HomeMy WebLinkAbout1994 - MINUTES - 3/9/1994 CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
MARCH 9, 1994
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, March 9,
1994, at 7:30 p.m.
ROLL CALL: Present: Councilmembers Hodges, Lyons, Reller-Spurgin, Schlendorf and
' Mayor Maryanov
Absent: None
The meeting was opened with the Salute to the Flag and a moment of Silence.
REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance
with Council procedures on March 4, 1994.
CLOSED SESSION REPORT:
City Attorney reported on matters discussed in closed session as shown on the Statement of Basis for
Closed Session, dated March 9, 1994, and that no action was taken. (Copy of Statement on file with
the City Attorney, and attached to agenda of this date.)
INTERAGENCY REPORTS:
a) Councilmember Lyons reported on work of the Airline Task Force, and decision to
press forward with getting American Airlines through the summer.
PUBLIC COMMENTS:
a) Comments regarding Item 4:
Dick Sroda stated he did not understand how the City can borrow from the Sewer
Fund, and say it does not have enough money; that the utility tax was rejected by the
voters before; and that city government must look to its own for cuts.
' Susan O'Rourke, representing Mr. Lazarr stated that the Palm Springs site cannot
provide adequate shuttle or access within the proposed rail station budget if it is split
with Palm Desert; that Indian Avenue is too windy, and the Palm Desert site can
support both it and Palm Springs; that 2.5 acres has been offered at Monterey and
Bob HopE, which is a compromise to the two cities, as an alternate site; and urged
it be supported by the City.
Ernest Noia stated that he agreed the Palm Springs site may not be the best, but did
not agree with the Palm Desert site either, and asked that the "Indian proposal" be (143—
looked at before going too much further with the project; and that he believed it will 006)
give the City what it needs, and benefit from the working relationship between the
Tribal Council and the City Council.
Lee Vinocour offered to give land on a mutually beneficial program, and stated he
has 60 acres and would not charge for it. He reiterated comments he has made in
prior meetings about an ombudsman campaign pledge of the Mayor, about credit for
what people do; and added that rent control, utility tax and charter should be on the
ballot.
Eric Meeks stated that the site may not be the best, but he hoped the money to build
it could be found, and he complimented the Council for past decisions, and
encouraged them to stand fast.
b) The following persons spoke on matters not related to an Agenda item:
Toni Sanchez,Jose Sanchez, Rene Sanchez, Alvarado Soja(?), Artura Ruella(?)each
' spoke and commented on the needs for added police in the Desert Highland Park
area, especially at night.
Sylvia Montenegro, Board Member of the CVHC, stated that these are homeowners
and taxpayers under the self-help housing program, and they need the City's help.
She thanked the Council for the Coyote Run project, the self-help housing program,
and the new signal at San Rafael and Indian Avenue, which are of great benefit and
improvement to the community.
(�¢� Council Minutes
3-9-94, Page 2
Halm Scherotter (?), candidate for congress, stated his position on a 'variety of
subject, including flood control, social security, and other matters.
c) Comments concerning Item 2:
Pat Merrick stated that the utility tax makes sense if it is temporary until the Council
gets the government together. She added support of the rail station in Palnn Springs. ,
Jim Jones thinks the charter may be a good tool to save Palm Springs, favors it on
the ballot; agrees other two issues should be on the ballot., adding that rent control (083-
affects him indirectly as a taxpayer and the stigma of it in the community; that he 011)
thinks the rail station needs more study; and did not like the sewer fund loan, and
questioned the risk involved in making the loan in terms of future capital
improvement for the treatment facilities.
LEGISLATIVE ACTION:
1. PROPOSED CHARTER
Discussion and consideration of placing the proposed charter on the June 7 election ballot.
City Attorney stated that he met with the employee units and thinks they are happy; that an (075-
objection was raised by Southern California Edison suggesting that, the term of tho franchise 001 )
language should not be limited to fifteen years for future awards, nor for existing franchises,
and concerns about the revenue process and investment recovery. He stated that Edison's
current franchise is for an indefinite term.
Resolution 18345 calling election for the following measure to be placed on the June 7 ballot:
Shall the Charter be adopted making Palm Springs a charter city so that the laws of
Palm Springs shall prevail over state law with respect to municipal affairs?
and Resolution 18346 authorizing all members of the Council to file arguments in favor of said '
measure, were presented; after which, it was moved by Lyons, seconded by Reller-Spurgin,
and moved by Lyons, seconded by Hodges, respectively, that Resolutions 18345 and 18346
be adopted.
