HomeMy WebLinkAbout1994 - MINUTES - 2/23/1994 CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
FEBRUARY 23, 1994
An Adjourned Regular Meeting of the City Council of the City of Palm Springs, was called to order by
Mayor Maryanov, in the Palm Springs High School Auditorium, 2248 E. Ramon Road, on Wednesday,
February 23, 1994, at 7:30 p.m.
ROLL CALL: Present: Councilmembers Lyons,Hodges,Reller-Spurgin, Schlendorf&Mayor
Maryanov
Absent: None
The meeting was opened with the Salute to the Flag, and an invocation by Dr. David Jenkins, Community
Church of Palm Springs.
REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with
Council procedures on February 18, 1994.
1. CITYWIDE PARKS & STREET LIGHTING MAINTENANCE DISTRICT
On December 15, 1993, City Council approved the Resolution of Intention No. 18254 which set
the date and time for the Public Hearing for the proposed City-Wide Parks & Safety Lighting
District. Approximately 43,000letters were mailed to Palm Springs property owners on January
7, 1994. The mailings included a cover letter, the proposed assessment amounts,questions and
answers about the process and a legal notice explaining the protest procedures and dates and
times of meetings with property owners; a Public Meeting was held at 7:30 P.M.,Wednesday,
February 9, 1994 in the City Council Chambers; and on February 2, 1994 at a regularly
scheduled council meeting, City Council adopted a motion to place the proposed District on the
June 7, 1994 election ballot for an advisory vote.
Assistant City Manager reviewed the process used which resulted in the hearing,and the purpose
of the district. (138-
004)
' Jeff Cooper, BSI Consultants, Inc., Assessment Engineer, summarizer) the Engineer's Report,
noting that the estimated assessment is $3,157,627 to fund the purposes of the district; that the
district covers 10,913 acres, and a single-family-residence - SFR - (regardless of size) is one
equivalent dwelling unit-EDU, and all other property has been converted based on uses, traffic
generation and lot size, and is proportionate based on EDU; that mobilehomes are .8 EDU and
apartments are .5 EDU; and that the Council has indicated it will place an advisory measure on
this subject on the June ballot,.
In answer to question by Council, City Attorney stated that action may be delayed until after the
June election, however, the Council needs to make a determination as to the percentage of
protests; and that the assessments may be reduced, but not increased.
Mayor inquired if the Council wished to limit hearing comments to three minutes; and it was
the consensus of the Council to allow the normal Five-minute hearing comment time allowance.
City Clerk reported on the percentage of protests to date, noting that as of noon, it represented
9.174% of the total acres to be assessed, 12.178% of the EDU, 12.178 of the dollar value, and
7.336% of the SFR.
Mayor declared the hearing opened.
John Kimberly, Los Robles Drive, favor placing matter on the ballot, but as regular measure
and not for advisory only; stated he did not want any city services cut, and new creative
programs to bring more people and more money to Palm Springs should be considered; that he
' has submitted ideas before and they should be followed-up on; that he found economic
development to be "secretive" about new projects, and unresponsive to returning phone calls.
Darrell Meeks complimented the City Librarian and thanked him for cablecasting the hearing;
and expressed opinion that the assessment is not fair method of assessment; questioned how
much BSI was paid; and stated that the City should live on its own budget.
Council Minutes
2-23-94, Page 2
1. CITYWIDE PARKS ASSESSMENT DISTRICT (Continued)
Dick Sroda stated that last summer people said they would raise funds to keep the parks open,
and he questioned how much was actually raised; that he felt the assessment subsidized residents
of other communities which use the facilities, i.e., Cathedral City, Rancho Mirage; that he
thought it was hard to get a protest form; that many people do not came out at night; that hotels
bring in people and they should pay for services; that apartment owners want preferential ,
treatment; that a sales tax and utility tax is needed; that the City has thrice the number of
employees as Cathedral City or Indio, and employees make more than average citizens; that
employees and excess expenses should be cut, and commented on other cities which have cut
staffing; and that people can vote No on the ballot issue as well as on the proposed) charter.
Carol Markely, homeowner and apartment owner, stated that a consumption tax is more fair;
that property taxpayer should not carry the full load; that apartment owners cannot pass the
assessment through to tenants, and even it possible, the economy precludes it; that people who
would otherwise invest funds in Palm Springs will be driven away by the assessment; and that
overspending must be resolved equitably.
