HomeMy WebLinkAbout1996 - MINUTES - 8/7/19960154
CITY OF PALM SPRINGS
COMMUNITY REDEVELOPMENT AGENCY
AND CITY COUNCIL MINUTES
AUGUST 7, 1996
A Regular Meeting of the Community Redevelopment Agency and the City Council of the City of
Palm Springs, California, was called to order by Chairman/Mayor Kteindienst, in the Council
Chamber, 3200 Tahquitz Canyon Way, on Wednesday, August 7, 1996, 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: Agency/ Councilmembers Oden, Spurgin and
Chairman/Mayor Kleindienst
Absent: Agency/Councilmembers Barnes and Hodges
The meeting was opened with the Salute to the Flag, and a moment of sillence.
REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in
accordance with Council procedures on August 2, 1996.
REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION ()kit Entities)
- See items on Page 3 of agenda this date.
HOUSING AUTHORITY; INDUSTRIAL DEVELOPMENT AUTHORITY; FINANCING
AUTHORITY; - No Business
COMMUNITY REDEVELOPMENT AGENCY: Convene in Joint Session as the City Council and
Community Redevelopment Agency:
PUBLIC HEARINGS:
PA2 - INDIAN GAMING FACILITY - DDA AMENDMENT
Consideration of Amendment I to Disposition &: Development Agreement (No. 339C)
between the Agency and the Agua Caliente Band of Cahuilla Indlians, concerning proposed
Indian Gaming Facility in area generally bounded by Amado, Calle Alvarado, Andreas and
Indian Canyon Way, to modify project boundaries; and finding; and determining that no
subsequent negative declaration is required for the said amendment.
Deputy City Attorney stated that this is a joint public hearing on a proposed amendment to
the disposition and development agreement, that was entered into between the Community
.Redevelopment Agency and the Agua Caliente Tribe; that the DDA related to various agency
assistance in the Tribe's proposed development of an Indian gaming casino, within the
Redevelopment area; that the casino consisted of approximately 119,000 sq. ft. stand-alone
type facility and also involved the development of parking facilities; that the Tribe was to put
in all public improvements; that additionally, that original DDA envisioned a series of
property transfers including the Agency selling an approximate four acre site, known as the
Prairie Schooner parcel, in addition to the fire station parcel at fair market value; that the
proceeds from each of those sales were then going to be put into an acquisition fund, and
from that fund two other properties were going to be acquired; that those properties were
called the Post Office parcel .and the Hirsch parcel; that a few things have changed between
the time that DDA was entered into and the situation that now faces the Tribe, the City and
the Agency; that the management company that the Tribe had originally proposed to manage
the casino, Caesars, is no longer part of the picture; that any differences between the Tribe
and Caesars were resolved amicably; that the Tribe began conducting Indian gaming activities
at the Spa hotel; that the Tribe acquired various properties that were covered in the DDA;
that given these changes, both the Tribe and the Agency staff have reassessed the DDA and
have negotiated an amendment; that staff believes that this amendment actually places the
City and the Agency in a better position under the DDA; that the amendment changes a
number of major deal points in the DDA, and also makes minor, modifications to the extent
of location and layout of the casino; that the Agency prepared) and publicly circulated a
summary report, that contains a significant amount of the information; that a highlight ox the
major change to the financial structure is that the Agency is no longer going to be; selling that
Prairie Schooner parcel; that there will not be any money from any land sales by the Agency
to the Tribe to acquire additional property for the benefit of the Tribe, to be incorporated into
Council Minutes
8-7-96, Page 2
PA2 - INDIAN GAMING FACILITY - DDA AMENDMENT (Cont'd)
the gaming facility or its related parking; that the prior DDA contemplated almost $1.9
million dollars from the sale of the Prairie Schooner parcel and the fire station parcel, that
would go into an acquisition fund, from which the post office and Hirsch parcels were going
to be acquired; that the Agency will keep all of the proceeds from the contemplated sale of
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the fire station parcel and will not sell the Prairie Schooner parcel; that there is a map
available identifying the various parcels, for anyone to see; that by essentially eliminating the
