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HomeMy WebLinkAbout1994 - MINUTES - 8/10/1994 CITY OF PALM SPRINGS CITY COUNCIL MINUTES AUGUST 10, 1994 An Ad j 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 Carryon Way, on Wednesday, August 10, 1994, at 6:00 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:00 p.m., the meeting was convened in open session. ' ROLL CALL: Present: Councilmembers Hodges, Kleindienst, Lyons, Reller-Spurgin, 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 August 5, 1994. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION(All Entities)- See items on Page 3 of agenda this date. PUBLIC COMMENTS: a) Comments re Item 2: The following persons spoke in opposition to placing a measure on the ballot concerning rent control: Joy Schlendorf stated that the Council held long hearings, and there was a concern about too many issues on the ballot last Spring, and conclusion that it was not the right timing, and the Council promised as a body to go through a process and study the issue to build consensus on an amendment if it was to be on the ballot; that the Council go through such a process; that the time and consideration needed has not been given, and there is no better information today than in the Spring, and there is no point in going forward without a study, as it will divide the community; and that there should be 7-9 people in the community who the Council can appoint, who are able to build consensus. Aileen Connor commented that ndnimum wage earners will not be able to afford to (083- live in Palm Springs. 012) Letha Klitzner, representing tenants at Ramon Park, conunented re fixed income seniors, a job market which pays minimum wages, owners deserve a reasonable profit, but she feels there is a greed element involved. Gary Bosworth commented that destroying rent control will make housing less affordable, increase demand for subsidized housing, increase the Federal deficit, and crime. Ms. Margo commented that the rights of minorities must be respected and protected, and suggested deferring a ballot issue to.June, 1995 to explore the issues, and educate the public. Emile Duvernay commented that the only resolution might have been through the task force, aid he did not think that was right; that he felt only the people should "initiate" a measure on the ballot, and did not feel the Council had the right to do so to counteract an initiative started by the people; that there should be an effort to hear genuine grievances that people have; and noted that Section 8 housing will be eliminated in the year 2000. Alan Bayrack commented that he considered the task force a sham, and it did not have enough time to reach a conclusion; that rent control was supposed to be independent, and he felt the Corrunission's attorney has a conflict because he works for the City Attorney; that he felt the Council was not living up to its obligation; that there are people prepared to initiate a new rent control ordinance, which would also include commercial land. 01 Council Minutes 8-10-94, Page 2 PUBLIC COMMENTS: a) Cotmuents re Item 2: (Continued) Darrell Meeks commented that when properties are sold it is a result of a willing buyer and seller, and a worthwhile investment; and asked if proponents were going to help pay the cost of the election. , Fred Ebeling commented regarding fixed income seniors, inflation, fear of housing developments, and an uninformed public. Charles Prazdix, attorney, commented on his experience in authorizing rent control laws in other cities, and that the proposed ordinance would eliminate 75% of the units covered by rent control; that the Council has not made any finding on behalf of making the changes in rent control; and that periodic decontrol should be considered, rather than an absolute decontrol. The following persons spoke in support of placing a measure on the ballot: Karen Aguilar, President of the Board of Realtors, commented that site attended the task force meeting, at which only a few people were open to compromise; that the General Fund is being used to support the rent control ordinance, and the landlords have been held hostage for 14 years; that rent control should be in place for mobilebome owners, but apartments should not be; that it will help to turn the economic corner and increase property tax base, eliminate no growth, and unfriendly economic development; that the threat of lawsuit just because the roles change, is petty; that apartment owliers agreed to a vacancy decontrol until the unit is voluntarily vacated; that there is a fear that the registration fee will be increased to compensate for those being removed; that there has been a 400% increase in personnel running the rent control division, from one person to four; and that the cost of running the department should also only increase by the same 3/4 of the cost-of-living index, which is what the owners are subject to. Jack Anderson stated he did not favor rent control at all; that it is fine for