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HomeMy WebLinkAbout1998 - MINUTES - 7/29/1998 CITY OF PALM SPRINGS CITY COUNCIL MINUTES JULY 29, 1998 An Adjourned Regular Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor pro tem Oden, in the Council Chamber, 3200 Taliquitz Canyon Way, on Wednesday, July 29, 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, and Reller-Spurgin Absent: Mayor Kleindienst The meeting was opened with the Salute to the Flag, and an invocation by Rev. Jerry Johnson, Lily of the Valley Church REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on July 24, 1998. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 5 of agenda this date. HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: - No Business COMMUNITY REDEVELOPMENT AGENCY: Mayor declared the meeting adjourned for the purpose of convening as the Community Redevelopment Agency; after which, the Council reconvened, and business resumed as follows. FINANCING AUTHORITY: PUBLIC FACILITIES CORP. Convene in Joint Session as the City Council, the Financing Authority, and the Public Facilities Corp. APPROVAL OF MINUTES: Financing Authority: April 1 & 15, 1998; Public Facilities Corp: October 16, 1996; it was moved by Barnes, seconded by Hodges, and unanimously carried, that the referenced minutes be approved. PUBLIC COMMENTS: (3-minute limit per person on matters within the jurisdiction of the two entities, and limited to the following matter as to the City Council). None LEGISLATIVE ACTION: a) REFINANCING PORTION OF 1998 REFUNDING CERTIFICATES OF PARTICIPATION RE WASTEWATER TREATMENT PLANT/MASTER LEASE/CAPITAL PROJECTS). Consideration of actions to authorize 1998 Refunding Lease Revenue Bonds, Master Lease Project, not to exceed $3.1 million; and approve preliminary official statement, and related bond document actions. Director of Finance & Treasurer stated that the financing relates to the master lease project purchased from SENCA for the property underlying the convention center and the Wyndham Hotel, and which was originally part of the Wastewater Treatment Plant financing; that this refinancing relates only to the master lease, and that the WWTP portion remains in place; that the refinancing is projected at 3.6% to 5%, and extending the term to match other bonds, from 9-1-2014 to 4-1-2015, and a savings of $325,999 over the term of the bond is projected having a current value of $267,548, He reviewed other financial projections contained in his report. Council Minutes 7-29-98, Page 2 In response to questions, the Treasurer stated that the average savings is $22,000 per year, ranging from $13,000 to $26,000, although the first year is nominal. Res 19, Res 98-01, and Res 19338 of the Financing Authority, the Public Facilities Corp., and the City Council, respectively, were presented; after , which, it was moved by Reller-Spurgin seconded by Barnes, and unanimously carried, that R19, 98-01 and 19338 be adopted; Kleindienst absent. Mayor/Chairman declared the meeting adjourned as the Financing Authority and the Public Facilities Corp; and the City Council remained in session. APPROVAL OF MINUTES: It was moved by Barnes, seconded by Reller-Spurgin and unanimously carried, Kleindienst absent, that the Minutes of July 1, 1998 be approved, subject to typographical correction. PUBLIC HEARINGS: None PUBLIC COMMENTS: a) Comments on matters not related to an agenda item: John Tymon, resident, expressed concern regarding the location of the joint meeting with the Tribal Council on July 22, 1998, the lack of taping of the meeting, and limited number of seating available for the public; and suggested that in the future, such meetings be held in rooms 'better suited ' for recording and broadcasting, or tape-delayed, ,and possibly curtail dinner; and that he considered it awkward for the Tribal Council chairman to have asked for a letter of support from the Mayor, police and fire departments, supporting the Tribe's position regarding gaming, and the City should not take a position un-befitting its power. b) Comments concerning Item 4: Doug Galloway, resident and Jim Barrial, resident, member and chair of the Parks & Recreation Commission, each commented on the sub-committee's (109- success in bringing the dog park to fruition, and urged approval of the item. 019) Mr. Barrial also thanked members of the subcommittee, as well as the Public Arts Commission for its participation in the project. c) Comments concerning Item 15: Mike Azeka, CW Energy, stated he was available to answer any questions (123- regarding this matter. 022) COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENC't REPORTS: a) Mayor and Councilmembers reported on various civic and community organizational meetings and events which they attended, subsequent to the , last regular meeting, and announced upcoming events of community interest. b) Councilmember Hodges commented on the CV.AG Executive Committee meeting, and City Manager reported that SB 459, creating the CV Transportation Authority, was approved on this date, andd it will include the (123- Count all cities in the Valle y giving the Valley a total valley- 025) y, y, and Blythe, ruin, wide planning and implementation program. Council Minutes 7-29-98, Page 3 c) Councilmember Oden stated that he attended a League meeting in Monterey, and will provide an additional report at the next Work Shop. d) Councilmember Barnes reported that he and the Mayor met concerning the celebrity homes issue, and will be meeting again to recommend additional committee members. ' LEGISLATIVE ACTION: 1. CUP 5.0778 - PATLER - CONVENIENCE & NECESSITY Recommendation: That the Council adopt Resolution of Convenience & Necessity for the establishment of a cocktail lounge with outdoor seating at 200 S. Indian Canyon Drive, required pursuant to ABC regulations. Director of Planning & Building reviewed his memorandum. In answer to questions by Council, the Planning Manager stated that the operation currently is a full-service restaurant, and while the operator intends to continue to serve food, he (078- desires to be freed of the obligation to do so under his current liquor license, and 075) this will enable a change in the liquor license designation; and that a new outdoor dining area will be added. Resolution 19339 as recommended, was presented; after which, it was moved by Hodges, seconded by Barnes, and unanimously carried, Kleindienst absent, that R19339 be adopted. 2. ORDINANCES FOR SECOND READING & ADOPTION (Intro. 7-15-98) ' City Clerk read title Ord 1559 repealing Chapter 2.23 of the Municipal Code, abolishing the Visitors & Promotion Commission; and (060- Ord 1560 amending sections of Chapter 11.34 of the Municipal Code concerning 024) taxicab operation and enforcement at the Airport. (Ministerial revisions as to section numbering). after which, it was moved by Reller-Spurgin, seconded by Barnes, and unanimously carried, Kleindienst absent, that further readings be waived, and that 01559 and 1560 be adopted. 3. DEMUTH PARK BATTING CAGES Recommendation: That the Council approve a ten-year lease with P.S.P.B., Inc., for the portion of DeMuth park upon which the batting cages are located, A_. (If approved, lease will supersede prior ten-year lease to Sunwest Sports Park, Inc., A3238). City Manager reviewed details of the memorandum of Director, Dept. of Transportation, and noted that the City Attorney recommends a five-year agreement. (109- City Attorney stated that the proposed lease would grant a 10-year period, with two 005) 5-year renewal options, and it would take 20 years and no process to address whether the City's needs are being met in terms of the number of cages, changes that might be needed, maintenance or upgrading of the cages. Director, Dept. of Transportation stated that the lease is essentially the same as that which is in place, and for which the Redlands Bank is making rental payments; that in discussing the lease with the proposed new owner, an effort was made to identify how much was paid for the operation and the amount of time for amortization of costs, and possible lease changes; that the lessee was not willing to make those changes, and desires the same lease that was initially in place. 6� d Council Minutes 7-29-98, Page 4 In response to question by Council, Stacey Fletcher, Palm Desert, stated that Mr. Coler is the attorney for PSPB, and Gary Nunn (?) is the monetary investor, neither of whom was available this date; that it was her understanding that the investors are absolute in their desire to have at least a 10-year lease with one five-year option, because of the size of the investment; that they do not wish to make public the amount of money invested in the purchase, but need the ten years to recover the , investment, i.e., because of the decreased activity at the park as a result of the new sport facility in Cathedral City; and that it is their intent to rebuild and to expand the Palm Springs operation, but not if they do not have the time desired. She stated that there would be no interest in a mutual option, since it was not an option of value, rather a renegotiation of the lease. City Manager stated that his original discussion with Mr. Coler was around the ten-year time period, and he would withdraw his recommendation at this time; that the bank is making the payments; and he does want to bring this matter to closure. It was moved by Reller-Spurgin, seconded by Barnes, and unanimously carried, Kleindienst absent, that this matter be continued to September 2; and that confidential proprietary information be provided to the Council in closed session. 4. DOG PARK GATES & FENCING Recommendation: That the Council approving an agreement with Phill Evans, for $45,800, to create entryway gates and perimeter fencing for the new Dog Park to be located directly behind the City Hall, A4008. Public Arts Coordinator highlighted her memorandum, and noted that idle Public Arts Commission has combined unique form and function in this project, and it (109- provides gates and fencing for the facility, and there are: no City General Funds 0 19) , involved. Councilmember Barnes stated that this project is a good example of commissions working together to make a project come together. Minute Order 6205 as recommended, was presented; after which, it was moved by Hodges, seconded by Reller-Spurgin, and unanimously carried, Kleindienst absent, that MO6205 be adopted. 