Agency's contribution into this acquisition fund, it eliminates placing Agency funds in an
investment position in the casino; that the casino site has now been moved, and downscaled
and will be integrated with the existing Spa Hotel operation; that there are changes to the Fire
Station transaction; that originally it was an out-and-out purchase; that now it is proposed to
be a lease purchase option; that the Tribe will pay and has indeed already tended $18,000 for
a one-year lease of the property, which comes with an option to purchase any time during
that year; that if that option is exercised, the $18,000 is applied to the purchase price, which
remains unchanged at $596,000; that there are restrictions on the lease, for this one-year
period; that those restrictions include the requirement that the Tribe improve the property
with at least $25,000 of physical improvements which will all go to making this parcel a
surface parking facility; that if the Tribe does not exercise the option, on this parcel, within
one year, the property reverts back to the City, and the City will retain all improvements
constructed on the property; that originally the mitigation fee was a floating percentage and
was to be paid by the Tribe to the Agency, in consideration of the services and burdens that
are placed on the City from the operation of the casino; that it had pegged certain
performance criteria for the casino's profitability, and then above those various thresholds
that were spelled out in the agreement, the City would take a declining percentage of what
was essentially the casino's take; that the current DDA amendment eliminates this potential
area of dispute, and there is now a fixed amount that will be paid to the Agency; that it
begins one year after the casino opens operations, starting at $100,000 annually and rises
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incrementally by $25,000 per year through the first five years, then through years six through
ten, up to $300,000 per year; that there is the internal clean-up element of the document that
removes two parties: Caesars, who is no longer involved, and the Tribe Transfer
Corporation; and that the Corporation was essentially an entity set -tap to allow the City to
take advantage of a limited waiver of sovereign immunity, in order to accomplish some of
the property transfers that were involved which are no longer necessary. He stated the
Director of Planning and Building would present the conceptual plans submitted by the Tribe,
covering essentially what the Tribe anticipates doing in terms of the development of the
down -scaled casino, and how that plan relates to the prior Environmental Assessment and
Negative Declaration.
Director of Planning & Building stated that the recommendation before the Agency was to
find and determine no subsequent negative declaration is required, and to approve the
proposed amendment; that it is not final approval of the project; that the final plans will be
presented within 40 days, including a detailed site plan; that the original plan was to include
two phases; that the first phase was comprised o1' 74,000 square feet and the second, 119,000
square feet; that the new proposal is 94,000 square feet of building area, and is consistent
with the environmental assessment; that the boundaries have changed a little, but are still
within the environmental assessment area; that the parking issue was a concern; that staff will
be working closely with the Tribe to ensure the range in numbers of spaces will be sufficient;
that the key issue with parking is placement; that the parking and activity area has moved
away from the residential condominum area, and relates better to the overall scheme; that the
casino has been moved further way from the residential area; so that the entire issue of
parking, lighting, and noise will be a lessor impact for any residences in the vicinity; that the
negative declaration adopted in 1994 will be adequate for the project; that there are some
issues that the Tribe did not have to address such as air quality, but that the project falls
within SQAMD guidelines; that overall the project has been modified to be a much better
product; that the impact on the surrounding residential neighborhood will be lessened; that
proposed modified casino will have a second floor that can be used for bingo, or a show area
and that there will be below existing grade a subterranean service area for deliveries. Iie
reviewed the proposed site plans.
