HomeMy WebLinkAbout1998 - MINUTES - 6/3/1998 CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
JUNE 3, 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, June
3, 1998, at 5:30 p.m., at which time, the City Attorney announced items to be discussed ill Closed
Session, and at 7:00 p.m.,41le 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 the Salute to the Flag, and an invocation by Dr. Jun Tom, United
Methodist Church of Palm Springs
REPORT OF POSTING OF AGENDA: City Clerk reported that the; agenda was posted in
accordance with Council procedures on May 29, 1998.
REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All
Entities) - See items on Page 5 of agenda this date.
PRESENTATIONS:
Proclamation to Kira Klatelnko, PSHS Student Body
CALED "Award of Merit" for Economic Development Newsletter
"Golden Bear" Award to Roger Schneider, PSPD Lab Tech
HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: FINANCING
AUTHORITY: - No Business
COMMUNITY REDEVELOPMENT AGENCY: Mayor declared the nneeting adjourned for the '
purpose of convening as the Community Redevelopment Agency.
APPROVAL OF MINUTES: April 15, 1998-approved.
It was moved by Reller-Spurgin, seconded by Hodges, and unanimously carried, that the
Minutes of April 15, 1998 be approved.
PUBLIC HEARINGS:
1. 1998-99 BUDGET
Consideration of the proposed budget for fiscal year 1998-99.
City Manager reviewed the Proposed 1998-99 budget which was distributed, highlighting (061-
each page, and noting new areas of impact, i.e., the "downtown experience" which 023)
includes maintenance workers to keep the downtown cleaned up as well as police services
for protection. He stated that Mr. Pitts has offered a building practically free, which will
house the police, and that the Sgt. position will not be filled urimediately, rather existing
officers will be assigned, while grant applications are being pursued; that a principal plans
examiner has been added to Building & Planning; a new fund established to account for
VillageFest how both current and newly budgeted funds will lbe used to address some
immediate park needs in terms of furniture and restrooms; that the position of Director of
Administrative Services has been eluninated, and divisions within the department will be
reporting to him. fie stated that an additional allocation of$4,750 is a policy question as to
whether the Council wishes to become a member of the Chamber of Commerce, which is
not currently budgeted. Ile stated le believed that the Chamber should be the focus of
where the legislative priorities I,rgin to evolve that address state,, county and local issues,
and those kinds of requests cannot be made of it, unless it comes from a member. He
stated he wanted to address the issue of an Arts Coordinator before considering a full time
assistant; that all of the employee units have ratified proposals which were offered by the
Council with 60-day window to review insurance; that the LMI budgeted a nount is slightly
Council Minutes
6-3-98, Page 2
less than expected, and he will review that with the contractor, however, it is in line with
the contract.
Mayor declared the hearing open.
' Darrell Meeks, businessman, expressed opinion that the projected increases are optimistic,
and he did not see any way that the property tax will increase by $600,000 even though a
large amount is expected by Tenet Care (Desert IIospital); that lie understood it was
fighting having to pay the tax while leasing the site and that it may not purchase the
hospital; that lie felt a reduction in the utility tax is a positive step, but questioned the
amount projected to be reduced in relation to the amount of utility bills that are paid locally
Which would suggest to him that such costs would increase $4-5 million in the next year,
and he did not see that happening, when there have been reductions instead in die telephone
charges, and electric rates; that lie questioned why the City thought the cormnonity would
pay $4-5 million more than it did in 97-98; that the number being reported as to average
residential savings is $12-30 per year, and if $30 represented a 1/10 reduction that would
mean that the person's utility tax for the year is $300; that the debate during the election, by
the City, was that no one paid more than $100 in utility taxes; and he questioned which was
true.
Dick Sroda, resident, stated that it pained hint that the tax was only being reduced by l/2 of
I%; that he slid not believe any additional police services are now or will ever be needed
downtown; that ornly 8% of the crone occurs downtown; that special services to an area are
to be through assessment districts, and not all taxpayers should have to pay for a few to (061-
benefit; that the utility lax is anti-business; that the City borrowed $400,000 for the rail 023)
station, but Amtrak is reportedly losing $90 million this ,year; that if the utility bills are
reduced, the savings is that of the benefactor, and not the City's to take.