5. ADDITIONAL LEGISLATIVE ITEMS: (Satisfies agenda posting requirement; materials provided at meeting). A5. BELARDO ROAD BRIDGE & STREET Res 19340 resolving to partner with the Agua Caliente Band of Calmilla Indians to seek federal grant assistance to construct the Belardo Road bridge and missing gap segment of Belardo Road from Sunny Dunes to Mesquite, under the Public Lands Highway Discretionary Fund Program and TEA-21. City Manager noted that under the grant program, certain funds are set aside for Native American infrastructure and related projects; that the City staff has worked (136- closely with Tom Davis, Tribal Planning Consultant, and the application will be 011) ' ready for submittal on August 5; and that this represents an opportunity to get funds, and not cost the local taxpayer anything; and that he considered it a significant project, and one which will occur. Res 19340, as recommended, was presented; after which, it was moved by Reller- Spurgin, seconded by Barnes, and unanimously carried, Kleindienst absent, that be adopted. Council Minutes 7-29-98, Page 5 CONSENT AGENDA: 6. MO 6206 approving fourth amendment to Agreement with Tait & Associates, Inc., for (117- design services for underground storage tank removal and replacement, for an increase 008) not to exceed $11,670, CP95-17, A3827. 7. See Item 22. 8. See Item 21. 9. MO 6207 qualifying ARINC, Inc., CDI, Inc., and Siemens/Nixdorf for further evaluation of requests for qualifications concerning Airport Communications consulting (051- services; and declaring Dynamic Concepts Consulting, Edwards and Kelcye, Inc., and 089) Info Science as non-responsive and not subject to further consideration. 10. See Item 23. It. MO 6208 approving agreement with Construction Supply Services for treating, cleaning, sanding and sealing interlocking pavers in the downtown area, for $0.574 per square foot, not to exceed $58,500, CP98-13, A4010. (103- 12. Res 19341 establishing the hour for meeting in Closed Session, as 6 p.m., preceding 048) regular meeting dates, and study sessions. (114- 004) 13. MO 6209 agreeing to purchase price of a 160.4 acre parcel in the City of Palm Springs, immediately adjacent to and west of the Palm Hills Specific Plan Area; by the Coachella (123- Valley Mountain Conservancy, to be held in permanent open space, for $3,311.67; 011) ' City's approval required under California Public Resources Code. 14. Res 19342 approving continuing appropriations from 1997-98 into 1998-99 fiscal year. (061- 15. Res 19343 waiving the 1/3 mile scenic setback requirement from I-10 for a WECS 023) redevelopment project on BLM right-of-way by Venture Pacific Inc., required under a (123- 1985 settlement agreement between the City and the BLM -- current ordinance requires 022) a setback of only 500 feet. 16. See Item 25. 17. MO 6210 awarding contract to Granite Construction Co., for $212,212 for the AHRM overlay on N. Palm Canyon Drive from Vista Chino to Alejo, and on Camino Encanto, (136- CP98-07, A 4012. Hodges abstain. 057) 18. See Item 24. 19. Res 19344 approving Claims & Demands. Note abstentions, if any: Councilmember Warrant N Payee Particular Nature of Conflict (086- Hodges 933718 Desert Air Client of Employer ) 933756 G & M ' 933763 Granite Reller-Spurgin 933905 Spurgin Spouse It was moved by Hodges, seconded by Oden, and unanimously carried, Kleindienst absent, that MO 6206 through 6210 and Resolutions 19341 through 19344 be adopted; with abstentions as noted. r.^ R a ,uy�, Council Minutes 7-29-98, Page 6 The following Consent Agenda Items were acted upon separately: 20. MT. FALLS/PRESERVE GOLF COMPANY Recommendation: That the Council approve of Landlord Consent and Estoppel and ' lender estoppel certificate subject to CA final language; and approve a Ist amendment to ground lease, providing assignment of Mountains Falls Lease to Preserve Golf Company. A3717. City Attorney stated that the action concerns an estoppel certificate, an estoppel agreement, and an amendment of the ground lease; that there are various aspects of the project that are in the name of Mountain Falls, and the owners are trying to transfer everything into the new entity's ownership, thus Preserve Golf would take over the ground lease, all the assets concerning the golf course, the County lease, and the Coler Estate, which are now held by Palm Mountain Co.; that it would be a problem to not have all those assets in the same name, and through the proposed assignment, everything will end up in the name of the same entity; that those assets represent all of the assets of Mountain Falls, and the ownership of Preserve Golf will be the same as Mountain Falls -- basically, Mr. McWethy and Mr. Grand; and that he recommended approving the assignment document. He stated that concerning the