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HomeMy WebLinkAbout1996 - MINUTES - 10/2/199601817 CITY OF PALM SPRINGS CITY COUNCIL MINUTES OCTOBER 2, 1996 A Regular Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor Kleindienst, in the Council Chamber, 3200 Talrquitz Canyon Way, on Wednesday, October 2, 1996 at 5:30 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 converted in open session. ' ROLL CALL: Present: Counciltnembers Barnes, Hodges, Oden, Spurgin, and Mayor Kleindienst Absent: None The meeting was opened with the Salute to the Flag, led by Boy Scout Troop 199, and an invocation by Rev. James Grifies, P.S. Presbyterian Church, REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on September 27, 1996. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 5 of agenda this date. HOUSING AUTHORITY; INDUSTRIAL DEVELOPMENT AUTHORITY - No business COMMUNITY REDEVELOPMENT AGENCY: Mayor declared the meeting adjourned for the purpose of convening as the Community Redevelopment Agency; after which, members reconvened as the City Council. FINANCING AUTHORITY: Mayor convened the meeting its joint session as the City Council and Financing Authority. ' APPROVAL OF FINANCING AUTHORITY MINUTES: It was moved by Oden, seconded by Spurgin, and unanimously carried, that the minutes of the Financing Authority of January 17, 1996, be approved. PUBLIC HEAPING: REFINANCING 1987 (POLICE/COGENERATION) AND 1991 (1dUNICIPAL GOLF COURSE) BOND ISSUES Recommendation: That the Council conduct required TEFRA hearing to consider possible issuance by the Financing Authority of 1996 Refunding Certificates of Participation, in an aggregate principal amount not to exceed $27 million; to be used, in part, to refinance prior Certificates of Participation for the above issues. It is recommended that the Financing Authority adopt appropriate actions related thereto. Director of Finance & Treasurer reported that the action is to refinancing two issues, ie., the Police Building/Cogeneration Plant issue and the 1991 Gulf course issue, by (155-- combining both issues into a single issue, which together will receive a Triple A rating 009 ) and be insured; that it will reduce significant cash flow immediately, and over the fife of the issue. Suzanne Harrell, Rod Gunn & Associates, stated that the expected reduction in interest on the 1991 issue is from 7.6% to 5.9%; that there should be a $200,000 cash flow benefit, or 4000 rounds of golf less than that needed to currently break even; that Stone & Youngberg expect to price the bonds, and close the sale before the end of the month. Mayor declared the hearing open Dick Sroda, resident, stated that the 1987 issue was refinanced once, and there is $9 million owing on it, and it should be paid in 2006; that the golf course leas not paid $1 million, and still owes $13 million; that combined they equal $22 million; that there is no disclosure as to how much the refinancing will cost; that lie questioned why tite action is needed; that the debt will encumber future generations for 30 years; that the action is not 0188 Council Minutes 10-2-96, Page 2 REFINANCING 1987 (POLICE/COGENERATION) AND 1991 (MUNICIPAL GOLF COURSE) BOND ISSUES (Continued) consistent with campaign promises made by Couucilmembers; and that lie questioned if the money was to be used for other purposes. Fred Ebeling, resident, questioned if the City was one of special interest, or of people , who pay the bills; that he feels isolated; that spending is occurring with reckless abandon; and that he did not think the Council was interested in hearing from the public, and only did so as a legal requirement.. Darrell Meeks, resident, slated that the action places a burden on future Councils, and questioned how much the issue will cost; that such information should be made public, with thne for the public to review it; that there will not be an increase in the interest rate before the Presidential election in November; and that he questioned whose idea the refinancing was. Steve Vericker, resident, spoke in favor of the action, concluding, that it is the only viable action the Council can take; that there is $5 million unsecured loans against the golf course, from other City funds, which it carmot repay; that there should be a task force set up to determine how this situation happened, and to snake certain it never recurs:, and that there is no savings in the issue, only a deferral of payment. Bette Tuminello, resident, suggested that the Council look at the subject from the perspective of a mortgage loan, and reminded the Council that a 6% interest doubles the debt in 12 years. There were no further appearances, and the hearing was closed. In answer to question by Council, Ms. Harold stated that the cost of the issue is 430,000, the insurance is $400,000, and the underwriter fee is $200,000; that the pre -payment premium is $180,000 