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HomeMy WebLinkAbout2001 - MINUTES - 6/20/2001 CITY OF PALM SPRINGS CITY COUNCIL MINUTES JUNE 20, 2001 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 20, 2001, 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 Jones, Hodges, Oden, Reller-Spurgin, and Mayor Kleindienst Absent: None The meeting was opened with the Salute to the Flag, and an invocation by Councilmember Oden. REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on June 15, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 10 of agenda this date. PRESENTATIONS: None HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: No Business At this point the Council convened as the Community Redevelopment Agency and the Palm Springs Finance Authority; and met as all three entities. Note: The following items were moved on the agenda and appear in order of discussion. PUBLIC HEARING: (Joint Hearing as City of Palm Springs City Council, Community Redevelopment Agency and Finance Authority) CONVENTION CENTER 26. REFINANCING OF 1991 CONVENTION CENTER BONDS Recommendation: That the Council approve and authorize the execution of Supplemental Trust Agreements #2 and #3 and other documentation with respect to the Financing Authorities approval of the Lease Revenue Refunding Bonds, 2001 Series A. (See FA 1.) City Manager reviewed the staff report. Director of Finance & Treasurer stated that Bond Counsel was available for questions. ' Councilmember Jones questioned if Option 3 was the only item for consideration; that before the refinancing, the balance of the loan is approximately $28.6 million; and that after refinancing and the approval of Option 3 the balance is $40 million. Council Minutes 06-20-01, Page 2 Director of Finance & Treasurer stated that the resolution was written with some flex in the amount to allow for the fluctuating of interest rates; that the actual amount should be approximately $38,455,000. Councilmember Jones stated that the approval result is that the debt is increased on the Convention Center; that the balance will be $10 million more than now; that the over all debt will increase from $45 million to $55 million. Mayor declared the hearing open. Howard Lapham, no address given, requested approval of the item; and added that the hospitality industry is the largest revenue spenders in the City; that a solution needs to be found for parking in the downtown; that there simply is not enough parking for the employees and the customers; that the customers have to search far from the store they are wanting to go to in order to find a place to park; that the City spends $9 million through the PSDRCVB, Convention Center operations and debt, tourism and other events to promote visitors to come to the City; that once the visitor comes they need a place to park; that after review of the staff report it is clear that the refinancing will help solve the downtown parking problem; that the City will be getting 20 years worth of parking without costing the taxpayer; that hopefully the MBIA will insure the bonds; that in the past it has not and did cost the City over $600,000; that it would help if there was a unanimous vote of the Council in obtaining insurance for the bonds and recommended approval of the items. There being no further appearances, the hearing was closed. Councilmember Hodges stated that while generally opposed to the refinancing of bonds, Mr. Lapham is correct; that there is a problem with parking in the downtown that this will be a solution to that problem; that the funds that are obtained from the refinancing should be used for the parking situation; and that any other item that comes before the Council using the refinancing funds should not be supported until the parking structure is fully secured. Councilmember Oden stated that the Council has tried to find ways in the past to address the parking issue downtown; that non were successful; that for some time parking was not an issue in the downtown, but now with the revitalization of the downtown corridor it is needed and that need should be met; that staff has provided an opportunity to fill the need; and recommended Council approval. Councilmember Jones stated that most of the time he does concur with Mr. Lapham, but in this case that is not so; that his opposition is not based on the refinancing; that the refinancing to get a lower interest rate for lower payments is good business; that it is the extension of time and taking of cash that should not be done; that the Council is using the Convention Center just as the Waste Water Treatment Plant was used; that the $6.7 million gain the Council will be getting will cost $14 million over the life of payment; that there have been no plans submitted for a parking structure downtown; that, right now it is just an idea; that there are no designs being worked on; that when the merchants downtown discussed the parking situation, there were assessment districts proposed; that it Council Minutes 06-20-01, Page 3 ' is not