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HomeMy WebLinkAbout1997 - MINUTES - 6/4/1997 CITY OF PALM SPRINGS CITY COUNCIL MINUTES JUNE 4, 1997 A Regular Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor Kleindiennst, in the Council Chamber, 3200 Taliquitz Canyon Way, on Wednesday, June 4, 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: Councllmembers Barnes, Hodges, Oden, Spurgin, and Mayor Kleindienst Absent: None The meeting was opened with the Salute to the Flag, led by Boy Scout Troop 262, and an invocation by Pastor Mark Hackbauth, Desert Chapel. REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on May 30, 1997. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 4 of agenda this date. HOUSING AUTHORITY; FINANCING AUTHORITY; INDUSTRIAL DEVELOPMENT AUTHORITY; COMMUNITY REDEVELOPMENT AGENCY No business PRESENTATIONS: PSHS Student Body Report COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENCY REPORTS: a) Mayor and Councihnembers reported on various civic and community ' organizational meetings and events which they attended, subsequent to the last regular meeting, and announced upcoming events of community interest. b) Councilmember Hodges reported matters related to CVAG Executive Committee, noting that a new agreement has been drafted regarding the Tones Martinez Indian Reservation; that a video outreach program for the fiberoptics was approved; and the date and time for the General Assembly meeting this month. c) Mayor announced that at the Desert Contractors Association, Councilmember Barnes was volunteered to help facilitate how to deal with contractors in a more favorable light; and reported on success of the "sunset limited" arrival at the railway station on June 3. PUBLIC HEARINGS: None PUBLIC COMMENTS: a) Comments Conrernbng Item 2: Rose Anderson, VillageFest Vendor described her product, and asked that value be given to the original vendors who stood by the event during its formation; and that she was one of the original vendors in 1991, and continues to sell the same type of merchandise. ' Eric Meeks, resident, stated that the City should "wean" itself from the utility tax, (050- and that VillageFest is a good example of a situation that was .not intended to make 01.8) a profit for the City, rather to serve as a recreation for local residents and visitors, and bring people to downtown; that its funding comes from Parks & Recreation Budget, and like other recreation programs, it does not generate a profit; drat one reason it does not break even is because of staff overtire, which is lack of scheduling, and which there has been time to effectively manage personnel so it can continue year around. Council Minutes 6-4-97, Page 2 Ken Howell, Far Horizons Ceramics, a vendor, stated that they have been accused of not having signed pieces, when in fact they do sign their major works; that he took exception to being referred to as a "deterrent" to the VillageFest event, when they were the pioneers of the program and have helped it to achieve its success today. Steve Hyles, vendor, stated that they were told previously that they could sell their wares until July, and were told that if they were grandfathered, they would be ill a better position to remain in the event. Liz Cervantes, vendor, stated she was at the event since 1992, and in March was told that she could no longer participate because her product was not what was wanted; that she felt it was unfair, because she is also a merchant downtown, and she sells handmade products, but does not make them herself. Darrell Meeks, resident, stated that Item 6 should be a hi;gislative item; and stated that VillageFest should be a year around event; that grandfathered vendors should be allowed to remain; that lie felt the commission was abusing its power, and if there is nothing in writing, it is staff's fault, because the C:ouncil's prior action was to grandfather the vendors, and to have the event year around; that scheduling time would prevent an overtime situation, and the event would make a profit; and that if it is a matter of employee contracts, severd negotiations have occurred since the Council's original action, in which that issue could have been addressed. Don Frank, resident, stated that he felt the event was over-regulated, and existing merchants are being discouraged from selling at it; that if it is closed inn August, Palm Desert will take advantage of it; and that lie did not think tine ]Downtown Development Center Director was in touch with what is happening downtown. Joy Meredith, Crystal Factory, stated that VillageFest its a wonderful event for downtown, and that it brings people there, and gives a sense of community; that its quality must continued; and she appreciated the difficult decision to be made. b) Comments Concerning Item 1: Steve Vericker, resident, suggested that streets be named in honor of those residents who died in combat, and suggested that an update as to the status of the Police Chief be made public. He stated lie favored the utility tax, as it ;is the only (061•- tax revenue