two estoppel documents, the company is in the process of ;getting financing, and over the last couple of days, he has been working out the specific (109- language, and some modifications are needed, and he recommended that the 018) estoppel documents be approved with the language to be finalized by the City Attorney. He stated he had the letter concerning the ground pease which specifies what the ownership interests are. In answer to questions by the Council, the City Attorney stated that there are no ' changes to any of the substantive provisions of the ground lease; that one estoppel relates to the ground lease, and the other to the settlement; agreement and the MOU; that issues are somewhat the same with respect to both documents, and he did not think the current language did what he wanted it to do, and after talking with the lender this date as to the type of changes needed, language was worked out, which he felt would be workable; that concerning an obligation on the part of the city by agreeing to the estoppel documents, the documents basically certify that the developer is not in default of any of his obligations under these various agreements; that it does not approve the project; that the project is still going through the land use approval process, which includes environmental review, and all of that will come to the Council at a later point in thrie; that the estoppel document is something given for the benefit of the lender, and does not affect any of the deal points between the City and Mr. McWethy, nor prejudice the Council's ability to take whatever action it deems appropriate when the project per se comes before the Council. Councilmember Hodges stated that she may not understand all the legal terms, however, she felt very uncomfortable about the issue, in that he seemed as if the Council were giving some type of a stamp of approval to sornething that she was not ready to do. City Attorney read language he was considering adding to the estoppel certificate, ' as follows: It is expressly understood that this estoppel shall bind landlord only in its capacity as landlord and nothing herein shall limit the City of Palm Springs from exercising its police power in approving, modifying or disapproving the project and nothing herein shall subject City to any liability ---- to any party herein for exercising its land use approval power as the City deems appropriate. t, YI45, Council Minutes 7-29-98, Page 7 He stated he was trying to reinforce the difference between the City acting as the landlord under the ground lease agreement, which provides that if the tenant seeks financing, the lender is able to ask whether, under the lease agreement, anything has been breached in terms of the lease; that as landlord, the City would be declaring whether or not that has occurred; that the City wears a separate hat as landowner of the property, from that of the approving governing body that has to act with respect to the environmental and all the other issues that concern the project; that he wanted to reinforce that even if the Council were to grant the estoppel, it would not be prohibited in terms of exercising its land use approval to approve, disapprove, or do whatever it wished, and it will not have any liability under the estoppel certificate for doing so. He stated that, technically, that should not be necessary, because it only deals with the ground lease estoppel issues, but he was concerned enough about the issue that he wanted the language he suggested, and perhaps it would be sufficient that there would not be an issue for the Council, as long as that language was inserted in the estoppel. Mayor pro tem stated that the language is significant because it clarifies the two hats that the Council wears — the judicial and the legislative -- and that it is not compromising either one by taking this particular action. Motion by Barnes, seconded by Oden, to approve the recommendation, failed to carry by the following vote: AYES: Barnes & Oden NOES: Hodges and Reller-Spurgin ABSENT: Kleindienst City Attorney stated that under the ground lease, the tenant has the right to make a ' formal request that City move forward with the estoppel, and it is required to respond within ten days, and if it does not do so, it is required to specify what defaults may exist; that he can advise the tenant they will have to send the formal letter and start the process, but the Council will have to respond within ten days; that the Council did not plan to have another meeting until September, and in not responding within the ten days, it would be in default of the lease agreement, and he was uncertain as to the consequences of taking another twenty days to have another meeting; and that the Council needed to decide if it wished to schedule another meeting in August, or take a wait and see position. Mayor pro tem questioned if the Council did not act, and then because of failure to take action within a ten day period, would it then be dealing with a different premise from that point forward, because it would then be in