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HomeMy WebLinkAbout1993 - MINUTES - 10/27/1993CITY OF PALM SPRINGS CITY COUNCIL MINUTES OCTOBER 27, 1993 An Adjourned Regular Meeting of the City Council of the City of Palm Springs, was called to order by Mayor Maryanov, in the Council Chamber, 3200 Tahquitz Canyon Way, on Wednesday, October 27, 1993, at 5:30 p.m. ROLL CALL: Present: Councilmembers Hodges, Lyons, Reller-Spurgin, Schlendorf and Mayor Maryanov (Councilmember Schlendoef entered the Joint meeting portion at 5:40 p.m.) Absent: None REPORT POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on October 22, 1993. The reconvened meeting, in the Large Conference Room, City Hall, at 7:30 p.m., was opened with the roll call (all present), the Flag Salute, and a moment of silence. PUBLIC HEARINGS: 1. JOINT MEETING WITH TRIBAL COUNCIL - DeSANTIS CUP 5.0644 (Tribal Council: Chairman Richard Milanovich, Member Marcus Pete, and Alternate Member Gloria Gillette. Also: Tribal Attorney Art Bunce, and Planning Consultant Tom Davis.) The purpose of the joint hearing was to hear an appeal to the Tribal Council to remove Condition 12, approved by the City Council as part of Conditional Use Permit to allow construction of a golf driving range and practice green with food sales and rental equipment on San Luis Rey Drive between Ramon Road and Camino Parocela, M-1, Section 20, concerning the payment of Assessment District 155 assessment on the leasehold. Tribal Chairman stated that it is important to the Tribe as to how and what development takes place on Indian -owned land, and that the subject hearing is to stay with the facts and to understand the purposes of the meeting. (1178- Mayor stated that there are some aspects which are the result of legal actions, i.e., bonds were 040 ) sold to cover the improvements; and he hoped that an amicable solution can be found. Tribal Attorney summarized process for the appeal, noting that it is only the 13th in 17 years in which the agreement has been in effect; and that the Tribal Council has 30 days in which to render its decision, and in doing so will keep in mind the nature of what assessment districts provide in added public improvements. Hearing. Director of Planning & Zoning summarized the City Planning Commission and City Council actions, as described in his report of October 27, a copy of which is on file with the City Clerk, noting that improvements were borrowed through the assessment district process and secured through leasehold interest in the land; that the lessee at that time defaulted and the CUP relates to a new permittee, and the Commission and Council felt that the cost for the term of the benefit of the assessment should be paid for; that if the action is not upheld, there may be problems looking at public financing of improvements on Indian land, and he thought it imperative to work out some type of agreement; and that the City's position was an obligation to collect, and that the tenant and the landowner both benefit from the improvements. Tribal Council Planning Consultant summarized the Indian Planning Counnission action and analysis, and stated that at its meeting October 11, the appeal was reviewed, andit was concluded that a) any condition which can be construed as onerous or unfair in relationship to the land's potential or possessory interest can create a serious constraint to Indian and/or any land development; b) it is important that Indian land leases be particularly protected from such onerous conditions of approval which position said leases unfairly in the local real estate market; c) the present lessor or lessee should not be held responsible for a previous lessee's responsibilities when that leasehold has a totally different land use basis; c) clarification is required that assessments against future leaseholds shall not be imposed unfairly and must relate to the project as proposed at the time the assessment is established; and d) the City, in this case, appears to be responsible for assuring the applicable (original) leasehold performs its responsibilities prior to vacating the lease or abandoning the project. Council Minutes 10-27-93, Page 2 1. JOINT HEARING (Continued) Testimony of appellant. Robert Flavin, South Palm Canyon, stated that appellant feels the prior lessee should be responsible for the assessment, which is $37,000 annually, and who held the lease for 5-7 years; and that the 5-year lease on the driving range would not generate enough for the lessee to pay the assessment and earn him any money, and would have to let the lease go back to the owner. There were no other comments. Chairman declared the hearing closed City Attorney stated that concerning the statement that the City should pursue the prior lessee, he has sent letters indicating intent to pursue holding therm personally liable, and response was received from their attorney holding opinion that the City does not have the right to go after anything except the lease, so there is nothing to proceed against, and there would not be cooperation; that the matter has been referred to the bond counsel who handled the assessment proceeding, to see if they agree with the legal position. He stated that he feels that the security interest was the lease and it will be difficult to recover, but he will wait to pass judgment on that until the bond counsel responds. Tribal Council Chairman stated that, personally, he feels the prior developer has had a checkered record about completing projects, and there should be something more to protect the City, when such a record is present; that the developer entered into another agreement with the City to do some other work, and although he did not know how they might be able to be tied together, he questioned how he could walk away from one project and obtain another without regard to moral obligation for the one he abandoned. He stated he understood the full impact upholding the appeal would have on leasing programs for development and if assessment financing is needed how it will work, and how the City would respond, and that he was (pleased bond counsel has been asked to look at it. Councilmember ScWendorf asked if there will be a plan or procedure established that both the Tribal Council and City Council can agree to follow to guard against this happening again. Councilmember Lyons stated that the 5-year lease appears to be too short for the developer to pay for the assessment, and questioned what would prevent future leases from being in 5-year increments, and lesses