HomeMy WebLinkAbout1998 - MINUTES - 4/15/1998 CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
APRIL 15, 1998
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 Tahquitz Canyon Way, on Wednesday, April
15, 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: Councilmembers Barnes, Hodges, Oden, Reller-Spurgin
and Mayor Kleindienst
Absent: None
The Meeting was opened with a Salute to the Flag by Lodge 127, Azwitt, and invocation by Father
Miguel Ceja, Our Lady of Solitude.
PRESENTATIONS: None
REPORT POSTING OF AGENDA: Assistant City Clerk reported that the agenda was posted in
accordance with Council procedures on April 10, 1998.
REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All
Entities) - See items page 6 of agenda this date.
HOUSING AUTHORITY AND INDUSTRIAL DEVELOPMENT AUTHORITY - No Business
APPROVAL OF MINUTES:
It was rnoved by Oden, seconded by Redter-Spurgin and unanimously carried, Hodges
' abstaining on Minutes of March 18, 1998, that the Minutes of February 18, March 4 and
March 18, 1998, be approved.
PUBLIC HEARINGS:
1. 1998-99 CDBG ALLOCATION
Recommendation: That the Council review and approve the proposed 1998-99 Community
Development Block Grant budget, and authorize the City Manager to execute Subrecipient
agreements consistent with the approved allocations for 1998-99.
City Manager reviewed the staff report and reviewed the recommended allocations set forth (085-
in the Resolution; and added that $161,500 were reprogramable into the 1998-99 budget 014)
and recommended the funding be designated to tenant improvements for relocation of the
Desert Aids Project.
Mayor questioned whether the reprogramable funds were offered to all other applicants.
City Manager stated that there are many applicants and little money in comparison; that the
reprogrammed fiords were not listed as funding available; that the original request from the
Desert Aids Project was $250,000; that this is a new project about to be embarked on; and
it was felt that this reprogramable money could help fund the request.
' Mayor declared the hearing open.
Marc Haupert, Executive Director, Desert Aids Project, read a prepared statement, on file
in the Office of the City Clerk.
Kathryn McMillan, Catholic Charities, expressed appreciation for past funding, and for any
future funds; and added that this new program will start to address the needs of the
homeless.
Council Agenda
4-15-98, Page 2
1. 1998-99 CDBG Allocation (Cont'd)
Philip Slavic, Inland Empire HIV Planning Council, stated that many of the HI'V infected
clients must live in low-income housing; and that the improvement to accessibility of the
facility will make it easier for the client to make use of the services.
Bill Byrne, 301 Overlook Road, requested support for Catholic Charities; and added that '
the program will assist with the homeless issue.
Tom Suitt, Palm Springs, stated that the one-stop program is moving forward; that a
building has been secured through the University of Riverside at cost; that there will be
9,000 square feet located at 1111 E. Tahquitz Canyon; that there will be a total of 16
public agencies at the site; that the focus will be on helping the employer and employees in
Palm Springs; that this is a public-private partnership; that the University of Riverside has
proposed holding classes there; that there will be counseling; that the benefit will be for the
entire City; that the enthusiasm level is high; that presently tenant, improvements are being
made; and that the ground breaking ceremony should be on May 20, 1998; and that the
ultimate goal is that the center be self supporting and self funding.
Tina Wean, COD, expressed appreciation for past support for the CARE program; and
requested reconsideration of this years request of$5,000.
Dick Sroda. Palm Springs, stated that the need for food is not being addressed in the (085--
various awards; that groups such as FIND should be funded, instead of funding, a request 014)
for a counselor to determine why someone is homeless; that funding could be better spent;
that the reprogramable funding should be made available to everyone, not just given to one
group that everyone should have to apply; and that the poorest of the poor should be
addressed not the high flaunting groups that do not trickle down to the real needy.
There being no further appearances, the hearing was closed.
Councilmember Hodges stated that the issue is somewhat confusing; that it is difficult to ,
tell which food the money is coming from; that the funds are usually specified as to public
service or capital improvements; and questioned how much is in each category.
CDBG Coordinator stated that there is $93,150 recommended for public service
expenditures, per Council directive; and that public service and capital improvement has
been combined as one category.
Councilmember Hodges stated that in the past there were two distinct categories, public
service and capital improvement; and that the funds could not be intermingled.
