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HomeMy WebLinkAbout1992 - MINUTES - 11/24/1992 CITY OF PALM SPRINGS CITY COUNCIL MINUTES NOVEMBER 24, 1992 An Adjourned Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor Maryanov in the Council Chamber, 3200 Tahquitz Canyon Way, on Tuesday, November 24, 1992, at 3 p.m. ROLL CALL; Present: Councilmembers Lyons, Hodges, Reller-Spurgin, Schlendorf, and Mayor Mar,y anov Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported posting of the agenda in accordance with Council procedures, on November 20, 1992, and that there were no additional legislative items. PUBLIC COMMENTS: a) The following persons spoke concerning the P.S. Desert Resorts CVB (PSDRCVB): Eric Langman, P.S. Hotel Association, stated that the name "Palm Springs" is unique and a lot of money has been invested in it, and it should be copyrighted, in order to control its use by others; that other cities advertise and promote their names, but still want the benefit of using "Palm Springs"; that the Hotel Association the use of the word "and" should be included in the name of the CVB, i.e., Palm Springs and Desert Resorts CVB, and if the City pulls (0501- out of the JPA at some future time, its name should go with it, and 008) the Association supports retaining voting rights on monetary matters during the last year of participation in the JPA. Bob Weithorn, Orchid Tree and also P.S. Hotel Association, concurred with comments by Mr. Langmani, and added the cost of pulling out of the JPA is transitory, but leaving the name of Palm Springs is an on-going identity penalty, and the distinction is essential; that to vote against protecting one's name in the private sector would be a potential conflict of interest; and that some of the hotels have received letters that they will not be receiving leads from the CVB because they are not paying the additional fees, and that issue needs to be discussed. LEGISLATIVE ACTION: 1. HUMAN RIGHTS ORDINANCE ((Introduced 11-18-92) City Clerk read title of Ordinance 1428, as follows: AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 2.45.030 (b) OF THE PALM SPRINGS MUNICIPAL CODE CONCERNING TERMS (060- AND VACANCIES ON THE HUMAN RIGHTS COMMISSION. 027) 04 -15 Council Minutes 11-24-92 Page 2 1. HUMAN RIGHTS ORDINANCE (Continued) It was moved by Schlendorf, seconded by Roller-Spurgin, and unanimously carried, that further reading be waived, and that Ordinance 1428 be adopted. 2. GROWTH MANAGEMENT STRATEGY FOR RIVERSIDE COUNTY Staff Recommendation: That the Council support the Growth Management Strategy for Riverside County, subject to expressing certain areas of concern to the Board of Supervisors; in order to create an effective growth management program for the County, and to demonstrate to State Legislators that a proactive role is being taken in dealing with growth management issues. Director of Planning & Zoning reviewed his report, and added that this mater was reviewed at two study sessions, and addresses four general points: land use on a regional basis; government organization - with intent (123- to remove the County from urbanization - eliminate sprawl; financial 001) servicing - intent to keep quality high; and services and planning. He stated that the proposed resolution is not identical to that of CVAG, but is recommended for adoption. In answer to question by Council, he stated that the plan is a strategy and not a planning document, and should be entered into with the reservations that are noted in the resolution; that the County takes a more active role in annexation, e.g., fiscal impact, return to the County of dollars for new roads built by it; and that he felt the strategy will encourage annexations, not discourage them. Resolution 17994, approving the Strategy, with reservations, was presented; after which, it was moved by Hodges, seconded by Schlendorf, and unanimously carried, that R17994 be adopted. 3. P.S. DESERT RESORTS CVB BYLAWS At the last study session, the Mayor requested that Council provide direction concerning the issues of. a) deleting the name of Palm Springs in the event it withdraws from the Joint Powers Authority; b) creating a new name of Palm Springs and Desert Resorts Convention & Visitors Bureau; and c) of retaining voting power upon notice of termination, but (050- limited to matters of monetary consideration. 008) Mayor reported receipt of letter from Marcia Craig, and signed by seventeen other merchants, concerning the use of the name of Palm Springs, and adding the word "and" to the CVB name, which he read in full. He noted that originally the CVB requested an increase from .6% to 1.4% of room revenue; that a change in the formula was requested, which would impose .8% on convention type hotels, and split fund for non- convention hotels of.6%, which was a combine 1.4% increase generating $2.5 million, and equalized Palm Springs and Palm Desert funding, in that Palm Springs has a very large number of non-convention hotels; that other bylaws changes must be made as a result thereof, that a committee was created to review those recommendations; that in changing the funding formula the convention hotels were asked to agree to the .8% Council Minutes 11-24-92 Page 3 3. P.S.D.R.CVB (Continued) increase to cover additional participation