stated that Mr. Solomon estimates that when fully completed, the development of the project will exceed $1.5 billion valuation in the newly created redevelopment project area, and requests that the Agency pass-back 95% of the Agency's net tax increment created by the project, without which there is no substantial revenue for a period of 35 years; that the life of the proposed redevelopment: plan is 40 years, and the 20% increment that is set aside for low/moderate income housing development for such period of time is sufficient to allow the developer to recapture its investment in the low/moderate component of the project - estimated to occur over the first 18 years; that the developers performa shows no per annum earnings for the first 13 years, the internal rate of return shows a 4. 5% rate of return over 35 years; that the developer also requests that 7¢ of the 9¢ of the TOT generated by the Canyon Park Resort be passed back to the developer for a period of 40 years to provide the project a positive cash flow; that the developer agrees to pay to the the Visitor and Promotion -fund, commencing after the first year of the hotel ' s operation $250,000 in year two, $300,000 in year three, $350,000, and $500,000 in all successive years until the end of the 40 years; and that the final development agreement will ensure that the funds are utilized for legally permissible Agency work, including infrastructure, rights-of-way improvement, beautification, housing improvement for low/moderate income households, and economic development improvements. He stated that the total project undertaking, not including the financing is estimated to be $500 million; that the proposed agreement limits reimbursements to the developer at $500 million over a 40 year period, which still provides substantial sums of money available to the City, the Redevelopment Agency and other taxing agencies, e.g. , the division of the estimated $2,078,982,239 dollars (over the 40 years) is as follows: Canyon Park Resort and Spa is asking for $500 million; the taxing agencies, if successful pass-thru agreements are negotiated, would absorb $610,725,042; the City of Palm Springs would receive $213,375,337 through TOT; the Redevelopment Agency would receive $431,820,146; and the low/moderate 'income housing set aside fund would receive $323,121,380. He stated that the pass-back to the developer should be viewed in terms of the developer' s proforma with the understand ng the developer should be expected to make a reasonable return on his investment; that the final development agreement will be returned to the City Council and the Redevelopment Agency after the adoption of the Canyon Redevelopment Plan, if staff has been given direction by those bodies; that the exclusive right to negotiate takes the approval of the Agency and the City Council ; that the redevelopment plan for the Canyon Project Area is expected to be ready for consideration in June, 1991. Council Minutes 4-17-91 Page 15 19. CANYON PARK (Continued) It was moved by Broich and seconded by Murawski , that Resolutions 17475 (City) and 770 (Agency) be adopted. In answer to question by the Agency/Council , the Director of Economic Development reported that additional information that was received yesterday from the developer that the sales tax revenue to the City from the hotel alone is estimated over the 40 years at $46,635,532; and there will be additional taxes accrue from all of the other development that occurs; that there will be two forms of revenue, other than what he mentioned, i .e. , sales tax revenues that various merchants will collect as a result of the construction of these buildings and landscaping, etc. , and, secondly, the high income people in that area of the community who will shop downtown. Council/Agency Member Hodges stated she felt manipulated by City staff, by the developer and by the Mayor; that this matter could have been put on the regular agenda, and presented in due time, but for whatever reason it was not; that she received a phone call this afternoon that Mr. Feenstra was going to deliver papers and documents to her office, which would have given her the opportunity to look at them prior to the City Council meeting; that before 5 o'clock she received another telephone message that would not be possible to deliver the documents, and they would be available at the meeting; that this matter is a tremendous decision - the Council/Agency are not just entering into exclusive negotiations, but are giving away negotiating rights on these particular issues, by stipulating that this is what the Council/Agency are going to commit to; that the commitment is for the revenues of the City of Palm Springs in this particular redevelopment area for 35 years, which is a tremendous amount of money and a tremendous amount of time; that she feels the matter has been rushed through City staff, and it has been rushed through the City Council ; that she resents having a last minute rush decision on a a project of this major of a decision; and she did not see any reason why it could not have been brought forward at a proper time, and with proper documentation, so that not only the Council , but the people of Palm Springs would have been able to see it. She stated that if negotiations have been going on for sometime, she was not aware of it. Mayor/Chairman stated that negotiations have been going on for several months, and is not something that was negotiated overnight; that on occasions Councilman Broich asked him if negotiations had broken down on it, Councilman Neel has asked him if they had broken ground, and the tenor of the Council has been a desire to get this project moving, because the town needs it; that prior to this Council , it was the desire of Councilmembers Broich, Neel and himself