A2. BALLOT MEASURE - RENT CONTROL
(Note: This was included in Item 2, and is reflected separately for record purposes).
The following persons spoke in opposition to placing a measure on the ballot which would
make rent control applicable only to mobilehomes:
Stan Serasky stated that the current ordinance was approved four years ago, and defeated a
council-initiated rent control ordinance by 12 votes; that the Council should listen to input from
the apartment and condominium tenants; that rent control only applies to rentals before
September, 1979; that the Rent Control Commission addresses the issue of hardship increases;
and urged that Council delay any ballot question until there is a public hearing.
Abe Zakar, resident and member of the Rent Control Commission, gave materials to the (085-
Council and read from campaign articles each Councilmembers' position on rent Control; and 004)
stated he was disturbed the Commission nor the rent control division staff were not asked for
input. He gave figures of the number of units and persons subject to rent control.
Ed Joseph also questioned why the Commission was by-passed; and stated that the Council is
paying too much attention to the budget and not enough to the people; that the police and fire
departments are understaffed, and crime is up and there is no affirmative action for minorities;
that people are the city, and the city should not be nun like a business; that there are homeless ,
people; that the Council needs more concern for citizens and less for money; and that rent
control pays for itself.
Paul Moran stated that rent control protects young people just starting their lives.
Mark Carter, mobilehome resident, stated that if others want to repeal rent control, it should
be through a citizen initiative, and not by action of the Council.
Council Minutes rl r�P
3-9-94, Page 3
Bernard Pollack, Rent Control Commission Chairman, stated that he did not think there was
enough notice of the meeting for the type of people who would be interested in this subject;
that the ordinance was prepared in a hurry, and it will effect every senior citizen; that he
questioned the ordinance could be drafted to protect against lawsuits; and that various parties
should get together and develop a new initiative.
Letheta Klitzner (?) urged it not be placed on the ballot.
Betty Beading, read a letter from Emile Duvernay (did not leave copy with clerk) expressing
his view as a Rent Control Commissioner and his displeasure at not having been asked for
input; and that City needs to maintain adequate supply of affordable housing.
Phil Bernie, Chamber of Commerce, stated that things have changed since the ordinance was
enacted, and it should be placed on the ballot for people to reaffirm or change their view of
it.
Sid Phillips stated that the City has "mutilated" rent control for mobilehomes.
Herb Bembaum, President of Desert Political Action, stated that rent control is not responsible
for vacancy, rather the economy; that he thought the motivation was based on wanting to free
up rental because of expected gaming and to charge high rents; that the Council has an
obligation to provide for service and low-income labor communities; and that if increases are
needed, owners can seek a hardship increase from the Conuiussion.
Fred Ebeling stated that rent control would not be needed, if owners did not gouge tenants;
that it should to be on the ballot,without first consulting the Commission and others; and that
there was not enough notice of the meeting.
Betty Tumonello (?) commented that Indian Land is not subject to rent control;; that vacancy
is the fault of owner and city management; that economic development program is needed to
attract light industry; that income properties do not sell as often as single-family, and she felt
owners just want more money.
' Sol Sandfield, GSMOL 949 at El Dorado, urged that the Council look at the Monthly Rent
Assistance & Fairness Act (?) initiative to be on the November ballot, and oppose it. Mr.
Sandfield to provide copy for the Council.
Darrell Meeks supported financing of the rail station, and a 5% utility tax, for one year, and
then reconsider if it is still needed; that he did not believe rent control is the reason for (085—
vacancies, and there should be a petition to change it; and that a June ballot shows disrespect 004)
of the cornmission, lack of leadership, and an elitist view.
The following persons spoke in favor of placing the question on the ballot:
Karen Aguilar, President of the Board of Realtors, stated that the question is to repeal rent
control as it relates to single family, condominiums and apartments; that she understood the
concern of mobilehomes, and that they do not have the same expenses or vacancy factors; that
vacancies are 20-50%, and the situation is urgent; that maintenance expenses will be cut; that
owners cannot recover the costs from the tenants, and the ordinance requires that it be
continued at the same level as 1980; that owners cannot pass through rent registration fees
when the units are vacant; that the entire community suffers; and that the Board will campaign
for passage of the charter, the utility tax, and the revision to rent control.