costs, and that it would be readdressed at the end of the 92-93 year to see if there was a willingness to continue it; that amendment to the bylaws must reflect that agreement (to which the task force agreed); that the task force also agreed to items a) and c) as above noted; that it did not agree to adding the word "and" to the name of the CVB because the name was neg tiated when the CVB was created and was done so from the strong point by the City of Palm Springs and was the name negotiated for by the prior Council;; that the City of Palm Springs received what it wanted, and now would be asked for it to be changed; that it was felt to be very costly and time consuming to change stationery, displays, etc., and questioned if it still remains an issue. Councilmember Schlendorf stated that she felt it was worth pulling out of the CVB if it means getting the recognition of the iname of Palm Springs; that it is not a big cost item to change the namme; that material that promotes the entire Valley uses portrays that it is Palm Springs; that in many cases the merchants and hotels are heavily promoted, except those in Palm Springs, and it is unfair treatment and an overuse of Palm Springs' name; that if the City does not take the position that it is not the JPA who decides who will use Palm Springs' name;, then the City is giving away its power over what it owns; that there must be a decisions made to protect the merchants, arid the luxury of being on Palm Canyon Drive; that otherwise the name is being given away, and allows using Palm Springs in very large letters, and the remainder of Desert ]Resorts CVB in smaller letters, which is misleading to the reader; that she favored making a statement to the JPA members that it must not mislead, and that due time could be given in which to covert collateral materials Mayor questioned how adding the word "and" solves the problem, or stops CVB from advertising Palm Springs and listing hotels as it is now doing. Councilmember Schlendorf stated that the word "'and" means there is a difference between Palm Springs and the "desert, resorts", otherwise it appears that the desert resorts belongs to Palm Springs; that the word will cause people to look at it, and discern the difference; that the name originally was negotiated because the Desert Resorts CVB had financial problems and Palm Springs agreed to let them join, and since the City was putting up a lot of money without knowing if the other resorts would stay, it wanted to retain the name; that it is time to change control of the name, since the situation is not the same as it was then. Councilmember]Lyons stated that situation creates a "tempest in a teapot" and adding the word "and" does nothing; that 'he did not think people read the letterhead on stationery; that he agreed that others need to be stopped from using the name Palm Springs in ads when that is not appropriate; that every issue of the CVB hinges on its performance; that he felt the name issue was out of proportion, and the City got what it wanted initially; that this may be a deal breaker; that review of the CVB Council Minutes 11-24-92 Page 4 3. PSDRCVB (Continued) performance needs to be done first; that the City should trademark its name and charge for its use; and that the City should be pressing for the CVB not to misuse the name. Councilmember Hodges stated that the City may not have another opportunity to change the name for 3-10 years; that if it is a deal breaker, so be it; that she agreed with Councilmember Schlendorf, and felt there is a big difference when adding the word "and" which separates the entities in a distinct way, and the Council must protect the Palm Springs entity; that the CVB continues to misuse the name; that "Palm Springs" sells whatever happens in the Valley; and they could be given the time to change logo, etc. Mayor stated he did not disagree on protecting the use of the name, and agreed on trademark idea, and agreed on looking at performance standards; that he has problems with Doubletree Hotel and Sun City Palm Springs using the name, but did not equate that to "Palm Springs" as part of the CVB name; that dollars go towards promoting the name, e.g., "Good Morning America" program aired from Indian Wells but was presented as coming from Palm Springs, and that is important also; that he did not think the original name was because the other resorts were weak; that he did not take issue with the basic premises of stopping the CVB from misusing Palm Springs by calling other locations or facilities as being in Palm Springs, but did not see how adding the word "and" cured the problem. Councilmember Hodges stated that why the name was originally created is in the past, and that leaving it is as it today is not in the best interest of Palm Springs, and adding the word "and" makes the distinction that is needed. Councilmember Schlendorf stated that the "Good Morning America" show was done with the thought that the entire Valley is Palm Springs, and in fact referred to a common practice of calling Palm Springs as the "old Palm Springs"; that if it could not have used the name "Palm Springs" then perhaps it would have originated from one of the Palm Springs hotels, and not the Stauffer; that until the City fights for its identity, it will continue