City Manager stated that the funds can be combined for the purpose of receiving
applications, but can not exceed caps in each category; and that there is one exception, in
that if the focus is on economic development of jobs.
Councilmember Hodges stated that FIND does an impressive job, and requested Council
consider shifting funds to cover its request.
Councilmember Oden stated that the recommendation presented was good.
Councilmember Barnes stated that the funding for FIND could be derived from the
$161,500 reprogrammed funds.
City Manager stated that the $161,500 is for capital improvements; otherwise known as ,
hard costs; that if the shift is made; then a likewise shift must be made to offset the same
amount.
Councilmember Hodges recommended reducing the Community Preservation Officer
funding by $10,000.
City Manager stated that the amount requested by FIND was $8,000.
Council Agenda'
4-15-98, Page 3
1. 1998-99 CDBG Allocation(Cont'd)
Councilmember Oden stated that a reduction in the CPO would also lessen the impact of
the recapture our neighborhoods program.
' Councilmember Barnes stated that the CPO is an existing position that has been funded
previously.
Councilmember Reller-Spurgin questioned the purpose of the Alano Club and whether the
parking lot is owned by the City.
City Manager stated that the Alano Club is related to Alcohol rehabilitation and cessation; (085-
and that the property is not owned by the City. 014)
Councilmember Oden suggested for the future that all applicants should be reported to the
Council along with why they were not selected; that there are slot of applications that are
received; and that there are some issues that are being addressed on the regional level that
the City could coordinate with.
City Manager stated that the suggested will be incorporated into next years goals; that this
year was a new process per Council directive; and that as the process moves forwards there
may be many fine tunings.
Councilmember Barnes stated that the recommendation by Councilmember Hodges for
funding of FIND is a good one and that while not all requests can be filled, perhaps the
$10,000 could be deducted from the CPO as it is the most logical.
City Manager stated that as an alternative consideration, the Council could eliminate
$5,000 from the educational program at the Desert Highland Community Center, and
$5,000 deducted from (lie CPO to equal a grant of$10,000 to FIND.
Mayor questioned the tenant improvements for the Desert AIDS project; and added that in
1994-95, $25,000 was awarded for tenant improvements.
CDBG Coordinator stated that the last program award was for remodel of the current
facilities; that this request is for a new facility.
Resolution 19228 as revised, to include FIND at $10,000 was presented, after which; it
was moved by Reller-Spurgin, seconded by Oden, and carried by the following vote, that
R19228 be adopted.
AYES: Members Barnes, Hodges, Oden and Reller-Spurgin
NO: Mayor Kleindienst.
2. FARRELL DRIVE REALIGNMENT- TACHEVAH TO ALEJO - R/W ACQUISITION
Recommendation: That the Council approve a Resolution of Necessity to acquire a .41
acre parcel, referred as Parcel 9, a portion of APN 507-350-029, being a portion of Parcel (051-
1 of Parcel Map 15814, to provide for the realignment of Farrell Drive to accommodate 046)
Airport runway extension.
City Manager withdrew the matter and added that the item would be renoticed for hearing.
3. PD 249 - IN-LIEU ZONE CHANGE - HEMSTREET
Recommendation: That the Council approve a planned development district, in-lieu of
zone change, for a 140-unit assisted living care apartment complex, proposed at the NW (116-
corner of Belardo Road and W. Sunny Dunes Road. 116)
Director of Planning & Building reviewed staff report with conditional of approval; and
reviewed the site plans.
€h c "7
Council Agenda
4-15-98, Page 4
3. PD249 -IN-LIEU ZONE CHANGE - HEMSTREET (Cont'd)
Councilmember Reller-Spurgin stated she would abstain due to a potential conflict of
interest; that she is an administrator of a nursing home and the! approval of this project
could financially adversely impact her facility.
Mayor declared the hearing open. ,
D. Prell, P.O. Box 1927, stated that he does own a house west of the proposed project; that
he was never notified by the City of the hearing; that when he built his house he was
assured by the City that there would never be any building on the proposed property; that
this project signifies a thin edge of a wedge; that once the wedge is entered, other projects
will be approved next to it and so on; that there are 100's of vacant acres available in the
City; that a buffer zone should be just that; and that to trim, this is an injustice by the City.