Robert Dunn,Ramon Mobile Park, read most of the protest letter which was submitted,repeated
emphasis on non-pass-through of the assessment.
Steve Richie stated that property owners are having to pay for more; than they are getting; and
cuts should be from the top down.
Roy Martin, Cherry Hills Drive, stated there is no effort to reduce costs, suggested cutting
employees, vehicles for department heads, taking cars home, Council "jueilcets"; and that
pensions only increase 2% and that does not cover the assessment cost.
Ms. Severice, Phillips Road, Movie Colony Association, read a letter from Laurie: Hampton,
President.
Diane Tushnak (?) stated that the process may be legal, but she did not consider it moral; that '
many people are finding it difficult to meet basic needs; and that if the Council did not stop the
assessment, it would face recall.
Man (name inaudible) stated that businesses do not come into communities which have rent
control, and he requested that the City publish the sites which it owns; that low salaries result (138—
in driving rents down, reducing income, reducing services, and he thought he could solve the 004)
problem if he were paid for doing so.
Jim Brooks, Alejo Road, stated that cities are using the assessment law to raise taxes, and for
purposes which it was not meant; that be did not see any positive gain from the district.
Curt Ealy, attorney representing El Dorado Ltd., and the Concerned Committee of Apartments
Owners in Palm Springs, both of which oppose the assessment, slated that the costs are not
proportionate to the benefit, i.e.,El Dorado Mobilehome Park residents will not use, nor benefit
from the parks and other improvements, and the attractiveness of the parks will not be
improved, therefore, the costs are not proportionate; that unless there is extraordinary hardship,
the cost cannot be passed through to the mobilehome tenant; that he believed the EDU formula
was designed to tax residents and that is not happening where rent control is in place; that he
believes the assessment violates due process and takes on the character of a tax which requires
2/3 voter approval; that the rental market is so depressed that even without rent control, the
costs could not be placed on tenants; and that he urged reconsideration and abandonment of the
district, and if funds are needed, that a utility tax would be a more; fair means.
Robert Bradshaw stated that at the Riviera Gardens, only six of the:221 units are occupied by '
fulltime residents; that they have their own street lights, parkway, pool, and tennis courts; that
most of the residents are older persons, and would not get much use from the district; and the
district circumvents Prop. 13.
Karen Aguilar, President of the P.S. Board of Realtors, expressed opposition that property
owners alone should bear the costs of providing city services, and that a utility tax is more fair;
that the ballot suggestions are noble, but confusing, and if a "delicatessen" style ballot is going
to be used, perhaps repealing rent control should be added.
n
Council Minutes
2-23-94, Page 3
1. CITYWIDE PARKS ASSESSMENT DISTRICT (Continued)
Ann Livreri, representing Villa Alejo Homeowners Association, stated that she felt the district
was submitted without an in-depth study and is an easy way out of a budget problem; that it was
not equally distributed, and the Council is suggesting additional changes in the formula; that
condominium owners pay the same as the SFR, but do not own the land or building, and are
taxed as if they did; that she opposed it on the ballot because non-property owners will make
the decision and they will not be the ones to pay; that the sales tax is more acceptable if applied
in an amount equal to that which would be raised by the district.
Charles Ethell, P.S. Mall, stated that more tax burdens are not needed, and that retail is
suffering enough with the economy to just stay alive.
Robert Kaiser, N. Coyote, stated that there is an automatic 2% annual increase in the district,
and asked if the consultant was a Palm Springs firm; and suggested that the Council could save
money by not tearing up the driving range in mild-season. He commented on a former
employee's salary increase and retirement pension.
Reull Young, Architect, Rodeo Road, expressed concern about the gradual loss of the public
domain, and that parks are a legacy left for future generations; that taxes have been restricted
since Prop. 13; that the assessment is a direct payment for benefits that everyone enjoys; that
if the district is not passed, he supported other taxation to achieve the end result; that it was not
true that the Council did not reduce staff, and it was misleading to say that nothing has been
done to address the cost of government.
Skip Baumgarten, Araby, and owner of Sahara Park, supported doing whatever is needed to
keep the community at a high standard, but as a mobilehome owner, the assessment is unfair.