mobilehomes; that there are more units being built for low income than the current (083- vacancy count, acid those new units will be covered by Section 8; that he wants to 012,) sell his building;that it did not make sense to purchase a complex under rent control; that Palm Springs will end up a total retirement community, and one of low income housing; that the City is beghming to recover and moving in the right direction; and that Palm Springs is the only city in the valley with rent control. Charles Anderson commented that he owned apartments for sixteen years, and rents have not been raised, even though he was allowed increases, and he has had to live with the rent control ordinance, registration and the threats of being taken to court; and he favored rent control only on mobilehomes. Jim Jones asked members of the audience to stand who favored placing measure on the ballot; commented on the number of small, independent, elderly owners of apartment complexes, and problems encountered with vacancy and payment of registration fees; that most of the supporters of rent control live at El Dorado; that one's pleasure should not be financed by another's hard work; and that the issue should be on the ballot, and people allowed to participate m a free enterprise. Lucille? commented that different types of buildings attract tenants with low societal values; that a ballot measure only allows people to make a choice; and it has nothing to do with raising rents. Myra Goldwater commented that rehabilitation of apartments and new construction is making housing affordable in a very decent way; that there is affordable housing, although some do not want the "stigma" of that kind of housing, and would prefer (hat they be kept by the landlords; that landlords cannot lake care of what people cannot afford; and that there needs to be solid, decent, affordable housing. Council Minutes 8-10-94, Page 3 PUBLIC COMMENTS: a) Comments re Item 2: (Continued) Clyde Grecko questioned why other types of enterprises are not controlled; that he feels rent control is wrong; that there are seniors, handicapped people, and others who live in Palm desert, Rancho Mirage and Cathedral City, and they seem to do alright without rent control; that he resented the idea that somehow landlords are profiting excessively; that there is a 50% vacancy, and units worth more are being rented for less, and there is no need for rent control; that the Rent Control Commission is totally unrepresentative of its prime purpose; that it is not possible for (083- laandlord to "profiteer"; and that every apartment property on Tahquitz Canyon went 012) into foreclosure, which could not be said about Rancho Mirage. Joseph Solomon commented he favored providing adequate housing for people who need it, but did not believe rent control achieved that purpose; that the use of low and moderate housing needs to be studied in the best interest of the community, and projects do not have to be created to use housing funds; that there should be an ordinance that protects tenants over time. Note: He also commented regarding gaming, that he preferred Canyon Project not be included, and he supported making one very successful venture and making sure that Palm Springs is more than a "Laughlin" and approaches a Monte Carlo version. b) Tom Rash, Audio Visual Rating Service for the Blind, Yucaipa, announced new service to be provided by Time Warner on FM radio, for reading books and newspapers to the blind. c) Comments regarding Item 1. Earl Landertnan, commented that the City appears to be held hostage by the Indians who will make their own laws, and unless Congress acts differently, there are not many recourses the City will have if the Tribe decides to not abide by its agreements; and he urged the Council to be wary. Torn O'Cmmell stated that the proposed Caesars makes sense as the only gaming (083- facility in Palm Springs, otherwise card rooms are tacky environments; that Caesars 012) will mean high-class, sophisticated entertainment, and restore Palm Springs to its old world lustre. Robert Maddox opposed card rooms, and placing it on the ballot; that he questioned where people will be coming from who will be using the gaming sites, and stated he gave the Council a proposal, and stated the relalionship with the Tribe is much more important than card clubs; and the Council should proceed in developing that relationship. LEGISLATIVE ITEMS: 1. GAMING Consideration of ordinance concerning gaming, possible ballot measure, and other related matters. City Attorney reported [hat the ordinance has been drafted, and the various options previously discussed can be identified and incorporated; that le understood the Tribal Council's final position was that it did not want to see an ordinance on the ballot, and none of the options are (083- acceptable. 