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HomeMy WebLinkAbout1998 - MINUTES - 3/25/1998 CITY OF PALM SPRINGS CITY COUNCIL MINUTES MARCH 25, 1998 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, 3200 Tahquilz Canyon Way, on Wednesday, March 25, 1998, 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: Members Barnes, Hodges, Oden, Reller-Spurgin and Mayor Kleindienst Absent: None REPORT OF POSTING OF AGENDA: Assistant City Clerk reported the agenda was posted in accordance with Council procedures on March 20, 1998. CLOSED SESSION REPORT: City Attorney reported on matters held in Closed ,Session, see agenda of this (late. PUBLIC COMMENTS: Comments on matters not on the agenda: James DeSanto, 1843 N. Leonard, stated that he was a representative of the Las Palmas and Little Tuscany Alliance; that 650 signatures had been collected in opposition to the Palm Mountain Golf Course; that the issue of the Big Horn Sheep has not been ' resolved; that the Sheep are endangered; and that the Alliance requests the City review any plans with them. Jack Kimberling, 1180 Los Robles, concurred with the previous speaker and added that the Department of Fish and Game has determined the course to be an adverse impact on the Big Horn Sheep; that there are 93 golf courses in the Valley; that there are alternatives to bring income to the City; that the Department of the Interior was investigating locating a geological lab near the San Andreas Fault; that the proposal would come closer to bringing a steady revenue stream to the City; and requested that the Council direct the Economic Development Commission to meet with the Golf Course developer and address the citizens concerns. Philip Tedesco, 374 Vereda Sur West, stated that the City has clot of land to be developed and that the development should be positive for the City. Frank Tysen, requested the Council consider hiring an interim director for Tourism and suggested Murriel Foster. Dayton Creasen, 5902 Brassio, expressed his displeasure at the number of billboards being built on the Mid-Valley Parkway; and added that the access channel 17 was contacted to air a local subject matter related to local people concerning seniors and was told they would be charged; and questioned the use of the public access channel ' Ron Loya, 1179 N. Calle Rolph, stated that the Human Rights Commission is requesting a budget in order to continue its mission for the City; that the Commission is aware of the fiscal constraints on the City, but that the Commission is being asked to lead, and can not do so with out the wherewithal; and that the Council can show its support of the Commission by funding its request. Council Minutes yt: 3-25-98, Page 2 PUBLIC COMMENTS (Cont'd) Matthew Robinson, member of Triangle Publications, stated that there is some concern for the small hoteliers when talks revolve around an international company taking over tourism; that the City of Palm Springs has many diversified types of hotels and that all need to be represented; that an alternative may be to steer the Tourism Department ' towards a quasi-private contract; that some parts of the division could be privatized, but that the control remain under the City. Ray I-Wato, 1553 Chapperal, President of the Hotel & Hospitality Association, stated that the Association approves of the reopening of negotiations with LMI; that the Board of Directors does endorse the privatization of the Tourism Division; that by doing so the City will be leading the way into the next century. Tim Ellis, Tuscany Lodge & Ocotillo Lodge, stated that he has invested his life savings in Palm Springs; that the Tourism Division must be fixed; that there are some concerns by the small hoteliers; that there may be a way to oversee LMI in its contract with the City; and recommended that all applicants be reviewed and the best picked for the job. Gladys McMillan, Dave's Jewelry & Loan, stated she was devastated that the Council decision was being rescinded; and added that she fully understood that the conflict was not Councilmember Hodges' fault; that there was no way to know of the conflict; that four years ago she believed right would prevail; and that she still holds that. COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENCY REPORTS: Councilmember Oden requested that the City Manager respond to the Television issue; and the possible relocation of the Geological station; and reviewed various attendance ' at meetings for the past week. Councilmember Barnes stated the winter transients have become a concern; that St. Vincent Di Paul in San Diego does assist in the feeding and housing of transients, that it is not dependent on government funding; that there may be some way to have a satellite base in the valley; and that further information will be sought concerning the issue. Mayor indicated that billboards are of concern to the Council; that presently the billboards being constructed are on Indian Land; that the Council does not have control over that land; that the issue of developing a tennis complex in Palm Springs to house the tournament that Indian Wells is losing has been raised; that the City does not have the $40 million to address the issue; that the Dog Park Gala was a success; and that the Joint