default of its obligation. City Attorney stated that the City would technically be in default, and there is a significance, because it was his understanding that the tenant has a loan which has another two weeks in which to be funded, and if they do not make that deadline and they lose the financing, the consequence of the City's default is potentially the loss of their multi-million dollar loan; that he did not hear any objection to the matters concerning the ground lease assignment, and perhaps that action could be taken separately. He stated he did not think the tenant would sue if it took another month to make that change, but it would send a negative message to the developer that the Council was not willing to approve a change in name. Minute Order 6216 approving the First Amendment assigning the ground lease from Mountain Falls to Golf Preserve Corporation, was presented; after which, it was moved by Hodges, seconded by Reller-Spurgin, and unanimously carried, Kleindienst absent, that M06216 be adopted. F 1j 11G Council Minutes 7-29-98, Page 8 City Attorney stated in view of the split vote, direction was needed from the Council as to how to proceed, in that it could be very specific in its direction, schedule another meeting in August to deal with the issue, or take a wait and see position; that the tenant has not formally submitted the request for the estoppel, but could do so immediately following the meeting, which would start the ten day period in which to respond, and if the Council did not act timely, and they lose , their loan as a consequence of that, it could be a significant problem. Councilmember Reller-Spurgin stated that her concern was how an approval to this will be perceived, and the fact that there is a lot of money involved. Councilmember Barnes stated he was comfortable with the language that was suggested by the City Attorney; and he questioned if the City would have any liability in terms of repayment of the developer's loan, simply by having taken its action on the estoppel, in particular, with the language inserted by the City Attorney. City Attorney stated that with the suggested language he has been trying to negotiate, he did not think the Council would be exposed to any liability; that his effort is to: a) indicate that in the event of future litigation, the City would not be bound by the estoppel; and b) the estoppel has nothing to do with the Council exercising its land use authority in terms of approving or disapproving the project, and it is irrelevant and the City could not be held liable on that; and the language is not yet in final form. In response to questions by Council, City Attorney that he told the lender's attorney on this date, and from that conversation he is aware that the lender has been advised from Mr. McWethy, that this project is not an approved project at this point, and there are significant issues, questions, concerns in the neighborhood, and ' environmental issues to be resolved; and it was his understanding that those are also considerations in terms of how the loan is funded. Councilmember Reller-Spurgin stated that the Council has not looked at this issue at all; that it has never come before the Council; and that the Council has not discussed it. City Attorney agreed, and stated that it is common with any type of lease agreement, if it is going to be financed, the lender wants to know that, at the point in time they make the loan, the lease is still in effect, that it is not invalid, and that there is nothing that would cause the lease to go away, because the lease is the security for the loan; that all leases have a provision whereby the lender can ask the landlord if there any problems under the lease; that it is precisely the case in this instance, and they have only asked the City for assurance that if the loan is made whether there were any reasons that would cause the City to declare the lease invalid, not in existence, in default, and if there were those reasons, to say so. City Manager stated that he had reservations regarding this issue, but after listening to the long discussion that the City Attorney had with the attorney for the lender, and with the certainty that the City Attorney will clot every "i" and cross every "t", to protect the City's interest, he recommended accepting his advice, and allow the City Attorney to go ahead and negotiate the language that he has ' discussed; and that he considered it an important step, and one which avoids what could be the problem outlined by the failure to do so, and ending up in a process of going through defaults that simply is bound to lead to court. He stated that the funds are at the lender's risk; that the City does not guarantee the funds, is not a co- maker, nor involved, and the lender cannot come back to the City seeking relief. Minute Order 6217 approving the estopples as recommended) by the City Attorney, in final form to be approved by the City Attorney, was presented; after which, it was moved by Barnes, seconded by Oden, and unanimously carried, Kleindienst absent, that M06217 be adopted. Council Minutes V xr� 7-29-98, Page 9 Councilmember Hodges stated it should be perfectly clear that she voted in favor, merely as a vote in favor of allowing this company to be able to get funding, if at all possible, and it should be clear to everybody that it is not a vote necessarily in favor of a project, and it should not be misconstrued because it is very, very important that there are a lot of things that need to be looked at, and the City Council has not taken step one to look at those as yet. Councilmembers Barnes and Reller-Spurgin and Mayor pro tem agreed. 