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HomeMy WebLinkAbout1997 - MINUTES - 4/30/1997 CITY OF PALM SPRINGS CITY COUNCIL MINUTES APRIL 30, 1997 An Adjourned Regular Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor Kleindienst, in Studio B, City Hall, 3200 Taltquitz Canyon Way, on Wednesday, April 30, 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, and a moment of silence. REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on April 25, 1997. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page of agenda this date. COUNCIL COMMENTS: a) Mayor and Council members reported on activities and provided updates concerning interagency matters; community events held, and those pending which are of interest eouununity wide. PUBLIC COMMENTS: a) Comments Concerning Item 1: Tina Wcin, C.A.R.E. Coordinator, urged continued support of C.A.R..E., and added that its program results in getting welfare recipients trained, and into the work force. Dick Sroda, resident, stated that P.S. Now and Community Homes were originally (085- recommended for funding, and before they are ever funded, questions should be 013) answered as to who benefits from their programs, as he considered it is mainly to cover salaried employees; and that the Mayor was going to serve on one of the P.S. Now committees; that Community Homes is located in Redlands, and is run by a former city employee; that P.S. Now did not provide income tax or incorporation information; and he questioned why the Director of Economic Development was shown as a reference to answer questions. Paul Madsen, CPA for Palm Springs Economic Development Corp. dba P.S. Now, stated that he brought documentation concerning the corporations non-profit status; that it has its J.D. number and has applied for federal exemption of income tax. Tom Suitt, Co-Chair of P.S. Now , stated that they have been in existence for two years, with sixty members who are property owners, and who have worked with tine City in different efforts to attract industry to Palm Springs, and to retain existing businesses; that one of its goals is, to change the image that the City is not business friendly, and the "one stop service center" was an effort to serve as a , coordinating entity; that the alternate to it is the State EDE), which is now in Indio; that P.S. Now is a volunteer effort to coordinate small business and economic development, and there is no interest in salaries, as its members either have their own businesses, or make their own living. Catherine McMillan, Catholic Charities, thanked the Council for its support, i.e., in running its shelter, and providing training and job placement programs for the homeless. Council Minutes 4-30-97, Page 2 b) Comments on matters other than an agenda item: Denise Miller and Terri Lacey, residents, complimented the Council and City Attorney for the action concerning celebrity homes, i.e., an event scheduled on the ' coming weekend; and expressed opinions that while this particular action was unsuccessful in court, they expected to be ultimately successful in dealing with the issue. Tim Ellis, President of the Hotel & Hospitality Association, commented concerning a potential $100,000 reduction in the tourism budget; the concept of a 50-50 up-side split on TOT increases; and that more discussion would follow. Annette Berry extended invitation to the C.O.D. Talent Show. LEGISLATIVE ACTION: 1. 1997-98 CDBG BUDGET Recommendation: That the Council approve the proposed 1997-98 CDBG Budget as recommended; and authorize the City Manager to execute subrecipient agreements for the 1997-98 program. City Manager noted that the resolution providing the allocation reflected "leveled" amounts, generally to a lower amount; and that a second resolution would provide for following the HUD process to obtain reprogramming of$210,000 in accumulated funds, of which $25,000 would be reprogrammed for the CV Small Business Development Center (085- (SBDC), which would begin to address the Council original goal in addressing economic 013) ' development. Mayor staled that concerning tine SBDC, he preferred to hold the allocation of any funds until HUD's approval is secured; that Ire did not consider that any of (lie priorities which the Council has expressed over tine past several months are reflected in the proposed allocation for 97-98, nor any attempt to fund programs that would reach those two priorities; that if it is not to be funded this year, and is to be next year, he questioned how that transitional funding will occur; and that funds are being allocated to organizations which did not apply for them. Councilmember Hodges stated that she thought the process prescribed would have been beneficial to the community, but she did not like the end result; that the citizen committee did exactly what it was asked to do; that she fell a tremendous loss of community support for the organizations which have done so much good over the past years, and she did not want to see them simply cut-off from the funds; that those organizations have done many wonderful things for the community, and that is why the funds are there; and that she wanted to keep to the past practice, and to fund them. Councilmember Oden stated that he liked