Eric Meeks displayed graphics concerning the 1993-94 budget, showing 31% for public works,
parks and contracting services; that he favors the charter city, which will reduce public works' (138—
costs; that he opposed hiring a labor negotiator, and favored using in-house personnel; that be 004)
' favored cutting salaries at city hall before imposing a utility tax.
William Geitter, resident, commented that his industrial park is partially vacant, and he has a
hard time keeping it rented, and tine assessment cannot be added to the rents from an economic
standpoint, and he stood to lose his property if the assessment passed; and that the people are
not moving into Palm Springs, rather out of it; that no one uses the parks, and they may have
to become vacant land.
Phil Bimey, Ave. Palos Verdes, President of the Chamber of Commerce, stated that the
Chamber finds there are inequities in the assessment, and it could have a negative affect and
therefore are opposed, but support the utility taxes as a means of getting income until other
development comes to fruition, and a 9-month utility tax might get as much as the assessment
district, and it could sunset in June, 1995 and be limited to park services.
Florence Coffey, Brentwood, suggested cutting salaries in excess of$75,000, and, similarly,
employee benefits; that she felt senior citizens pay their full share, and they are afraid to go out
after dark; that investment revenue is down and expenses keep going up, and she was
sympathetic with the mobilehome owners and condominiums, but only one piece is being
considered.
Debby Webb(?), Concern Apartment Owners, stated that the assessment is unfair to taxpayers;
that the P.S. Village Apartments will pay more than the Hilton Hotel, even under a reduced
formula& cap; and as a minimum, apartments should be the same as hotels.
Allen Kieley?expressed opinion that city employees are sleeping on the job, and people do not
use the parks, and DeMuth is dangerous after 5 p.m.
Jean Aubrielle, spoke in favor, stated that last year people came forward and got the parks and
pool to stay open; that there were a lot of volunteers to clean up, but there was a city liability
problem; that they raised $1,000; that the assessment district was the only viable alternative to
make sure that the parks would stay beautifully maintained; and that the advisory vote should
proceed.
Council Minutes
2-23-94, Page 4
1. CITYWIDE PARKS ASSESSMENT DISTRICT (Continued)
Mayor declared a brief recess.
Marselle Rougely suggested the money come from other means; and that people should provide
input.
Janet Gray stated that young families will leave the community without parks and lighting; that '
Palm Springs is dying; that other communities pay more in taxes; that whether supported by the
assessment or utility tax, the economy is tough and it will take one of those to save Palm
Springs.
Lee Vinocour, resident of the Valley, suggested mayor relinquish his salary and others reduce
theirs; and commented on the state of the economy in California; suggested that the City dispose
of property it owns, and expressed opinion that he considered money spent for Plaza Theatre
improvements was under the guise of public access TV, but nothing goes for that, and he
considered it fraud; and that he though the City should cut "fat."
Alora Brenhezen (?) stated that her tenants are either unemployed, disabled, or only working a
few days per week, and are not current with rents, and she has no rental income to offset the
assessment, nor can she pass it through.
Paul Sickler, representing Lana Furer, stated Ms. Furer received her notice too late to attend
workshops; stated opinion that this process is confusing as to how(protests are based, and felt
it was intentionally designed in that manner; that the assessment will be easily raised each year;
that the Council should struggle in the same way citizens do; and that rental property will suffer.
Bill Williams, stated that the fire department has extra charges now, and that the police station
is closed after 8 p.m.; that services are already poor; and that more costs cannot be added.
Frank Coffey, Brentwood, stated that a tax increase that does not require voter approval is not
the way to go; that the city is being serviced by members of the unions that work for the city; (138— '
that merit increases and other benefits cannot continue without input; that those costs increase 004
faster than the COLA for citizens; that$19 mullion is for personnel and benefits; that employees
should be reminded that corporations are cutting; that in his opinions the personnel director and
assistant city manger negotiate and have membership in the union;and that the June election will
elect people who care about these costs.
Sheila Meeks, Broadmoor, commented on various salaries and stated that cutting should begin
at the top, and keep the "people who work,"; and commented about Villagefest rules which
required added costs to her, and which she felt was unneeded.
Linda Sroda, San Jacinto Estates, commented on her profession's method of sending people
home on "PTD" (paid leave time)when work is slow, in order to retain employees; and that the
City needs to get through this and get on with things.