Intergroup Relations Meeting will be held on March 31, 1998, at 6:30 p.m., at Kathryn Fincby School. Councilmember Hodges acknowledged the fundraising event for the dog park and expressed appreciation to the Mayor for hosting the event. In answer to questions, City Manager stated that charging for use of public access was normal; that the US Geological Department was contacted regarding a possible location, but that it has been indicated they will stay in their present location; and added that the Council has not been favorable towards billboards, and that the present location of the billboards are on Indian land, in which the City has no control. Council Minutes 3-25-98, Page 3 LEGISLATIVE ACTION: 1. TOURISM On March 18, 1998, the Council directed negotiations with LMI concerning city tourism, and report back to the Council at this time for discussion and possible action. , (Materials, if any, to be provided at meeting) City Attorney stated that meetings have been held with Dave Baron, David Bobo and himself regarding the Tourism and Convention Center contracts; that LMI does, in fact, make money on the Convention Center; that the Company will probably move on the Tourism proposal when deal points are refined; that LMI has shown flexibility; that there have been some improvements to the provisions of the contract; that the City has expressed concern requesting the proposed business plan, and a nine year agreement; that LMI has indicated a business plan will be developed if the tourism contract is taken (059- on; that there are alot of details to work out; that short term, a marketing plan needs to 029 be developed; that long tern, a 5 year plan covering all tourism aspects needs to be covered; that there are comprehensive plans that need to be developed; that a comprehensive plan will need to address special events, community partnerships, (lie role of the Chamber, visitors information center, private partnerships, the convention center, airport utilization, and interface with the Desert Resorts CVB; that comments and concerns from small and large hotels will need to be addressed; and that provisions for annual review of the contract will need to be included; that thus far, LMI has indicated it will take the City employees, much like what happened with the privatization of the Convention Center; that the process of meet and confer will need to start with a projected LMI take over date of July 1, 1999; and that the matter will be scheduled for April 15, 1998, for possible contract review. Additionally, he stated that incentive pay regarding TOT needs to be addressed; that an annual cap could be put in ' place; that the selection of a Senior Manager could be coordinated with LMI; that the Visitor Information Center costs need to break even; that it has been discussed to move the tourism employees out of the pavilion, to the convention center; that the formula used in the Convention Center is also being reviewed; that there are deficits that will be addressed; that the incentive for LMI will be a challenge to meet; and that discussion will continue with the goal of a proposed contract by April 15, 1998, for Council approval. Councilmember Oden stated that the proposal does contain a number of multiple issues; and that the RFP's could be turned over to LMI for consideration. City Attorney stated that the RFP process did not include LMI's review; that it is a good suggestion; that there were a number of applicants; that LMI does have a candidate in mind, but that the suggestion of reviewing the applications will be trade. Councilmember Oden suggested that an Advisory Board to LMl be established. City Manager added that as a part of the advisory board, small hoteliers could be included. City Attorney stated an advisory board had not been a part of the discussion process; and that questions such as veto power would have to be addressed. Councilmember Barnes stated that the implementation of such advisory board would go , a long way in working with the community; he concurred with Councilmember Oden and added that it is important that the small hoteliers be recognized; that it is his intention that LMI not receive the full tourism budget, but that there be some retention of those funds; and that in privatizing, the City should realize savings. Council Minutes € '' 3-25-98, Page 4 1. TOURISM (Cont'd) In answer to questions, City Manager stated that there will be some savings, but that with the adding of the Visitors Information Center to the equation, it will be more of a break even scenario. Councilmember Reller-Spurgin questioned the reduction in the Convention Center debt and the prediction for the next three months. City Manager stated that all points will be addressed at the April 15, 1998, meeting. City Attorney stated that when LMI took over the Convention Center the process was lengthy; that meet and confer with City Employees did take place; and that this time the process should be more effective, but will take time. Mayor questioned the amount of the Tourism budget. City Manager stated the budget is $1.4 million and that the Visitor Information Center is an additional $60,000; and added that the Visitor Information Center budget was not discussed with LMI. City Attorney stated that