the direction the Council wanted to take, and considered it a good direction in which to go; that this is tine transition period, and the various organizations are alerted that the Council wants to maintain the priorities of the Council, and give those organizations ample time to prepare for the next year; and that lie did not think they had enough time to prepare for the change. He stated that the SBDC clearly fits into the priorities, and that new organizations which have no experience can seek other start-up funds, but if the Council were to fund them, and find that it did not work, it will have neglected those organizations which it knows have been successful. Councilmember Barnes stated lie believes in the SBDC and the various organizations which have in common the goal of making programs work better, however Ire was hesitant to spend funds which have not been approved by HUD. In response to question by Council, City Manager stated that there is no likelihood that HUD would deny tine request, but the City must still go through the steps to secure the reprogramming of the funds. Council Minutes 4-30-97, Page 3 1. 1997-98 CDBG BUDGET (Continued) Councilmember Barnes stated that lie was disappointed the 97-98 program did not come together to accomplish flee ultimate goals, but found comfort in accepting that the quality of life is hi portanl to bringing in business, and that most of the groups on the list knew the focus and tailored and changed their prograrus to meet those guidelines. Councilmember Spurgin stated fiat the ultimate goals were economic development and improved housing, and did not think there was anything to be disappointed about as to the list of the organizations proposed, which contains both neighborhood improvement and providing for families, and she felt proud that the Council could state that perhaps it needed to take another look and to make changes, which is what it did. She also stated she did not like spending funds before having thern approved. City Manager stated Vial tie proposed reprogramming recommmended called for not spending all funds at one time, and to anticipate that there may be funds needed as the transition continues; that it will take some time in which to follow the HUD process for reprogramming the funds; that the SBDC was shown as a pritnary recipient, however, that would come back to the, Council before any funds were dispersed, as well as policies and directions the Council has concerning tie total reprogrammed funds. Resolution 19021 approving the 1997-98 allocation, was presented; after which, it was moved by Hodges, seconded by Oden, and carried by the following vote, that RI9021 be adopted: AYES: Barnes, Hodges, Odell and Spurgin NO: Kleindienst ABSENT: None Resolution 19022 concerning the reprogramming of accumulated funds, was presented; after which, it was moved by Hodges, seconded by Oden, and carried by the following vote, that R19022 be adopted: AYES: Barnes, Hodges, Oden and Spurgin NO: Kleindienst ABSENT: None LEGISLATIVE ITEMS: 2. COST PER COPY SERVICES O❑April 16, 1997, Council continued this natter to this date for consideration of approving a five year contract services agreement with Astro/Canon Business Solutions, 'Inc., for providing photocopier equipment, supplies (except paper), logistical expertise, and (084- maintenance services on a cost per copy basis of $0.02421 per copy, aggregate or all 014) machines provided. A3793. Procurement Manager stated that the net effect on the animal operating budget is "no effect" and the major benefit is that the City will not have to find $75,000 to purchase copiers to replace five, medium-speed copiers at the City Flail which are completely worn out, as well as increase flexibility in sizing up and down to mect changing needs. He added that the City has utilized over tlhe years all of the types of copiers which were,bid. Minute Order 5942 as recommended, was presented; after which, it was moved by Hodges, seconded by Barnes, and unanimously carried, that MO5942 be adopted. . 051"J�,3 Council Minutes 4-30-97, Page 4 3. CITY HALL RENOVATION Recotntnendation: That the Council award a contract to Desert Cities Development, Inc., for City Hall Improvements, including installation of pre-purchased carpet, repainting the Council Chamber and City Hall (excluding the Engineering/Planning Annex), and replace (117- the audience seating in the City Council Chamber, for a total expenditure of$242,332 (Bid 041) Schedule A), and amend the budget to appropriate $175,000 therefor, CP96-27, A3791. City Manager reported that the project is on a very light budget, and will be watched closely; that it is not tinder bid estimate, depending on how that is calculated, and if the anticipated fundraising is totally reached, there should not be any problem; otherwise some work will be needed in that regard. Councilmember Hodges slated that some of the subcontractors are clients of her employer, and she would abstain. In answer to question by Councilmember Barnes, Assistant City Attorney stated that he did not have a conflict of interest (an unsuccessful bidder was it former client). Minute Order 5943 awarding contract, and Res 19023 unending the budget, as recorntnended, were presented; after which, it was moved by Spurgin, seconded by Oden, and unanimously carried, Hodges abstaining, that MO5943 be adopted. . 