Myra Goldwater commented on her experience on a national committee on housing, and
opinion that rent control devalues property and drives investors to other places.
Richard Kirk, apartment owner, stated that owners are paying for rent control administration
and are mandated to meet conditions of 1979 with 1994 vacancy factors; that November may
be a better opportunity for a ballot question; and that a committee should be formed to look
at bringing in more business to Palm Springs.
Ray Pomeroy stated that rent control has the most opportunity to create slums, is not fair, and
defies everything.
Council Minutes
3-9-94, Page 4
Kathleen Brezia (?) stated that she pays her fees, has 10-16 vacant units, and cannot pass fees
on to remaining tenants; that her rents are$150 below what rent control allows,and questioned
why rent control is needed; that it is not fair; that it affects only apartments before 1979, and
needs to be addressed.
Lucille Bayless favored placing question on ballot; that the audience did not represent all of
the community; and that the ordinance is obsolete and costs the City and everyone money. '
Charles Smith questioned how many people could afford to roll their income to 1979 and then
increase it only by 3/4 of the COL. He expressed displeasure with the rent control division
and its administration.
Clyde Greko stated that older properties need more help as they age:; that on Farrell he has 40
vacancies out of 64 units; that every rental property on Tahquitz has gone into foreclosure,
which he thought was a result of rent control; that he questioned what will stop units built after
1979 from being included in the future; that the Council must care for the community as a
whole, and not just those who want low rents; that rent control costs the city in terms of
depreciated properties, resulting in decline throughout the community.
Kelly DeSalle, property manager, stated that rent control no longer serves its use; that high
rents are not a problem; that her units are under the rents which are allowed; that she feels the
staff is "fishing" for work mid do not have legitimate complaints, rather instigate tenants
against landlords; and that the staff investigator appeared in court on five consecutive cases,
which she considered was brought by the division and not the individual owners; and that rent
control devalues property, and it should be on the ballot, excluding mobilehomes.
John Pontrello(?) stated that investors have been steered away from Palm Springs because of
rent control; that perhaps there could be an initiative to exclude senior citizens from the free (085—
market to protect those on fixed incomes; that he has seen rent control staff lie tojudges; that 004 ?
he receives calls from the rent control staff before receiving calls from tenants; and they are
looking for work.
Dorey Grant, apartment owner, stated that everyone, or no one, should be under rent control; '
that each year, the landlord has less to work with, and needed maintenance and replacement
of equipment will not happen; that be favored vacancy decontrol; and that lie offered his time
to help in developing something that would be more fair to everyone.
Tony Aguilar stated that Council represents best interest of the entire community; that rent
control is not good, and something needs to be done about it; that itt is not relevant that it was
once approved by the voters, because things change, and it should be on the ballot again.
George Cogen (?) mobilehome owner questioned what the ordinance will state, and who will
work on it, and that he did not think it could be done quickly; that it may be necessary, but
everyone needs to be protected, and it needs thought.
City Attorney stated that the draft ordinance does not make- any changes affecting
mobilehomes; and if adopted, it would not be an advisory question, rather an ordinance
enacted by the people.
Councilmember Lyons stated he was concerned about the haste, and that the issue will confuse
the election on the charter and utility tax; that he did not want to polarize the coumnunity over
measures, two of which have nothing to do with the third; that he thinks the ordinance should
be looked at and some fairness and the concerns dealt with at a future election.
Councilmember Schlendorf stated that she understood that a number of units under rent control
do not qualify and do not count in the low and moderate housing; requirement, rather when
development occurs and units are set aside for 20-30 years, and HUD imposes rents that are
higher than those under rent control, and often are like size units far like income families, and
they are not subject to rent control; that those kinds of units are increasing, and there are '
probably more in Palm Springs than in other cities in the Valley; that she supports the efforts
of the Commission and is concerned about mobilehomes and they need help 100%; that if the
right job is done in development of low and moderate housing, there would be no need to
impact on private property owners with rent control; that she was disappointed with the
audience's behavior, and its selectively democracy; and that there are not many chances to see
how the community feels through the ballot process, without a great expense.
Council Minutes
3-9-94, Page 5
Mayor agreed that there was a timing problem; that he supports mobilelrome rent control and
thinks that is a special problem, and regarding apartment rent control problem leads to
deterioration; that a hasty measure will muddy the issues, and he preferred the question be
considered in November, at a little more ballot cost - which he hoped those in favor would
donate to support, otherwise to place it on the ballot in November, 1995 at the next general
municipal election.
