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HomeMy WebLinkAbout1997 - MINUTES - 2/5/1997 O i J-2 CITY OF PALM SPRINGS CITY COUNCIL MINUTES FEBRUARY 5, 1997 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 Tahgnitz Canyon Way, on Wednesday, February 5, 1997 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 convened in open session. ROLL CALL: Present: Councilmembers Barnes, Hodges, Oden, Spurgin, and Mayor , Kleindienst Absent: None The meeting was opened with the Salute to the Flag, led by Boy Scout Troop 86, and an invocation by LaVeta Dillman, Chapel on the Way. REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on January 31, 1997. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSIPON (All Entities) - See items on Page 4 of agenda this date. HOUSING AUTHORITY: FINANCING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: COMMUNITY REDEVELOPMENT AGENCY - No business. COUNCIL COMMENTSIANNOUNCEMENTS: a) Mayor and Councilmembers reported on various civic and community organizational meetings and events which they attended, subsequent to the last regular meeting; and announcements of coming events of general community interest. APPROVAL OF MINUTES: ' It was moved by Oden, seconded by Hodges, and unanimously carried, that the Minutes of January 2, 8, 15 & 22, 1997, be approved. PUBLIC HEARINGS: 1. TM 4034, 4060 & 4069 - CERTIFICATES OF CORRECTION Recommendation: That the Council approve Certificates of Correction for the Deep Well Ranch tract maps which were recorded in 1970, in order to remove a minor condition ( 137- which prohibits individual lots from being conveyed in fee; property located north of E. 048 Palm Canyon at the north end of Deep Well Ranch Road, Section 23. Director of Planning &Building highlighted his report, explaining the minor nature of the change. Mayor declared the hearing open. Jim Schlecht, attorney for the Homeowners' Association, staled that the Association has worked with City staff on this matter, and urged approval, noting that it will remove confusion now caused to banks, title companies, and others. Paul Aiver (?), resident of Deep Well Ranch, read from a quitclaim and assignment of , lease dated in 1977. There were no further appearances, and the hearing was closed. Resolutions 18966, 18967, and 18968 as recommended, were presented; after which, it was moved by Spurgin, seconded by Oden, and unanimously carried, that RI8966 through 18968 be adopted. PUBLIC COMMENTS: 10`) ia3 Council Minutes 2-5-97, Page 2 a) Comments concerning Items 2 and 3: Leslie Howard Gathers spoke in support of both items, and stated that the city electricity will be good for economic growth, and the people who live here. Mary Drury, SCE, slated that she did not believe the agreement will guarantee ' lower electric bills, and the potential may lie in the power services agreement; she questioned when that agreement will be forthcoming; and that it would be right for the City to enter an aggregator agreement if it can gel a better price with (147- ils own power generator, than through the power pool. 004) George Wyatt, Portland-General, reported on how the company has "connected" with the community through local organizations and events; that Palm Springs is first in line as an aggregator, and they are looking to how to integrate the community's strengths with the economic development strengths of Portland- General, and he urged allowing them to grow a business which will allow residents to select their power provider. Juan Nagore, Portland-General, spoke in support of the agreement with Mr. Lyons. Tim Kruger, Portland-General, expressed excitement about being a part of the community, and appreciation for the support and commitment of the city leaders, and their vision and focus regarding economic development. Darrell Meeks, resident, stated he supports reduced utility rates, and thinks the best way to do that would be to eliminate the utility user tax; that the City has said that the municipalization effort was not paid through General Fund money, but the 1/10% of room tax was to have been deposited in the General Fund, according to the ordinance; and he questioned that has been the case. He also commented regarding Items 7 and 8, and stated he did not think the City can afford to add positions, yet ask the voters to continue the utility tax. He also suggested that the current public relations manager be utilized instead of the position suggested for public information. Dick Strata, resident, commented that the increase to Mr. Lyons is from$2,400 per month to $4,000, and the money is paid from tourists; that Mr. Lyons' was to have been a temporary arrangement, and an employee was to have taken over; that new positions should not be added to the budget (Items 8 & 9) when the utility tax is being requested for continuance by the voters; that he considered the salary high priced; and that non-vital services are being added, some of which could be done by the tourism bureau. Art Lyons, resident, spoke in favor of Item 2, and noted that SCE has slated that the City is rushing into such action, yet it is seeking to be a power partner with the