City Attorney stated that there are two parallel resolutions for each body i.e. finding that the
prior Environmental Assessment and Negative Declaration adequately addresses the first
amendment to the DDA which makes three findings required under CEQA Regulation 15162,
specifically that there are no substantial changes to the project that require major
CD15G
Council Minutes
8-7-96, Page 3
I. PA2 - INDIAP GAMING FACILITY - DDA AMENDMENT (Cont'd)
changed revisions to the prior documentation that was done; that there are no substantial
changes with respect to the circumstances under which the project was undertaken, which
create new effects or increase the severity of identified effects; and that there is no new
information of substantial importance, regarding significant effects or mitigation measures,
which show that there are going to be new effects, increased severity of previously identified
effects, or new mitigation measures. He stated that the second action is approval of the DDA
,
itself, which includes authorization to execute the lease agreementt on the fire station parcel;
that this is governed by Health and Safety Code 33433; that there .are four findings involved;
that the first is that the first amendment will help alleviate blight; that there are no new blight
findings; that those findings were made in 1983 and are beyond legal question; that the first
amendment to the DDA, will help to alleviate those conditions; that there is evidence in the
record that the proposed project will generate jobs, somewhere allong the order of 800; that
tourist trade will be enhanced and will provide a broader range of activities for tourists who
are coming into the area; that it will provide economic stimulation, and added exposure to
surrounding businesses; that with the primary 'entrance being on Indian Canyon, it will
enhance Indian Canyon as a commercial corridor; that it will help the City's TOT by drawing
more people to the area and decreasing vacancy rates in and around the redevelopment area;
that the second finding is that the property interest that is being; sold is not less that fair
market value; that in this regard the sale price is $596,000; that the DDA references an
appraisal that was done in 1993 which found the value of the property to be $581,000; and
it is being transferred at above that 1993 appraised value; that the Agency's experience,
working in and around the area indicated since 1993, property values for commercial type
properties, such as this, have dropped substantially anywhere between 12 and 30 percent; that
there is a lease involved with the DDA; that this may not necessarily be fair market value,
but, the concept of Redevelopment law allows "fair reuse value";; that the finding under the
provisions of the lease, is that the Agency is not getting any less than fair reuse value; that
the restrictions on the Fire Station lease are fairly heavy; that the rent, for the full year
period, is paid up front, and there is no refund mechanism if the leasehold is terminated prior
to that time; that secondly the property must be used for parking purposes, and the Tribe
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must make at least $25,000 worth of improvements to the parcel;, that in the event the lease
terminates and the option is not exercised, the Tribe will forfeit any improvements that are
in place; that the general presumption for fair market value of a leasehold interest, that many
appraisers use, is 10% of the fair market value; that taking this number at the appraised
value, presuming4hat it is higher than fair market value, at $5811,000, equals a fair market
rent of approximately $58,00), subtracting the $25„000 improvements that have to be made,
and $18,000 amount already paid, there is an effective gap between of what is being paid and
what might be the rule of thumb fair market value of $15,000; that given the amounts of the
restrictions on the lease, it matches up very well, and the Agency is getting $18,000 of fair
reuse value, subject to all of the restrictions on the lease; that the final finding is that the first
amendment of the DDA is consistent with the implementation plan; that in 1995, the
Redevelopment Agency, pursuant to changes in Redevelopment law, had to enact an
implementation plan to indicate implementation of the goals of the redevelopment plan; that
the resolution preparers sets forth six of the goads of this plan, primarily related to
coordinating and consolidating land uses and stimulating economic development; that
referring to specifics of the resolution, all matters are consistent with the implementation
plan, and that the project that is contemplated by the DDA will help implement the plan as
proposed. He stated that as a few errors were found in some; of the documents and the
changes have been reviewed with Tribal Chairman Mr. Milanovich; that the recommendation
is that the Agency and the City Council proceed and approve the: documents, subject to City
Attorney revisions; which are not substantive, and which clean-up typographical errors, and
the like.
Mayor declared the hearing open.
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Dick Sorda, stated that the Council should oppose the amendment.; that the entire issue should
be ignored; that if approved, the Council will be opening the; City to lawsuits; that the
Council had stated publicly that the month of August would be "dark" for Council meetings;
that this meeting is then called which is of vital interest to the Community; that it is
questionable why the amendment eliminates a $1.5 million subsidy; and questioned if the
Council was limiting the City's liability by the proposed action or trying to correct some bad
legal advice; and added that the parking situation is being handlo'l like the downtown parking
Council Minutes
8-7-96, Page 4
PA2 - INDIAN GAMING FACILITY - DDA AMENDMENT (Cout'd)
disaster; that this Council is placing fixture Councils in a bind; that a new fall and complete
EIR should be completed on the project; that the agreement states that the City will promote
the gambling center; and added that the big issue is not about a gaming center, but what will
happen to the Community with the gaming influence.
Darrell Meeks, stated opposition to the gaming issue; and added that although the public
hearing notice had been published according to legal statutes, the Council has repeatedly
stated the month of August would be "dark" for meetings; that someone must have known
about the public bearing in advance; that the perception is that the Council is sneaking this
item through; that the community could support this action if some of the profit of the Indian
gaming would be used to start a college or vocational school; and ,that should the Indians
choose to use some of the profit in such manner to benefit the community, it would be a
precedent for others of the Native American nations.