clear what happened to that idea; that one of the reasons there is a parking problem in the downtown is there is no time limit in the municipal lots; that there is no other City that allows unlimited parking in its lots; that there are questions of what may happen to the Desert Fashion Plaza and its parking; that the issue has not yet been resolved; that the parking area at the Desert Fashion Plaza is never full and always has available spaces for parking; that there is a cost to the taxpayer; and that it comes down to the taxpayer financing a downtown parking structure for private enterprise and downtown employees. Councilmember Reller-Spurgin stated that the idea of refinancing has to do with the lower interest rates that are available; that the Council must take a proactive approach to the parking needs downtown; that if the downtown is healthy, then the City is healthy; and that the City Manager has stated that the parking structure will be a private/public partnership. City Manager concurred. Councilmember Reller-Spurgin stated that this is an important step for the City and it is fortunate to have a tool to do so. Mayor stated that the issue is whether or not to refinance; that one reason to do so is the interest rates; that the City will save $300,000 a year; that we, the Council did help create the problem, that the downtown is vibrant; that the ' vibrancy has resulted in a parking problem; that approaches were made to every aspect of the City budget to find funds to assist in the parking structure; that the refinancing of the Convention Center will address the parking situation; that the total combined of all the refinancing will give the Council approximately $7 million to help deal with immediate parking problems; that the plans and design will come later once the funds are in place; that there are favorable interest rates for the bonds and that the matter is time sensitive. Resolution 20070 as recommended was presented; after which, it was moved by Hodges, seconded by Oden, and carried by the following vote that R20070 be adopted AYES: Hodges, Oden, Reller-Spurgin and Kleindienst NO: Jones ABSENT: None. Council Minutes 06-20-01, Page 4 City Clerk read Title of Ordinance as follows: D AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AND AUTHORIZING THE EXECUTION OF A SUPPLEMENTAL LEASE AGREEMENT NO. 3 RELATING TO THE CITY OF PALM SPRING FINANCING AUTHORITY LEASE REVENUE REFUNDING BONDS, 2001 SERIES A (CONVENTION CENTER PROJECT) after which, it was moved by Hodges, seconded by Oden and carried by the following vote, that further reading be waived and the Ordinance be introduced for first reading. AYES: Hodges Oden, Reller-Spurgin and Kleindienst NO: Jones ABSENT: None. PUBLIC COMMENTS: 3-minute limit per person on matters related to the Bond Refinancing. None LEGISLATIVE ITEMS: CONVENTION CENTER BONDS e 1. REFINANCING OF 1991 CONVENTION CENTER BONDS Recommendation: That the Authority approve the refinancing of the 1991 Convention Center Bonds, utilizing one of three options, none to exceed an issuance of$40,000,000. Councilmember Jones stated that it is difficult to negotiate a private/public partnership when the City is already stating it has $6.7 million to fund the parking structure; that while not opposed to the refinancing, the: savings should be used to offset the $2.3 million budget deficit for the coming year; that the refinancing may be time sensitive, but there will be another opportunity in December of this year or May of next year; that it is not clear where interest rates are headed; and that right now they are down, but this may not be the best opportunity that opens up. Councilmember Hodges stated that Councilmember Jones may be correct in his analysis of the loan payments, but that the concern is, if nothing is done to address the major problem of parking downtown, the City will lose even more than the $300,000 it could save in the refinancing; that at this time one has to drive around to try to find a place to park; and that with parking at a premium, in order to protect the revenue an alternative must be found. Councilmember Jones stated that Councilmember Hodges is correct, but that the private portion should be set in place before the Council proceeds. Councilmember Hodges stated that there is no disagreement, but that the players in this game should not be underestimated; that the merchants are Council Minutes 06-20-01, Page 5 willing to work with the City; that they want a structure; that it is their employees that need a place to park; and that this will be a cooperative effort. Councilmember Oden stated that the Parking Think Tank has on going meetings with the Community; that he has been present at the meetings; that in addition to the refinancing there are in-lieu fees; and that the downtown businesses have to comply anyway. Resolution FA22 as recommended was presented; after which, it was moved by Oden, seconded by Reller-Spurgin and carried by the following vote that FA22 be adopted. AYES: Hodges, Oden, Reller-Spurgin