L.A. Water & Power; that there is a good chance the City will prevail at the FERC level; and that things are moving very fast, and Patin Springs is very far ahead of everyone else. b) Comments concerting Item 5: Craig Prater, Film Festival, urged renewal of City funding support, and stated that the event is three times greater in size than when it originally started; that ' the theaters were originally free, but there will now be a charge for their use; (050- that a merchants program was done this year to determine the affect on local 010) business, and the results should be available soon; and that the event now includes local sponsorships, local schools involvement, and was a part of the Martin Luther King, Jr. Holiday activity. Council Minutes 2-5-97, Page 3 Emily Hemphill, attorney pro bono for the Film Festival and member of its Board, stated that the event has made a big impact on improving the image of Palm Springs; that it generated $7 million in income to the community, not to the festival, and unquantifiable amounts in publicity; that the expenditure on the part of the City is not a frivolous one, rather a positive impact on business, retail, jobs and property values; and that Nortel has committed to two more events. , Paul Madsen, Maryanov, Madsen, Gordon & Campbell, auditors for the Film Festival, stated that its last audit showed it could sustain continuance, contingent upon continued support by the City; and that he considered the money well-spent, and an event needed in the community. Rick Supple spoke in support of the Film Festival, stating that it blends private and public interests. c) Comments on matters not related to an agenda item: Linda Cooper Lee commented concerning her eviction from a rental unit, and refusal of city employees to respond to a subpoena with the payment of witness fees; and her opinion that the City selectively enforces State laws. Ed Kass, resident, commented on terminology and his opinion that all United States citizens are "Americans" without qualification as to a former country status. Fred Ebeling, resident, expressed opinion that Public Access Television is now "State" controlled TV; that he did not think the public has been encouraged to participate in it, and that it appears they will not now be allowed to dog so; and he would like the Council to take more interest in the people who live in Palm Springs. ' INTERAGENCY REPORTS: a) Councilmember Barnes reported on status of the Sierra System computer program, and that implementation is being considered. LEGISLATIVE ACTION: 2. MUNICIPAL UTILITY SERVICES AGREEMENT 3. ELECTRIC POWER CONSULTING SERVICES Recommendation: That the Council approve an agreement with Palm Springs Utilities Solutions, Inc., (Portland General) concerning municipal utility services, A3764; and designate name for the retail sales and electric program. Assistant City Manager reviewed his report in detail; copy of which is on file with the City Clerk, noting that minor revisions were made not included In the original draft, and stated that the agreement identifies two major goals -- consumer choice, and economic (147- development, and he described the services to be provided by PSUS, contingent upon 004) restrictions of stated and federal law and regulatory control. He noted that a staff committee will be appointed, and will include representatives of PSUS, to begin implementation programs in the agreement, and that other agreements will have to be negotiated in the near future to achieve other aspects of the contract. He explained that the company will reimburse 50% of the cost of the Art Lyons' contract with the City, as ' well as the reimbursement to Illinova. He explained that P.S. Utilities Solutions, Inc. is a wholly-owned subsidiary of Portland General Holdings, Inc., which is a wholly-owned subsidiary of Portland General Corporation, and performance will be guaranteed by Portland General Holdings, Inc., which has assets in excess of $25 million. Ile added that a name is required for the program and "City of Palm Springs Energy Services" is recommended. 0 Council Minutes 2-5-97, Page 4 2. MUNICIPAL UTILITY SERVICES AGREEMENT 3. ELECTRIC POWER CONSULTING SERVICES (Continued) In answer to question by Council, City Attorney reported that the agreement provides that PSUS will reimburse the City 50% of the cost of the contract with Mr. Lyons, but ' approval of the PSUS agreement would not obligate the City to enter into the agreement with Mr. Lyons. At request of Council, Assistant City Manager presented details of his report concerning Item 3, relating to the following: Recommendation: That the Council approve agreement with Arthur Lyons for electric power consulting services for calendar year 1997, not to exceed $47,200, including reimbursable expenses, A3765. He reported that Portland General recognizes the efforts of Mr. Lyons and supports (147- keeping him on the project; that the City's share would come from the funds collected 004) from the option agreements, donations and room tax transfer, which the llotel Association requested an additional 1/10% tax, but it was not earmarked as such; that the