' Councilmember Reller-Spurgin agreed with Councilmember Schlendorf that it is easy for
people to say vote on one issue, but not another, and that is not equal; that everything needs
to be looked at, and people need to make the decision; that she favored it on the ballot; that
the Council can try to restructure government and make city cuts of any perceived "fat", but
that will not add up to the$5 million deficit and it will require hard, tough decisions to make
the budget balance and that is what the Council is trying to do.
Motion was made by Hodges, and seconded by Lyons,that this measure not be considered for
the June ballot, and that a conuuittee of representatives of the Real Estate Board, Rent Control
Commission, tenants and landlords look at the issue over the next six months and see what
provisions and possible restructuring is needed, and to bring forward the best measure that can
be placed on a future ballot.
Councilmember Schlendorf stated that one speaker suggested the Council not listen to the
public, yet at every meeting the problem has been cited as rent control; that she was not in a
rush to get on one ballot or another, and that she thought this discussion needed to take place;
that she did not have a problem with November; and that these issues have been on the agenda
for three months, and the Rent Commission should have been listening.
Councilmember Reller-Spurgin stated she favors the proposal,and there was no intent to slight
the Rent Control Commission; that the issue came up last week, and she felt it needed to be
worked on; and that she would like to have seen it on the June ballot, and she wanted to work
it out so it is amenable to everyone.
The motion by Hodges, seconded by Lyons, as noted, was unanimously adopted.
' 2. BALLOT MEASURES
Discussion and consideration of ballot measures on June 7 election ballot, relating to utility
user tax; and pursuant to direction March 2, relating to rent control ordinance amendment to
limit application of the ordinance to mobilehomes.
City Attorney stated that the utility tax would be an advisory vote, and if the Council acts on
the results of the vote, it would require adopting an ordinance, since the existing ordinance
sunsets June 30, 1994, and it could include a 1-2 or 3 year sunset, as well as adjusting the rate
during certain months.
Councilmember Hodges stated that she was concerned about specifying 59o, because she was (083—
concerned the amount might be defeated before the entire option of it is seer; and that from 011)
the psychological standpoint, there is a difference between 4% and 5%.
It was moved by Lyons, seconded by Reller-Spurgin, and carried by the following vote, that
Resolution 18343, calling for the election of the following measure to be placed on the June
7, 1994 ballot:
Shall the City Utility Tax on users of telephone services, electricity, gas, and co-
generated electricity be continued for no more than three years at a rate of 5% or
less?
AYES: Lyons, Reller-Spurgin, Schlendorf& Maryanov
NO: Hodges
ABSENT: None
It was moved by Lyons, seconded by Reller-Spurgin,and unanimously carried, that Resolution
18344, authorizing Councilmembers Lyons and Reller-Spurgin and Mayor Maryanov to file
ballot arguments in favor of the Utility Tax.
Council Minutes
3-9-94, Page 6
3. MUNICIPAL CODE AMENDMENT(Intro 3-2-94)
a) Ord_re: Airport Commission.
This item was withdrawn, and to be rescheduled, to correct technical error.
4. SEWER FUND LOAN -TRANSIT CAPITAL IMPROVEMENT GRANT MATCH ,
Recommendation: That the Council approve a loan of$1.15 million from the Sewer Fund,
to provide a 50% match to the Transit Capital Improvement Grant for the construction of a
train station.
City Manager reported that initially Amtrak was viewed as the main reason for the rail station,
however, Metrolink Service. Thursday-Sunday extends the hotel room night stacking and
appears to be that it will be very successful; that the key to the site location was Southern
Pacific(SP) desire as it relates to the "spur" or third track; that one;year has been spent with
SP on easements; that Indian Canyon Drive will have to be an all weather crossing and that
project is on CVAG's Measure A list; that a full-service station is being considered, with
restaurant facilities; and the objective before CalTmns is that the City stands behind its
application and has the ability to repay the debt over a period of time; that$1.5 is a matching
grant, and $300,000 is required to be deposited into escrow account for the land purchase;
that once Metrolink begins, hospitality industry will be encouraged to put packages together
to include the train ride.
Director of Economic Development stated that CalTrans will meet on March 22 to consider
splitting the grant funds, and an amended application will be required from both Palm Springs
and Palm Desert to include matching funds, which was not previously required.