and Kleindienst NO: Jones ABSENT: None. HOUSINGS BONDS 2. REFINANCING OF 1991 HOUSING TAX ALLOCATION BONDS Recommendation: That the Authority approve the refinancing of the 1991 Housing Tax Allocation Bonds, issuance, not to exceed $6,000,000. Director of Finance & Treasurer reviewed the staff report. Councilmember Jones stated that this is what should be done likewise with the Convention Center Bonds. Resolution FA23 as recommended was presented; after which, it was moved by Hodges, seconded by Reller-Spurgin, and unanimously carried, that FA23 be adopted. E. REFINANCING OF 1991 HOUSING TAX ALLOCATION BONDS Recommendation: That the Agency authorize and direct the bond issuance, not to exceed $6,000,000 principal amount of its 2001 Housing Tax Allocation Bonds; approve a purchase contract; and authorize the execution of necessary documentation. (See FA2) Director of Finance & Treasurer stated that this is a concurring action with the previous action. Resolution 1131 as recommended was presented; after which, it was moved by Hodges, seconded by Oden and unanimously carried, that R1131 be adopted. 33. REFINANCING OF 1991 HOUSING TAX ALLOCATION BONDS ' Recommendation: That the Council authorize the refinancing of certain obligations of the Financing Authority and the issuance of the Community Redevelopment Agency 2001 Housing Tax Allocation Bonds. (See FA2). Council Minutes 06-20-01, Page 6 Director of Finance & Treasurer stated that this action would concur the previous action. Resolution 20071 as recommended was presented; after which, it was moved by Hodges, seconded by Reller-Spurgin and unanimously carried that R20071 be adopted. ASSESSMENT DISTRICT 32. ASSESSMENT DISTRICTS 157 AND 158 BOND ISSUE Recommendation: That the Council authorize purchase of the Assessment District 157 and 158 bonds via amendment of the Bond Indenture; adopt a bond issuance procedural ordinance (Mark Roos Act) and the issuance of limited obligation revenue bonds. Director of Finance & Treasurer reviewed the staff report. Councilmember Jones questioned if this action was similar to the Housing item and if there is an extension to the number of years. Director of Finance & Treasurer stated that the payments stay the same, but the cash will be taken out up front, thus creating additional cash to be held for capital improvements. Councilmember Jones questioned if the same thing could have been done for the Convention Center Bonds; and if the savings could be used annually to offset the budget. Director of Finance & Treasurer stated it could have. Councilmember Reller-Spurgin questioned the annual savings. Director of Finance & Treasurer stated thatthe savings would be approximately $35,000 to $40,000. Mayor stated that the combination of the refinancing creates the funds to bring a total of$7 million to be used in capital improvements. Councilmember Reller-Spurgin questioned which capital improvements. City Manager stated that a discussion would be held at a later date to compile a priority listing of improvements. Councilmember Reller-Spurgin questioned if the projected projects would come to Council for final approval. City Manager stated that it would be the Council that could compose the priorities. Council Minutes 06-20-01, Page 7 ' Mayor stated that this action is in keeping with the previous actions of the Council; that direction was given to staff in May; that staff has carried out the direction; and that this discussion is not to approve the capital improvement program or projects, but to create a pool of funds. Adjourn as Financing Authority; reconvene as Community Redevelopment Agency COMMUNITY REDEVELOPMENT AGENCY PUBLIC HEARING: None PUBLIC COMMENTS: Howard Lapham, no address given, stated that the deal with the Convention Center should have been unanimous; that the bonding for the Monte Vista Hotel did have problems; that there are many concepts for the parking structure downtown; that it is needed and that Councilmember Jones should have thought of that. John Wessman, recommended approval of the Redact agreement; and added that the downtown is being revitalized due to the efforts of Mr. Ogburn. LEGISLATIVE ITEMS: ' A. DESERT FASHION PLAZA On June 6, 2001, the Agency continued this matter to consider the approval of an Exclusive Agreement to Negotiate with John Wessman, dba Wessman Development Company, for the Desert Fashion Plaza, located on a 13-acre parcel on the corner of Tahquitz Canyon Way and Palm Canyon Drive. Executive Director withdrew the item. B. 2000-01 FISCAL YEAR BUDGET AMENDMENTS Recommendation: That the Agency approve budget amendments to allow the repayments of loans and the reloaning of funds from the General Fund. Executive Director reviewed the staff report. Agency Member Jones questioned if this will finalize the $300,000 to assist the General Fund. Executive Director stated it would and that in addition there would be no impact on current projects. 