expenses do not include local travel, office supplies, FAX, but travel to attend PUC meetings or to represent Palm Springs before other groups; that an effort is being made to create an alliance to impact the Slate Legislature or the PUC; that after the City's share is paid, there will be about $40,000 remaining in the fund. Councilmember Hodges stated she would not disagree regarding Mr. Lyons' qualifications, and that he has lead the way for the City; that one of her concerns is, that there was to have been a staff person trained to do the job, and she was disappointed in that it did not happen; that there is still the completion of the process before the FERC, and with limited funds remaining, it is not much for legal counsel, and there are not ' General Funds to supplement it. She suggested that perhaps Portland General pay the full amount of the Lyons' contract. City Manager stated that the split relationship relates to an equal amount of loyalty, and he did not know if the City could afford to hire someone with this kind of knowledge, and that no one staff person could concentrate totally on that one activity, along with normal duties, and the alternative was either to contract with Mr. Lyons, or hire a new employee. Assistant City Manager noted that discussions with Duncan &, 1len indicate that there is no need for them to appear further on the appeal, and if additional work was required by them, he did not know what that might be, nor how much might be involved. Councilmember Hodges noted drat she felt Mr. Lyons' loyalty would remain with the City regardless, and that if he were solely paid by the new company, it's only action is on behalf of the City. Councilmember Oden agreed with the job description noted by the City Manager, and the qualifications of Mr. Lyons, and that he thought Portland General was going to have to hire someone, and fell it should hire Mr. Lyons. Mayor concurred with comments regarding Mr. Lyons qualifications, and noted that the issue was created by Mr. Lyons at the state and federal level; that it is unknown territory, with a daily changing character; that the contract offers flexibility for both sides to find the best possible means to reduce the cost of electricity to consumers; that the suggestion ' to train an employee was correct, however, the load was so large, that a person would have stopped doing their defined job, and focused only on this; that the Assistant City Manager has been heavily involved on the project for months; that the donated and committed funds will soon be gone, but it does not mean the project is over, and there will be some point at which the Council will have to commit City funds; that it has been a "free" $400,000 in services thus far, and has not been from the normal City budget; that he hoped it would be operational in the next year, and funded with a minimal amount from the General Fund, if additionally at all. 1 Council Minutes 2-5-97, Page 5 2. MUNICIPAL UTILITY SERVICES AGREEMENT 3. ELECTRIC POWER CONSULTING SERVICES (Continued) Councilmember Oden agreed that the funds are not coming from the General Fund, and that the Council may have to look at that for the program to move forward, however, if that was the case from the beginning, it would have looked at it differently. , George Wyatt, Portland General, stated that the company is committed to making the project a success, and has taken a greater risk than die City, because it believes it can be a viable business venture; that it would consider added funding; to cover,Mr. Lyons' contract if that was a critical factor to the agreement; that the competition will be stiff and he would rather have Mr. Lyons working with him, than for someone else, and that a person is needed in the organization who is connected to the City; that the focus will be on promoting the City, and the company wants to be close to the community, but it (147- should not appear that it is rotating the show, and that a 50-50 split on this cost. seemed 047- like the best way to achieve that balance. 04) Following answer to her question, Councilmember Spurgin noted that the company has spent close to one-half million dollars thus far, and it is certainly on the City's side; and that whether there is enough to pay Duncan & Allen or someone else regarding; FERC, if that were going to cost $50,000 it would be small compared to the amount Portland General has already invested. Mr. Lyons stated that Duncan & Allen will not have to represent the City on the (rearing before FERC; the lobbyist suggested approaching it from a state; and federal level, and modify strategy at the federal level, which may not cost anything; that Duncan & Allen may need to be called on to negotiate the power sales agreement with Portland General, because of expertise needed of a utility attorney, and they know the City and its needs; and that at some point, unless other outside sources come forward, the City will have to decide how serious it wants to be about providing the service. ' Councilmember Spurgin stated that this is something the City can do that will affect everyone; that the ball is rolling, and