over which the Council has some control, until large scale economic 022) development can take place; that he would like to see a definite sunset date, and that at 1/4 % reduction In each year, it would take 20 years in which to eliminate it. Dick Sroda, resident, stated that the City should elhninate the utility tax, or ask the voters to increase the room tax and let the tourist pay for services; that there should be explanation as to what has been done to cut City payroll; and keep the promise to get rid of it in three years. Howard Laphain, resident, stated he did not favor die tax, but sees importance of continuing it until there is more revenue from economic development, vis-l-vis consolidation/privatizing of services, and more public education. He explained how Rural-Metro could take over fire services, the benefit to employees, and , submitted materials concerning its operations. LEGISLATIVE ACTION: Council Minutes 6-4-97, Page 3 1. 1997-98 BUDGET Continued discussion, and direction, as desired, including discussion regarding ballot question for utility user tax. ' City Manager reported that he will be meeting with the Mizell Senior Center Director to further discuss his proposal concerning public access television; that lie was suggesting that the $21,458 increased allocation to the CVB as a result of the increased room tax revenue formula be considered as a part of the contribution for the $50,000 airline task force; and that neither situation affects the process of adopting the budget. He stated that there is a difference in available funding forthe Festival of Lights and the proposal made at the last meeting by the Downtown Development Director of about $4,300 which will need to be reconciled, and his preference was to discuss that further and reduce the proposal within the budgeted allocation; that he was presenting two resolutions, which adopted the two budgets (one with and one without the utility tax) and the budget without the utility tax would be effective only if the November ballot measure on the tax continuance was not approved; and that the totals include the information which has been provided to the Council, as well as those items discussed and adjusted over the past weeks. He stated that regarding (061- consolidation of services, he is moving forward on two recommendations, one with CVAG 022) relating to public works, and another relating to an area of public safety, which he hoped to bring forward on June 25, and which will save money. He stated that in addition to adopting the budget, the Council discussion should address the ballot question. In answer to questions by Council, City Manager stated that he was not reconnmending more than the $52,880 for the Senior Center at this time; that there has only been $13,066 in revenue thus far from Channel 17; that there are both direct and 'indirect costs which are now being provided, and which would need to be factored into any discussion as to taking voter the service; that public access television is not commercial teievsimn, and ads are at ' low costs; that he would not suggest giving $100,000 because there is not that much revenue coming in; that operating the public access TV was one of other services that the Senior Center was proposing, but to increase one allocation means to reduce that amount from somewhere else, or to reduce reserves; that such an amendment can be made later, and it is not unusal to examine things as they come along and to make budget amendments often in the first quarter of the year; that there is $100,000 shown in the public access TV budget, however, it is offset by a revenue projection of the same amount, and the expenditure wilt not occur if the revenue does not occur. OMB Manager stated that other revenue driven programs typically are in the Recreation Division, and if the revenue is not generated, the program does not take place. City Manager also staled that the Visitor Information Center is going through extensive renovation based on the terms of the lease, which need to be reviewed at staff level in order to meet needs, and lie was not certain that a $10,000 telephone sytem was needed, and he would rather come back with a recommendation after such review. I-Ie stated that there should be a distinction between normal operating expenses, and capital improvements. In answer to question by the Mayor as to whether the proposed budget meets the Council's priorities, City Manager stated that "Economic Development" contains a variety of activities, including CDBG, recycling, housing, and public arts, as well as business retention and attraction, field work and analysis; that there has been discussion whether there is a means to take the General Fund amount and increase the "bang for the buck" and that Comncihnembers Hodges and Spurgin,will be meeting with lain mid a Miami Beach ' company to explore these ideas, and he encouraged allowing that to unfold; that he has talked with Messrs. Ealy and Suitt, who are also working on something which is economically related and new business in the community; that