Joel Simpson, 3052 Monte Vista Way, stated that the Native American Indians are a
sovereign nation; that the United States would not presume to tell Mexico or Canada what
to do with their land; and that the City should not try to influence another nation with it's
land use.
Erik Meeks, 1317 Calle Palo Fieno, requested a copy of the map indicating proposed project
by the Agua Caliente Tribe.
John Weyser, stated that there may be some question regarding IRS tax law and the use of
redevelopment funds; that the land in question will be used in violation of State law; that the
Fire Station parcel is proposed to be leased for one year to the Indians and then eligible to
be sold; that the land is "State" land; that even though it is a sovereign power buying the
land, the process being used is to circumvent State law; that the City is not bound to the
' Negative Declaration, but could request a full EIR; that the planning function for the process
is flawed; that the Planning Director mentioned that the Tribe is not bound to SCAQMD, but
the City is; that not only does the proposal effect air quality, but also the socioeconomics of
the City; that gaming enriches a few and puts many in poverty; that this matter should not
be rushed into; that every issue should be examined with as much material as possible; and
that the decision the Council makes will impact the community for decades.
Don Frank, stated that there has not been adequate time to review all the material provided;
that the Council has announced repeatedly that it would be "dark" in August; that everyone
should be notified when the Council is going to change land boundaries; that the highest
moral values are expected from elected officials; that this issue involves integrity and honor;
and he read an article from the Desert Sun titled Morality Wears a Mask, and an excerpt
regarding rules to live by.
Chairman Milanovich introduced various members of the Agua Caliente Tribal Council; and
stated that negotiations regarding the proposal have been ongoing for months; that even
though the negotiations were stressful at times, both Council's worked through the problems
to come to resolution; that the majority of concerns were addressed; that the way the project
has evolved will be the right thing for the City; that the Agua Caliente's are assuming
responsibility for themselves; that the project is to benefit, and not cause a burden; that the
City has concerns, as the Tribe does; that the Tribe made charitable contributions to various
organizalions from profits of the project, and will continue to do so; and requested Council
approval of the proposal to allow the Tribe to proceed hand -in -hand with the City.
Fred Ebeling, stated that there is no reason to rush approval of the proposal; that the Tribal
Chairman should be comfortable in allowing more time for the City to review all the
material; that a full EIR study should be ordered; and advised the Council against rushing
into a judgement.
Bette Tuminello, stated that in every real estate transaction there is a willing seller and a
willing buyer; that negotiations have been proceeding for a long time regarding this matter;
and that, in her opinion, the proposal is agreeable.
(U.58
Council Minutes
8-7-96, Page 5
I. PA2 - INDIAN GAMING FACILITY - DDA AMENDMENT (Cont'd)
Tom Davis, Tribal Planning Consultant, expressed appreciation to City staff for efforts
regarding the matter; and added in response to question by Agency Counsel, that valet
parking would be provided on the same side of the street as the casino; and perhaps
temporary valet service on the opposite side of the casino. '
There being no further appearances, Chairman/Mayor declared the hearing closed.
Agency/Councilmember Oden questioned the effect of the proposed action on any pending
litigation regarding this item.
Agency Counsel/City Attorney stated that there remains two separate pieces of ]litigation in
Appellant Court; that a stay on the DDA will not be issued; that there is no impediment for
the DDA or the project; that Indian Law is murky at best, but that advice has been tendered
and agreed to by the Supreme Court; and added that there is no procedural or impediment
reason for delay.