for the 1987 issue and $300,000 on the 1991 issue, and there is some cost associated with interest differential limits on how :ouch call be made; that the (155- golf course could not qualify for the insurance, but with the oilier facilities, it takes on 009 ) the character of a more substantial municipal facility; that there would be no savings without the insurance; that. cash Row is the most significant benefit for doing the refinancing, i.e., in the first year, the debt payment will be reduced $600,000-700,000, and annually it might be as high as $800,000 for the next nine years; that after the ninth year, it will be a larger debt service than there would have been without the refinancing. She explained "net present value savings," and that after 30 years, the savings will be about $260,560; that after re -sinning the calculations this date, she felt the savings would be about $400,000 higher than that shown in the report - the NPVS about $600,000. She stated that changes in laws were taken into account; that the Palraer management contract is not affected by the refinancing, and does not require re -negotiation; and that she expected the actual issue will be about $24.5 million. City Attorney explained that the idea for the refinancing stemmed from a suggestion by the bond underwriter for A.D. 155, which has a problem with eancellation of leases and some financial problems regarding the assessment district, with the idea to apply the savings from the refinancing to the assessment district; that when the City looked at losing a substantial amount on the golf course, and the projected revenues were not being met, it was thought that the savings could apply to the golf course which would bring it close to breaking even; and that while it initially was conceived for at different purpose, it was very creative, and it became clear how to use the funds. ' Mayor summarized that the debt would be stabilized after the fitst year, and existing costs reduced; that there will be an overall savings of $1 million; that the first year will be $600,000-700,000, and $800,000 for Are following, through the ninth year; the issue will be insured; the rating at Triple A; and a much lower interest rate. Council Minutes 10-2-96, Page 3 1. REFINANCING 1987 (POLICE/COGENERATION) AND 1991 (MUNICIPAL GOLF COURSE) BOND ISSUES (Continued) Councilmember Hodges stated that she has not liked the idea since it was originally presented, and still does not like it; that the City has the possibility of retiring a debt in ten years, which would free revenue to do something with it; that there will not be any (155- more in thirty years; that she agreed there are some savings in the first tune years, but 009) after that, a larger debt will be assumed, at a time when the 1987 issue would have been paid; that in the short term, it may make sense, but not in the long term, and definitely not 30 years from now; and that the only gain will be more debt, for a longer time. Council Resolutions 18905 and 18906, as recommended, and Financing Authority Resolution 13, as recommended, were presented; after which, it was moved by Barnes, seconded by Spurgin, and unanimously carried, that Resolutions 18905, 18906, and 13 be adopted: AYES: Barnes, Oden, Spurgin & Kleindienst NO: Ilodges ABSENT: None Chairman declared the Financing Authority adjourned; Council remained in session. COMMUNITY REDEVELOPMENT AGENCY: Mayor declared the meeting adjourned for the purpose of convening as the Community Redevelopment Agency; after which, members reconvened as the City Council. COUNCIL COMMENTS/ANNOUNCEMENTS: a) Mayor and Councilmembers announced specifics concerning upcoming meetings and community events within the next two weeks. Counciltnernber Hodges to provide copy of report to City Manager concerning a potential Joint Powers Agreement regarding trash disposal. PUBLIC HEARINGS: IISPB 33 - SELECTED STRUCTURES Recommendation: That the Council designate six structures, predominantly located in the NW portion of the City, and the City Hall, all designed by Architect Albert Frey, as Class I Historic Sites. City Manager reported that a preliminary concern related to the designation for City Hall, and he stated that the interior renovation will not be affected by the historic site designation. Director of Planning & Building highlighted his memorandum, noting that six structures are recommended by the Board; that the owner of the sixth site, the Tramway Road set -vice station, has concerns, and staff recommended deferring that element, however, (076- the Board felt it was a significant structure and recommended its inclusion. He suggested 001) that the resolution be modified to direct that the Tramway Road site be referred back to the Board. In response to question by Council, he stated that the owner was legally notified, but felt it was a short period of time for a business