There were no further appearances, and the hearing was closed.
In response to question by Council, City Manager stated that he was not aware of what
figures Mr. Meeks was using as far as an increase in utility costs; that the utility tax relates
to the volume of utilities used, and the decrease is projected from $4.4 to $3.8 million; that
the $650,000 draw from reserves leaves a reserve of about 10%.
Councilmember Barnes stated that direction was given in workshops, and one was that some
of the capital projects be addressed, and he was willing to use the reserves to make that
happen; that the Council's consensus in workshop was that the downtown is the jewel of the
community, and its deterioration would be synonymous with that of Palm Springs' -
although not literally - and there have been problems developing down town which could
escalate Knot addressed now; that the City Manager and OMB have worked diligently on
the Budget; that the downtown experience is a citywide issue, and not just a downtown
issue. He added that there are some efforts underway at die CVAG level to address the
transient and homeless issues, e.g., Martha's Kilclien is considering building a major
facility in Indio, with a satellite elsewhere; that the $650,000 transfer from reserves covers
other than just parks.
City Manager stated that there are other funds in the context of capital improvements,
which are outside of those in the budget, i.e., he anticipated coming back to the Council in
September regarding relocation of Fire Station 1, and noted that the door has been repaired.
In response to question by Council, OMB manager stated that the property tax revenues
were based on a 2% growth rate, plus the expected increase as a result of Tenet Care.
Councilmember Reller-Spurgin stated that when Desert Hospital was considering
privatizing, she was asked to serve as a corntnunity representative on the committee, and
she toured the different facilities, and at that time, she was intrigued that the City would be
able to benefit from the property tax increase; that she has since gone back to members of
the Board and has been assured that the City will get that property tax revenue.
Council Minutes
6-3-98, Page 3
Councihnember Hodges stated that the utility tax reduction is not a large percent, but it is a
major step toward its reduction, and hopefully its total elimination, and in the meantime the
City must survive and give its citizens the quality of life that they want.
Councilmember Oden commended the City Manager for the report and follow through oil
the Council's requests; that plan checking and capital improvements are responsive to the
community's needs and wants; that downtown is perceived for visitors, bill residents alike
enjoy its benefits; that he concurred regarding the utility tax reduction; that people said the
City was too top heavy, and that has been addressed.
City Manager stated that regarding the PIO position, it will be delayed in order to fulfill
comtnitnent to the parks, and capital projects which are one time and not on-going costs.
Mayor stated that the budget is a fist of priorities; that it would be idealistic to believe that
tlae utility tax can be eliminated in one swoop; that the advisory vote was to reduce it and to
continue the level of service; that the budget in its entirety is a fairly balanced distribution,
and in some instances, service levels have been increased; that there is a high priority for
capital improvement, to conlhue the "recapturing the neighborhoods" program, reduce the
utility tax by 1/2%, reducing LMI convention center operating expense, and increasing
performance level as to increased visitors, and room tax which is projected for the first time
at$10 million; that a major cost must be recognized, in that growth cannot continue without
rewarding employees who do the work; that the offer to the employee units was fair and the
units were gracious in accepting the offers, with some minor details to work out; that he
was not in favor of contracting the fire department, and it is as good as it is because the
Council has made it that way, and he caged that die department ,rat least review the idea of
using reserves firefighters.
Resolution 19268 as recommended, was presented; after which, it was moved by
Kleindienst seconded by Oden, and unanimously carried, that R19268 be adopted.
2. CITYWIDE NUISANCE ABATEMENT LIENS
Recommendation: That the Council conduct hearings on special assessment liens for
various public nuisance abatements throughout the City, and set liens as appropriate.