die thought economic development was focused within tie amount for this year, and is adequate to work toward stin ulating private/public partnerships. He added that there will be further discussion reahing to economic development, expecially as it relates to private/public partnerships. Mayor stated he would like to track the budget in quarterly workshops, in terns of Council's priorities, where shifts may be occuring, and progress being made; that he felt there are things moving along quite well, and there should be discussion how they are all coming together. He added he was satisfied with what is happening, and about to happen in oii) Council Minutes 6-4-97, Page 4 terms of economic development, and that he has reviewed the budget and the changes from the original presentation. Councilmember Barnes concurred, and stated that success tonnes in the commitment to make it happen; that workshops are needed in order to have drat conunitment and assure that the direction being taken is that which is desired by the Council; and that the time for derision is when there are sufficient details and facts available on which to make an educated decision. In answer to question by Councilmember Spurgin, Assistant City Manager explained the process followed, leading to the partnering contract with Portland General for the City to become an aggregator of electric power, resulting in the ability to purchase power for less and re-sell it to residents and businesses at less than the current rates being charged by the utility company; and that a customer drive will start in November, and services could be started as early as January 1, 1998. Resolutions 19040, approving the budget for 1997-98, and Resolution 19041, conditionally approving a budget for 1997-98 in the event the continuance of the uitlity tax is not approved in November, were presented; after which, it was moved by Hodges, seconded by Barnes, and unanimously carried, that R19040 and 19041 be adopted. Mayor declared a five-minute recess. Utility Tax Ballot Lauttage: City Manager presented three: possible ballot proposals, noting that discussion should also focus on whether the measure should be advisory or binding; and added that when the utility tax was last unposed, it was at a time when the State budget was balanced at tine expense of cities and counties, and when the City lost $8+ million; that the Council ' reduced the budget by $4 million, cut and transition out 100 positions either through layoff' or contract, froze wages ultimately for between 4-6 years, and replaced about $4 million of (083- the loss with revenue from the utility tax; and that if the property tax were to increase, it 016) would be reasonable to reduce the utility tax at the same time. Possible measure language, included: a. Shall the City Utility Tax on users of telephone services, electricity, gas and co- generated electricity be continued for no more than three years at a rate of 5% or less? (Measure R- 6-7-94) b. Shall the City Utility Tax on users of telephone services, electricity, gas and co- generated electricity be continued at a rate of 5%, dectin41g by 1/2 of 1% each year beginning July 1, 1999, to a rate of 3%? C. Shall the City Utility 'Pax on users of telephone services, electricity, gas and co- generated electricity be continued at a rate of 5%, decliming by all amount equal, by 1/2 of 1%, to the increase in property taxes collected above the December, 1997, rate of$8,489,000.00? Councilmember Barnes stated that he thought it important to make some type of reduction in the tax, which should be tied to increases in revenues; that lie will abide by the vote, whether it is advisory or a binding measure;.that under Prop. 218, it would be binding, and if not approved, the tax is gone; and if the ability to retain the: tax was lost tl:arough that , means, he would support the question as an advisory measure, and be willing to abide by the vote. Councilmember Hodges stated she would be bound by the decision of the 'voters, and personally believes it should be binding; that she also believes there should be a sunset date, and she favored Option b. which she considered plausible to come up with $400,000 in reductions each year, and perhaps that is the mandate which the City needs, and which she considered to be a realistic challenge; and that the voters deserve the sunset provision. Council Minutes 6-4-97, Page 5 Councilmember Oden stated he had no problem in maintaining the advisory capacity; that under options b. and c., the time is stretched out, and under a., the issue could come up for reconsideration after several years, either to reduce or to eliminate. City Manager noted that currently the tax could be left in place, but the Council has said ' that it owed it to the voters to revisit it at this time. In response to question, City Manager and Director of Finance connnented that the Council placed the tax hi July, 1993 to be effective m October, and the advisory question in 1994, and that it took about 90 days for the utilities to begin collecting it on the utility