Bobo Cook, apartment owner, stated that all rent control covered units should be exempt from
the assessment; commented about Prop. 13; stated that properties are not benefiting from the
improvements, only property owners are paying; and benefit should be paid for by those who
benefit from the tax - renters and tourists.
Fred Ebeling, Tuscan Road, stated he did not like specious continents or inference that people
are making continents that they have not made; that he thought three;councilmembers should be
recalled; and that he did not like to see houses boarded, and people leaving.
Arnold Bockman, expressed opinion that campaign promises should be fulfilled and that city '
financing is crisis management, and questioned how the City can pay for consultants and
bikepaths downtown when it has no money.
Clancy Yoder objected to collection of charges on the property tax; that his complex receives
no benefit from the parks, since it is a private community, and removes its own graffiti, paint
red curbs and fire lanes, has tennis court, pool, spa fund green space.
Bobbie Solomon,S. Camino Real, stated she lives in a contained community on leased land, and
the assessment is charged to the lessee, which results in paying it fir the property owner.
Council Minutes
2-23-94, Page 5
1. CITYWIDE PARKS ASSESSMENT DISTRICT (Continued)
William Hutchinson,apartment owner, stated he uses the parks; that the nets on the tennis courts
needed to be replaced, and he raised$800, which the City matched and the nets were replaced;
that he does not like rent control; and that the district circumvents Prop. 13.
Angelo (?) San Rafael, also stated that top salaries should be cut; that he felt the Planning &
Building Departments chase away builders;commented regarding Prop. 13, and annual increase
in assessment, and corporate employee cuts; and that the utility tax will still be needed.
Lisa Jacobsen, read a letter from her neighbor on San Miguel, that additional property tax
cannot be absorbed; and that people are homeless, and Council is making residents poor; and
that the legal notice was confusing and not easy to understand.
Matilda Jones, Manzanita urged the Council vote against the district.
Man (inaudible name), Portola, commented about corporate cutting, and opinion that the
Council's job is to manage.
Fran McNeel stated that this has been discussed for eight months; that the Task Force made the
effort and brought out more people than ever on this subject; that she was happy to hear the
community express its opinions; and that the Council should make the decision and solve the
problem and not drag it to the June election.
Rev. Jeff Rollins, Las Vegas Road, speaking for his congregation, stated that many are barely
making it financially, and challenged that if the most expensive cannot be afforded, a person
buys the cheapest; and that people should decide if they want to be taxed.
Al Scott,Marion Way, commented on the process of the district and stated it was confusing,and
asked how much response the Council wants to hear; that he considered the public workshops
a fiasco and totally confusing and one-way communication; that in the future there should be
town hall meetings with question and answers; and that he would like the Council to restore
trust, make the decision and be honest.
Lucille Valley stated that people are saying No to taxes.
David Cooper, San Angelo, stated that the Council is being blamed for a mess it inherited, and (138—
that the assessment district assures parks and helps with the budgeting; that the advisory vote 004)
is not a representative vote, because a lot of property owners cannot vote and those who are not
being taxed will be voting, and it should not be on the ballot; that people want services, but do
not want to pay for them; that there are people living in gated communities; and that he pays
for those things that will be used in the future.
Ramona Mendez stated that the parks are not good, and she will not pay the assessment even
if she has to protest, and that she takes her children to Palm Desert.
Jim Jones quoted from various campaign speeches; commented on circumventing Prop. 13; and
that the did not consider this the way for small city government to act, and it should be more
responsive to the people.
There were no further appearances; the hearing was closed.
City staff responded to questions which were raised during the hearing:
a) BSI maintains a Palm Springs office.
' b) Mr. Geitter needs to contact staff, his assessment may be in error, vacant parcels have
a maximum amount.
c) Sales Tax has been looked into; it is not legal locally without a great deal of changes
in State law and voter approval.
d) Notices were mailed January 7.
e) Downtown Development Consultant Ogbum maintains his own office,staff and supplies
out of the contract amount; and it was cut from last year's allocation; total is$128,000.