never being able to pay. Mayor stated that he believed the current Council would not have approved the proceeding without specific agreement with the landowner, however, the work was done and the improvements are benefitting the property; and that there may be a different spread of the assessment, but value is now being received and is not being paid for. Tribal Chairman agreed, adding that it was a situation of a developer under a prior lease walking away from his obligation, and now dealing with a new group of individuals on a short-term basis, creating a difficult situation. Mr. Flavin stated that Mike Harris, attorney, wrote a letter to the City Attorney stating that when a larger development came, he would work with the City Attorney on the assessment issue. Tribal Chairman stated that a prior staff discussion was perceived to contain a veiled threat that if there was no attempt to correct this situation, it could possibly effect any future projects on Indian land, and he felt it was coming up again in the same vein. Mayor stated that there is no threat, nor is that the intent, but it is a fact that the two Councils will have to meet to develop assurances that assessments will be paid before going into such a financial procedure, and that it be done before spending any money or making any improvements, so there will not be any problems. Tribal Chairman concurred and noted that such a suggestion was made. Mayor added that he thought such agreement should he specific to a project itself, and not just in general. City Attorney stated that he had two conversations with the Tribal Council staff, and it was not his intent to appear as a threat, and apologized if that conclusion was drawn; that when the bonds are sold, the assessment needs to run with the land, and that if termination of the lease ends the obligation for the assessment, the market place will not look favorably at buying such bonds; that he suggested working out a long-term solution, perhaps language needs ito be included in the lease agreements in the future that would restore the credibility in the market place, and he would be willing to work with the Tribal staff to find a means to achieve that, e.g., making the lessee personally liable, although he did not feel that would be totally adequate, and perhaps a lease provision needs to be develop so whenever a leased parcel is taken back or leased again, that the obligation remains. Council Minutes 10-27-93, Page 3 JOINT HEARING (Continued) Tribal Chairman stated that the Tribe also has a good name to protect, and lives up to its obligations, and desires to be treated fairly. There was no further discussion, Tribal Council decision to be rendered within thirty days. Mayor declared the meeting adjourned to Closed Session; after which, members reconvened at 7:30 p.m. PUBLIC COMMENTS: None LEGISLATIVE ITEMS: 1. GAMING TASK FORCE APPOINTMENTS Consideration of appointment to fill newly created Gaming Task Force (11) members. Mayor stated that the Council interviewed applicants on October 26, 1993, Lowever, due to the number of applicants, he recommended that this matter be continued to November 3, in order to further study the applications. It was moved by Schlendorf, seconded by Reller-Spurgin, and unanimously carried, that this matter be continued to November 3, 1993. 2. NATIONAL UNFUNDED MANDATES DAY Recommendation: That the Council join in proclaiming October 27, 1993, as National Unfunded Mandates Day, and encourage all citizens to support Senate Bill 993 and House Bill 140. (Note: The meeting opened with a press conference format on this issue; members of the Council described state and federal mandates which impact the cost of local government, signed a proclamation, and provided interviews to the news media; after which, the adjourned meeting was formally reconvened.) Mayor read the proclamation in full, a copy of which is on file with the City Clerk; after which, it was moved Schlendorf, seconded by Reller-Spurgin, and unanimously carried, to join in the proclamation as recommended. ADDED STARTERS: 3. GOLF COURSE EXPANSION Staff Recommendation: That the Council approve an agreement with Gosch Enterprises, Inc. dba Fairway Construction, to develop a critical path management system and provide value engineering analysis of the golf course expansion project, A. Director of Parks, Recreation & Golf Course reported that the principles of the current project management firm have dissolved their partnership, and staff has had a chance to re-evaluate the expansion project; that a consultant is needed to do value -engineering and develop a critical path management plan; that approximately 6 major contractors who could step in and take over have been talked to, and the project is still on track and a Fall, 1994 opening is expected. City Engineer explained that "value -engineering" results in looking at ex=sting contracts and evaluating where any potential loopholes may exist and minimizing any change orders by correcting situations now, and the critical path management breaks down each contract by each step to be performed, and identifies critical pieces which need to happen in order to move to the next step in the construction path. In answer to question by Council, he stated that all of the six contractors were talked to about the overall scope of the project, but only to the recommended consultant for getting a price, because of their reputation as a leader and premier golf course construction company; that a recommendation will be returned to the Council concerning the overall management, and if the consultant is successful in that effort, the cost of the proposed work would be deducted, and that recommendation should be at the next meeting. (060- 010) (098- 001) (092- 010) Council Minutes 10-27-93, Page 4 3. GOLF COURSE EXPANSION (Continued) In answer to question by Council, City Attorney stated that the consultant is required to use high professional standards to carry out its tasks, and if a methodology is recommended that does not work, the City could bring experts to say how it should have been defined; that there would be a liability for negligence, and the Council would have a course of recovery, but it becomes a matter of how much it wishes to pursue such recourse. Minute Order 5275 as recommended, was presented; after which, it was moved by Hodges, seconded by Lyons, and unanimously carried, that MO5275 be adopted. ADJOURNMENT There being no further business, Mayor declared the meeting adjourned[. `\-_JUDITH SUMICH City Clerk