bills. City Attorney stated that under Prop. 218, new or increased taxes are subject to election, and must be at the election at which city officers are elected, or a special election is permitted for a special (not general) tax, which requires a 2/3 vote. Mayor stated that if there were again a statewide situation in which the City faced financial problems, and the tax is gone, there could potentially be a two-year window in which it would be vulnerable before another vote could be taken; that he viewed the utility tax similar to a line of credit which a business has, in that it is a source of funds from which to draw to maintain the quality of life desired by the cormmunity; and he questioned that if the tax remains as is, whether the Council would have the ability to again suspend a portion or all of it, and then later lift the suspension, without airy further vote. City Attorney stated that the Council may suspend, repeal or limit the tax, and later lift the (083- suspension; that Prop. 218 applies to new taxes and increased taxes, and his opinion is that 016) as long as the Council did not exceed the 5% existing level, that there would be no problem; that there is no case law yet concerning Prop. 218, which could take years, but it is conceivable that a court might interpret that once reduced, any inerease would be. subject to Prop. 218; however, he did not think that would be a proper interpretation. IIe ' explained how the suspension was previously lifted on the tax. Mayor stated he did not like artificial thresholds or unfunded mandates; that a percentage reduction in the tax is only a formula and does not address quality of life; that if it makes sense to have a percentage reduction, it should start with this year; 'that there has not been any discussion that suggests such reductions, rather there has been a desire to find funds for added programs; that has favored retaining the opportunity for the tax to stand and for the Council to make reductions either in the tax or in expenditures as it deems appropriate; that he felt the residents are more concerned about maintaining the quality of life; that the City has grown and the level of services increased, and if the community desires that, there is a price to maintain it. Councilmember Hodges stated that the utility tax is necessary and has served to protect the quality of life; and that there was no way she would support not placing the issue on ilia ballot, because of the pledge made to die public. Councilmember Oden stated that he understood the Mayor's suggestion, but in light of what has happened since, he did not think it is a decision to be made entirely by the Council, mainly because of Prop. 218, an election gives the opportunity for die conununity to share in the process; and he supported Option a., with a re-evaluation after several years. Councilmember Spurgin stated she believes the measure should go on the ballot, and suggested that rather than three years, it be four years, in order to match the City's election ' cycle. She stated that she wants to see goals set for reductions in the budget; that she did not mind stating that the Council has set a financial goat to reduce flue budget by a given factor, and if the Council is able to do that, it would be great and it could reduce the tax by that number; that there is nothing that would preclude the tax from being reduced, and she favored Option a., with a four-year period. She added that with the efforts made by the Council over the last few years, it would not only be pathetic to lose the momentum that the City has been able to move forward, it would be devastating. Councilmember Barnes stated that the Council has made a commitment that in some manner it will look at cuts, or increased revenues - private/public partnerships; and lie, too, would support Option a. as an advisory measure. Council Mmutes 6-4-97, Page 6 Councilmember Hodges questioned if after four years, the intern¢ would be to again submit the matter to the voters for re-evaluation, and stated that she had a problem just leaving it to the discretion of the Council, and felt that from a taxpayers staudpont, they would like to look at the option again because they made the decision and not just the five councihmembers; and that she felt the voters need to be part of the process today, and again ' in four years. COLneilmetriber Oden stated that it would be acceptable if the re-evaluation process means taking it back to the community; that people are mainly concerned about the quality of life, and see accepting of the tax as long as that quality of life is being maintained; and that the Mayor's continents are reflective of that concern, and that the Council does make decisions about that quality of life. Mayor stated that the City has facilities which need repair, and at the same type trying to re- build a healthy reserve, and lie felt realistically, there would bave to be some great gains in revenue to deal with the types of cuts that are being talked about; that it is essential to have the tax to produce the revenue to