Director of Planning & Building slated that the abatements ranged from weeds to trash (057-
enclosures to boarding up vacant buildings, some with very serious problems; that the costs 01:3)
are related to the contracted amount plus city administrative costs. He noted that the cost of
697 W. Las Vegas Road has been paid, and should not be included in the liens.
Mayor declared the hearing open.
Benjamin Garfunkle stated he purchased his property in 1991 for a retirement investment;
that he did not have enough properly to comply with trash enclosure requirements, and lie
was allowed to use dumpsters until 1996 when lie started receiving notices from the City;
that lie could not get help from the trash collector because lie did not have an enclosure; that
an enclosure has now been approved by the City; that the property is in foreclosure; that he
requested that the penalty costs be removed; and that the property is now ill compliance.
Randal Heinz, resident, representing Bridge Capital, stated that its property was posted
when in foreclosure, and they have no record of receiving the public nuisance notice; that it
is again in escrow; that the liens will jeopardize the sale, which could lead to it remaining
vacant; and that the City needs to deal with the mortgage holders, since those who are
generally served, are not the ones who will be doing the work.
There were no further appearances, and the hearing was closed.
In response to questions by Council, Director of Planning & Building stated that regarding
Mr. Garfunkle's property, that there were a number of meetings in which it was thought the
property could be made to comply, that it was finally referred to the City Attorney and
taken up to the point of a court appearance before any work was started; that because of
recent zoning changes concerning walls, the problem could be solved; that as of this date,
Council Minutes
6-3-98, Page 4
the trash was not fitly in the enclosure, which could lead to the start of another action; and
that the Council may uphold, overrule or modify the lieu.
In response to question by Council, City Attorney stated that the notice goes to the lender of
record, although new loans would not be known, and the procedure was changed a few
' years ago to direct notices to the lender.
Resolutions 19269 through 19297 as reconmmended, were presented; after which, it was
moved by Barnes, seconded by Oden, and unanimously carried, that R19269 through 19297
be adopted; specifically excluding 697 W. Las Vegas.
PUBLIC COMMENTS:.
a) Comments on matters not related to an agenda item:
Richard Milanovich, Chairman of the Tribal Council, slated that they were unable
to obtain a video tape of the May 20 meeting, and therefore assumed that certain
comments were ascribed to the Mayor and City Manager relating to tribes joining
CVAG, i.e., that fees collected were not going back to the property and near tie
adjoining property against which the fees were assessed, as a statement of the
Tribal Council, when in fact it was his own personal frustration which he had
expressed; that the tribal land is less than 2% and much of it is in the canyons,
cemetery, and therefore a small part of the total; that the tribe voluntarily
participates 100% in the payment of the utility tax, which is considerable for the
casino; that TUMF fees are being paid; that what was expressed at the joint
meetings is that they do not want to see any tribally held land assessed those fees,
and that is because no governmental agencies pay those fees; and to his
understanding, allotted land is still assessed fees when development takes place;
that the tribe also participates in tine room tax, and possessory taxes are also paid;
that an economic survey was done by the Claremont Colleges in 1996, as to the
impact of the casino in the comnnurity, and the result of the survey was received in
1997, which showed a $30 million direct contribution back to the community in
wages, goods services and benefits; that an initiative petition has qualified for
November, which would stifle some of the gaming operations, and it would be nice
if the Council would send a letter of support for the initiative, and he would like to
carry such a letter to a League of California Cities meeting on Julie 12.
Councilmember Odell requested a copy of the survey. Mr. Milanovich indicated
he would provide it.
Julie Bosch, President of the Pahn Desert Skating Club, cormnnented on local efforts
to retain the ice skating rink in the Palm Desert Mall, leading to the formation of a
committee to fill(] a replacement rink, and asked for a City liaison to the committee,
which in no way would financially obligate the City to the a future project, but to
help explore alternative ideas and options.
Mayor noted that the Parks & Recreation Commission Chair as agreed to serve.
John Allen, President, P.S. Firemen's Association, announced the upcoming 67th
Annual Fish Fry at Ruth Hardy Park, Julie 6.