012) Councilmember Lyons stated that the Council committee met with the Tribe several times over the past few weeks, and those meetings were productive, and he felt agreement was reached that the entire community would benefit from eventual Class III goring, and that the Tribal Council and City Council would discuss a master plan if that occurs to determine specifics as to what would be in the best interest of the community, e.g., location, criteria, and that such dialogue is continuing. n -i c)jcj Council Minutes 8-10-94, Page 4 1. GAMING (Continued) Councilmember Kleindienst stated that the task force, staff and the Council's interest was in controlling the size, number, location and quality of facilities, and he felt that has been lost because of the direction the discussion took; that he agreed that the time should be taken to discover with the Tribal Council which direction the community should move toward in the future. Mayor stated that the City is a junior partner with the Indians in its gaming project will) Caesars, and hopefully, there will be a casino, but that is yet clear; that Indian gaming is different from what the City can approve in the form of a card room; that the task force was asked to look at impacts of gaining - pro and con - and not to develop recommendations for an ordinance; that legislation. in Sacramento briefly changed the scenario, and it was understood it would limit what the City could do, and from there the gaming ordinance evolved; that the legislation was amended and it is not necessary to have the ordinance;in place by January 1, 1995, in order to protect the City's interest, which is the only reason the City was considering the ordinance at this time; that he felt the gambling Tissue throughout the State would be resolve in the near future, and there is an interest in gaming, and he wanted the City to be prepared, and felt that everything the Council has done has been consistent with that direction; that Mr. Bragg approached the City Council and asked for a site specific ordinance, and the Council said it would give it consideration, and Mr. Bragg also asked the Tribal Council; that the City Attorney needed to prepare the appropriate documentation in the event the Council decided it wanted to place the issue on the ballot because of the August 12 deadline; that he felt some responsibility to continue looking at garroting, and was dedicated to working with the Tribal Council to help develop Caesars, which offers many pluses including a downtown location; that the Tribal Council has been very cooperative, and there was some misunderstanding as to whether there was an implied threat to the Council, and his understanding was that there was no intent to do so, rather to catch the attention of the Council that the Isenberg bill had changed; and that he felt the Council's actions have been consistent. Councilmember IIodges thanked the task force for its work, noting that they did .a big job (083- ' researching the issues and coming back with a report; that it was to look at the ran)iifications 012) of gaming, but also to see how it would affect the City and what would be the best way to approach it; that they made recommendations on that charge; that she felt the group of volunteers has been unduly criticized, when it was trying to do something for the City; that she felt it unfortunate as to how the scenario has played out during the past week, and although it was not expected, it did occur; that she felt there was a lack of communication between the Tribal Council and the City Council, and if it had been better, things may not have happened as they did. She stated she felt there is an opportunity to work with the Tribal Council, and she felt confident it is interested in the future of Palm Springs, and she regretted there was not more time to have come up with something, which also would demonstrate leadership to the community; that the alternatives now are to come up with a future agreement, and she recognized there are groups who may wish to circulate initiative petitions, which is there prerogative, over which neither the City nor the Tribal Council will have control, and if the petition process is successful, it will be decided by the voters; that while the Caesar casino may be glamorous, the reality is that it is still a card room under current law; and that if there had been the opportunity, those high-standards could have been the criteria for the entire community. Mayor stated that he felt the task force was concluded, and he would be thanking the members. Councilmember Reller-Spurgin stated that she felt everyone was looking at the Tribal Council with great optimism as to what it is doing; and that the Tribe and its landlord status must be respected. It was moved by Lyons, seconded by Reller-Spurgin, and unaninocusly carried, to remove ' gaming as a consideration for the ballot. Council Minutes 8-10-94, Page 5 2. RENT CONTROL Consideration of placing an ordinance on the November ballot to remove apartments, condominiums and certain single-family residences from rent control, or decontrolling such units upon vacancy; but not affecting mobilelmme parks which shall