maintian the quality of life; and if the conuuunity trusts that the Council will maintain that quality of life, the trust should begin now. Councilmember Hodges stated that it should be clear that after four years, the voters will again be asked if the tax is to be continued beyond that; and she believed that the reason the voters approved it before, was because the Council said the people could re-evaluate it if it was going to be continued. City Attorney stated that the direction appears to be a ballot measure which will allow continuance of the tax at 5% for four years, and at the conclusion of that time, the matter would be placed on the ballot for a further advisory vote if it is to be continued beyond that time. No specific action taken; election resolution and language to be provided at the next meeting. 2. ViLLAGEFEST- SUMMER.SCHEDULE Consideration of recommendation to close Villagefest annually in August; and to discontinue the verbal "grandfather" provision for five original Villagefest vendors (who began Mauch 1, 1991) which do not meet current vendor requirements under existing Rules and Regulations as to their existing selections of arts and crafts. City Manager highlighted the recommendation of the VillageFest Board as detailed in the memorandum of the Downtown Development Center Director. Councilmember Oden stated that the Council was clear last year that it wished to keep die (050- event open; and there has been ample tune in which to prepare for it. 018) Councilmember Barnes stated lie disagreed with the reasons wliy the event should close, noting specifically, that quality and size are not tied together; that vendors are surely replenishing their stock all of the time; that the event should perhaps receive a "start-up" budget as it starts with zero, builds revenue, and charges back to those to break even; that other options may need to be considered concerning overtime, and there should be enough staff available that those costs can be reduced. ' City Manager stated that the event was not designed as a profit center, rattier a special event; that to the degree revenue exceed expenditure, the difference can be rolled over to the next year; that there is no full-time personnel for the event, and the only overtime might relate to street work, which can be looked at for possible reduction. Conicihnembers Spurgin and Hodges also agreed that the event should be year-around. Councilmember Hodges stated that the Council's direction last year was clear, and this policy should be clear so thal.the matter is put to rest. Wi Council Minutes 6-4-97, Page 7 Councilmember Hodges stated that she understood why the Board sees the "grandfathered" vendors in conlfict with the regulations, however, she has a very strong loyalty to them, recognizing that they joined in the risk of the event when it first started, and they should be thanked for sticking with it, and being good vendors through the years; that she realized they not technically meet the qualifications of today, but she felt their presence can be ' justified as being the original vendors, and that they can stay as long as they wish and while they may not meet today's standards, they did so when the event was established. Councilmember Spurgin staled that once grandfathered, that should be it; and that these five vendors stood by their cormnitment to the event through tough times; and she agreed with Councilmember Hodges as to giving the reason for them to be able to stay. She stated that die Board has a very diflicult job, and the success of VillageFest is evidence of the good work which they have been doing. Mayor noted that an early vendor, who changed their originally approved product, was denied on appeal from being excluded from the event; and that in providing the grandfather approval, it should be clear as to who the specific vendors are, and under what criteria they may remain as grandrathered vendors. He noted that the year-around nature of the event was also stressed at the last Council Cabinet meeting, at which commission goals were discussed. Councilmember Oden stated that the Board works on a weekly basis to resolve issues, and at some point there must be consistency; that they receive questions from those who are denied a permit as to why others who appear to be doing the same thing are allowed to participate; and that the procedure for application leaves the impression that approval is only a formality. He suggested that perhaps there could be a special designation, e.g., "founding vendor," or the like to denote those who are grandfathered. City Manager stated that the application process can be reviewed and tightened; that the Coordinator's role does not include making a judgement call as to the quality of the application, and perhaps that is an issue which the Council Cabinet may wish to discuss. City Attorney stated that he would develop language which can be included in the rules and regulations and bring that back for formal action, to stipulate that the event is year-around, and the criteria for allowing the five remaining original vendors to continue selling their originally approved type of products. 