HomeMy WebLinkAbout1999 - MINUTES - 12/1/1999 CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
DECEMBER 1, 1999
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,December
1, 1999, 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 Hodges, Jones, Oden, Reller-Spurgin, and
Mayor Kleindienst
Absent: None
The meeting was opened with the Salute to the Flag,and an invocation by Reverend Alfonso
Murray-Chaplain-Desert Hospital.
REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in
accordance with Council procedures on November 24, 1999.
REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All
Entities)- See items on Page 3 of agenda this date.
PRESENTATIONS: Commissioner Douglas Galloway
PSHS Student Body Report
PSHS Band Presentation
HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: FINANCING
AUTHORITY: COMMUNITY REDEVELOPMENT AGENCY: -No Business
APPOINTMENT OF MAYOR PRO TEM
It was moved by Hodges, seconded by Oden, and unanimously approved,that
' Councilmember Jeanne Reller-Spurgin be appointed.
PUBLIC HEARINGS: None
PUBLIC COMMENTS:
a) Comments on matters concerning item 2:
Howard Lapham, Palm Springs, read a prepared statement, copy on file in Office of the
City Clerk, which requested Council consideration of appointment of an Advisory Board (124-
to the Council concerning the Community Redevelopment Agency. 038
b) Comments on matters concerning item 3:
Jim Schlecht, Palm Springs, stated that there is concern over the Palm Hills area being 144-
included in the designation of the National Monument; that it is requested that the Council 002
support keeping the Palm Hills area out of the designation; that it is recommended a letter
be sent to Congresswoman Bono indicating that support.
Steve Lovekin stated that his family has owned its property in the Palm Hills area since
1918; that the family owns a total of five sections of land in the area, with two being
located in the City of Palm Springs limits; that the boundary line for the proposed
monument should be moved to exempt the area that is within the City limits; and that any
area projected for development should be excluded from the designation.
' Dr. Louise Lovekin stated that the development of the Palm Hills site will give the City a
large tax base; that it is the best land available for development; that the area provides for
cooler summers and is not seen by the City proper; and requested Council support Mr.
Schlecht's recommendation.
Council Minutes
12-1-99,Page 2
c) Comments on matters concerning item 9:
Arthur Brigman, 1900 E. Palm Canyon, stated that the transient occupancy tax should not
be levied on timeshares; that the timeshare owners do own the property; that at Club (140-
Trinidad,the entire property is property owner owned; that to charge transient occupancy 002)
tax is not right; and urged the Council to rescind the tax.
Joseph Scavuzzo, Palm Springs, general partner for Desert Isle, slated that the time-share '
owners are all second homeowners; that to place a transient tax on a homeowner is unfair;
that the timeshare occupant spends thousands in Palm Springs and the tax should be
rescinded.
d) Comments on matters not on the agenda:
John Connell congratulated the winners in the past election; and added that special
recognition should be given to Stan Barnes, former Councilmember; that Mr. Barnes
stood by his principles; that Mr. Barnes' entire family participates in the betterment of
Palm Springs; and added that Mr. Barnes will be missed on the Council.
Selena Tracer, Palm Springs, congratulated the winners in the past election; and added
that the situation at Ruth Hardy Park must be addressed;that the restrooms are being used
as a facility for sex; that it is not possible to use the restrooms for the purpose for which
they were intended;and that a security guard should be placed at the facility or the;facility
should be closed.
Dick Sroda, Palm Springs, stated that the market analysis for afTordable housing in his
opinion is shocking; that the Utility User Tax is unfair for the low income; and that there
are exemptions,but most pay the tax anyway.
Eric Meeks, Palm Springs, stated that the City needs a better Web page; that a citizen
committee should be formed to evaluate what could be done to enhance the site; and that '
this is a new technology,and that the City needs to address the issue.
Joy Meredith, President of Main Street, stated that the Council should listen to what Mr.
Meeks is trying to promote; that the banner program downtown tinned out well and urged
the public to view the banners.
COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENCY REPORTS: None
LEGISLATIVE ACTION:
1. ORDINANCE FOR SECOND READING&ADOPTION(Intro 11-17-99)
Councilmember Reller-Spurgin stated abstention due to proximity of residence.
