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HomeMy WebLinkAbout1998 - MINUTES - 5/20/1998 a1 1� CITY OF PALM SPRINGS CITY COUNCIL MINUTES MAY 20, 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, May 20, 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: Counciltnembers Barnes, Hodges, Oden, Reller-Spurgin, and Mayor Kleindienst Absent: None The meeting was opened with the Salute to the Flag led by the P.S.H.S. Air Force ROTC, and an invocation by Chaplain Javier Roman, Twenty-Nine Palms Marine Corps. PRESENTATIONS: Proclamations: May 20, 1998 as "Goo Mei Zheng" and "Ming Peng Zhang" Day; also Richard & Lorrie Rennick Day; and May 3-9 as Municipal Clerk's Week, presented to Judith Sumich, 1998 City Clerk of the Year Award from the City Clerks Association of California. Golf Shirts were presented to Council by Tony van den Berg, Bird Products General Manager, in celebration of retaining the Bear/Bird/Slackhouse facility in Patin Springs. Councilmember Reller- Spurgin presented plaque of appreciation to Police Chief Weigel (who in tmrn reciprocated to Councilmember Reller-Spurgin) for their work in the "Waiters Dinner" which resulted in$20,000 in fonds raised for Leukemia Society of America. REPORT OF POSTING OF AGENDA: City Clerk reported that the: agenda was posted in accordance with Council procedures on May 15, 1998. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 6 of agenda this date. HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: FINANCING ' AUTHORITY: - No Business COMMUNITY REDEVELOPMENT AGENCY: Mayor declared the meeting adjourned for the purpose of convening as the Conununity Redevelopment Agency. APPROVAL OF MINUTES: It was moved by Reller-Spurgin, seconded by Hodges, and unanimously carried, that the Minutes of March 25, 1998, be approved. PUBLIC HEARINGS: 1. DELINQUENT WASTE DISPOSAL SERVICES, 1997-98 Recommendation: That the Council authorize placing delinquent waste disposal services accounts for 1997-98 on the county property tax rolls. Director of Finance & 'Treasurer highlighted his memorandum. Mayor declared the hearing opened. Dick Sroda, resident, stated that the report referred to "representing a significant on-going ( 140- problem with waste disposal," and lherefore it meant that people; either cannot afford the 005) cost, or do not think they are getting their money's worth and do not want to pay for it; that lie felt the services have decreased over (lie years, and not everything is being picked up; that there are no longer large dumpsters available in the park;, and there sli�ould be a quarterly opportunity for people to cleanup their property and vacant lots; that he did not think it was a good indication of recycling; and that it is mandatory, and as such it is a tax. There were no further appearances, and the mayor declared the hearing closed. Resolution 19252 as recommended, was presented; after which, it was moved by Oden, seconded by Hodges, and unanimously carried, that R19252 be adopted. Y4, Council Agenda 5-20-98, Page 2 2. SEWER SERVICE CHARGES, 1998-99 Recommendation: That the Council elect to have sewer service charges for 1998-99 (140- collected on the County property tax rolls, pursuant to Ord I I11. Director of Finance & 003) Treasurer highlighted his memorandum. Mayor declared the hearing opened; there being no appearances, the hearing was closed. Resolution 19253 as recotraneuded, was presented; after which, it was moved by Reller- Spurgin, seconded by Barnes, and unanimously carried, that R19253 be adopted. 3. FARRELL DRIVE REALIGNMENT - RESOLUTION OF NECESSITY Recotmnendation: That the Council adopt a Resolution of Necessity to acquire property known as Assessor's Parcel 507-350-029, being a portion of Parcel 1 PM15814, consisting (136- of .41 acres along the east side of Farrell Drive, north from Computer Way, Section 12. 025) Mayor stated lie would abstain, since this is an Airport Master Plan related matter, pursuant to FPPC ruling. Director, Dept. of Transportation displayed a map of the property proposed to be acquired, and stated it is the last piece needed to relocate the street; that it was appraised in Julie, 1997, and an offered was made, which was refused; that there has been continuing discussions, but it appears it will not be possible to negotiate much further, and the recommendation is to proceed with the eminent domain proceedings. He read the findings contained in the proposed resolution. He stated that the site is not fee land. ' Mayor pro tem declared the hearing open; there were no appearances, and the hearing was closed. In response to question by Council, City Attorney stated that the property owner is entitled to just compensation; that the action allows proceeding with the condemnation, obtaining possession of die property, and value will be established in the condemnation action; and that it is possible to reach settlement just short of the actual trial. Resolution 19254 as recormnended, was presented; after which, it was moved by Hodges, seconded by Reller-Spurghr, and