21. CITYWIDE SIDEWALK CP97-12 - CHANGE ORDER Recommendation: That the Council approve Change Order No. 2 to contract with Contreras Construction Co., for an increase of$9,267.50 for the Citywide sidewalk construction project, CP97-12, A3961. Councilmember Reller-Spurgin stated that the affect of the Change Order is to return $13,000 to the General Fund, and not $9,267.50. Director, Dept. of Transportation stated that the change order relates to three aspects, all of which are grant funded, and accounted for by the grant category; that (129- while the three items are both increases and decreases, the net effect is an overall 002) increase of$9,267.50; and that the work was all performed by the same contractor, under one contract. It was moved by Hodges, seconded by Barnes, and carried by the following vote, that MO6211 be adopted: AYES: Barnes, Hodges and Oden ' NO: Reller-Spurgin ABSENT: Kleindienst 22. COGENERATION PLANTS Recommendation: That the Council approve agreement for chiller system maintenance for the Municipal & Sunrise Cogeneration Plants, and Airport equipment, with Carrier Building Systems, for five years, not to exceed $100,500, A4009. Director, Dept. of Transportation highlighted his report. Councilmember Reller-Spurgin stated that the City was involved in litigation with (052- this company for $110,000, and she did not feel she wanted to do business with 001) them again. Director, Dept. of Transportation stated that the problem with old equipment and parts is that they are not available from other sources; and that Carrier has done a good job taking care of the equipment at both plants. Minute Order 6212 was presented; after which, it was moved by Hodges, seconded by Barnes, and carried by the following vote, that MO6212 be adopted.: AYES: Barnes, Hodges, and Oden NOES: Reller-Spurgin ABSENT: Kleindienst Council Minutes 7-29-98, Page 10 23. MID VALLEY PARKWAY - CHANGE ORDER Recommendation: That the Council approve Change Order No. 13 to contract with Granite Construction Co., for an increase of $278,779.74, and extending contract duration by nine days, and completion date to July 15, 1998, to offset accrued liquidated damages for the Mid Valley Parkway, CP94-19, A3670. Councilmember Barnes noted that the change order appears to be to cover the liquidated damages, but the extension of time actually offsets those liquidated (123- damages. 023) City Engineer agreed, and stated that the increased costs are related to legitimate additional work. Councilmember Hodges stated she would abstain due to a client relationship with her employer. Minute Order 6213, as recommended, was presented; after which, it was moved by Barnes, seconded by Oden, and unanimously carried, Hodges abstained, and Kleindienst absent, that MO6213 be adopted. 24 MID VALLEY PARKWAY - CHANGE ORDER Recommendation: That the Council approve the first amendment to agreement with Parsons Brinkerhoff Construction Services, Inc., for an increase of $97,601.23, for management and inspections services for the Mid-Valley Parkway, CVAG funded, CP94-19, A3671. Councilmember Hodges questioned if she should abstain since the contractor is , overseeing the Granite Construction contract, for which she has abstained due to a (123- client relationship with her employer; and that in the interest of caution, she would 023) abstain. In answer to question by Council, City Engineer stated that the management and inspection services are tied to the progress of the contractor; that the staff feels the manager spent more time than was anticipated, and is entitled to the extra hour in administering the contract and getting the contractor to do what they were supposed to do; that there were instances of errors in the plans, unexpected items, e.g., SCE delay, Cathedral City delays, slow work by the contractor, yet the bridge was opened on time. He stated that the staff is in the process of trying to recover costs associated with errors in the design; and the additional time is not solely related to the punch list items. Councilmember Reller-Spurgin stated that her concern is the large amount of overruns; that it seems there is no accountability; and that the bid was submitted, and accepted, and they should do the work. Councilmember Barnes stated that the contractors include In their bids to be compensated for unforeseen circumstances. Minute Order 6214 was presented; after which, it was moved by Barnes, seconded ' by Oden, and carried by the following