4. ABATEMENT AND DISPOSAL OF ASBESTOS Recotmmendation: That the Council award contract to Brickley Environmental, for removal and disposal of carpet, and abatement and disposal of asphalt asbestos file and mastic containing asbestos, in City Hall, and related work at the Palm Springs Regional Airport (117- (ticketing counter area) at a unit price of$1.19 per square foot for City Hall and $1.90 for 041) the Airport, at a total not to exceed $26,894 for City Hall and $1,615 for the Airport, for a total not to exceed$28,509, A3792. . City Manager highlighted tine recommendation; no further report was given. Minute Order 5944 awarding contract, as recommended, was presented; after which, it was moved by Spurgin, seconded by Odell, and unanimously carried, that MO5944 be adopted. 5. APPRAISAL REIMBURSEMENT-FARRELL RELOCATION Recormuendation: That the Council authorize appraisal cost reimbursement to Bureau of Indian Affairs, related to Farrell Drive Realignment, not to exceed$15,500. City Manager highlighted the memorandum of the Director, Department of Transportation. (051- 028) Mayor stated lie would abstain, since this matter relates to the Airport Master Plan. Minute Order 5945 as recommended, was presented; after which, it was moved by Odell, seconded by Spurgin, and uuanhnously carried, Kleindienst abstaining, that MO5945 be adopted. . 6. 1997-98 BUDGET Presentation of the 1997-98 Fiscal Year Budget. City Manager presented the 1997-98 budget in two volumes, one with the continuance of (061- the utility user tax, and one without; noting that in both instances there are reduced 022) positions, and expenditure reductions; and noting that in specific areas he will recommend that certain reductions be funded from reserves, if the tax is approved, i.e.: three positions - one in Administrative Support Services, one in Information Services, and one in the Library (to be consistent with the City's contract with the Library Board), $113,000 in expenditure for the Police Department, and $100,000 in tourism. He stated that the "without utility tax" budget would cut 60 positions. He stated that the City has deferred facilities/building Council Minutes 4-30-97, Page 5 6. 1997-98 BUDGET (Continued) for at least six years, and there are a number of properties which will require funding, i.e., if the tax is approved, and as a possible use of reserved funds. Mayor noted that in most instances, the budget cuts were from requests for 1997-98, and are an increase over the prior year, noting that the actual increase in tourism is about $400,000. He also noted that there is an emphasis on CIP in both budgets. City Manager stated that both Measure A and Draining Fund revenues are limited to capital hnprovement. No action required, nor taken. City Manager noted this matter will be scheduled for a May public hearing. 7. CHARTER REVIEW COMMITTEE Report of Charter Review Committee, scheduled but not prepared. Matter will be (07 002) rescheduled.. 8. ADDITIONAL LEGISLATIVE ITEMS: None ADDED STARTERS (Determine eligibility for consideration) AS1. SB71 -EXPENDITURE City Manger reported that this matter was discussed by the CVAG Executive Committee, and need for action arose subsequent to the posting of the Agenda. it was moved by Barnes, seconded by Hodges, and unanimously carried, determining this matter eligible for consideration, and adding it to the agenda. City Manager stated that the legislation was initiated by CVAG, which would allow a 123- housing set aside funds in a project area, which will not be used, to be made available for 004) low and moderate income housing in another area, subject to mutual agreement between the agencies; that from a valley-wide perspective, it would be less onerous, and if the Council concurs, there is a need for funds to educate legislators as to the benefit of approving the legislation. In answer to question by Council, lie stated that the agency giving the finds would receive credit for building housing in other than their own ceuummity, provided that 40% must be within its own area, along with other conditions; and that the approach at this point is philosophical, and less mechanical. Councilmember Hodges stated that this matter was before the Executive Committee of CVAG on a number of occasions, but she felt it never involved a decision she was making on behalf of the Council; that she has some apprehension about it; that redevelopment funds should be considered with all of their benefits and limitations; that the issue is the same as on a prior occasion when another Valley City hied to be released from having to provide low and moderate housing in their own community; that the proposed legislation contained a lot of restrictions and conditions and there had to be two consenting jurisdictions; and that it may be, a temporary fix for getting some housing in certain areas. Mayor stated that the funds can be used for either rehabilitation of existing housing stock, or for building new, as long as it is targeted at low and moderate income levels; that if the City were to become a receiver of such funds, from another jurisdiction, it could