Kenneth Hinsvark, 770 La Mirada, stated that he owns 20 acres of vacant land adjacent to
the property; that the notice of hearing that lie received from the City was inadequate in
description; that the applicant is using R-t property for R-2 use; that this is a family
neighborhood; that the zoning has been in place for 25 years; that when people built their
homes it was on dependence of the Council upholding the City's ordinances; that Mr.
Hemstreet is requesting a roof line that is seven feet higher than zoning permits; that when
hillside building is involved, consideration is given to neighboring homeowner view and
rightfully so; that it is not reasonable that Mr. Hempstreet be given special consideration; (116 -
that when he bought the property lie knew the zoning; that he should build where the use is 116)
permitted; that while there is no objection, on his part, to the type of project, there is object
to changing of the standards; that the trend is in most Cities to encourage single family
residences close to the downtown areas; that it is clear that Mr. I-lempstreet purchased R-1
property at R-1 prices and is now requesting to use it for R-2; that this is a great profit to
be realized by a political process; that even though Mr. Hempstreet is proposing some
residential homes to be built, if one examines the area, there is no direct access to the '
proposed homes; and no one would put up with the access that would have to be used; that
there was a negative declaration issued on the project; that in his opinion the declaration is
incorrect; that there was no consideration to traffic circulation patterns, nor to views; that
the Council should require an Environmental Impact Report; and that if the project is
approved, a change should be made to the General Plan for the City.
Eric Hemstreet, Samrmino, stated that the Planning Department .and Commission did view
this project as an exciting one; that alot of issues have been raised; that a full year has been
spent on planning the project; that lie has met with local property, owners to try to resolve
some issues; that in fact the meeting did result in a different plan being proposedr, that there
are conditions being proposed by the Planning Commission; that he does object to
Condition 2 & 3, that they are inappropriate and unreasonable; that the buffer zone
contains two acres that were purchased, but not needed for the project to create a larger
zone between neighbors; that this was to be a benefit, not a penalty and now landscaping is
being required of the area; that condition 3 requires a strict interpretation of a roof type;
that with that type of condition it eliminates all competitive bidding; and results in the loss
of bargaining power on his part for the project; that the deletion of the two conditions
would be appreciated; and that he does have architectural renderings should the Council
desire to view them.
Steven Remball, advised the Council not to take Mr. Hemstreet at his word, but to be sure
that everything is in writing.
There being no further appearances, Mayor declared the hearing closed. '
Planning Director stated that the applicant did provide a greater setback than required; that
the building was reoriented to offset being parallel to Belardo; that the building does
encroach on R-1 property; and in answer to questions by Council, stated that the building is
26 feet high; that in the R-1 zone it could be as much as 30 feet high; that the Planning
Commission did feel the project was desirable with the proposed conditions; that public
notice was provided to all property owners within 400 feet; that Mr.Prell is 1700 feet
Council Agendas"��1y
4-15-98, Page 5
3. PD 249 - IN-LIEU ZONE CHANGE - HEMSTREET (Com'd)
away; that the nearest single family dwelling is 1,100 square feet away from the project;
that Mr. Hinsvark is correct in that the area is a fine area for the development of single
family residences; and that in the future, additional master planning should be done on the
area.
' Councihnember Hodges questioned if the Planning Director supported the project on this
level.
Planning Director stated that while he does support the project; he would not endorse any
further encroachment on the property; that the proposal before the Council was the best;
that the review by the Planning Commission was exhaustive; that the density proposed does
meet the standards of the ordinance; that the additional two and one-half acres was
recognized as an additional buffer; that the tile roof recommended by the Planning
Commission is complex and does look `old world"; that the applicant did indicate concern (116-
with the selection, and added that this type of roofing is expensive. 116)
Mayor Kleindienst stated that the roofing recommended is two-piece; that one curved piece
is nestled on top of another and filled with cement; and that usually a S-shaped tile is used.
Councihnember Barnes stated that the roofing is expensive; that additionally the structure
must be reinforced to withstand the additional weight of the roof; that by requiring the
condition at this time, it does place the developer in a sole provider position; that there may
be something that the applicant could obtain, that would reach the same results as the
condition; that the project is sharp; that the requirement of open space is understandable;
and recommended deleting the condition for the roof tile at this time.
Motion to approve the resolution deleting condition 38 was moved by Barnes, and died due
to a lack of second.