116-
City Clerk read Title of Ordinance 1575 as follows: (123)
AN ORDINANCE OF THE CITY OF PALM SPRINGS,CALIFORNIA AMENDING
THE ZONING MAP BY APPROVING A CHANGE OF ZONE FROM R-1-C(S]NGLE
FAMILY RESIDENTIAL ZONE, 10,000 SQ. FT. LOT SIZE)TO PLANNED
DEVELOPMENT DISTRICT 59 ON 10.16 ACRES OF LAND AT 630 SOUTH
SUNRISE WAY, SECTION 24.
after which;it was moved by Hodges,seconded by Oden,and carried by the following
vote that 01575 be adopted.
AYES: Hodges,Jones, Oden and Kleindienst '
NO: None
ABSTAIN: Reller-Spurgin.
F J a
Council Minutes
12-1-99,Page 3
2. ORDINANCE FOR INTRODUCTION&FIRST READING-REDEVELOPMENT
PROJECT AREA EXTENSIONS
Director of Office of Management and Budget reviewed the staff report and added that the
action will extend 8 project areas; that the purpose of redevelopment areas is to eliminate (124-
blighted areas; that funding may not have been spent wisely in the past; but that the 038)
' extension of the time for the project areas does not necessitate spending of any funds.
Councilmember Hodges stated that she is not supporting the extension; that the project
areas have been a dismal failure in many cases; that an advisory board should be set in
place to oversee the project areas; that ideas could be generated for spending of the funds;
and that thus far she is not convinced that the extension is necessary.
Councilmember Reller-Spurgin stated that if debt is not occurred, then a project area
cannot be formed; and that if the extension is not approved the project area will be
eliminated.
Director of Office of Management and Budget stated that if debt is not generated, tax
increment cannot be collected.
Councilmember Oden stated that if the project areas are not extended the door will close
for future opportunities; and that he would support the concept of an advisory committee.
Councilmember Reller-Spurgin recommended a study session be dedicated to the
formation and accomplishments of the project areas; and that the discussion of the
formation of an advisory committee could occur at that time.
City Manager stated that the intent of a project area is to clean up blighted areas and to
bring an area up to its economic best; that funds are borrowed to promote redevelopment
in the area;that the tax increment comes back to help pay the debt; that some project areas
have not had a lot of activity; that the tool to continue to bring the community back is
' needed and recommended approval.
City Attorney stated that an argument can be made that some areas have not been
successful, but there have been some successes; that the Desert Fashion Plaza is a good
example; that without Agency participation the project would not be revitalized; that
Agency assistance with the Canyon Project and in Section 14 was vital to negotiations;
that the City is in competition with other Communities for projects; that the project areas
are a tool for economic development; and that without the tool, the City is at a
disadvantage.
Councilmember Jones stated that some of the project areas have been in existence since
1973; that on the economic development side, the goal is produce revenue for the City;
that if the funding did not go to a project area, it would go to the general fund; that the
parks in the City need work, and the funding would be available; that the project areas are
not ending tomorrow; that some of the extensions go to 2023, and that is too far in the
future; and that as of yet, it is not clear what the benefits are to the City.
Mayor Kleindienst stated that each area has a formula that generates pass-through to other
entities; that the purpose of the formation of the areas is to reduce blight and to produce
economic stimulation to the City.
City Manager stated that if the City did not have project areas, the tax increments would
not be generated to help spur economic development.
' Mayor Kleindienst stated that the project areas do assist in the 20% set aside for low and
moderate housing requirements; that some of the project areas have not been fruitful, but
without them, the economic development tool would be lost; that having the project areas
keep the City on par with other cities; that incentives would otherwise have to come from
the General Fund; and that the Director of Economic Development may have further
comments regarding the matter.
Council Minutes
12-1-99,Page 4
Director of Economic Development stated that the City needs more tools to entice
businesses, not less; that the question is how useful are the project areas; that without the
ability to offer incentives to businesses,the City will lose; that there is nothing to bring to
the table for negotiations without the incentives offered by the project areas; and that it
may be advisable to decide how to use the project areas to the City's best advantage.
Councilmember Reller-Spurgin stated that over the last eight years, the Council has had '
its hands tied by previous Council decisions; and that the ability for economic
development should not be lost.
Councilmember Jones questioned the formation of an advisory board.
Councilmember Oden stated that it sounded like the consensus of the Council was to form
an advisory board; and that the matter should be brought forward at a later date for
discussion.
It was moved by Reller-Spurgin, seconded by Oden,that further reading be waived, and
the Ordinance be introduced for first reading.