Council Minutes
2-23-94, Page 6
1. CITYWIDE PARKS ASSESSMENT DISTRICT (Continued)
f) Bikepath was installed using a government funded grant; and no General Fund monies
were involved.
g) Prop. 13 limits ad valorem property tax; benefit assessments are based on benefit
provided.
h) City does not own or control property that Nordstrom's wanted, and thoy are not
willing to come to Palm Springs.
i) Council travel has been limited to negotiations in Washington D.C. concerning the
Airport, in Sacramento concerning rail station,
j) Council administrator was not replaced; secretarial services are shared between
Mayor/Council/City Manager/Assistant City Manager and Director of Marketing &
Tourism.
k) Car allowances have been eliminated; pay only on mileage reimbursement IRS
schedule.
1) Employment practices in government are not the same ais in private industry; not
simple; city has 490 employees and most give full measure and are hard working and
care about the City and doing the best job they can; City staff looking at restructuring
and not just tax and spend.
m) Assistant City Manager and Personnel Director are not rurion members.
Councilmember Schlendorf stated that she has been opposed to the process; that the Council
listens and acts; that she felt all members love the City, and she respects the time they devote (138—
to it; and that the differences on the Council are reflective of the differences in the community. 004)
Councilmember Lyons stated that the annual increase is not rue; that if the matter goes to the
ballot, there will be a lower formula; that he favors a cap and sunset provision; that the Council
actively promotes tourism, and the turn-down is mostly due to the economy; that the Council
is bound by the meet-and-confer process with the bargaining units;and that City Hall cannot be
shutdown arbitrarily; that public safety represents 45% of the budget; that if only general fund
remaining employees were looked at it would result in 40 employees and that is not realistic to
think that without some kind of revenue there will be no cuts in fire and police; that the City
will be restructuring; that employment past practices cannot be: violated; and that gated
communities are not isolated pockets, but are all a part of the full community.
Councilmember Hodges stated that she is opposed to the district; that many comments of
inequity have been made about the process; that if the suggestions were followed, rent control,
churches and some SFR would be eliminated and the assessment would still be unfair; that the
Board of Realtors and the chamber oppose it also; and that she questioned if it would be
appropriate for the Council to abandon the district at this time.
City Attorney stated that all protests have not been computed; that it is within the purview of
the Council to discontinue the process at any point in time without completing it.
It was moved by Hodges, seconded by Schlendorf to abandon the assessment district
proceedings.
Councilmember Reller-Spurgin stated that the Council was elected to insure that services
continue, not just police and fire, and until a service is needed, a 1person does not know how '
much need there is for the service; that Economic Development is important in continuing to
work to increase revenue side of the budget; that she felt the Council must continue to show the
community it is making cuts at city hall; and that these are not easy decisions.
Mayor stated that the planning function has also been criticized, yet without planning and
building there would be no construction, nor would annexation occur, nor the General Plan
updated without which the City could not proceed with anything; that State mandates are
imposed and if the City does not follow them, it is subject to heavy limes; that public;works and
the library are other areas; that he opposes closing the library; thaat tourism is needed and the
room tax increased; that given the State laws, he did not know of arty department that could be
pu r�
Council Minutes
2-23-94, Page 7
1. CITYWIDE PARKS ASSESSMENT DISTRICT (Continued)
closed; that the proposed charter is not for power, rather to function more like a business and
contract for services at decent rates; that he thought it was too early to abandon the proceedings,
and he thinks the Council should hear what people have to say about both a utility tax and the
assessment district through advisory votes; and that budget alternatives should be developed.
Councilmember Schlendorf stated that she has been as open as she could be on the subject and
having concluded the public hearing, she is adamantly opposed; and that the Council must deal
with the long term budget and look at it creatively and at restructuring government.
Councilmember Lyons stated that if either the assessment district or the utility tax were in place,
the City would still have a $1-$2 million deficit which requires severe cuts.
Motion by Hodges, seconded by Schlendorf, to abandon the district, carried by the following
vote:
AYES: Hodges, Reller-Spurgin & Schlendorf
NOES: Lyons & Maryanov
ABSENT: None
City Attorney stated that the agenda for the March 2 meeting contains ballot measures, and that
the State law requires the Council to make a ruling on the protests, and he will bring forward
at that time, a resolution concerning the protests and intent top discontinue the district.
ADJOURNMENT
There being no further business�Mayor declared the meeting adjourned.
c—JUDITH SUMI -
City Clerk