continue to be subject to rent control; and other related matters. City Attorney stated that he discussed potential conflict of interest for Councilmember Kleindienst with him, as well as with the FPPC, which would not give a definitive opinion, rather would respond to a written request, which could Cake several mouths; that the question is whether it is reasonably foreseeable that the Escrow Connection would receive gross income as a result of the proposed ordinance in a 12 month period; that from data provided by Councilmember Kleindienst, 17 parcels would be removed from rent control which were processed through the escrow company; that all but one of these closed escrow and the sales prices were set and not contingent upon the ordinance; that the 17 compares to 1,500 escrows in one year, with a total fee of about $15,000 or less than 2% of the business income; that it is speculative to predict that there will be a lot of properties turning over and that they will be directed to the Escrow Connection; that Mr. Kleindienst probably has no problem; and that the recommended he abstain on that basis, and he will pursue the opinion from the FPPC. City Attorney reviewed options that could be included in the ordinance, which would remove rent control from all but mobileliome parks, and decontrol rent permanently. He stated that a unit would be decontrolled (no longer subject to rent control) upon vacancy by the current tenant, and there may be some enforcement issues in terms of good cause for termination of the rent; that lawful termination would be consensual, breach of lease, or repossession for the use by the owner or a member of his family; that a process for challenging the reason for termination has been provided, and would be resolved by a Commission hearing; that a comment was made that the Council make a finding, however, the Council would not be adopting the ordinance, rather placing it on the ballot for vote. ' Assistant City Manager reported receipt of letter from John Pratt, President of the Apartment Association, California Southern Cities, favoring rescinding rent control, a copy of which is on file with the City Clerk; and in response to question by Council, stated that no one has come forward and offered to pay the cost of the election; that the registration fee is paid (083- currently regardless of whether the unit is vacant; that the fee would cease if the unit is 012) decontrolled; and that there is no cost analysis as to how marry appeals might be filed initially, or over a long term. Councilmember Lyons stated that the ordinance addresses protection from unlawful termination; that there is a surplus of affordable and open housing; that there are adequate numbers of studies which show that communities which have strict rent controls also have drops in property values; that the question arises as to what a buyer can do to keep and maintain properties, and how much can they pay; that comments were made that the Council should abstain from making a decision, but that is why the Council was elected; that he felt he must vote his conscience; that a law on the books does not mean it mist stay on the books forever. He provided an analogy of selling his restaurant, but limiting Ilse buyer to the same menu prices; and stated that the election process will educate people on this issue, not a task force. Councilmember Reller-Spurgin stated that at the task force meeting,her support of rent control in the 1992 campaign was noted; that she continues to support rent control on mobilehomes, and since 1992 has become educated on the issue as it relates to other rentals; that no one is being put out of their home, rather it will allow people to remain in their home until they move; that rent control is not a low income issue, and it is a fallacy that it is based on income. Councilmember Hodges stated that she did not support the ordinance as worded; that an alternative decontrol, would be a decontrol on vacancy, at which point rent could be raised, and Chen rent control applied to the new tenant; that decontrol as proposed will result ultimately in no rent control, and her concern relates to seniors, who if they move next door, would be unprotected and forced to remain in the same unit; that she did not support an ultimate goal to eliminate rent control; that she believed there is a need for serious consideration, and the Council should be aware of the consequences; that she favored the task force approach, and believed there are inequities in the current ordinance which could be more fairly addressed for both sides; that unless one is, or has been, totally involved in the rent control process, one cannot know what rent control is all about; that it involves both the Council Minutes 8-10-94, Page 6 2. RENT CONTROL (Continued) landlord and the tenant, and is a human issue, not a paper issue; and that if only the paper side is looked at, it can be achieved by a computer, however, there are human factors that must be included and those