1 Council Minutes 06-20-01, Page 8 Director of Finance & Treasurer stated that this is a pairt of the funding operation for the debt service to repay the General Fund; and that this is a housekeeping item. Resolution 1132 and Resolution 1133 as recommended were presented; after which, it was moved by Hodges, seconded by Oden and unanimously carried, that R1132 and 1133 be adopted. C. 2000-01 CONTINUING APPROPRIATIONS Recommendation: That the Agency authorize the continuation of appropriations from fiscal year 2000-01 to fiscal year budget 2001-02 for projects not completed. Executive Director reviewed the staff report. Agency Member Hodges stated that the resolution calls for $500,000 for Garden Springs; that at the last meeting approval was given for $1 million; and questioned when the additional funds would be allocated. Director of Redevelopment stated that the agreement with Garden Springs is based on construction phases that release payment upon completion; that the appropriations will be spread out over the next one and one-half years; and that this is the only portion needed at this time. Agency Member Jones stated that there are projects on the list that he does not support, and will therefore vote no on the entire Resolution. Chairman clarified that the item before the Agency is to continue the funding for various projects that were not completed, to the new fiscal year budget. Agency Member Hodges stated that the projects listed for continuation are projects that the Agency has previously approved. Resolution 1134 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Oden and carried by the following vote that R1134 be adopted. AYES: Hodges, Oden, Reller-Spurgin and Kleindienst NO: Jones ABSENT: None. D. REDAC2 Recommendation: That the Agency approve an agreement with Redac2, Jerry Ogburn, for the continuance of the Village of Palm Springs Development Center for $144,000 for a term of one year, ending fiscal year 2002. A422C e Council Minutes 06-20-01, Page 9 ' Executive Director reviewed the staff report and added that the Downtown Director will be coming before the Council on a quarterly basis for an update of the status of the downtown; that there is a lot of activity occurring; that the role of the Downtown Director is important to the City and recommended approval. Agency Member Oden stated the efforts of the Director of Downtown Development are appreciated. Agency Member Jones stated that the Director has done a good job with the downtown; and added that the energy needs to be redirected to derelict hotels in town; that the City does get ten percent of the gross of the hotels; that programs to improve the area on Indian Canyon also need to be started; that there are projects that the Downtown Director is working on that others find out about before the Agency; that it is important for the Agency to be aware of what the Director is working on; that most of the Department Heads do weekly reports to the Council and it would be best if the Downtown Director did likewise; that there have been a number of night clubs and bars that have been approved for a concise area; that the establishments require a lot of City services; that other types of businesses do not require the same level of response; that for instance, in a shoe store the police are not called at 3 a.m. to quell an incident; that it may be that the City has enough of bars and nightclubs and the focus on different businesses in downtown needs to start and added that a business coming in ' should also be considered on the amount of services they will require and how viable it will be for the downtown. Chairman stated that the item before the Agency is the consideration of the contract; that it would be best to bring the discussion of altering the scope of services at a later date. Agency Member Jones stated that the contract should be redirected in its focus. Agency Member Oden stated that the Members of the Agency may be in agreement with the reconsideration of the scope of services; that the discussion could be scheduled at a later date and that the Agency should consider the agreement before it at this time. Resolution 1135 as recommended was presented; after which, it was moved by Oden, seconded by Reller-Spurgin, and unanimously carried that R1135 be adopted. Adjourn as the Community Redevelopment Agency, reconvene as the City Council. PUBLIC COMMENTS: (3-minute limit per person on matters within the jurisdiction of the Council). ' Wendy Busig Kohn, stated that due to the energy crisis Muriel's will be closing until October; that Las Casuelas will be going solar and that there will be a solar demonstration in the Council Chamber on Saturday, from 9 a.m. to 11 a.m. Council Minutes 06-20-01, Page 10 John Neilson, stated that he would be available for questions regarding item 30; that he was the General Manager for the Joint Powers Authority; that the program was founded in 1980; that the insurance market does work in cycles of hard and soft; that the Group was originally founded with five members; that it has assisted the Cities in successfully obtaining good