to get a project of this scope in the Canyon area, and all worked deligently - including Councilmember Broich's independent action to duplicate this type of process in the very same area with another developer, which did not come about, but was consistent with a goal desired for the last three years; that the Council/Agency are not giving away their money, rather Mr. Adler and Mr. Solomon are being given the privilege of spending $500 million developing this community, and all they have to do now is make it work; that if there is a risk from the beginning, they at least have their share of the risk. Council Minutes 4••17-91 Page 16 19. CANYON PARK (Continued) He stated that he did not see any skulduggery or deception, and firmly believes that the community is at a crossroads, and without this kind of project, and this kind of community, and an improvement in the quality and affluence of the community, that in a very short time it is going to be in dire straits; and then the only way to bring money into the community will be by taxation. Council/Agency Member Hurawski stated that he appreciated Councilmember Hodges ' concerns, and thinks there are some things which can be done to improve lines of communication with the developer, and he hoped that will be done, and members will individually be more informed than they have had the opportunity to be; that he had a lot: of material in his packet and has been aware of this, and even asked questions of Mr. Feenstra several weeks ago; that he did not know where the proposal came from, but having it in his folder, he studied it and asked questions; that it is very complicated, and it appears as if the Council is giving away something tremendous, but it is not the citizen ' s money, rather substantial money that could eventually come in as 'taxes, and if the shovel is not put in the ground pretty soon, the whole community is going to be in trouble; that something has got to happen soon to start sending a signal to the rest of the world that things are going to turn around; that he hoped this is not the only project that the Council is going to support, and those that are flying around in the background will also come together, and work in tandem with this project, because they will all complement each other. He stated that it is essential to recognize that this is not the only thing going on, but it is the first thing that has gotten off the ground; that he realized the seriousness of the action, and has pondered it for more than the last couple of days. Director of Economic Development stated that he did not mean to offend Councilmember Hodges, and his every intent was to try to get the papers out as early as possible to her, and the other members; however, as the day wore on, the changes occurred continuously, trying to clarify and satisfy the concerns of everyone who was working on the negotiations, and it was probably 5:30 or 6:00 p.m. before the last final wording was achieved. City Attorney stated that the materials had to go through his review several times, and he also offered his apologies. Motion by Broich, seconded by Murawski , to approve said Resolutions 17495 (Council ) and Resolution 770 (Agency) with corrections as noted by the City Manager, were adopted by the following vote: AYES: Broich, Murawski , Neel , & Bono NO: Hodges ABSENT: None COMMISSION APPOINTMENTS: a) Convention Center Commission, vacancy for term end 6-30-91 - None b) Council liaison or other representations-None .` Council Minutes 4-17-91 Page 17 c) Task Force re Gangs The following persons were selected by members of the Council to serve as an ad hoc committee to explore gang related issues in the community, to be chaired by Councilmember Broich: (selected by Councilmember (060- Murawski ) Mike Olman, Phil Short; (selected by 010) Councilmember Broich) Jeanne Reller, Terry Tatum; (selected by Councilmember Neel ) Charles Koller, Jim Barrial ; (selected by Councilmember Hodges) Larry Raussa, Ron Williams; (selected by the Mayor) Terry Weiner, Wil Kleindeist. d) City Representative to Martin Luther King, Jr. Federal Holiday Commission Information & Planning Conference: City Manager reported that the Council indicated at its last study session, a desire to designate Edward Joseph as the City's representative to the above conference, and he recommended that be confirmed, and the Council establish the following policy for reimbursement, not only to Mr. Joseph, but for any citizen: The City Council , at its sole discretion, may designate citizens as official city representatives to specific events and/or conferences upon written request, where or when such occurrence, or conference, or event involves a significant public interest, on a case-by-case basis. The City Council , at its sole discretion, may approve a total reimbursement from the city; or reimbursement from the city subject to limitations designated by the Council ; or a cost-sharing reimbursement between the designee and the city. It was moved by Hodges, seconded by Broich, and unanimously (06C- carried, that Edward Joseph be designated as the City's 010) representative to the stated conference, and reimbursed for his expenses. It was moved by Murawski , seconded by Hodges, and unanimously carried, that the policy concerning appointments (114- and reimbursement of expenses for citizen designated 004) representatives, as recommended, be adopted. REPORTS & REQUESTS: CITY COUNCIL reports or requests a) Councilmember Broich requested that whenever an action of the Council is continued, that a brief synopsis of the Council ' s action be included in the subsequent staff report. PUBLIC reports or requests - None STAFF reports or requests - None ADJOURNMENT There being no further business, Mayor declared the meeting adjourned. u/JUDITH SUMICH City Clerk