owner to make a decision and be comfortable with it; that the Council could refer the matter for report from the Board; and that he suggested it be referred and the process started over. Mayor declared the hearing open. Leslie Howard Gathers, resident, stated he shared concerns of the owner of the Tramway Road site, and fell there are environmental issues which should be considered more than the historical character, i.e., removal of tanks and environmental damages that they may have caused, and potential of a federal mandate to do so. 0190 Council Minutes 10-2-96, Page 4 HSPB 33 - SELECTED STRUCTURES (Continued) Robert Pippin, on behalf of the owner, recommended that this aspect be referred for further review; that the owner did not have the time to prepare or get someone to work with him; that he only ,just joined the owner, and they have not had a chance to work together with the staff; that the building may have been a great, building, but in today's world, it cannot compete with other service stations, unlike other historic buildings which may be modified internally and remain the historic shell outsidelo; that there have been 5 operators who have attempted to make the station work in five years; that the tanks will have to be removed; and that the lease expires in two years, and he felt something could be worked out. Jessica Scarffe, resident, representing Shadowrock: and P.S. Gaining, stated that she was also opposed to the Tramway Road site designation, and urged approving the staff recommendation to refer the matter to the Board. There being no further appearances, the hearing was closed. Councilmember Oden reported that while involved with a committee looking at remodeling College of the Desert, he became aware of the significance of the; work of (076- Albert Frey, as a master architect, whose work is known and studied around the world, 001) and he wanted to be careful that the site is not looked at as "just a station" and not "just architecture" and action is not taken hastily until there is an opportunity to discuss it. In answer to questions by Council, Director of Planning & ]Building stated that once designated a Class I, any changes to the exterior structure would be subject to approval of the Council; that he was not certain if the designation could be as easily removed; that there are some concerns regarding the service station; that the Class I designations have been very deliberate and in most cases the property owners have been supportive. Councilmember Hodges stated that once designated, there should not be the ability to change it, or demolish the structure, and she would like to see that aspect addressed. Resolution 18907 as recommended, was presented; after which, it was moved by Spurgin, seconded by Hodges, and unanimously carried, that R18907 be adopted, deleting any reference to 2901 N. Palm Canyon (Tramway Rd site), and referring that site to the Historic Site Preservation Board. Al. STREET VACATION - PRESCOTT CIRCLE Recommendation: That the Council vacate portion of Prescott Circle North between Hermosa Place and West El Alameda, Section 10. Director of Public Works highlighted his memorandum, and stated that adjoining property access will be off of El Alameda. Mayor declared the ]rearing open. Chris Mills, stated that there will be some lot line adjustments in the future, and urged (145-- approval. 001:1 There were no further appearances, and the hearing was closed. Councilmember Hodges noted that the vacation will enable more parking for the Villa Hermosa, which is very much needed. City Attorney stated that the language of the resolution needs some modification in terms of how the condition is tracked, and the vacation effectuated, and requested that lie be authorized to make minor changes. Resolution 18908 as recommended, was presented; after which, it was moved by Ilodges, seconded by Spurgin, and unanimously carried, that R18908 be adopted, final language subject to City Attorney approval. Council Minutes 10-2-96, Page 5 0191 INTERAGENCY REPORTS: a) Councilmember Oden announced his election as a Division Director for the Eastern Valley section of the League of California Cities Riverside County Division, and he will report further on his involvement in that role. ' b) Councilmember Hodges reported on actions of CVAG Executive Committee, i.e., it denied consideration of a task force to look at equity in tetra of the types of businesses to which the TUMF program is applied; and approved additional Mid - Valley Parkway funding regarding back up funding in connection with a possible IRS ruling associated with So.Calif. Edison. She also noticed potential conflict between the Customs Office dedication and a joint meeting between WRCOG, CVAG and RCTC; and she reported on matters discussed in Washington, D.C., on a recent trip by her, the City Manager, die City Attorney and the Director