Chairman/Mayor stated that the entire Council participated in the negotiation process with
the Tribal Council; that communication lines between the Council's have been opened; that
the amendment to the DDA is needed; that Caesars is no longer a part of the venture; that
the location of the casino has changed; that the new location is better than the original, due
to the distance of any residential dwellers; that the setbacks will be greater; that the
community benefits better with the amendment; that there have: been many meetings on
sensitive issues; that the line of communication that has been opened is based cm trust and
the quality of the leaders; that the amended performance schedule is accelerated; that the
Tribe is anxious to start; that with the casino in place, the City will benefit from revitalized
tourism dollars; that there has not been a notable change in police or fire calls, but that the
Tribe offered a guaranteed amount anyway to mitigate any increase; that the quality of the
proposal is much better than the previous approved project; that the Council is not acting in
violation of State law; that the matter has been reviewed extensively by the legal department;
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that the City of Palm Springs has spent money defending the right of the original DDA; that
the amendment provides for the Tribe to pay the cost of defending the action up to a certain
amount; that there has been comment regarding a full EIR; that there are proposed changes
to the DDA that are for the better, such as a reduction in size and height of the casino and
the parking area; that traffic will be better handled; that no City money is being used to assist
in the project; and that the combined DDA and amendment will be a better overall project.
Agency/Councilmember Spurgin stated that the proposal will bring Indian Canyon into the
downtown loop; that hopefully the businesses located on Indian Canyon will see a benefit;
and that negotiations have been in good faith; and she recommended approval.
Agency/Councilmember Oden stated that there were many hours spent in negotiations; that
both Council's worked for the betterment of the community; that the casino will provide for
economic viability and that means jobs, not only for the Tribe, but for the City.
Executive Director/City Manager stated that the month of August was anticipated to be
"dark", but that the hearing had been already scheduled and that announcements of the
meeting were made at the earliest possible date.
Resolution 1007 making findings as recommended was presented; after which, it. was moved
by Kleindienst, seconded by Spurgin, and unanimously carried, Barnes and Hodges absent,
that R1007 be adopted; and
Resolution 1008 approving the DDA as recommended was presented, with language
by
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clarification by City Attorney, after which; it was moved by Spurgin, seconded Oden, and
unanimously carried, Barnes and Hodges absent, that R1008 be adopted; and
Resolution 18882 City companion resolution of CRA R1007 as recommended was presented;
after which, it was moved by Oden, seconded by Spurgin, and unanimously carried, Barnes
and Hodges absent, that R19882 be adopted; and
0159
Council Minutes
8-7-96, Page 6
1. PA2 - INDIAN GAMING FACILITY - DDA AMENDMENT (Cont'd)
Resolution 18883 City companion resolution of CRA R1008 as recommended was presented,
with language clarification by City Attorney, after which; it was moved by Spurgin, seconded
by Oder, and unanimously carried, Barnes and Hodges absent, that R18883 be adopted.
IPUBLIC COMMENTS:
a) Comment regarding Item 1:
Tribal Chairman Milanovich thanked the Council for action; and stated that
negotiations were long; that all negotiations were in good faith; and thanked all
parties involved.
b) Comments on matters not on the agenda:
Darrell Meeks, congratulated the Council for acceptance of the International Short
Film Festival; that business was brisk during the showing; and that it is hopeful that
the event will continue for many years.
Linda Cooper Lee, informed the Council that Sunline has established a bus route on
Indian Avenue; and stated a City Employee had acted in an inappropriate mariner
towards her; that copies of materials have been requested from the Human Resource
Department; that the copies obtained were incomplete and entailed a five and one-
half hour wait; that the material contained language of character defamation; and that
the intention is not to go to civil court; but that some type acknowledgment should
be made by the City.
Fred Ebeling, stated that he was a witness to Ms. Cooper Lee's event at Sunline; that
Ms. Cooper Lee does have a video tape of the meeting; that the Mayor has done
some follow-up regarding incident; that the issue is not one of personality conflict,
rather violation of freedom of speech; that the Human Resource Benefit Officer has
whitewashed the incident; that some type of discipline should be in order; and
complimented Ms. Cooper Lee on behalf of all her efforts concerning Community
activism.
Joel Simpson, Brakescrew Enterprises, requested that any citizen with an electric bill
over $102.00 a month, send a copy to his company; and added that the Council is
to be commended on previous action concerning the Native American issue.
Don Frank, stated that Ms. Cooper Lee was owed an apology from the City
concerning the mistreatment he witnessed; and that it seemed tourists are treated
better at City Hall than the citizens.