Planning Director stated that a home located 1,400 square feet away will have visible site
of the roof line; that the view would be somewhat like the backside of the Sun Center; that
as the property develops there will less of a visual impact due to site views in relationship
to buildings; that that as houses step down the hillside; the view is limited to one to two
homes; that as far as the vacant 20 acres, Mr. Hinsvark is the closest to the property
development; and that the Planning Commission did agree that the two and one-half acres
as open space would serve as a buffer.
Mayor Kleindienst questioned whether the Council would review tine final plans; and added
that the architectural final will be with the Planning Commission; that this is a large scale
project; that the buffer is 270 feet; that it is 230 feet to the retaining wall; that as residential
building increases, the actual view will be diminished, due to side yard views, trees, wall
and the like; and that the condition for landscaping for the buffer zone, may be due to the
natural landscaping causing a possible fire hazard.
Planning Director stated that the landscaping did include plants and trees; that the
possibility of fire hazard could be looked at; and added that the type of soil does not lend
itself to support fine grass growth.
Mayor Kleindienst stated that there does seem to be an adequate buffer between the two
areas; that the Planning Commission did examine the project thoroughly and recommended
the roof material; that there is a project on Tahquitz where the roof material does not
match; and that it is not aesthetically pleasing, and that he supports the Planning
Commission recommendation.
Motion to approve staff recommendation was presented by Mayor Kleindienst and died due
to a lack of second.
Councilmember Barnes questioned whether the condition could be deleted and reexamined
when final plans are submitted for approval.
Council Agenda
4-15-98, Page 6
3. PD249 - IN-LIEU ZONE CHANGE - HEMSTREET
Councilmember Oden expressed his approval of the project and added that condition two
could be eliminated; that the acreage is additional and not needed for the project; and that
the project could have proceeded without it.
Councilmember Barnes stated that the project could be approved without tying the hands of ,
the developer to a certain roof material; that if a company hears that a sole material must be
used, there is no bargaining power; that this is a major roof project; that the Planning
Commission could choose to approve an improved product, or impose this type of roof, but
that the Council should approve the project with the condition deleted; and if the Council
does not accept the condition at this time it does not preclude the Planning Commission
from requiring it for final approval.
Resolution 19229 as revised, deleting Condition 38, was presented; after which, it was
moved by Barnes, seconded by Hodges, and carried by the following vote that R19229 be
adopted.
AYES: Councilmember Barnes, Hodges and Kleindienst
NO: Councilmember Oden
ABSTAIN: Councilmember Spurgin
and
Assistant City Clerk read Title of Ordinance as follows:
AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA AMENDING
THE ZONING MAP BY APPROVING A CHANGE OF ZONE FROM R-2 (LIMITED
MULTIPLE ZONE) AND R-1-A (SINGLE FAMILY RESIDENTIAL ZONE, - 20,000
SQ. FT. LOT SIZE) T PLANNED DEVELOPMENT DISTRICT 249 AT THE '
NORTHWEST CORNER OF BELARDO ROAD AND W. SUNNY DUNES, SECTION
22.
After which, it was further moved by Barnes, seconded by Hodges and carried by the
following vote that further reading be waived and Ordinance be introduced for first
reading.
AYES: Councilmember Barnes, Hodges and Mayor Kleindienst
NO: Councilmember Oden
ABSTAIN: Councilmember Reller-Spurgin
PUBLIC COMMENTS:
a) Comments regarding item 4:
Bill Quesensbury, Center for Contract Compliance, slated that the contractor association
protests the award of bid to Matich Corporation; and that he would be available for any (143-
questions by [Ire Council. 006)
Dick Sroda, Palm Springs, stated that the Council should reconsider the award concerning
the Train Station; that there are no daytime train stops; that money has been loan from the
WWTP to cover construction costs; that the station is not needed; and added that regarding
item 8, privatization is the way to go; but that the contractor will need to be held '
accountable.
l�{ lFa
Council Agenda f �?