of Transportation. PUBLIC COMMENTS: a) Comments concerting Item 3 The following persons spoke in support of the Race, and the benefits it brings to the community: Juanita Whitacre, resident Bettye Cotton, resident Peggy Gimbel, resident. (050- Karl Daga (?) resident 025) Debbie Buelling Barbara Knox, business owner Darrell Meeks, resident, commented that questions were raised about the race status in January or February, and it should have been resolved by now; that if there is a new route, it should be presented for the public as none was included in the agenda material; that the race flyers include information about ticket purchases, which includes a provision that purchases are non-refundable, and that if the race is canceled it may be possible that people will not get their money back, and he questioned if that non-refundable policy was approved, or needed to be approved, by the City Council. Dick Sroda, resident, considered it no surprise that Cathedral City was not going to approve the Ramon Road proposal; and stated that the Council must enforce its earlier stated position, that this issue cannot be dealt with at the last minute, and the promoter must meet deadlines and bear all costs. b) Fred Ebeling, resident, expressed concerns about PSTV, and commented on the potential use of public access television to increase tourism; and that PSTV has missed a lot of broadcasting opportunities for almost three years. LEGISLATIVE ACTION: 2. LIBRARY MANAGEMENT AGREEMENT Recommendation: That the Council approve a five-year Municipal Public Library ' Services Agreement with the Board of Library Trustees, governing the management of (099- the Department of Library Services through June 30, 2001. A3716. 001) City Librarian reported the Board's recommendation, in which lie concurred, noting that the agreement provides for a 1 % cost of living adjustment, which excludes any action of the Council concerning the employee bargaining unit; that the Board views the contract as a five-year budgeting effort, rather than year-to-year budgeting, for the reasons noted in his report. 01922 ounrii Minutes 10-2-96, Page 6 2. LIBRARY MANAGEMENT AGREEMENT (Continued) Lynne Bushore, President of the Board of Trustees, reported that the Board unanimously and enthusiastically supports die program, and sees it as a challenge and more opportunity in which to plan better for the projects, capital improvements, and circulation which they deem appropriate; that it provides more responsibility and owneirship of the library; that the Board has staunchly supported increasing hours of operation, and it will be the ' Board's job to come up with ways in which to make that happen within the budgeted funds. City Manager stated that this matter was a prior agenda, and deferred, at request of one bargaining unit representative's concern that meet and confer was involved; however, he ,net with the City's labor attorney, and there is nothing that would adversely affect conditions of employment and there is no problem in that regard. Councilmember Oden stated that the City's Librarian, Henry Weiss, is known even to the State Librarian, for innovation in library services, and the community will have the benefit of that. Councilmember Hodges stated that it is an innovative idea, and there is an escape clause, however, it is a contract; that part of the problem of government is often found in entitlements which are often funded from sources other than their original source, e.g., the State education fund covered by drawing money away from cities; that the City does (099- not have other "cities" to draw from; that if there is a major emergency or event requiring 001) funds, the revenues will be locked into this agreement; that government cannot be run like a business; that she did not like having the Council's hands tied, with no ideaa of what funding will be like; that property taxes have been, and continue to go down; that surpluses have decreased; and that she questioned how the Council could contract to maintain one specific department. Councilmember Spurgin stated that she had similar concerns, which she discussed with ' the City Librarian; that the funds are those which were budgeted earlier this year; that there will be the opportunity for a review at the end of each fiscal year; that the decisions voters make in November, 1996, will help the Council in deciding what it will do; and if there is a problem, the Council can terminate the agreement. City Attorney noted that the contract does not call for an automatic annual review, unlike other city departments; and terminating the agreement will require a 4/5 affirmative vote. Councilmember Barnes stated he, too, had the same concerns, but finds the agreement acceptable with the escape clause; that it is a very innovative idea; that it makes a commitment of the Board to keep the library in line with the allocated