unanimously carried, Kleindienst abstaining, that R19254 be adopted. PUBLIC COMMENTS: a) Comments concerning Item 6: Joanne Allen, resident, stated she was speaking on behalf of her 41000 clients who own condominiums in Palm Springs, commented that deregulation allows (127- consumers to make the best choice for themselves; that the consmner must pay for 005) the sewer service, and has no choice whether the City operates it or someone else; _ that she considered it a step backward to sell it to a "for-profit" corporation, and that until the consumer has a choice ,it should remain either with the City, or given to a not-for-profit corporation to operate for the sole benefit of the taxpayer and not for the profit of oat-of-town stockholders; and that any profits from the transaction should go to the original investor, the taxpayer. Ruth Licata, resident stated that many citizens are not aware of the proposal to sell or lease the facility; that she was a member of the Board in the 1980s when bonds were issued to build the plant, which is a textbook example, studied by people around the county; that DWA was closely involved in that success; and that the Council should not sell the citizens short in terms of providing information and education. (,L 92 Council Agenda 5-20-98, Page 3 Emile Duvernay, resident, opposed the possible leasing to a private agency; that it is a public service, owned by the people, and paid for by tax dollars and user fees; that the people have a right to be adequately informed about the transfer of public assets; that the media should provide an in-depth coverage of the information; that he questioned what expertise staff has except the direction of its consultant on wastewater treatment plants, and what happened to other aspects, e.g., treated water; that if the City is to get rid of it, it should be kept with a nonprofit agency, e.g., DWA, that private enterprise will only look at the bottom line which,will only increase the financial demand on die people; and that it should be retained as a public service agency. John Stiles, resident, stated that $400,000 loan from the AVWTP fund was made to buy the rail station, and the funds were to have been used to replace the plant; that the RFP was sent out with the no restriction as to consideration for rate setting; that a for-profit corporation is not a philanthropy; that rate increase will make electric rate increases dull by comparison; that he recoimmended a Council dialogue and discussion with DWA representatives, which operates 1/3 of the plant and has proven to be a good steward of the public funds; that there should be a community solution for the benefit of the people who live in Palm Springs. Grace Jablow, resident, stated that there has been no information given to the ()27- cotmnunity about this matter, and questioned why it was secret and why there is a 005) need to sell the plant; that it is efficiently run, and receilves many awards; that it must be profitable, as the City has borrowed $9 million from it; that the(people are in the dark, and if(here is no choice, then DWA would be the most logical choice; that corporations "for profit" must charge more to show a profitable bottom line; that Desert Hospital is an example; and that she urged this, matter be tabled for two weeks, so the people can learn more about why (he Council feels a need to privatize facilities which (he people own, which works well, and which is extremely profitable. Marvin Roos, representing the Building Industry Association, voiced its concern, and feelings that DWA made some excellent points in its proposal, one of which is [lie forgiveness of the loans, and a reduction in the sewer hook up fee; that the hook up fee is excessive, and is based on old data, e.g., did not consider low-flush toilets, and the new data may suggest that there will not be a need for expansion of the plant; that DWA should be added to the short list, and allow it to compete. He added that the DWA is also governed by our elected board, over which the voters have some control. Sig Seitlund, resident, cotmnented on a water bottling proposal of a number of years ago, and suggested that situations which do not need fixing, should not be addressed. Frank Coffey, resident, stated that the residents will be charged again for the same facility which they already purchased; that budget cuts have come rrom lower ranks; that the Council should consider selling the Airport, and contracting with the Sheriff; and that the voters would have more control over DWA than a profit motivated corporation. Dave Luker, DWA, stated lie was insulted by the outcome of the review committee, and questioned how DWA could place fifth out of five, when it offered to place existing employees, and questioned whether the City has belief in its current staff to be able to do the job; and he questioned if the Council reviewed the DWA proposal, and its history. Tom Flanagan, resident, urged that DWA be included in the short list; chat lie feels the process has been flawed; that everyone