Joy Schiendorf, stated that the Citizens Against Government Takeover encouraged
the Council to put past differences aside, and work together for all the Citizens of
Palm Springs; that clear direction had been given to the City from FERC; that
seeking variances or requesting appeals will not serve anyone's interest; that Council
has spent alot of money on the issue; that although the money was funded privately,
a tremendous amount of Council and staff time was also devoted; that currently there
is legislation being proposed by State Assemblyman Jim Battin, that would bring
relief to the citizens concerning the summer electric bills; that the State needs to hear
now; and urged the Council to be a constructive voice for change.
' Leslie Howard Gathers, thanked Cecila Chan for the Desert Sun coverage of the
Palm Springsopoly game; and added that time is drawing short for participation in
the history making event taking place in Palm Springs; and encouraged anyone who
has not bought a VIP space to do so immediately in order to become a part of a
collector's item.
0160
Council Minutes
8-7-96, Page 7
PUBLIC COMMENTS (Cont'd)
Bette Tuminello, stated that the City Manager had been given information regarding
busses to share with the Council; and added that local newspaper published a story
regarding a contract to study parking in the downtown area, including metering
parking in City parking lots; and questioned how this would effect Our Lady of
Solitude Church's parking situation. '
LEGISLATIVE ACTION:
2. PA9B-B11 - SENIOR HOUSING, COOPERATIVE SERVICES
Recommendation: That the Agency approve an option agreement with Cooperative Services,
Inc., for the purchase of a 2.78 acre parcel of Agency -owned pri iperty on the south side of
Vista Chino, generally west of Sunrise, for the development of a senior affordable/housiug
complex (under HUD Section 202 funding) A370C.
Director of Economic Development reviewed the staff report and added that plans for
development of the housing would be submitted at a later date; and that the project is needed
to provide additional safe, & 4,ent, and sanitary housing for seniors.
Ageneymember Spurgin stated in working with the senior outreach program the need for this
type of housing is evident; that the project of Vista, Serena is hugely successful; and that it
has created a feeling of independence for the seniors.
In answer to question by Agency, Director of Economic Development stated that the
appraisal price of $406,000 should be fairly close to the purchase price for the land; and
acknowledged Cooperative Services staff and members of Vista Serena present in the
audience.
Resolution 1009 as recommended was presented; after which, it was moved by Spurgin, '
seconded by Oden, and unanimously carried, Barnes and Hodges absent, that R1009 be
adopted.
3. PALM MOUNTAIN MOU AMENDMENT
Consideration of amendment to MOU between Palm Mountain and the Agency and the City,
concerning the development of residential units. If desired, motion approving first
amendment. (A3519).
Executive Director/City Manager reviewed highlights of the Memorandum of Understanding,
no further report was given.
In answer to question by Agency/Council, Director of Planning & Building stated that
adequate language was present to regulate the monument sign to be placed at the: intersection
of Palm Canyon and Chino.
Motion to approve the first amendment to the Memorandum of Understanding between the
Community Redevelopment Agency, the City of Palm Springs and Palm Mountain Company
was presented; after which it was moved by Spurgin, seconded by Oden and unanimously
carried, Barnes and Hodges absent, that the motions be adopted.
ADDED STARTERS: None
REPORTS & REQUESTS: ,
CITY COUNCIL reports or requests -None
Council Minutes
8-7-96, Page 8
0161
PUBLIC reports or requests
a) Don Frank, questioned whether the Council would be meeting next week and
whether the public could trust them if they agree not to meet; and forecast the future
of Palm Springs with roads closed, and the Post Office closed within the next three
weeks.
b) Joel Simpson, requested the Mayor participate in the PS Sun's Baseball games by
throwing out the first ball of a game.
c) Fred Ebeling, stated that everyone is entitled to a difference of opinion; that E-mail
will be used by those who have it, since the Post Office will have to close; and that
in his opinion, the Council used its best judgement, and the citizens will just have
to live with it.
STAFF reports or requests
a) City Manager stated regarding absences of the Council that Councilmember Hodges
had a work commitment; and that Councilmember Barnes had a previously scheduled
trip.
ADJOURNMENT
There being no further business Chairman/Mayor declared the meeting adjourned at 9:30
p.m.
JUDITH SUMICH
Istant Secretary/C'ty Clerk
By: PATRICIA A. SANDERS
Assistant City Clerk