funds. Mayor stated that the agreement gives tools to a City department to let it be responsible to raise revenues if services are increased, or staff is added; that it is extremely creative and something which has never been done before; that it will serve as a model for otIter city departments; that the escape clause is for both parties; and that the Library is already open more hours than libraries in other cities in the area, and has a larger collection. Minute Order 5813 as recommended, was presented; after which, it was moved by Oden, seconded by Spurgin, and carried by the following, that MO 5813 be adopted:: AYES: Barnes, Oden, Spurgin & Kleindienst NO: Hodges ' ABSENT: None 019.3 Council Minutes 10-2-96, Page 7 3. ROAD RACE Recommendation: That the Council adopt resolutions temporarily suspending certain regulatory ordinances; and temporarily closing certain streets. City Manager reported that following the disapproval by Cathedral City of the Ramon ' Road proposed route, he sent a letter to the City Manager of Cathedral City, outlining three options which the City would consider: a) use of Mesquite Avenue at the southerly portion of the proposed raceway; b) use of the southerly portion of Ramon Road, leaving unimpeded west -bound traffic, and detouring eastbound traffic at Gene Autry to East Palm Canyon, leaving motorists to cut back to Ramon Road east of the Whitewater Rivet; and c) construction of an alternative to Ramon or Mesquite thoroughfare usage. He stated that in the case of (a), the contractor for the Mid -Valley Parkway believes it is entitled to delay penalties of $1,100 per day as it would be unable to begin the construction work; and that in the case of (c), a substantial set of issues would be unresolved as to who would construct and pay for the alternative. He suggested the closed eastbound/East Palm Canyon detour alternative for 1996 orrly, recognizing it would be a big consequence to Palm Springs, Cathedral City and the remainder of the Valley; and that cancellation of the race was not a viable alternative. Mike Herron, employee with the race promoter, indicated the detour proposal could be a six -day turn -around, versus the 8-day for the Ramon Road route. Mayor stated that special events are complex and require large amounts of time; that fixed venues are more easily dealt with, but in this case the venue was changed, and every aspect of the event must be recreated; that it involves new businesses, new landowners, new routes, and he was not shocked drat it has taken so long in bringing it to a (050- conclusion; that it was unfortunate that Cathedral City did not give an opportunity for 025) dialogue with Palm Springs, before rejecting the proposal; that he was disturbed that such ' decision was made without finding out the facts, and he felt the staffs had resolved all concerns; that he did not consider Mesquite acceptable, nor cancellation of the race; that a reconstructed new track should be on the backburner; that he favored the (b) alternative, and noted that traffic detours occur throughout the valley for longer periods than 8 days, and he felt (b) was viable and fully acceptable way to move traffic,. City Manager stated he would continue to work with Cathedral City in all attempt to resolve the route. Councilmember Spurgin stated that the new site takes business out of town and brings business to Cathedral City, which is still a concern of hers; and requested that every effort be made to encourage people back to Palm Springs. Councilmember Hodges stated it was unfortunate that Cathedral City did not agree, however, she was not willing to prevent the race from happening; that if it could still occur on Ramon Road, that would be great, otherwise the alternative (b) should be approved in the resolutions presented; and the race allowed to proceed. Councilmember Barnes agreed with the comments made, and added it was not understandable for Cathedral City to have made the statement that its businesses would not benefit from the race, when popular convenience stores are located directly across from the route; that the event is a good one; and the alternative will be workable. Councilmember Oden supported the program, and added that the staff is creative and the Council forward thinking, and he felt that these matters can be resolved more quickly, and hoped it would not be at the last minute again next year. Mr. Lilly, promoter, stated that the Spa Hotel is the event headquarters hotel; and the Hihon will be the location of the sponsors reception, and the concourse d'elegance will be held at Talrquitz Creek resort course. Resolution 18909 and 18910 as recommended, attachments to be provided approving above described (b), was presented; after which, it was moved by IIodges, seconded by Spurgin, and unanimously carried, that R18909 and 18910 be adopted. 