City Manager added that since the Palm Desert issue surfaced, there;have been four proposals (061—
other than the one the City has been working on come forward, however, the key is ability to 015)
access Palm Springs downtown directly and that SP will favor the site. ,
Councilmember Schlendorf stated she thought the site was also selected because it was near
the high desert, Banning&Beaumont, and other desert areas; that she was concerned by some
of the comments made earlier, and that in most cases, the property would have benefitted
otherwise they would not have been offered, and the Council has taken a long time to chose
the site and make the public aware and to recognize that the City will make money from it;
that there are other sites, but given the circumstance and that SP and Amtrak like the selected
site, it would be silly to start over for someone else's benefit.
In answer to questions by Council, Director of Economic Development slated that the Santa
Fe engineer reviewed the cable pipeline and it did not seem to present a problem; that it is
over 200 ft setback, and thal buildings could be within the 200 feet; and that staff is still
working with MCI, and he was confident there will not be a problem, but there is not a final
decision; and that regarding an appraisal, one was done knowing tm average of$21,000 per
acre, and land is prime and highest best use.
Councilmember Hodges stated that it is a gamble for the future of Falm Springs; that it is not
known what will happen, or if the City will get the money from the:State; that the worse case
would be investing$300,000 in land; that both the current and prior Council worked hard to
make this happen; that when it was made public, Palm Desert got involved and applied for
funding; that she felt the negotiations were in the best interest of Palm Springs, and the gamble
must be taken. She stated the gaming casino will turn Palm Springs around, and moving
people in and out will be essential.
Councilmember Reller-Spurgin agreed that this is an investment in the future of Pal in Springs, '
and one that is vital for its economic well being.
Resolution 18347 authorizing the loan, and Resolution 18348 amending budget, were
presented; after which, it was moved by Schlendorf, seconded by Hodges, and unanimously
carried, that R18347 and 18348 be adopted.
n07.'k
Council Minutes
3-9-94, Page 7
5. RAIL STATION - PROPERTY ACQUISITION
Recommendation: That the Council approve acquisition of two parcels comprising 14.30
acres, for a total price of $300,000, for constructing an inter-city rail station as part of a
valley-wide, inter-city- transportation program (option agreements Nos. 3263, 3265).
' Mayor stated that the Council has spent the time for economic development to get the money
for the kind of services that people want, e.g., police and fire; and if the City does not get
more income, there will be less services; that when people say to spend more time on people (143-
problems, that is what the Council is trying to do when it deals with the budget; that the City 006)
has an Economic Development Commission and its Director both are reaching out to get light
industry and the Council has annexed the WECS Industry, and those should be noted; that the
Tribal Council has sovereign rights and can put gaining in without the City and wherever it
wishes, and it chose not to do so in other cities because even though it has land in other
communities, it has cooperated and worked with the Council in looking to improve Palm
Springs.
Councilmember Schlendorf stated that the rail station will provide jobs, and result in jobs for
this community.
Resolution 18349 as recommended, was presented; after which, it was moved by Hodges,
seconded by Schlendorf, and unanimously carried, that R18349 be adopted.
6. SECTION 14 - FIRE HAZARD ABATEMENT
Recommendation: That the Council approve payment of$8,475 to JR Construction Co., for
heavy equipment services as part of the Section 14 Fire Hazard abatement program. Report
given by Capt. Mike Wills, noting that the majority of the cleanup was through private (087-
donations, and cooperation with the State CCC inmate crews. 001)
' Minute Order 5325 as recommended, was presented; after which, it was moved by Reller-
Spurgin, seconded by Schlendorf, and unanimously carried, that MO5325 be adopted.
7. APPOINTMENT OF BUDGET COMMITTEE
City Manager recommended appointment of the following persons to serve on a budget task
force, and for the Council to define its duties at the March 12 budget workshop: Dick Levine,
Steve Hoffman, Emmett Connors, Burt Spivak, Gary Olsen, Linda Krengel, Howard Lapham (060-
010)
It was moved by Maryanov, seconded by Reller-Spurgin, and unanimously carried, that said
appointments be approved.
ADDITIONAL LEGISLATIVE ITEMS - None
ADDED STARTERS - None
ADJOURNMENT
There being no fiirther business, Mayor declared the meeting adjourned to Saturday, March
12, 1994, 9 a.m., Convention/Center Palm Room D &E for budget discussion.
V JUDIT
City Clerk