vote, that MO6214 be adopted: AYES: Barnes and Oden NOES: Reller-Spurgin ABSENT: Kleindienst ABSTAIN: Hodges fJ � �J Council Minutes 7-29-98, Page 11 25. PARKING IMPROVEMENT PROGRAM - BLUE COYOTE LOT Recommendation: That the Council award contract to Jacobsson Engineering Construction, Inc., for $139,522.80 for the Blue Coyote Parking Lot upgrade, CP98-08, A4011. Councilmember Barnes expressed concern at the amount in excess of the engineer's estimate for the project, and the impact it will have on the remaining parking program. City Engineer stated that the contractors are very busy, and not interested in bidding, and it appears rebidding will only result in higher prices; that there is still enough money to do the remaining parking lots, which are in design at this time. (108- Director, Dept. of Transportation stated that the project could be combined, 004) however, there is a narrow window in which the Blue Coyote lot is being targeted, so as to not interfere with the opening of the season business; that the Lobster Company lot is mainly dirt, and it will be easier to work; that the cost for the Las Caseulas, without the lights, would have been $105,000 for a similar size lot; that bids on other projects are also coming in higher. City Engineer stated that the unit cost from the bid was applied to the square footage of the remaining lots, which was the basis for computing that there would be enough funds remaining to do those improvements. Director, Dept. of Transportation stated that the Parking Fund will cover this project; that the full cost of the Lobster Company lot was not budgeted, and Parking Fund money will have to be appropriated for that; and that there is enough in the Parking Fund to cover the Blue Coyote, the Lobster Company, and the Mercado, and still have money to begin on the other lots; that he felt the costs would be higher if the projects are delayed; that the Lobster Company lot has potholes, no lighting, and poorly laid out. Minute Order 6215 as recommended, was presented; after which, it was moved by Barnes, seconded by Hodges, and carried by the following vote, that MO6215 be adopted: AYES: Barnes, Hodges, and Oden NOES: Reller-Spurgin ABSENT: Kleindienst ADDED STARTERS: None. REPORTS & REQUESTS: 21. DEPARTMENTAL REPORTS - Received & Ordered Filed (121- a) Treasurer's Investment Report - May, 1998 002) CITY COUNCIL reports or requests a) Boards & Commissions: If desired, appointments for remaining vacant ' unexpired terms, or further direction to City Clerk. Mayor pro tem announced appointments, and moved to approve the following, which was seconded by Reller-Spurgin and unanimously carried; Kleindienst absent. (Mayor previously indicated during interviews, for Council to proceed with appointments, as desired.) (060- Public Arts 1 full term, 6-30-2001 - LeeOna Holstrop 023) Human Rights 1, 1-yr term, 6-30-1999 - Simon Kearney 1, 1-yr term, 6-30-1999 - Ron Loya (060- 1, 2-yr term, 6-30-2000 - Marvin Goldberg 027) F� Y. ri l Council Minutes 7-29-98, Page 12 b) Councilmember Reller-Spurgin commended the Fire Department for its response to a recent fire in which a local business was destroyed, but its tiles were saved, allowing it to resume operations; and questioned when the Workers' Compensation matter would be returned to the Council. City Manager stated it would be scheduled for a workshop on September 9, and added that the contract with LMI has been executed. ' c) Oden: Req. Report on status of unused CDBG allocations. PUBLIC reports or requests a) Dick Sroda, resident, expressed opinion concerning the Dog Park fence, in that he did not like the Saguaro cactus representation. STAFF reports or requests a) City Manager reported that at the Tribal Council joint meeting, the Council requested help from the Tribal Council in getting the: BIA to move along the documents related to the Farrell Drive realignment acquisitions; and that a letter was sent by the Tribal Council on the following day. b) City Manager stated that there is great concern regarding the watering of vegetation at the former Market Place on E. Ramon Road, and he was (078- working with DWA to help avoid loss of the plant, materials, recognizing 042) there may be some costs involved. Council suggested he also wort: with the Tribal Council and the BIA. c) Director, Dept. of Transportation stated that it does not make sense to do ' only one-half of the Ramon Road Parking lot for Sunrise Plaza, which (085- serves the Mizell Center, and discussions with the CDBG Coordinator 014) indicated that there are funds remaining in three projects (Incubation, Micro-loan Business Incubation, and ? for a total of approximately $78,000, which will be reprogrammed by staff in order to complete the parking lot. Mayor pro tem stated that the Council has requested an update as to unused CDBG funds, and requested that a complete report be presented. City Manager stated it would be provided in September. ADJOURNMENT There being no further business at 9 p.m., the Mayor pro term declared the meeting adjourned. "JUDITH SUMICH City Clerk