should not be stopped; and that many people are depending on the success of it. Councilmember Barnes agreed that the Council has come so far on something that is so important to all citizens; that the Council must look at the costs and the benefits, but must move forward; that the agreement is fair to split the costs, and it would be fine if Portland General wanted to cover it all, but it must move ahead rapidly, and that perhaps Mr. Wyatt's offer could be worked out, and the additional amount paid after the fact. Discussion continued as to how the contractual arrangement should be between the City and to the extent that Portland General might pay the full cost. Mr. Wyatt concurred that Mr. Lyon's contract would be with tie City, with Portland General to contribute 100% of the cost, but noted that the resource might be better directed somewhere else, and noted that the FERC process might cost more. Actions were adopted in the following order: Minute Order 5896 approving agreement with PSUS, and Minute Order 5897 approving name "City of P.S. Energy Services," City to recover 100% of the costs from Portland General, upon motion by Barnes, seconded by Spurgin, and unanimously carried. ' Minute Order 5898 approving agreement with Arthur Lyons, as recommended, upon motion by Barnes, seconded by Spurgin, and unanimously carried. 4. CDBG UPDATE, 1997-98 ALLOCATION PROCESS City Manager noted that applications are due February 14, 1997. (085- 013,1 Council Minutes 2-5-97, Page 6 5. NORTEL/PS FILM FESTIVAL City Attorney highlighted his memorandum, noting approved payment dates compared to actual payment dates, and Council options to extend the film festival contract for five years, subject to termination if the utility user tax is not approved in November, 1997. ' Councilmember Hodges noted that the Council has committed to the 1998 event, and has (050- that obligation even if the tax is not approved; and that when the final agreement is 010) prepared, she preferred that it provide if the tax is approved, that the contract is for five years, and will not be subject to annual approval. Following discussion, it was moved by Spurgin, seconded by Oden, and unanimously carried, that the City Attorney prepare an amendment to the contract to provide for an additional five years; commit the full amount to the 1998 festival; with remaining four years' funding to be subject to passage of the utility tax in 1997; and payments to the promoter to be made based on the current practice. In answer to question by Council, City Manager reported that the question of availability of the Plaza Theater has not been resolved, and the matter may need to come to study session, with both parties present. ADDITIONAL LEGISLATIVE ITEMS: A6. PATROL VEHICLE LEASE/PURCHASE Recommendation: That the Council reaffirm its action by Minute Order 5878, and authorize a lease/purchase agreement with Ford Motor Credit Company via the Ford (084- Municipal Finance Program for lease purchase of 23 Ford vehicles, including safely and 013) communications equipment, graphics, and applicable tax, total not to exceed '550,000, ' and authorize the Procurement Manager to assemble the vehicles and accessory equipment from multiple agency bidding processes, including, but not limited to County of Riverside, City of San Diego and State of California. City Manager reported that the purchase is for 23, rather than 22 units; that not all aspects of the Purchasing Ordinance were followed, but the process was within its guidelines; that funds are from the MVR Fund; that it is an innovative arrangement, resulting in more for die dollar. Procurement Manager stated that it was viewed drat it could stand alone as a purchase, however, the arrangement is through payments over a three year period; that there are 2 Police Department 4 x 4 "Expeditions," 1 Fire Department, and fourth one to be purchased; and that some units are CNG driven. Minute Order 5899 as recommended, was presented; after which, it was moved by Hodges, seconded by Oden, and unanimously carried, that MO5899 be adopted. B6. MOU, GENERAL UNIT City Manager recommended adoption of the implementation table of the Ralph Andersen (110- study, dated January 24, 1997, for positions in the General Unit, effective July 1, 1996, 004) and authorizing execution of MOU related thereto, subject to Council approval; after which, Minute Order 5900 as recommended, was presented, and it was moved by Hodges, seconded by Spurgin, and unanimously carried, that MO 5900 be adopted. CONSENT AGENDA: 7. Res 18969 approving Amendment#3 to the Allocated Positions & Compensation Plan to (061- add a reprographics operator, Range G8, to the Department of Administrative Services. 024) 8. See Item 21. 9. Res 18971 rescinding purchase contract with Electric Bicycle Co., and approve purchase (084- contract with ZAP Power Systems to purchase bicycles for the P.S. Electric Bicycle 013) Council Minutes 2-5-97, Page 7 10. See Item 22. 