should try to support Palm Springs businesses and Palm Springs agencies; that DWA has a proven track record; that the plant should be operated as a public health facility of the community and not as an income generator. F. jig; Council Agenda 5-20-98, Page 4 Dan Ainsworth, DWA, stated that if rates are of no concern, DWA could have made a proposal of $100 million, which may have seemed more attractive; that it operates at the lowest costs, and selects the lowest bidders. He questioned what the effect wilt be on homeowners, and contended that their costs will increase, as well as for businesses; and lie urged that the staff report be set aside and a new committee be appointed, which includes the Council and the public. Dick Sroda, resident, stated he was shocked that DWA was not included in the short list; that if it has such good management, it might take over City government, and get rid of the utility tax. He also comnnented on Items 8 and Additional (127- Legislative Item No. 1, opposing the proposed actions of each; and cormnented on 00 5) proposed Police Deparhnent budget for downtown. 1hn Miller, resident, stated that the WWTP is the most profitable, and perhaps the only monetary success under the City's control; that the Council is being asked to rush through the proposals, and appears the same as rushing through die rail station; that input should be solicited in a combination of staff, citizen and others and come up with more practical solutions. Tom Kieley, President of DWA, stated that both companies on the recommended short list are fine companies, and have demonstrated profit-making for their shareholders; that the Council needs to consider its shareholders and carefully consider DWA's proposal; that he hoped the Utility Tax would not then be shifted to [lie sewer bill; that the plant is a public health service, and not a "cash cow" to be used for providing other services; that DWA proposal provide a repayment of all loans and other income streams; that DWA has a history of working with the city in solving WWTP problems and in building the facility; that the ground water needs to be protected and the cost for doing so should not result in dollars going 1 elsewhere. Ed Teftelter, resident, considered it a gross error for the City staff not to have included DWA on the short list; that he considered it important that die Council consider the staff recomrneudation and look at it closely; that it is basic in terns of private corporations which have stockholders, that the company must turn a profit; that DWA is not a stockholder, rather a neighbor, and one which has a proven record, and it should be included in the short list. George Marantz, resident, stated that if a private company pays $50 million for the WWTP, it waits to recover that investment, plus a profit; that it will have to pay income tax; that the utility tax tray be added to Cie rate; that part of the cost for new construction is the sewer hook up fee; that the fee will have to be raised to build new plant or replace the existing plant; and that ultimately the taxpayers will have to pay the bill. b) Comments Concerning Items 12 and 13: Torn Noble, Palm Desert, representing BLT stated that lie has appeared a oumber of times over the past Len months because there has not been a public hearing on these matters; that the documents suggests, i.e., reference to "alternatives being (148- considered" on Page 2, item 2, suggests that costs assumptions are speculative; that 003) on Page 4 of the staff report, it is not cost competitive, and there will be substantially more costs involved, and whatever additional costs there are will be passed through to the rate payer because it requires the City to charge rates to cover the tipping fee; that other issues are not yet identified nor quantified; that the Council should look carefully at the competing proposal, i.e., industrial development opportunity would be far superior with the BLT proposal. Fred Noble, Palm Springs, stated that the money involved needs to be considered; that the BLT proposal will cost the City nothing; that it is $4 million versus $12 million, which will result in $8 million paid for by the public and commercial enterprise; that the staff has acknowledgeD that there will be an immediate increase in commercial and industrial ralr,s; that BLT is an experienced technology, versus a Council Agenda 5-20-98, Page 5 "might work" process; that the proposed facility would be located next to the Wastewater Treatment Plant versus the BLT proposal to be upwind near I-10 and away from residential areas, and in an industrial area; that the permitting tune for either project is the same; that BLT is established in Los Angeles, Sacramento, and Oxnard, communities in which they are highly respected and in which local governments are more than pleased with their performance; and that it is important that the public business be held in a fashion so the public knows what is going on. Miles Barrett, BLT, expressed opinion that the Herlrol'process is in its infancy, and