to have an identity crisis, and business will go down valley; and that she felt it was an extremely important issue and an extremely important distinction. Councilmember Reller-Spurgin stated that the spacing is essential in order to add the word "and" to make the distinction apparent; that it is currently arranged to look like a "Palm Springs" logo; that the cost of paper conversion is very small; that it someone else's name is used, there is a cost for doing so. Mayor questioned whether the Council in advocating including the word "and" also advocates withdrawal if it is rejected. Council Minutes 11-24-92 Page 4 3. PSDRCVB (Continued) Councilmember Lyons stated that if performance; review shows that the CVB has brought a lot of revenue and conventions to Palm Springs, to withdraw would be shooting one's own foot. Councilmember Schlendorf stated that legal counsel would be needed as to how to support that position; that the new funding was based on securing a new JPA; that thus far, it has fallen back on giving the small hotels leads as promised; and that all advertising is going to advertising agency, and it is not working as planned. Councilmember Hodges stated that the decision on withdrawal should not be made at this time, but the direction should be to support the separation of the name, with understanding that there is a good possibility that the City will pull out; that it must support its position with conviction, and if that is not successful, then it will be necessary to deal with the ramification. Councilmember Realer-Spurgin stated that the Council should stand behind its commitment to provide a one-year notice. Mayor stated that he has already tried that approach, in that the name change was presented to the JPA task force, and it said No; that in his opinion, the choice is then to "lay down the gauntlet", and again questioned if the Council was willing to withdraw from the JPA if the name is not changed. Councilmember Schlendorf stated that a better reason that the cost of ads, booths and graphics is needed, e.g., why is it important for other cities to use the Palm Springs name. Councilmember Hodges stated that she felt it was evident why they would want to use the name Councilmember Reller-Spurgin stated that the Council was elected to do what is in the best interest of the City. Mayor stated that $3 million is spent to advertise the Valley, and questioned if it is in the City's best interest to go away with $700,000; and that he would like to hear from the larger hotels as to what theii, position is. Councilmember Reller-Spurgin stated that negotiation was tried, and perhaps if the Council's firm commitment is known, the "gauntlet" may have to be dropped; and that the larger hotels probably would like to have had the "Good Morning America" show. Councilmember Schlendorf stated that it is not just a hotel issue; that it effects economic development if the City pulled out; that the Convention Center staff secured more leads than the CVB over a 3 year period; that if the City pulls out, it should be when the cost is only $400,000; that the money is being spent to advertise the Palm Springs name, and she did not Council Minutes 11-24-92 Page 5 3. PSDRCVB (Continued) feel there was any job that was being done that the Convention Center could not be doing. Mayor stated that he would like a report from CVB with the Council's critique of performance, and then bring the issue back again. Councilmember Hodges stated that three members of the Council are expressing support for the position, and asked for the Mayor's conviction that he will express that view as the desire of the City Council. Councilmember Reller-Spurgin stated that the position must be supported and done so in a strong manner; that the one-year commitment must be honored; and that the performance has not been review since July, and that needs to be done; and that she supports that withdrawal may be on the line. Mayor stated that the Council's direction is clear, and that he would still like to get a report from the CVB on what it has accomplished, because even if the name is changed, the City can still pull out, i.e., what is being done for the small hotels. Councilmember Schlendorf stated that a letter was sent to the small hoteliers from the CVB, which gave a refund and offers free membership, per prior understanding, but offers no benefits, i.e., leads which was portrayed to be the case. Mayor commented that the letter needs to be investigated, as well as what is offered to other non-city members. Mr. Weithorn expressed his view that there has been an error in semantics, i.e., convention and non-convention hotels and group hotels, e.g., Mr. Baker's hotel does group business, but is not a convention hotel. Councilmember Reller-Spurgin noted that Mr. Baker did not want to have to pay the .8%; and Mr. Langman noted that Mr. Baker was a member of the CVB before and did not feel he derived any benefits. (Note: No specific motion was adopted, majority of Council expressed position to direct Task Force representative to strongly support name change to Palm Springs and Desert Resorts CVB, recognizing potential ultimatum to later be considered). ADJOURNMENT There being no further business, Mayor declared the meeting adjourned. — 'JUDITH SUMICH City Clerk