4-15-98, Page 7
PUBLIC COMMENTS (Cont'd)
b) Comments regarding item 5:
Alan Fisch, Director of Marketing of Quenrich Corporation, expressed the need for this
type of facility located in the area; that the market will serve the Latino community; that
the building is 2,000 sq. ft.; that currently there is no meat market to serve the needs; that (078-
' alcohol will be sold but only accessible behind the counter, not to the public; and requested 071)
approval of the project.
c) Comments regarding item 8:
Eric Langman, Palm Springs, stated that it is time to be catapulted into the 201h century;
that with the privatization of tourism, the industry will begin to move ahead; that added that
all concerns have been reasonably addressed and urged approval of the matter.
Dave Baron, representing the Palm Springs Hotel Association, stated that the item has been
discussed for eight months; that the City Council and small hotel concerns have been (050-
addressed; that the City Manager and City Attorney have negotiated a solid contract; that 029)
the contract represents a tremendous savings to the City; that the Visitors Information
Center will be taken over by LMI; that there is an escape clause in the contract; that the
contract is based on performance; that one could not find another private company to agree
to take on the contract without a management fee; that the economy is vibrant, but TOT is
down, and that is a result of no one at the helm; and requested approval of the contract.
Bruce Taylor, representing Palms to Palms, Board member representing small hoteliers;
expressed support of privatizing, accepting LMI's proposal and congratulated the Council
for approval of the contract.
Tim Ellis, 350 Chino Canyon, stated that it has been eight months since the Director of
Tourism left; that it is now time to move ahead; that LMI is ready and able to assume the
duties; that there has been a loss to the General Fund due to the lack of force driving the
department; that each time TOT is down, the City's general fund is losing projected
revenues; that other Cities have increased TOT over the past few months; that Palm
Springs has lost TOT; that currently the City is behind $340,000; that the top line of
revenue for the City is TOT and advised the Council to protect its main source of revenue.
Linda McClellan, member of the Hotel Association, stated that most the clients for the
Association are the small hotels; and urged the Council to make a decision to help the
small hotels out by approving the contract with LMI.
Barbara Lyons, urged the approval of the contract with LMI; and added that Mr. Bobo will
be a strong leader; that he does have a past record in Palm Springs that indicates his
success; and urged approval of the contract.
Ray LLVato, Desert Shadow Inn, President of the Hotel Association, stated that all players
are in place; that the City needs a rebound from the February and March law TOT income;
that approval of the contract will create a new tourism business; that LMI is qualified; that
LMI will produce a business plan; and urged approval of the contract.
Ralph Thornton, stated that the City needs more visitors; that the concept is good; and
urged approval of the proposal.
Richard Newman, Wyndham Hotel, stated that the proposed privatization will breathe new
life in tourism; that more tourists means more jobs and results in a better place to live and
visit and urged support of the proposal.
Eric Meeks, Celebrity Bookstore, stated that the issue of LMI and tourism is an important
one; that the past eight months there has been a lack of foot traffic by his store; that the
tourism department needs a direction; that if LMI is approved, they will have the summer
to put a business plan together; that an advisory commission could be put in place and
advised the Council not to delay, but make a decision.
Council Agenda
4-15-98, Page 8
COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENCY REPORTS:
a) Councilmember Hodges requested that the City Attorney contact the FPPC to determine if
she does need to abstain when items are purchased from her employer; and announced that
$40,703.59 has been raised to date for the Dog Park; that the artist for the design of the (070-
gate has been selected and will also design the fencing; that a fund-raiser will be held on 001)
June 14, 1998 at 11:30 at the Spa Hotel; and requested the traffic engineer check the speed ,
of traffic on Mesquite Avenue.
b) Councilmember Reller-Spurgin expressed appreciation to the Agua Caliente Rand of
Cahuilla Indians for its generous support of various charitable and City organizations.
c) Councilmember Oden reviewed various meetings and events attended and added that the
League of California Cities is sponsoring ballot language to assist Cities in regaining funds
that were previously taken by the State.
d) Mayor stated that the cooperative at Vista Serena is being successful; that more units have
been added; and acknowledged the retirement of Duke Kosslyn from the Board at Desert
Hospital and added that the first meeting with newly elected Congresswoman Bono will be
held on Friday.
LEGISLATIVE ACTION:
4. P.S. TRAIN STATION - PHASE 2
Recommendation: That the Council award contract to Sean Malek Engineering &
Construction, for $810,423, for phase 2 of the railway station, CP97-08. A3963.