City Clerk read Title of Ordinance as follows:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALFIORNIA,AMENDING CERTAIN REDEVELOPMENT PROJECT AREA PLANS
PURSUANT TO THE PROVISIONS OF ASSEMBLY BILL 1342 AND EXTENDING
THE TIME LIMITATIONS IN WHICH SAID PROJECT AREAS MAY INCUR
INDEBTEDNESS OR RECEIVE PROPERTY TAXES
after which; it was moved by Reller-Spurgin, seconded by Oden, and carried by the
following vote that the Ordinance be introduced for first reading.
AYES: Oden, Reller-Spurgin and Kleindienst ,
NO: Hodges and Jones.
3. NATIONAL MONUMENT-SANTA ROSA/SAN JACINTO MOUNTAINS
Discussion of proposed National Monument within Santa Rosa/San Jacinto Mountains.
Director of Planning and Building reviewed the staff report and proposed resolution. (144-
002)
Councilmember Hodges stated that from a personal standpoint., she would rather no
development occur in the area; but that there are three projects in the area previously
approved by past City Council's; that it does seem in the best interest of the City that the
boundaries be altered; that it is not clear what the benefit is to the City of a National
Monument designation; and questioned if the City should support the designation.
Councilmember Oden questioned if most of the Cities in the Coachella Valley supported
the designation; and whether public hearings have been held regarding the matter.
Director of Planning & Building stated that hearings scheduled for input are a part of the
Federal process; and that most of the neighboring Cities have endorsed the designation;
and in answer to questions by Council stated that the City lacks a destination golf course;
that in fact the City needs a resort destination to attract tourists; that Cities down valley do
have championship courses; that meetings have been held with various developers, and
that Palm Springs is not viewed as a golf destination; that people do stay here, but the
amenity for golf is not available; that there are some advantages to the designation of a
national monument, but that it would be detrimental without the; boundary changes and '
projects could be threatened.
Councilmember Oden stated that it might be premature to take action at this time without
further information.
Director of Planning & Building stated that the Resolution proposed is modified to the
boundary map; and that the approval would be just for the concept itself.
Council Minutes
12-1-99, Page 5
City Attorney stated that the Resolution could be approved with modifications to the
proposed boundaries; that it would be advisable to have someone attend the public
hearing and speak on behalf of the City; that the position stated would then be in the
record; and that the Council could direct staff to attend; that there may be access problems
to Palm Hills; that the designation around the site may affect ingress and egress to the
property; that all is contingent on Federal funding; and that the process could take awhile.
' Mayor Kleindienst stated that based on the map, the designation has a greater impact on
Palm Springs than on any city in the Valley.
City Attorney concurred for land within any City limits.
Mayor Kleindienst stated that most of the Cities that have given support really do not
have anything at stake; that there would be no ramifications; that in some cases some
Cities have developed beyond where Palm Springs has land available; that Palm Springs
is, and continues to be, committed to open space; that the City has acquired and set aside
by its own action properties for preservation; that Palm Hills has always been considered
a site for goals of recreation purposes; that these goals may be prohibited by the
designation of a National Monument; that hiking or horse trails could be lost; that at this
point it is not clear what the ramifications would be; that the land within the City limits is
of no use if you cannot access it; that there is a concern for personal property rights; that
one recommendation could be to remove all private property from the designation; that
the boundaries could be modified to reflect that intent; that the Palm Hills area is a site to
make something great for Palm Springs; that the designation should not wipe out the
opportunity for the City; that the City could indicate the proposed boundary changes and
maintain a neutral position until further information is forthcoming; that there are many
questions that must be answered; that the City Council does not see the benefit of the
designation; that the buffer area mentioned is not clear now, and that the intent of the
buffer would change the intent later; that the Council needs to know exactly what the
buffer is; that there is concern about eminent domain; that clarification is needed for
access; that this is too much land in our jurisdiction to make a decision without further
' and definitive information.
Councilmember Jones stated that some position needs to be taken, or the process will
continue without the City's participation.
Mayor Kleindienst stated that the designation will need to be empowered with funding;
that Congresswoman Bono is trying to design a boundary on who is impacted.
Councilmember Oden stated that if the people knew that the designation would restrict
activates such as hiking they would probably speak out; that the concerns of the Council
should be outlined in the Resolution and forwarded to the Committee.