has only been seen on a small scale - 40 tons, being its largest, and it is a prototype for larger; that the City will need to get a 50% diversion by 2000, and scaled-up of prototypes never work as they are projected, nor the costs; that retrofitting is always required; that BLT offers a 1200 ton per day operation, with a. two-year track record, and one which meets the diversion goal; and lie questioned if the City needs to take a $12 million risk on an untested and new technology when it has the opportunity for one with a track record and at a cost of$4 million. He urged more review and consideration. Howard Laphasn, resident, spoke in support of DWA being included it) the short list for Item 6, and community involvement in any final decision. Concerning Item 13, lie stated that it is an opportunity to create the engine to create economic development in an industrial area; that the site near the Wastewater Treatment Plant will cause problems to the residents; that the I-10 corridor is logical for transporting trash to the County facility; that BLT has shown the plant in Oxnard created economic development for that community; and he urged reconsideration and to think in terms of the location to do economic development. c) Continents Concerning Item 5: Chris Krasner, resident, stated that the fire unit is 26 years old, and that the department strives to get the most out of any piece of equipment; that fighting fires (08;7_ and providing equipment is not inexpensive, and he invited anyone who thought 003) otherwise to come to the station and see what the firefighters do. d) Comments on matters not related to an agenda item: Frank Tysen, resident, expressed his opinion regarding, a recently installed Spa (09EI- Casino Sign, and suggested that the Council rescind its support for the gaining 004 ) initiative and support SB1502 which deals with the issue of the sovereignty for Indian Tribes, which is domestic and subject to the powers of the State and Federal Governments, which would allow them to have gaining allowed by State law, and to be responsible to adhere to local ordinances and to negotiate a compact with local government to pay their fair share of local services. Tom Adanio, resident, reported a foul odor emanating from the street drains on South Indian Avenue near his business at 255 S. Indian, noting that there is a constant flow of water, which is discolored as well. COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENCY REPOPITS: - None LEGISLATIVE ACTION: 4. Not Used ' 5. FIRE APPARATUS REPLACEMENT Recommendation: That the Council authorize proceeding with the development of specifications for the replacement of two first-line fire apparatus. Fire Chief reviewed details of his report, noting that both a 1964 and 1972 unit were (0 003)3) disposed of because of obsolescence, as well as future equipment retirement dates; that it has not arrived at the point to replace the units in order to maintain the ISO rating of 3; that r1DQ95 Council Agenda 5-20-98, Page 6 he recommended proceeding with specification development; that costs are estimated not to exceed $950,000; that there are funds in the Motor Vehicle Replacement Fund; that consideration be given to lease-purchase of one and outright purchase of the other, which is endorsed by OMB. ' Minute Order 6153 as recommended, was presented; after which, it was moved by Reller- Spurgui, seconded by Oden, and unanimously carried, that MO6153 be adopted. 6. WASTEWATER TREATMENT PLANT ALLIANCE - SHORT LIST Recommendation: That the Council establish U.S. Filter Operating Services, Inc., and OMI, Inc., as the short list for the above, and authorize development of a Request for Proposal (RFP) to be provided to the short listed firms. City Manager stated that the philosophy of the Council for the past two years has been to look at all City operations to see if there can be improvements made, and look at revenues (127_ and reduced costs; that examples have been fire services, tourism, convention center, and 005) that traditional operations were also to be examined. He read in full the memorandum of Director, Dept. of Transportation, and added that the process started with discussions with DWA, and evolved into the RFQ; that its submittal was an improvement over the initial discussions; that maintaining proprietary information has been a factor; that the public forms opinions based on what it believes to be true, or that what it is told are in fact actual facts; that all of the proposers could be included in the short list; and that the staff team would continue with the next step, and citizens could be added who were unbiased and could help in respect to the review. He stated that it did not mean that once the process was completed, that the Council may not decide that it does not wish to make any changes to the way in which the operation is carried out. ' Councilmember Hodges stated that she would abstain since DWA is a client of her employer. In response to question by Council, Director of Finance stated that direction