are lacking in this discussion. Assistant City Manager responded to question noting that annual increases are permitted ' without Commission approval, and it only reviews applications for hardship increases. Mayor stated that ]re was concerned about the speed of placing this on the ballot, and the margin for error; that he was concerned there was no offer to share in die expense of the election, although he was willing to put it on the ballot; oral lie agreed there was no expectation for a task force to reach a consensus, because of opposing philosophies, and he did not see a reconciliation of that; and that more time and study would bring forth a clarification of the issues. Ilr response to question by Council, City Clerk stated that the Council could place the matter on any of the election dates in 1995, with the least cost experienced in November, 1995, since the municipal election costs will already be in place at that time; and that the other dates would in all probability be stand-alone elections at a cost of$60,000. Discussion followed regarding Council authorization for members to file ballot arguments, and the proviso under State Law as to the order in which the City Clerk selects arguments. Resolution 18457 calling a special election, to be consolidated with the November General Election, to place the following measure on the ballot, was preserded: "Shall the ordinance which amends the Palm Springs Rent Control Ordinance so that apartments, condominiums,and single-family units are permanently removed from rent control (08,- when vacated by their current occupants, but leaving the rent control ordinance undlumged for 012) mobilehome park units be adopted?" , after which, it was moved by Lyons, seconded by Reller-Spurgin, and carried by the following vote, that R18457 be adopted: AYES: Lyons, Reller-Spurgin, and Maryanov NO: Hodges ABSENT: None ABSTAIN: Kleindienst Resolution 18458 authorizing Councilmember Hodges to file the argument against said measure, was presented; after which, it was moved by Lyons, seconded by Hodges, and carried by the following vote, that R18458 be adopted: AYES: Hodges, Lyons and Maryanov NO: Reller-Spurgin ABSENT: None ABSTAIN: Kleindienst 3. PRAIRIE SCHOONER SITE Consideration of action to convey title to the property to the Community Redevelopment Agency. City Attorney reported on proposal to provide for payment to release the property from the burden of the financing covenant, and to sell it to the Community Redevelopment Agency, and Ilse only condition is that the bond issue proceed. He responded to question by Council, and stated that the proposed resolution authorizes the staff to utilize any other legally appropriate financing source to conclude the action. 124 Mayor stated that he wanted to know what the other source was. City Attorney stated that if the source was not available, the staff would have to come back to the Council for authorization. �? 0 Council Minutes 8-10-94, Page 7 3. PRAIRIE SCHOONER SITE (Continued) Resolution 18459 as recommended, was presented; after which, it was moved by Lyons, seconded by Reller-Spurgin, and carried by the following vote, that R18459 be adopted: AYES: Kleindienst, Lyons, Reller-Spurgin, and Maryanov ' Hodges ABSENT: None 4. REGULAR COUNCIL MEETING TIME Pursuant to Council direction, consideration of amendments to change Council meeting schedule to 6 p.m. for Closed Sessions, and 7 p.m. for open sessions (retain regular meetings on lst and 3rd Wednesday, and study sessions on remaining Wednesdays). Resolution 18460 amending Policies & Procedures, as recommended, was presented; after (103- which,it was moved by Reller-Spurgin,seconded by Lyons,and carried by the following vote, 001 that R18460 be adopted: AYES: Kleindienst, Lyons, Reller-Spurgin, and Maryanov NO: Hodges ABSENT: None City Clerk read title Ordinance, as follows: AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 2.04.010 OF THE PALM SPRINGS MUNICIPAL CODE, CONCERNING THE HOUR FOR HOLDING REGULAR CYPY COUNCIL MEETINGS. ' was presented; after which, be adopted. further reading be waived; and it was moved by Reller-Spurgin, seconded by Lyons, and carried by the following vote, that the Ordinance be introduced for first reading: AYES: Kleindienst, Lyons, Reller-Spurgin, and Maryanov NO: Hodges ABSENT: None COUNCIL reports & requests: a) Councilmember Hodges requested the Mayor to send a letter to the Board of Supervisors supporting the Shelter from the Stonn's request for 1995-95 funding. Mayor indicated he would send the letter. ADJOURNMENT There being no further business, Mayor declared the meeting adjourned. )JUDITH SUMICH City Clerk CITY OF PALM SPRINGS CITY COUNCIL MINUTES AUGUST 17, 1994 The Regular Meeting of the City Council of the City of Palm Springs, California, was called to order and adjourned by the City Clerk due to lack of a quorum. ROLL CALL: Present: None Absent: Councilmembers Hodges, Kleindienst, Lyons, Reller-Spurgin, and Mayor Maryanov C 4 � JUOITH SUMICH City Clerk