have available more money to do those kinds of programs; that the Council has talked about restoring existing housing, and not necessarily creating new housing; and that those programs could be accelerated by receiving such funds. Council Minutes 4-30-97, Page 6 AS1. SB71 -EXPENDITURE (Continued) Director of Economic Development stated that redevelopment per se has been wider attack through the Legislature for years, and one attempt has been to do away with it completely; that low/moderate income housing costs more than the cost of the housing itself; that only 20% of the tax increment is set aside for housing, and the remainder for infrastructure and revitalization of neighborhoods, recognizing that other funds must be received in order to make those housing dollars effective, otherwise the housing will deteriorate and the area could end up with more problems than it had before; and that a suggestion for supporting the legislation might be to include in it a provision that $2-$3 of tax increment also accompany each housing dollar to support it. Councilmember Oden stated that in philosophical terms, the Council must think past the local city when thinking of the "community" and if funds are sent to a specific location because one area does not have the capability, or does not want, to build housing, it might (123- be easy to state that houses will be built; that the city may not be able to incorporate all of 004) that growth and could end up with more problems; that Palm Springs is diverse, with rich and poor residents, who live in the same city, in the same country; and he is opposed to those who say "do it over there," rather than doing it at home. He added that Palm Springs' infrastructure is good, and it is in a position to be able to expand, but other cities may not, and in the long-term, there could be a negative affect on the total, larger community, and the total infrastructure. In answer to question by Council, Director of Economic Development stated that if a city does not meet the requirements of meeting its housing goals, the County agency will take the funds and build the housing in that community; and that housing, per se, is a cost item to a city, until the value of that housing exceeds $200,000. City Manager stated that the legislation would only result in providing an opportunity which does not currently exist; that oilier things would come into play, e.g., parochialism, or punitive response to others not using the funds for which they were intended; that the infrastructure is in place, however, the social infrastructure is lacking in a number of areas and not just in the 20% set aside funds. He added that an empty, boarded-house, is worse than a vibrant, lived-in house. Mayor stated that the City cleaned up several lots on which the new sweat equity homes were built, and those same goals could be reached by utilizing some of the funds which other agencies might wish to release; that he would rather see renovation, than leaving the deteriorated buildings; and that it should not be a judgment that other governments are dodging their obligation; and that the housing will be built - either by that city, or by the County. Councilmember Barnes stated that he agreed with Councilmember Oden's philosophy, but was also comfortable that there would have to be a mutual agreement between the agencies before any funds could be shifted; that it offers an opportunity and an expansion of options for getting funds. In answer to question by Council, City Manager stated drat the bill contains language which would require a greater number of units than if the donor of the funds had provided them in their own jurisdiction; however, the language may be modified as it goes through the Legislature, and he would keep the Council apprised. It was moved by Barnes, seconded by Spurgin, and carried by the following vote, that the City Manager approve the expenditure of $2,500 as the City's share in the retention by CVAG of Kenneth J. Emanuels, as requested: AYES: Barnes, Spurgin and Kleindienst NOES: Hodges and Oden ABSENT: None W T 6 Council Minutes 4-30-97, Page 7 AS2. CVAG APPOINTMENTS TO SCAG City Manger reported that this matter was discussed by the CVAG Executive Committee, and need for action arose subsequent to the posting of the Agenda. It was moved by (123- Barnes, seconded by Hodges, and unanimously carried, determining this matter eligible for 004) ' consideration, and adding it to the agenda. Mayor Kleindienst volunteered to serve as CVAG region designee to SCAG Transportation & Communications Committee, pending review of his calendar. City Manger inquired if other Couucilmembers wished to be considered for appoinument to either the SCAG Energy & Environment or Community, Economic and Human Development Committees, otherwise the Mayor's name would be submitted to CVAG for its action to SCAG. There were no other interests expressed. REPORT & REQUESTS: None CITY COUNCIL reports or requests: a) Council consensus to conduct board/commission interviews May 5, 6 and 8, 1997, 5 p.m. to 8 p.nr. PUBLIC reports or requests - None STAFF reports or requests - None ADJOURN: There being no further business at 9:45 p.m., Mayor declared the meeting adjourned. ' UDITH SUMICH City Clerk