Director, Dept. of Transportation stated that the matter was continued from last meeting; ,
that this is an investment in the future; that the goal is to break up the highway bottleneck (1r43--
with an alternative; that in order to obtain necessary funding, the City must show its intent 006)
to carry through, thus the train station; that local contractors were considered; that the
reason this was continued was due to the fact that Sean Malek was not local, and to clarify
an attempt would be made to use local subcontractors; that it is unfortunate that at this
point, the Council is being requested to find Sean Malek non-responsive; and to award the
contract to Valley Crest, and added that the bid still remains at less than the estimated cost.
City Attorney cited 3.12.205 of the Patin Springs Municipal Code regarding rejection of
bids.
Councilmetber Hodges requested a listing of subcontractors to determine possible conflict
of interest.
City Attorney stated that if the subcontractors purchase from Familian, Councihnember
Hodges should abstain.
Councilmember Hodges stated abstention due to possible conflict of interest.
Councilmember Reller-Spurgin stated that the difference is $24,000; and that neither
contractor is from the Coachella Valley.
City Attorney stated that the apparent how bidder did not comply with the use of local '
subcontractors and recommended rejection of the bid, with award to the next low bidder,
Valley Crest.
Mayor Kleindienst stated that meetings have been held with Rail Representatives; that there
is a sequence of events that must happen to get where the City wants to go; that if the
platform had not been built; we would not have a ridership of 500 people; that in the race
for rail, the City may not get the best right away, but that we, as a City, must prove the
desire and determination to want rail service; that the City has received matching funds;
Council Agenda Ck '
4-15-98, Page 9
COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENCY REPORTS (Cont'd)
that all of western Riverside County has stated that they will not compete with Palm
Springs for rail grant moneys; that the platform is in place and the building needs to be
constructed; that if the building does not proceed, a flag is raised that the City is no longer
interested; that the next step after the building of a station, is to demonstrate to the State
' that we are committed; that the Colton crossing is overused and slows the system (town,
necessitating the need for a new system for the higher capacity; that dual tracks will happen
in the future; that if all the need components are in place; Patin Springs will have the rails
come its way, but each step that the City has taken is critical to a process, and that process
is for the future.
Councilmember Oden questioned if the station had to be built now.
Mayor Kleindienst stated that the intermodal system is being set in place; that if there are
delays, funds will be committed elsewhere, or not be available; and that there are some
funds coming from Stale and Federal levels.
Councilmember Barnes stated that concern has been indicated regarding timing; that it is
good to know the timelines involved; that he is committed to the train station; that
ultimately it is in the best interest of the citizens; that if a choice was given, it may be best
to wait for the expenditure, but that the City can not take the chance of losing the strides it
has gained.
Minute Order 6130 as revised, rejecting apparent low bidder as non-responsive and
awarding contract to Valley Crest, was presented; after which, it was moved by
Kleindienst, seconded by Reller-Spurgin, and unanimously carried, Hodges abstain due to
possible Client of Employer, that MO6130 be adopted.
5. CUP 5.0772 - QUENRICH CORPORATION
Recommendation: That the Council consider adoption of a Resolution of Convenience and
Necessity pursuant to the requirements of the Alcohol Beverage Control Board, prior to
the issuance of a liquor license, for a proposed convenience store at 1750 N. Sunrise Way.
Director of Planning & Building reviewed the staff report, no further report was given. (078
071)
Councilmember Barnes stated that the addition would be an enhancement to the market.
Councilmember Reller-Spurgin stated that she could not vote in favor of lending her name
to the convenience of the use of alcohol.
Resolution 19230 as recommended was presented; after which, it was moved by Oden,
seconded by Barnes, and carried by the following vote, that R19230 be adopted.
AYES: Barnes, Hodges, Oden and Kleindienst
NO: Reller-Spurgin.
6. TRIBAL SELF-SUFFICIENCY AND ECONOMIC DEVELOPMENT
Consideration of resolution supporting tribal self-sufficiency and economic development (144-
through gaming activities. 001)
City Manager reviewed letter from Tribal Council Chairman, on file in the Office of the
City Clerk.
Resolution 19231 urging Presidential action was presented; after which, it was moved by
Hodges, seconded by Oden, and unanimously carried, that R19231 be adopted.