to Rod Gunn & Associates was to find a common thread, and optimum proposals were taken, and put into a dollar value. City Manager stated that the concept is a lease proposal, and not a sale of the facility; that determination was made that in order to get the best statement of qualifications from firms that were involved, assurance was needed that information would be kept proprietary; that such information related to innovations that might be employed, and keeping it proprietary gave the City a competitive bid. Councilmember Oden stated that he had confidence in the staff recommendation, and recognized that it has become somewhat of a surprise, and he recomtended that all five of the companies be included in the final list. Councilmember Reller-Spurgin stated that the Council has not been involved in the process before this point; that DWA includes friends and people who are respected, and there should be a sense of loyalty to local people, and she felt it appropriate that DWA be included. In response to question by Council, City Manager stated that the City would continue to maintain the responsibility for rate setting and shifts to the consumer; and as such, Prop. 218 applies. ' Councilmember Barnes stated that there is a relationship with DWA, and it handles the water system and fills a segment of the process. He questioned if it alone could be added, or if all other companies would need to be included, since there were others with higher rankings. City Manager stated that the City Attorney concluded that if DWA is included that Nos. 3 and 4 would also need to be included, or it could result`in a challenge in the RFP, which might develop a different final analysis. He stated that staff was charged by the Council to achieve an economic development objective; and that the City Attorney would have to determine if the Utility Tax would apply to sewer service if the operation is privatized. 0096 Council Agenda 5-20-98, Page 7 Mayor stated that the City staff at the Wastewater Treatment Plant are stellar, as witnessed by the numerous awards they have received; that he agreed all firms should respond to the RFP, and let DWA prove that it has something to offer, and the review process expanded to allow the community to be involved, and the education process be increased; that the ' Council has not been part of the process, although it has been briefed, and most of the work was handled by the staffed committee; that no decision has been made by the Council; and that with more education and keeping the community aware of what is happetving, it might be possible to bring the matter back in time with more support for the direction the next phase takes. Councilmember Barnes noted that the staff did what the Council directed it to do, in that the Council wanted to look at each and every city operation, with an eye to reducing; costs. Minute Order 6154 as revised to include all five proposers, was presented; after which, it was moved by Reller-Spurgin, seconded by Barnes, and unanimously carried, Hodges abstaining, that MO6154 be adopted; that the review committee be expanded to include citizen input; and that the education process be expanded, as appropriate, to inform the public as this matter proceeds. 7. AIRPORT LEASE -WHITWORTH (FORMER C. DENNEY LEASE SITE) Recommendation: That the Council approve a new lease agreement with Eugene N. (051- Whitworth of the property at 3200 Aviation Way, subject to legal and financial reviews, for 101) Corwin Denney hangar and site, and terminate prior agreement, A2121, A3978. Mayor stated he would abstain due to a client relationship with his spouse's firm. Director of Aviation reviewed the Dept. of Transportation report, and noted that the City ' Attorney and Director of Finance have reviewed the documents and financial factors, and she recommended approval, and that the tenant has signed the agreement as approved by the City Attorney. Minute Order 6155 as recommended, was presented; after which, it was moved by Reller- Spurgin, seconded by Hodges, and unanimously carried, l(leindienst abstaining, that MO6155 be adopted. 8. JUNE, 1998 ELECTION BALLOT- PROP. 226 Consideration of request from UFCW Local 1167, AFL-CIO-CLC, to oppose; Prop. 226, (0198- an initiative measure on the June, 1998 statewide election ballot, referred to as the Political 0104) Contributions by Employees, Union Members, Foreign Entities Initiative Statue.. Assistant City Manager reviewed details of his memorandum. Resolution 19255 of opposition, was presented; after which, it was moved by Barnes, seconded by Oden, and unanimously carried, that R19255 be adopted. 9. CVAG MEMBERSHIP Discussion and direction to CVAG Executive Committee member regarding CVAG (123_ membership by tribal councils. 