11. Res 18972 amending the budget to appropriate$60,000 to reimburse the Riverside County (061- Flood Control District (RCFCD) for the City's share of major storm drain project (Line 021) 20, Stage 2, El Cielo Road from Suimy Dunes to Ramon, CP91-28) and PAO 5902 authorizing expenditure for $210,000. , 12. MO 5903 approving Amendment 4 to agreement, with Robert Bein, William Frost & Associates for an increase of $53,200, for the engineering design of the Mid-Valley (13 Parkway, Phase 2, including widening Gene Autry Trail and Ramon Road to the Vella ) Road entrance of the Airport (a CVAG Measure A project, with the City as lead agency, CP96-35), A3298. 13. MO withdrawn approving firms to provide towing and storage services; and authorizing City Manager to execute final negotiated agreements. Withdrawn. 14. MO 5904 consenting to a share exchange between National Car Rental System,Inc., (051- operating under a non-exclusive operating agreement(A3610)with the City, and Republic 087) Industries, Inc. 15. MO 5905 ratifying Council approval of PSHS carnival on the grounds of the P.S. Mall, (064- and waiver of fees - action taken January 29, 1997 - for event January 30 through 002) February 2,1997. 16. MO 5906 approving Program Supplement No. 16 with CalTrans for EI Cielo Widening; (090- No. 17 for Sunny Dunes Widening; No. 18 for Indian/San Rafael traffic signal; and No. 001) 19 for Palm Carryon Drive overlay, enabling receipt of State SB300 funds via the State/Local Transportation Partnership Program, A3004. 17. MO 5907 ratifying emergency purchase of catalytic converter replacement element for ' $10,727.18, from Coast Sales & Engineering, for the Municipal. Cogeneration Plant. (052- 001) 18. MO 5908 ratifying emergency purchase for repair of the engine, for the 1990 Beck Fire (084- Engine, to Associates Power, Inc., for $23,741.87. 013') 19. Res 18973 approving destruction of specific Finance Department records prior to July 1, (151- 1992. 001) 20. Res 18974 and 18975 approving Payroll Warrants and Claims 14t Demands. Abstained: (086- Hodges: #917951; Spurgin 917989. 015) It was moved by Hodges, seconded by Oden, and unanimously carried, that Resolution 18969 through 18975 and Minute Order 5902 through 5908 be adopted. 21. ALLOCATED POSITION & COMPENSATION PLAN AMENDMENT - PSCTV Recommendation: That the Council authorize the expenditure of$35,000 from the Time Warner Franchise funds to cover the cost of the Palm Springs Community TV operations (061- for the remainder of 1996-97, including the addition of a Station Manager/PIO; such 024) funds to be reimbursed through revenues generated by PSCTV; emd approve Amendment N4 to the Allocated Positions & Compensation Plan concerning said position. (m)- City Manager recommended that the activity be set up as an enterprise account, and only 00:3) 1 work off of the funds that are raised; that the position would be an EX (at-will); that if a contractual arrangement evolved, he preferred to have the ability for dismissal without contesting contractual issues; that someone may be hired to do tutorial work (high school student) other than the city position; and that the job description is developed, and includes the high school in the process of operation of the station. Minute order 5901 and Resolution 18970, as recommended, were presented; after which, it was moved by Oden, seconded by Hodges, and unanimously carried, that MO5901 and R18970 be adopted. 0;`'19 Council Minutes 2-5-97, Page 8 22. CITY HALL RENOVATION - CONTRACT AMENDMENT Recommendation: That the Council approve Amendment#2 to agreement with Interactive Design to provide City requested design changes and drawings regarding City Hall renovation project, A3712. ' In answer to question by Mayor, City Manager stated that the architect has been through (117- a number of exercises and plans evolved beyond what he thought they were going to be; 041) that the project started out as a "whole" project, then it was reduced, and it has been further reduced, and the difference in work was beyond the amount charged for the expected project. Mayor stated that a larger project was always talked about, then there were deductions, and the project has undergone many changes in scope, but the base package remains, which is what the architect agreed to do; and that he questioned how the 25% price increase relates to there not being a 25% increase in the scope of work. City Attorney stated that the proposed amendment refers to changes made on site during a January 9 meeting, but it is unclear as to those specifics, and to documentation to record that. It was moved by Barnes, seconded by Oden, and unanimously carried, that this matter be continued for further information, and clarification. ADDED STARTERS: None 23. DEPARTMENTAL REPORTS - Received for filing a) Treasurer's Investment Reports, November & December, 1996 (121- 002) CITY COUNCIL reports or requests a) Councilmember Oden requested a review and update on the 5-year- plan at the next workshop, and that the P10 job description be included. b) Councilmember Spurgin requested a discussion concerning leaf blowers at a study session. PUBLIC reports or requests - None STAFF reports or requests - None ADJOURNMENT There being no further business at 9:50 p.m., Mayor declared the meeting adjourned. JUDITH SUMICH 'City Clerk 1