since negotiations are continuing, it would be best to not discuss the budget figures; that the more educated LMI becomes, the harder negotiations will be; that the direction of the Council is clear, that community input will be sought, and that a business plan will be developed. Mayor stated that the numbers seem to be shifting in the right direction; and questioned when the director is selected, could the applications that the City received be used. ' Councilmember Hodges slated that the selection will be up to LMI. City Manager stated that the offer will be made to LMI. Consensus and direction given for negotiations to continue and be discussed on April 15, 1998, meeting. ADDED STARTERS: AS1. C.U.P. 5.0768 DAVE'S JEWELRY AND LOAN Motion to add reconsideration of action taken at March 18, 1998, meeting was presented; after which, it was moved by Barnes, seconded by Oden, and unanimously carried, Hodges abstaining, that the matter be added to the agenda. City Attorney stated that [lie two and one-half hour Public Hearing resulted in a 3-2 (078_ vote in approval of the Conditional Use Permit; that Ms. McMillan has worked very 070) hard during the week to relocate her business to the new location; that in the middle of doing the new work, carpeting, tile, etc., yesterday, on March 24, 1998, an allegation was made that Councilmember Hodges did have a conflict, that this did arise subsequent to the posting of the agenda; that Chris Foster is one of the general owners of the property and Mr. Foster is in the building industry and has purchased materials ' from Councilmember Hodges employer; that a few years back a determination was requested from the FPPC on whether if materials were purchased over the amount of $250.00 would a conflict arise, and that it did, in fact, cause a conflict of interest for Councilmember Hodges, even though she personally does not receive any income, her employer does; that Councilmember Hodges was contacted immediately and informed of the situation, it was determined that she did have a conflict, abet unknowingly; that Dave's Jewelry & Loan was contacted with the information that the decision of the Council was voided; that the Political Reform Act Government Code Section 91003, makes it clear that the decision can be voided if a member with a conflict votes and that Council Minutes 3-25-98, Page 5 AS1. C.U.P. 5.0768 DAVE'S JEWELRY AND LOAN (Cont'd) the vote is critical to the decision; that the choice is the Council could stand with the decision, but if someone comes in and files a lawsuit and that if the action was taken to court, in his opinion, a judge would rule to invalidate the Council decision; that only one week has passed since the approval of the CUP; that rather than allow the issue to ' proceed for months, end up in legal action in front, of a Judge, in which the Ciity would not have a very good legal standing; that the issue does need to be reconsidered; that the simplest alternative is to re-do the vote, but technically if someone with a conflict participated in the deliberation and the decision, it could still invalidate the decision, so legally that the matter will need to be rescheduled and renoticed for hearing, with a clean Council where there is no potential of conflict; that the names of the owners of the building will [teed to be disclosed in order to determine any Dther potential conflicts, and he recommended that the Council reconsider, rescind the previous decision made and reschedule the public hearing with renotice for April 8, 1998; and that the Council consider allowing Ms. McMillan to operate in the Agency owned (078_ building with some type of rent abatement; that it is not clear at this point whether any 070) other members of the Council may or may not have a conflict depending on other owners of the building. Councilmember Hodges abstained due to a Client of Employer relationship as to one of the property owners of the subject location. Motion to reconsider the approval of the CUP in relation to Dave's Jewelry and Loan was presented, after which; it was moved by Barnes, seconded by Oden, and unanimously carried, Hodges abstaining, that the Motion to reconsider be adopted and it was further moved that the hearing be rescheduled for April 8, 1998, 4:30 p.m., in the Council Chamber, was presented; after which, it was moved by Barnes, seconded by Oden, and unanimously carried, Hodges abstaining, that the hearing be rescheduled. , and It was moved by Barnes, seconded by Oden, and unanimously carried, Hodges abstaining, that the City Attorney be directed to work with the applicant, and the applicant be allowed to stay in the Redevelopment Agency-owtt ad facility, no rent charged. Councilmember Hodges apologized to the applicant for her mistake and to the Citizens of Palm Springs and the Council for having to go through another public hearing. Councilmember Oden stated that the members of the Council spend a great deal of time investigating any possible conflict of interest; that there will always be things that occur; that the Council does do the best it can and it is appreciated. ADJOURNMENT There being no further business, Mayor declared the meeting adjourned. JUDITH SUMICH ' ,CV Clerk By: PATRICIA A. SANDERS Assistant City Clerk