0041 City Manager stated that there was a verbal presentation made at the CVAG Executive Committee as to the possibility of four tribes becoming members; that there were arguments as to why that might make sense, and more difficult questions as to dues and whether there should be one representative for all tribes, or one from each tribe. Councilmember Hodges stated that there is a subcommittee.meeting prior to the next CVAG Executive Committee meeting, and she wanted the Council's position, in order to represent it at the meeting. Council Agenda 5-20-98, Page 8 Mayor stated that there are currently ten members of CVAG, each subject to a dues formula and each having a vote; that fees are collected for the purpose of doing regional planning, and he did not know if the tribal councils would be willing to pay those fees, e.g., TUMF, and perhaps the subcommittee could formulate the 8-10 key concerns and meet with the tribal councils and see how those might be addressed; that die current status is that City's do collect the TUMF, and the tribal council has the ability or authority to say that it does not want to pay the fee, and if it is not collected, it should not become a burden for the City to pay. City Manager stated that the TUMF fee is collected by cities throughout CVAG; that in the case of the P.S. Market Place, the City was not able to collect the fee; that members of an organization generally are committed to doing certain things, otherwise they should not be members. Mayor stated that a concern of the Tribal Council was why it should pay the TUMF fee when it will be used somewhere else; that on a regional view, all pieces are needed in order to make a system work. City Manager stated that the Mid-Valley Parkway and its bridge were largely clue to the TUMF fees, and both provide economic development for adjoining landowners and allottees. Councilmember Barnes stated he would like die tribal councils to understand the mission of CVAG is to address regional issues of all kinds, not just TUMF, and any member should be a full-fledged and complete participant, without regard as to what they might individually gain from it. Council consensus: to urge full participation if a tribal council is to become a member, and For the subcommittee to identify the key issues to be resolved. 10. LIBR.ARY MANAGEMENT SERVICES - CITY OF MURRIETA Recommendation: The Library Board and staff recommend that the Council approve a one- year agreement with the City of Murrieta, California, effective July 1, 1998, for $249,000 and authorize the City Librarian to enter a one-year professional services agreement wide (099- Sue Sutton for library consulting services for the City of Murrieta, not to exceed $13,200, 001) including expenses, both agreements subject to legal reviews. A3979 &3980. City Librarian reviewed his memorandum, and noting that he has been working on developing such an agreement with Murrieta since October, 1996; that the $249,000 will be mainly for collection development and data processing; that it will be established as all independent library, similar to that established for Rancho Mirage, and should be independent after one year. Resolution 19256 as recommended, was presented; after which, it was moved by Reller- Spmgin, seconded by Odell, and unanimously carried, that R19256 be adopted. 11. IfOUSEHOLD HAZARDOUS WASTE COLLECTION Recommendation: That (lie Council approve a 3-year contract uvith Curbside, Inc. to create ' a "pay as you throw," door-to-door, household hazardous waste collection program. Recycling Coordinator stated that the program is a follow-up to a grant application submitted; that the report includes the types of materials which may be collected; that the ABOP is still available, and still free of cost; that tine City did not receive the grant; that the company will produce a brochure and conduct some marketing, but there has been no City (148- funds involved; that about $15,000 is currently funded to cover advertising of current 002) services (television and print media) and those will be continued. l��+l Jar Council Agenda 5-20-98, Page 9 Councilmember Hodges questioned why the City should be involved at all in this contract. Recycling Coordinator stated that the contract allows the City to collect $5 of the $75 and $10 of die $150, which would go into a pool of funds that could he used for advertising in addition to the City's own fiends, or for co niu ity cleanup events. Councilmember Hodges stated that she did not think there would be a high demand, and it , could end up costing tlne City time and money, e.g., staff time and[City Attorney time, and she did not see a need for the City to enter into such a contract. City Attorney stated that the agreement would clarify that Palm Springs Disposal, the City's franchise trash collector, is not opposed to the service; that these materials cannot be dumped into the normal trash collected by PSDS; that a confirmation letter could be obtained from PSDS; and that there may be record keeping benefits to tine contract, i.e., regarding AB939. Recycling Coordinator stated that Curbside would provide reports and information would be included in the City's annual AB939 reports, as it currently reports on the ABOP; and that Curbside would probably provide the information in any event. City Attorney suggested that this matter be deferred, and that staff. discuss it with PSDS, to seek its concurrence that it has no objection, and then come back to the Council, if necessary. Council concurred. 