Councilmember Hodges sated that the hearing has brought up many valid points; that the
concept is not totally agreeable due to the concept not being clear; and that some direction
needs to be given by the Council, or the process will continue without our input.
Councilmember Reller-Spurgin stated that the property owners have indicated that the
designation is not in their best interest; that clarification is needed to explore the benefits
of the designation; that there are property rights that will be affected; that property values
could go down; and that compensation will be low.
City Attorney stated that the process is complicated; that no one has veto power; that the
City cannot control what direction this matter may head in; that all concerns expressed by
the Council have been duly noted; that language will be added to the Resolution to
address the impact of buffer lands; that there should be no ability to condemn private
property; that it is clear that the Council has taken the position that the City should not be
included in the boundary designation; and that there are three projects in development
stages that should not be impacted by any property acquisitions.
Director of Planning & Building stated that the process will be a federal hearing; that the
schedule will be tight; that the input period will be when the language is crafted; and that
there probably will not be another public hearing.
Motion to approve the Resolution, deleting Section 9, with City Attorney language
changes was moved by Jones and failed by a lack of second.
dy1� t'S?
Council Minutes
12-1-99, Page 6
Councilmember Reller-Spurgin questioned the responsibility for fires in the proposed
designated area.
Fire Chief stated that the mutual aid would be used if a fire occurred; and if the fire
entered city property costs would be shared.
Mayor Kleindienst questioned if the fire started on federal land, but within the City's '
limits who would respond.
Fire Chief stated that a layering of Agencies would respond, but that costs would be
reimbursable.
Councilmember Hodges questioned if the fire occurred in the City's limits on private
land,who would respond.
Fire Chief stated that the fire would be treated as any residential fire within the City's
limits.
Councilmember Hodges stated the land would be within the Federal designation.
City Attorney clarified that the land would still be in the City's lints; but that if the fire
occurred on federal land outside of the City's boundaries there is no fire obligation.
Mayor Kleindienst questioned to what is the benefit of having federal land within tl'ae City
if there is no control over zoning.
City Attorney stated that the boundary lines can be changed; that the Federal Government
does not control the City lints; that the Resolution will be clear that private property
cannot be obtained by eminent domain; that the City has always supported open space and
the gifting of land for open space; that there are concerns with the designation; and a
possible future loss of revenue. '
Councilmember Hodges stated that the City may not want to prohibit eminent domain;
that that may be the only way for private property owners to get paid for their land.
City Attorney stated that the property owners wanted the clause added for additional
protection of their land.
Director of Planning & Building stated that an offer was made for 95 acres; that
negotiations are underway; that there may not be sufficient funding available to purchase
the property and that Congress will need to authorize additional funding.
Mayor Kleindienst stated that any property purchased should be at fair market vallue and
requested that the language be added.
Councilmember Reller-Spurgin stated that the public hearing should be publicized to
allow for public input.
Resolution 19694 as revised, subject to City Attorney approval., was presented; after
which, it was moved by Reller-Spurgin, seconded by Jones and unanimously carried that
R19694 be adopted.
4. CROSSLEY TRACT IMPROVEMENTS
Recommendation: That the Council award contract to Gueno Development Co. Inc., for (088-
Crossley Tract Phase 3 street and drainage improvements, Schedule A and Additive Bid 006) '
Schedule D,for$103,225.15, CP99-03.A4174.
Council Minutes
12-1-99,Page 7
City Engineer stated that a letter had been received from Gueno Development, low bidder,
to adjust the bid upward, or to be allowed to withdraw the bid; that the recommendation
by staff is to award the bid to Gueno; that the Public Contraots Code is clear, a contractor
may request relief; that it is staff opinion that the reason requested for relief is not
substantial; that the contract states that a computer was in error with the bid; that if the
Council does award the bid and the contractor chooses not to go forward its bid bond
' would be forfeit; and that the letter from the contractor indicates the bid was short$8,729.
Councilmember Reller-Spurgin questioned the need for action and whether a written
report could be furnished to the Council for consideration.
City Attorney stated that State Law indicates that if a contractor makes an error it can
request relief from the Council; that if the Council does not provide the relief, the process
moves forward; and that a case has not been presented by the Contractor to withdraw; and
that there will be an impact to the City.
Councilmember Reller-Spurgin stated that the error is of importance to the contractor.
City Attorney stated that if relief is allowed to the contractor the next bid is approximately
$80,000 higher; that Gueno's bid was substantially lower than the other bids submitted;
that while it is understandable that the contractor would like to increase the bid it cannot
be justified.