Jim McClean, resident, thanked the Mayor for the level of confidence expressed in
tine fire department services, which are provided at or below median costs for fire
protection.
COUNCIL COMMENTS/ANNOUNCEMENTS/INTERA(3ENCY REPORTS:
a) Mayor and Commihnembers reported on various civic and commnunity
organizational meetings and events which they attended, subsequent to the last
regular meeting, and announced upcoming events of community interest.
'J
Council Minutes
6-3-98, Page 5
b) Councilmember Hodges reported CVAG budget adopted, with no increase in dues
for the ninth year, and the amended SPA will be forthcoming to allow Blythe to join
it; that the CHP is attempting to find ways to solely fund the thermal imaging
purchase, since the Slate cannot accept the city funds; and she questioned when the
MVP landscaping will occur. She stated the Dog Park is targeted to open in Fall,
1998. '
c) Councilmember Reller-Spurgin requested an analysis of the fiscal impact of
Annexation 26 on police and fire services.
d) Councilmember Odell stated that the Board of Supervisors is looking at possible
alternate ways to deal with homelessness, and he was hopeful that the "Martha's
Kitchen" concept will be allowed to evolve as a model of how it is being addressed
in the Coachella Valley.
e) Mayor reported on results of meeting with Legislators concerning the Motor
Vehicle License Fee proposed legislation, which could result in $1.7 trillion loss in
revenue to the City; reported his appointment to a Mobile Source Reduction
Cotmnittee (RCTC) which looks at both state and federal funds, and garners access
to those project funds.
f) Councilmember Barnes requested that when the Wastewater Treatment Plant issue
is scheduled for study session, there be a complete report, including the details of
the concept, starting from the beginrring of how it came about, through the date of
the study session at which it is reviewed, and where it ultimately could lead.
3. ADDITIONAL LEGISLATIVE ITEMS: None.
CONSENT AGENDA: '
City Attorney noted that an assignment was approved at the last meeting, and subsequently, a
sublease was discovered, which probably should have been approved by the Council, and the
proposed resolution allows going forward and approving the sublease, which is a new document and
closes that loophole. He added that concerning Item 8, the agreement only allows investing the
bond funds, and does not affect the Mayor's financial interest, and he would be free to vole. Mayor
noted that he would continue to abstain in the interest of caution.
4. MO 6160 approving Change Order No. 2 to contract with G & M Construction, for an increase (11T-
of$11,619.45 for underground storage tank removal and replacement, CP95-17, A3902. 0OF3)
Hodges abstain-Client of Employer.
5. MO -_ approving agreement with Morgan, Lewis &Bockius, LLP, for labor negotiation
services. Item withdrawn.
6. MO 6161 approving settlement agreement with PSPOA concerning lawsuit entitled Bridges v. (09(i-
City of Patin Springs. 006)
7. Res 19298 extending City participation in Riverside County Abandoned Vehicle Abatement (123-
Service Authority. 025)
8. MO 6162 and 6163 authorizing the Treasurer to enter into long-term 'investment agreements for (155-
the Airport Revenue Bonds, Series 1998 Reserve Fund ($561,221) and the Airport Passenger ) '
Facility Charge Revenue Bonds, Series 1998 Reserve Fund ($851,908). Kleindienst abstained
due to prior FPPC ruling concerning the Airport Master Plan.
9. MO 6164 directing that each department, board and or commission which has adopted a (063-
Conflict of Interest Code to review its code, and if a change is necessitated by changed 001)
circumstances, to submit an amended code in accordance with provisions of the Government
Code.
yt) ,a
Council Minutes
6-3-98, Page 6
10. Res t9299 declaring intention to levy and collect 1998-99 assessments, approving the (138-
Engineer's Report, and setting hearing thereon, for PMD9, Flora Vista. 007)
It. Res -- declaring intention to levy and collect 1998-99 assessments, approving the Engineer's
Report, and setting hearing thereon, for PMD8, Vintage Palms. Item Withdrawn.