12. RECYCLING FACILITY (P.S. DISPOSAL) - SOLID WASTE FACILITY Recommendation: That the Council make a finding of public benefit in the NextPhase Recycling Facility proposed by the P.S. Disposal Services, as necessary for its application to the California Pollution Control Financing Authority. City Manager stated that the proposed action is an inducement resolution which allows for tax exempt bonds, that the public benefit is the reduction of land fill site, pollution, trasli on 14 14E38- ) the sheets, etc.., and the City has no financial involvement in the funding, but it enables P.S. Disposal to proceed. Councilmember Hodges stated that concerning BLT, it is unfortunate as to its timing, ill that the Council has been looking at this type of proposal for quite somethne; that it was not being ignored, and the Council heard what was said; that it offers all interesting concept, and she heard about MRFs through CVAG's process of looking at. solid waste, and did not understand why it was going that route. Resolution 19257 as reconnended, was presented; after which, it was moved by Hodges, seconded by Odell, and unanimously carried, that R19257 be adopted. 13. SOLID WASTE FACILITY Recommendation: That the Council participate in the NextPhase Recycling Facility proposed by P.S. Disposal Services to allow it to proceed with all application to tine California Pollution Control Financing Authority for construction of a state-of-the-art 14£3- municipal solid waste recycling and organics-recycling facility to handle Palm Springs' solid 003) waste. City Manager reported that there are 46 of such type facilities, and it is not a prototype; that the deal points are the minimum needed for the Financing Authority to accept the application; that Ire recoamended approval; that there will be another set of agreements which will follow; and that Items 12 and 13 of this date are two of five steps that will be required. to 'J Council Agenda 5-20-98, Page 10 City Attorney stated that flip proposed resolution is limited to the extent it commits the trash stream flow collected to be delivered to such facility, the terms of [lie project development agreement, the obligations of the City in terms of findings of public benefit, environmental review processes, and tipping fee, and amendment of the franchise agreement, as well as [he obligations of PSDS - including development of a disposal agreement, design and ' construction, permits, and financing. Bob Kuznick, Palm Springs Disposal Services, stated that they have worked with the Council on this project for the past year; that the technology is tried and proven to be successrul; that there are actually 53 operating plants, five of which are larger than the one they are proposing; that it is a viable system, and will result in a 50% diversion, and meet the environrnental goals; that they will come back in three more steps to reaffirm the cost estimate, including preliminary costs, design and construction bids; that the project takes advantage of an efficient technology, cost effective operating process; that a nominal increase was identified for commercial customers, however, an entire new level of recycling will be available. Councilmember Barnes stated that the two processes are not comparable; that the proposed technology is simplistic and one which has now come into its own; that this is not the (148- Bedminster process, which did not financially pencil out; that the Ilerhof plants are located 003) in some of the most environmentally sensitive areas of the world; that the philosophical difference is that of a MRF versus compost; and that he prefers the latter, and without any City dollars involved. He noted that the location has not been decided. In response to questions by the Mayor, Mr. Kuznick stated that regarding the site location, there is still a lot of work yet to be done inn the filial documents; that one WD vehicle lasts about twelve years. City Manager stated that the resolution establishes parameters, with room within which to move, and are the points for negotiation. City Attorney stated that the resolution is a broad statement, and as the deal is negotiated the Council would provide direction as it proceeds. Discussion followed concerning the details of the proposed project development agreement; Mayor stated he (lid not fully support the issue of renribursement on Page 13A-24 of the agenda materials; and City Manager noted that these are broad statements and will serve as parameters for negotiation. Discussion also followed regarding upfront costs, and who is to pay for those. Councilmember Reller-Spurgin slated her recollection was all acknowledgment that the City would reimburse PSDS through recycling f(mds; City Manager stated that the City also has some costs, and this matter goes back over two years, and those will be looked at in the final stage; and Mayor slated he would like to see the record if there has been a decision for the City to pay those costs. Question was raised as to whether the Council subcommittee of Mr. Barites and the Mayo' should continue; it was the consensus of the Council that PSDS and the staff put the agreements together and then come back to the Council for review. Resolution 19258 as rec anniended, was presented; after which, it was moved by Odell, seconded by Reller-Spurgin and unanimously carried, that RI 9258 be adopted. 