0194 Council Minutes 10-2-96, Page 8 4. VILLAGE FACTS, PROGRAM & POLICY Recommendation: That the Council adopt a "Village Facts" Program and policies for its implementation and operation. City Manager suggested this matter be set for study session. So ordered, 5. ORDINANCES FOR SECOND READING & A,DOPTION (Intro. 10-2-96) City Clerk read titles of Ord 1537 re Administrative Appeal Procedures, and Ord 1538 (103- re revised Sign provisions of the Zoning Ordinance, after 'which, it was moved by 045 ) Hodges, seconded by Oden, and unanimously carried, that further readings be waived, (103- and Ordinances 1537 and 1538 be adopted. 038 ) City Clerk read title of Ord 1539 re Speed Limit Zones; after which, it was moved by (132•- Hodges, seconded by Oden, and unanimously carried to waive further reading, and 001) carried by die following vote that 01539 be adopted: AYES: Barnes, Hodges, Oden, and Spurgin NO: Kleindienst ABSENT: None 6. MOUNTAIN FALLS GOLF, LLC - SECTION 9 LEASE Reconunendation: That the Council approve a ground lease between the City and Mountain Fails Golf, LLC, for approximately 621 acres of unimproved laud located in Section 9, adjacent to the Tachcvah Reservoir, A3717. (See Also CRA Minutes this date) (109 - 018) City Attorney explained that a part of the dispute settlement related to lease of a piece of city -owned land for 4 holes of the 18-hole golf course; that the developer has entered into agreement with Riverside County Flood Control District for its property for the: remainder of the golf course; that once developed, the lease would be for 55 years at $1; that the property is not otherwise developable, and the City's benefit in the project is to create development in the city; that a DDA will be required, as well as a complete environmental assessment; that objections were received from the Sierra Club, which believes there are serious environmental issues which cannot be overcome; that staff believes that those will be discovered during the environmental assessment process, and is not in a position to anticipate what those are at this time; that if there are unresolvable problems, the Council is not obligated to approve it; that the lease commits to grading within four years and to be operational within 3 years after that. In response to question by Council, he stated that if there is no agreement regarding the DDA, the lease is nullified, but the intent is to proceed in good faith with study and analysis. Minute Order 5814 as recommended, was presented; after which, it was moved by Barnes, seconded by Hodges, and unanimously carried, that M05814 be adopted. ADDITIONAL LEGISLATIVE ITEMS: None CONSENT AGENDA: 8. MO 5815 approving a Measure A funded consulting agreement. with Berryman & Henigar (08EI- for $90,000 for a bridge feasibility study to the crossings of the Whitewater .River Wash 004.) at Indian Canyon, Gene Autry, and Vista Chino, CP94-43, A,3718. 9. MO 5816 awarding contract to Western Waterproofing Co., Inc., for $23,700 for bridge (136- deck repairs and polyester concrete overlay of Indian Canyon Drive Bridge over the 027) Southern Pacific Railroad, about 1/2 mile south of I-10, CP96-01, A3719. 10. Res 18911 approving first 12-month time extension of PD 231 preliminary plan subject (116- to original conditions, for the P.S. Classic project on SE corner of Vista Chino and Gene 101) Autry. Barnes abstain. L o19.5 Council Minutes 10-2-96, Page 9 11. Res 18912 approving destruction of specified records currently in Lie custody of the City (151- Clerk. Kleindienst abstain A2330. 001) 12. Res 18913 & 18914 approving Payroll Warrants & Claims & Demands. Abstain: Hodges (086- #914100,914104,914219; Kleindienst #914314; and Spurgin #914257. 015 ) ' 13. MO 5817 rejecting bids for purchase of a used vehicle (wagon) for Fleet Operations (084- Division. 013 ) It was moved by Spurgin, seconded by Barnes, and unanimously carried, Barnes abstaining on R18911; Kleindienst abstaining on destruction of A2330; and warrant abstentions as noted in item 12, that M0581.5 through 5817 and Resolutions 18911 and 18914 be adopted. ADDED STARTERS: None REPORTS & REQUESTS: CITY COUNCIL reports or requests a) League of Calif. Cities Conference: Councilmember Spurgin designated as voting (10 n- delegate for 1996 Annual Conference in Anaheim. 001) b) Councilmember Spurgin noted that she had not received a list of CRA-owned property, which was requested and noted in the June 26, 1996 minutes. c) Councilmember Oden reported on community events which he attended, subsequent to the last regular meeting. PUBLIC reports or requests - None STAFF reports or requests a) Director of Transportation reported completion of FAA grant, re $1 million toward the noise abatement insulation/berm project, and a separate grant re Taxiway A project. ADJOURNMENT There being no further business at 10:30 p.m., Mayor declared the meeting adjourned. JUDiTH SUMICH City Clerk