3. VEHICLE PARKING DISTRICT NO. I Reconnnendation: That the Council declare its intention to initiate substitution proceedings for certain real property between the City of Palm Springs Parking District 1 and the (106- Community Redevelopment Agency and fixing a time and place for hearing objections to 001) saki substitution. City Attorney reported that the proposed action lead to an exchange of property between the City/Las Casuelas/CRA, and is a substitute proceeding under the Vehicle Parking District Code. Resolution 19042 as recommended, was presented; after which, it was moved by Hodges, seconded by Oden, and unanimously carried, that R19042 be adopted. 4. COIN OPERATED/COIN RETURN BICYCLE LOCKER PROJECT Recommendation: That the Council approve a Memorandum of Understanding with the County to provide 24 bicycle lockers, supplied by American Bicycle Security Company, to be installed at 14 high-activity locations, to encourage and support increased bicycling (084- conn-a ting throughout the City, funded through Prop. 116 State Grants (lockers valued at 013) $23,571), CP97-11. Assessment Districts & Grants Manager highlighted the memorandum of the Director, Dept. Transportation, adding that the material of the locker will make grafitti removal easier, but they will be vulnerable to it. Council Minutes 6-4-97, Page 8 Minute Order 5961 as recommended, was presented; after which, it was moved by Spurgin, seconded by Oden, and unanimously carried, that MO5961 be adopted. CONSENT AGENDA: 5. MO 5962 approving second amendment to Lease Agreement 3120 with the Welwood Murray ' Memorial Library, Inc., to extend the term of the lease by five years to expire July 71 2005, (099 and to eliminate an deposit requirement. 005) 6. Res 19043 designating certain employees and officers within (lie Department of Plaiming & (114- Buildiu, and the Engineering Division of the Dept. of Transportation, authorized to issue arrest 004;1 citations for specified misdemeanor violations; pursuant to Section 1.08.050 of the Municipal Code. 7. Motion in support of hosting a community forum dealing with welfare.reform, sponsored by (he (123- County Departments of Community Action and Public Social Services, at no cost to the City. 001) 8. See Item 12 9. Res 19044 and 19045 approving Payroll Warrants and Claims &. Demands. Abstentions: (086-- Barnes - #921164; Hodges - #921044, 921188, 921164; Spurgin - #921354. 015:1 10. MO 5963 approving a three-year agreement with the Piranhas Swan Club for use of the Swint (115- Center, at$1200 per quarter, A3809. 004) 11. Res 19046 initiating proceedings, approving Engineer's Report, and declaring intent to form Parkways Maintenance District No. 9, and setting hearing for July 30, 1997, to maintain off- (138- site landscaping hi connection with a new 77-unit subdivision at Sunrise Way and Racquet Club Drive, aka Flora Vista - developer Wesnmark Cmrunmuties (materials at meeting). ' It was moved by Spurgin, seconded by Barnes, and unanimously carried, that MO5962, and 5964 and Resolutions 19043 through 19048 be adopted, with abstentions as noted in Item 9. 12. NUISANCE ABATEMENTS MO 5964 and -_ approving settlement agreements concerning the abatement of public nuisances at the E1 Presidente Hotel, 1450 N. Indin Canyon Drive; and the Sandcasde hm. (057- 2330 N. Palm Canyon Drive. (Sandcastle to be continued to 6-18-97). 009;I City Attorney stated that the agreements serve to remediate two of the three sites previously (057- acted on by the Council, i.e., to demolition of the El Presidente Hotel, and the immediate 010:1 rehabilitation and cleanup of the Sandcastle Iim, with plans submitted for full rehabilitation. He slated that the agreements were just completed before this meeting, and comments from die Sandcastle ownership to him suggested that perhaps they did not fully understand and agree with the terms of the agreement; and he recommended approving the El Presidente Hotel agreement, and continuing the other agreement to the next meeting. He noted that a blank figure in the El Presidente Hotel agreement for reimbursement to the City for legal costs should be tilled in as $20,000, and the required insurance will be reduced from$5 million to$2 million. Minute Order 5964 as recommended for (he El Presidente Hotel settlement was presented; after which, it was moved by Barnes, seconded by Spurgin, and unanimously carried, that: MO5964 ' be adopted. ADDED STARTERS: None REPORTS & REQUESTS: CITY COUNCIL reports or requests a) Councilmember Spurgin requested that an update be provided regarding the Village Center for the Arts at Francis Stevens Park. Council Minutes 6-4-97, Page 9 b) Mayor requested that the revolving loan program for downtown improvement be brought to study session for review. PUBLIC reports or requests - None STAFF reports or requests - None ADJOURNMENT There being no further business at 10:30 p.m., the Mayor declared the meeting adjourned to June 11, 1997, at 7 p.m. l C(: JUDI'Fli SUMICH City Clerk 1