14. ADDITIONAL, LEGISLATIVE ITEMS: (Satisfies agenda posting requirement; materials provided at meeting). A14. MOTOR VEHICLE LICENSE FEES Consideration of action to oppose the reduction, repeal or elimination of the CA (098- Vehicle License Fees by the State Legislature. Assistant City Manager reviewed his 004) memorandum. Council Agenda 5-20-98, Page 11 Mayor noted that the League of California Cities Division has been looking at this to[- the past year, and a subcommittee has been formed to develop strategies for preventing this legislation from occurring; that fact sheet and letters have been prepared; that there have been meetings with Legislators Battin and Kelly and with CVAG to explain the opposition; that it appears the tax will be reduced; that the State: is not cutting its own revenue, only that of local government; that he urged employee associations to get involved; and that the loss to the City could be $1.7 million per year. Resolution 19259 of opposition, was presented; after which, it was moved by Hodges, seconded by Oden, and unanimously carried, that R19259 be adopted. CONSENT AGENDA: 15. Not Used. 16, Res 19260 amending the Comprehensive Fee Schedule to increase the charge for returned checks from$15 to $25. 010) 17. MO 6156 ratifying the emergency purchase of a chemical controller for$6,991.75 from Knorr (115- Systems, Inc., sole source supplier, for the Swim Center. 004) 18. MO 6157 approving Work Directive No. 25 for $134,760, to Gensler,Associates, for design (0511- and field administration of the Airport Ticket Wing Expansion, A2781. 09�3) 19. Res 19261 amending the budget to appropriate $140,000 from Capital Project Fund Balance for (061- supplemental finding to meet Federal EPA mandate to change all underground fuel storage 022) tanks by December 31, 1998, and install related equipment. 20. Res 19262 reconfirming the CSA-152 at$9.50 per annum, per parcel ,nissessment and (12:3- authorizing transmittal of all necessary paperwork to seek the County's continuance of CSA- 016) 152. 21. MO 6158 approve purchase of one Ford F150 extra cab pickup truck, as an emergency (08 1- replacement for demolished police patrol unit, from Ramsey Street Ford under County 01Ei) cooperative contract for $18,986,25, including tax. 22. Res 19263 awarding contract to E.L. Yeager Construction for the runway extension project, (wl- AIP-22, CP97-24, for $3,316,235, subject to receipt of FAA grants, A3971. Kleindieust & 103) Hodges abstain, Airport Master Plan/Client of Employer, respectively. 23. MO-_approving agreement with Palm Desert National Batik for operation of an automated teller machine at the Airport, A------ Pulled. 24. MO 6159 approving assignment of lease with Air Sources, Inc., to Signature Flight Support (051- Cotporation for the Million Air Pahn Springs FBO, Al764. Agr, subject to City Attorney final 023) language. 2.5. Res 19264 approving final map for Tract 26364-2, to divide property at 2221 and 232.1 N. (137- Sunrise Way, Section 2, into 19 parcels, Southland Group, Inc. 079) 26. Res 19265, 19266 and 19267 approving Payroll Warrants and Clahns �& Demands. (05 Note abstentions, if any: O1(lli) Cou ncilmember Warrant# Payee Particular Nature of Conflict Hodges 931568 Bldrs Supply Client of Employer 931614 DWA Client of Employer 931651 G&M Constr Client of Employer 931747 Al Miller Roof Client of Employer Reller-Spurgin 931831 D. Spurgin Spouse Council Agenda 5-20-98, Page 12 ADDED STARTERS: None. REPORTS & REQUESTS: 27. DEPARTMENTAL REPORTS - Receive & Order Filed a) Development Project Fee Report, 1996-97 b) Nuisance Abatement Proceeding & Accounting Reports (hearings thereon to be set (057- by City Clerk) 015) CITY COUNCIL reports or requests a) Annual Board/Connuission Recruitment Process - Motion confirming appointments. Following appointments/reappohitments were confirmed; all terms 6-30-2001, unless otherwise shown: Rent Review Commission: Nancy Blee Daniel Cohen (060- Arthur Lougheed 016) Louis Sabers, 6-30-1999 City Clerk directed to readvertise for remaining unfilled, expired term. Adm. Appeals: Jerry Wayne Howard (060- 030) Parks & Recr: Jim Barrial (060- HSPB: Eleanor Corkle 021) ' Karen Pirozzi (060- Carl Proul 011) Airport: John Duncan (060- Mark Gershenson 001) VillageFest: Jacei Tutunjian (jewelry category) (060- Human Rights: Ray Baca 028) Planning: Chris Mills (060- 027) (060- 015) STAFF reports or requests - None ADJOURNMENT There being no further business at 1lp.m., the Mayor declared the meeting adjourned. JUDITH SUMICH City Clerk