Councilmember Reller-Spurgin questioned if the bid were awarded, and the contractor did
not move forward how much is the bid bond.
City Engineer stated$19,000.
City Attorney stated that the error is small; that it will be an expense to the contract to
forfeit the bid bond; and that if awarded, the contractor will probably proceed with the
' project.
Councilmember Reller-Spurgin questioned if the contractor had worked for the City
before.
City Engineer stated no.
Minute Order 6539 was presented; after which, it was moved by Hodges, seconded by
Jones, and unanimously carried,that MO6539 be adopted.
ADDITIONAL LEGISLATIVE ITEMS: None.
CONSENT AGENDA:
Review by City Manager of Consent Items to be clarified.
a) Item 7:
Councilmember Jones questioned where the event in item 7 will take place, and if any
residential areas are impacted.
Councilmember Reller-Spurgin stated staff had been directed to canvass the neighborhood
regarding the event.
Aviation Director stated that no complaints had been received for a similar event just held;
that a long term solution is being sought; and that the closest residential area is the
condominium complex located on El Cielo and Ramon.
b) Item 9:
Mayor clarified that item 9 will suspend the enforcement of Transient Occupancy Tax on
timeshares.
Council Minutes
12-1-99, Page 8
5. MO 6540 ratifying Change Order#2 with Granite Construction Company for the Palm (136-
Canyon Drive rehabilitation for$47,048.07, CP99-02. A4115. 057)
6. Res 19695 approving substitution of security with Palm Canyon Ranch for Final Map#17470 (137-
for property located at 1699 Avenida Sevilla, Section 36,T4S,R4E. 022)
7. Res 19696 temporarily suspending certain regulatory ordinances to facilitate the 1999 (050-
"Bxtreme ProKart Event"on December 12, 1999. 007) '
8. Res 19697 and 19698 approving Payroll Warrants and Claims &Demands. (086-
019)
Note abstentions, if any:
Councilmember Warrant# Payee Particular Nature of Conflict
Hodges 947907 Six Kids Const Client of Employer
948014 DWA
948041 Granite Const
948150 Preferred Plumb
9. MO 6541 suspending enforcement of Ordinance 1214,the Timeshare Occupancy Tax (140-
Ordinance,effective November 1, 1999 and directing the Tax Administrator to notify '002)
timeshare projects of action.
10. MO 6542 approving purchase of CNG cargo van through State of Califbmia contract from (085-
Swift Jeep Chrysler Plymouth, for Mizell Senior Center, funded through 1999-2000 CDBG 014)
funding for$20,000.
11. Res-----providing recommendations to County of Riverside regarding Cs 20.151, an (123-
application by SeaWest Windpower,Inc., for the installation of 20, 900-1000 KW wind 034)
turbines, on approximately 306.6 acres of land located in unincorporated Riverside County
south of Interstate 10/Highway 62 intersection, north of Windy Point and south of Highway
111, Section 18 & 19,T3S, R4E. (Sphere of Influence) Withdrawn.
Resolutions 19695 through 19698 and Minute Orders 6540 through 65,12 were presented; after '
which, it was moved by Reller-Spurgin, seconded by Hodges,and unanimously carried that
R19695— 19698 and MO6540—6542 were adopted.
ADDED STARTERS: None
REPORTS &REQUESTS:
CITY COUNCIL reports or requests
a) Councilmember Jones requested that the timing be moved to obtain agendas earlier.
PUBLIC reports or requests
a) Dick Sroda stated that Councilmember Jones request is valid; that questions cannot
be answered before the meeting and that the City does have a Municipal Golf Course.
b) Steve Lovekin stated that it is important to realize that there is potential to negate 30
years of planning and support of the City for Palm Hills; that the Specific Plan for the
City proposed high end development; that with the intervention of the Federal
Government designation all the work that has been done is negated; and that the
action taken by the City may be construed as it does not care about Palm Hills.
STAFF reports or requests
a) City Manager stated that Workshop would be held January 11, 2000,4—7 p.m., at an
off-site location.
ADJOURNMENT:
There being no further business Mayor declared the meeting adjourned to a Joint Meeting
with the Agua Caliente Band of Cahuilla Indians on December 8, 1999, Spa Hotel at 7
p.m. / I
PATRICIA A. SANDERS;6 ty Clerk