LJO Council Agenda
4-15-98, Page 10
7. 19 a7-98 BUDGET AMENDMENT- RISK MANAGEMENT
Recommendation: That the Council approve budget amendment to transfer $500,000 from
the Risk Management Workers' Compensation Reserve Fund to the Workers' (061-
Compensation Medical Payments line item account 365-320-0903-4487, to cover actual and 022)
anticipated claims for the remainder of the fiscal year.
City Manager reviewed the staff report, no further report was given. ,
Resolution 19232 as recommended was presented; after which, It was moved by Reller-
Spurgin, seconded by Oden, and unanimously carried, that R19232 be adopted.
8. TOURISM CONTRACT
City Manager reviewed the proposed contract and added that the base computation was
$200,000; that there is a cross-default provision, in that the tourism portion can be given up
without the loss of the Convention Center Management contract. (050-
029)
David Bobo, representing LMI, stated that the contract has been given a cursory review; (139-
that the major deal point dealt with base compensation; that basically, the budget for the 001)
City will have a savings; that staff will be moved from the Leisure Center to the
Convention Center; that the Executive Director position is critical to fill with the right
person; that the benchmark is 8% for TOT; that the benclunark will raise each year; that if
LMI does not measure up to Council expectations, the contract for Tourism can be
canceled; that there are a number of issues remaining to be worked out, such as the term of
the contract; that the business plan does not pose a problem; that the goal is to ensure that
the leisure travel market and hotels are serviced; that the contract is incentive based; that
there is no management fee; that the LMI is willing to take the task on, but that the
executive director is a pivotal point of the contract; that there is someone that world be
good for the job; that the candidate has 25 years in the leisure market; that the candidate is
one of the top 5 tourism professionals; that there is some cleanup that must be done in the
proposed contract language; that the issue is advertising; that the more advertising one
does, the more tourists you buy; that the advertising budget has not increased in years; that
a platform business plan will be provided to Council; but that there are issues that need to
be addressed, such as, what is the goal of the Council; and that authorization is needed to
proceed with communicating with mid and small hoteliers, to start moving the process
ahead.
Councilmember Barnes stated that all content have been addressed; that the Council has
adopted Rules and Procedures concerning advertising in the Visitors Guide; and that those
rules should likewise be followed.
Councilmember Dodges stated that she was glad to see the item on the agenda for tonight;
that as one of the skeptics of privatizing, this is one item that looks like it will work well.
City Manager stated that Rutan & Tucker did a good job and turned the contract around in
a timely fashion.
Mayor Kleindienst questioned the savings.
David Bobo stated that the saving will come when TOT is increased; that the Visitors
Information Center is a serving tool; that one of the goals is to have a "break even" occur '
in the Visitors Information Center budget, yet still try to upgrade the services; that there
are a number of determining factors that must be weighed in considering the contract; that
it is the intent of LMI to proceed in a fashion that will include all facets of the community;
that LMI did some "wade-offs" in the contract that the term for the Convention Center
management has been changed to fit in to the IRS guidelines of 5 years; that IRS guidelines
are being used to tally the annual fee increase; that only 20% of the increase can come
from the incentive; that the incentive for LMI is to reduce the deficit of the Convention
Center; that when the threshold is lowered a higher base compensation will be realized; that
Council Agenda
4-15-98, Page 11
8. TOURISM CONTRACT (Cont'd)
the cross-default clause is an issue; that it must be clear that the contract states that LMI
can refuse to expand the tourism contract and not default on the Convention Center side;
and that the LMI attorneys are still reviewing the contract.
' City Manager stated that LMI can, in fact, refuse to expand the Tourism side and not
default the Convention Center contract; that alot of ground had been covered in the contract
and in this discussion; and requested Council approval be subject to final language approval
by the City Attorney, to allow LMI to proceed with the hiring of the executive director,
and that the final documentation will be brought back to the Council for approval.
Councilmember Reller-Spurgin stated that the appointment of the executive director does
need to move ahead; and that the tourism department has been without a leader for a long
time.
Councilmember Barnes expressed appreciation in the detailed explanation of the contract
and added that this is a major step for the City and that it is important for everyone to
understand each aspect.
Motion to approve Agreement #3964 with LMI for Tourism and Amend #2 to A3079 for
Convention Center Management allowing for City Attorney final contract language and
authorization of hiring of executive director, were presented; after which, it was moved by
Reller-Spurgin, seconded by Oden, and unanimously carried, that the motion be adopted.