12. Res - declaring intention to levy and collect 1998-99 assessments, approving the Engineer's
Report, and setting hearing thereon, for PMD7, Sunrise Norte. Item Withdrawn.
13. Res --_ declaring intention to levy and collect 1998-99 assessments, approving the Engineer's
Report, and setting hearing thereon, for PMD6A, 6B,6C, Chia Road, Parkside Estates and Park
Sonora tracts. Item Withdrawn.
H. Res -- declaring intention to levy and collect 1998-99 assessments, approving the Engineer's
Report, and setting hearing thereon, for SLMD4, Eagle Way. Item Withdrawn.
15. Res 19300 declaring intention to levy and collect 1998-99 assessments, approving the (056-
Engineer's Report, and setting hearing thereon, for SLMD3, Crossley. 007)
16. Res -- declaring intention to levy and collect 1998-99 assessments, approving the Engineer's
Report, and setting hearing thereon, for SLMDl and 2, Belardo & McManus. Item Withdrawn.
17. Res 1930t and 19302 approving Payroll Warrants and Claims & Demands.
(086-
Note abstentions, if any: 016)
Councilmember Warrant it Payee Particular Nature of Conflict
Hodges 932058 G&M Const Client of Employer
' 932067 Granite Const. Client of Employer
Reller-Spurgin 932246 Spurgin Spouse.
18. Res 19303 consenting to an amended and restated sub-ground lease and leaseback agreement (051-
between MillionAir Palm Springs and the Nightingale Family Trust. (materials to be provided 023)
at meeting).
It was moved by Oden, seconded by Barnes, and unanimously carried, Ihat R19298 through
19303 and Minute Orders 6160 through 6164 be adopted, with abstentions as noted.
ADDED STARTERS: None.
REPORTS & REQUESTS:
CITY COUNCIL reports or requests
a) Boards & Commissions: Appointments for terms expiring 6-30-98, and interim
appointments to various boards and commissions. Upon motion by Kleindienst
seconded by Reller-Spurgin, and unanimously carried, the following appointments
were approved, with other directions provided to City Clerk, as noted, all terms
June 30, 2001, unless otherwise indicated:
Rent Review Paul Parry, 6-30-1999 (060-
016)
Adm Appeals Nina Clifford (060-
Daun DeVore 6-30-1999 030)
VillageFest (retail) (Mr.) Tracy Heller (060-
(retail) Alan Livreri, 028)
Personnel Sid Chambers (060-
014)
Council Minutes
6-3-98, Page 7
(0601-
Public Arts Leo Cohen 023)
1 full term, (unfilled, City Clerk to
readvertise)
Human Rights Gloria Hill (060-
Dean-Stephen Kaufman, 027 ) '
Unfilled: Council to review short list,
advise Mayor by June 5, interviews, to be
scheduled accordingly; or, in absence
thereof, City Clerk to readvertise.
1, 1-yr term, 6-30-1999
1, 2-yr term, 6-30-2000
1, 1-yr term, 6-30-1999
Plannin Mark Matthews (06(1-
g On)
Library Jann Robbins (060-
Richard Hostrop On)
HSPB John Harrell (060-
(Ms) Tracy Conrad, 6-30-1999 011)
Linda Young 6-30-2000
Airport Comm Chuck Cheeld (060
001)
Parks & Recreation Bruce Bushore (060-
Dayle Holt 021)
b) It was moved by Reller-Spurgin, seconded by Barnes' and unanimously carried, (050-
that Councilmember Hodges be appointed as temporary alternate member to attend 0013)
the Executive Committee meeting of the PSDRCVB on June 16, 1998.
PUBLIC reports or requests: None
STAFF reports or requests: None
ADJOURNMENT
There being no further business at 9:30 p.m., the Mayor declared the meeting adjourned to June 4,
1998, at 4 p.m, in Studio B, to meet in joint session with the P.S. Unified School District Board.
JUDITH SUMICH
City Clerk
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