9. RIVERSIDE COUNTY TRANSPORTATION COMMISSION
Discussion and direction, if any, concerning RCTC restructuring and SB1851, related
thereto.
' Mayor Kleindienst stated that the approval will allow for a restructure; and requested (123-
Council support. 025)
Motion to support SB185t was presented, after which; it was moved by Hodges, seconded
by Barnes, and unanimously carried that the motion be adopted.
10. ADDITIONAL LEGISLATIVE ITEMS: None
CONSENT AGENDA:
11. Res 19233 approving a contract for fire protection systems for the Tenninal Expansion project (051-
with A-1 Fire Protection Inc., for $197,432; and providing relief from the bid for Daart 095)
Engineering, due to clerical error, CP98-01/33, A3965. Kleindienst abstain-Airport Master
Plan.
12. MO 6131 approving purchase of overhead doors for the Terminal Expansion Project from L.A.
Door Company, for $8,246. Kleindienst Abstain-Airport Master Plan. (051-
095)
13. Res 19234 approving contract with Jetway Systems, a division of FMC, to manufacture and
install 8 passenger loading bridges for the Terminal expansion Project, subject to the Airport (051-
Revenue Bond Issue sale, CP98-01/38, A3966. Kleindienst abstain-Airport Master Plan. 095)
14. MO 6132 awarding contract to Moody Construction, for $13,200 for the Mizell Senior Center
patio cover (Item 3 only), a CDBG project, CP95-31 and 96-33, A3967. (085-
013)
15. MO 6133 authorizing up to $20,000 expenditure for Phase 2 implementation of the (117-
Department of Planting & Building computerized land management and permit system. 048)
Council Agenda
4-15-98, Page 12
16. Res 19235 approving traffic signal time coordination on Palm Canyon Drive, between Alejo
and Ramon, to operate during high-volume hours of 10 a.m. to 8 p.m., set at 25 MPII-, and (130--
concept of left-turn phasing for Tahquitz Canyon Way and Ramon Road at Palm Canyon Drive, 001)
in-lieu of scrambled pedestrian intersection signal timing.
17. MO 6134 approving Program Supplement 17 to State Master Agreement 1459, for construction (090.- '
and engineering for city-wide sidewalk and bikeway gap project, CP9:31-50, for $433,752 (City 001)
matching funds $49,752).
18. MO 6135 approving Change Order No. 11 to Granite Construction Co., for an increase of (123•-
$55,552.52, for the Mid-Valley Parkway, CP94-19, A3670. Hodges Abstain-Client of 023)
Employer.
19. Res 19236, 19237 and 19238 (3) being City companion actions to P.S. Financing Authority (051-
actions above noted, concerning Airport Bond Issues. Kleindienst abstain-Airport Master Plan. 095)
20. Res 19239 approving Payroll Warrants, and Res 19240 approving Claims & Demands
(086.-
Note abstentions, if any: 016)
Councilmember Warrant N Payee Particular Nature of Conflict
Hodges 930768 Desert Air Cond. Client of Employer
930783 DWA Client of Employer
930819 G & M Const Client of Employer
930830 Granite Const Client of Employer
930945 Preferred Plumb Client of Employer
It was moved by Oden, seconded by Reller-Spurgin, and unanimously carried, that
Resolutions 19233 through 19240 and Minute Orders 6131 through 6135 be adopted. ,
ADDED STARTERS: None
REPORTS & REQUESTS:
21. DEPARTMENTAL REPORTS - Received &Ordered Filed
a) Treasurer's Investment Report- February, 1998 (121-
002)2)
b) SCGas Franchise Report, 1997 - $129,854.76 (089_
002)
CITY COUNCIL reports or requests
a) Barnes requested City Manager and/or City Attorney review Santa Barbara
Ordinance addressing homeless issues via contact with City Manager of Santa
Barbara.
b) Mayor requested some type of program be developed to address the graffiti issue.
1
Council Agenda l'�d
4-15-98, Page 13
PUBLIC reports or requests: None
STAFF reports or requests: None
' ADJOURNMENT
There being no further business, Mayor declared the meeting adjourned at 11:40 p.m.
JUDITH SUMICH
City Clerk
0'a - V—QJO'JLL1�
y: PA A. SANDERS
Assistant City Clerk