rates and requested support of the item. Emily Hemphill, 777 E. Tahquitz, stated that regarding item 24, the Country Club did discuss the item at its last meeting; that when watching the last meeting of the Council regarding this matter the Club was put in the position of sounding greedy; that the Club is an equity based Club; that it is owned by its members; that: the only asset the Club has is its golf course; that the Club would not endanger its own asset; that a review of the matter was done; that professionals were worked with; that the members were advised of the concept; that only one person stated any opposition; that the rest of the members were supportive; that someone had indicated that the tower could be placed at the fire station; that the site is inappropriate; that the fire station is located in a residential area; that the Club needs the revenue it would get from the tower; and requested Council support of the matter. Ervin Pearl, stated that the Council decision at its last meeting was disturbing; that one homeowner swayed three out of five votes of the Council; that as President of the Club he is answerable to the 400 members and spouses; that the tower was supported by the Club; that the revenue is needed to help offset problems; that the tower will blend into the background; that the members are in support of the tower and requested Council �. consideration of same. Jan Hart, General Manager of the Club; stated that the Council perception at its last meeting was dismaying; that there is a misconception; that the beauty of the golf course will not be sacrificed by its members; that the budget is the general manager's responsibility; that this item will help the budget; that there are members being lost through attrition; that the support of the Club is for the tower and requested that the Council reconsider its previous decision. Kim Berry, Nextel, submitted pictures showing the proposed site and added that the Club is in support of the tower; and requested Council reconsideration of its previous decision. Theresa Howell, stated that she is familiar with the Flukes family; that where their home is located on the course the tower will be an eyesore; that many of the homeowners of the Club are absent from the area at this time; that they will be upset if the matter is approved because their property values will decrease; and that the tower will alienate any potential new buyers. APPROVAL OF CONSENT AGENDA: It was moved by Reller-Spurgin, seconded by Oden, and unanimously carried, that Items 1 thru 25, excluding items 6, 9, 14, 23 and 24 and withdrawing items 4, 5, 7, 8 and 15 be adopted. Council Minutes 06-20-01, Page 11 ' CONSENT AGENDA: Review by City Manager of Consent Items to be clarified. Councilmember Hodges stated that she would no longer be abstaining on matters related to Ferguson, as they no longer employ her. 1. MO 6861 approving the Amendment #3 to Agreement 3120 for the Welwood Murray Memorial Library lease extending the term to July 6, 2007, effective July 7, 2002. 2. MO 6862 approving Amendment #1 to Agreement 4244 with Dupont Flooring Systems for carpet maintenance services at the airport for the period of July 1, 2001 through June 30, 2002. 3. MO 6863 approving purchase order from Cordes Data System for building permit and parcel data software for $20,000. 4. MO ----- approving the consent to assignment of Maritime Trust/Foreign Trade Zone Solutions to Ernst & Young relating to the foreign trade zone major boundary modification application for$15,000. A4350. Item withdrawn. 5. MO ----- approving the consent to assignment of Maritime Trust/Foreign Trade Zone Solutions to Ernst & Young relating to the foreign trade activation for $12,500. A4342. Item withdrawn. 6. SEE EXTENDED CONSENT AGENDA 7. MO. ----- approving Amendment #1 to Agreement 3468 with Arnold Palmer Golf Management Company for the lease of the Legend Course at the Tahquitz Creek Golf Resort, in a form acceptable to the City Attorney. Item withdrawn. 8. MO ----- approving management agreement with Arnold Palmer Golf Management Company for the Resort Course at Tahquitz Creek Golf Resort, and rescinding A3469, in a form acceptable to the City Attorney. A-----. Item withdrawn. 9. SEE EXTENDED CONSENT AGENDA 10. MO 6864 approving purchase order with ARI-Hetra Inc., for a portable heavy equipment lift system and accessories, for$42,423.95 via CMAS program. 11. MO 6865 approving an agreement with Pac West Land Care for landscape maintenance services of parkways, assessment districts and miscellaneous landscaped areas within the City for $346,776, annually, effective July 1, 2001. ' A4372. 12. MO 6866 approving an agreement with the State of California Department of Corrections to allow use of the Firearms training range for a term of one year for $3,000. A4373. Council Minutes 06-20-01, Page 12 13. MO 6867 approving purchase order with Motorola Inc., for the purchase of nine portable radios for the police department reserve unit for $24,390.68, plus delivery costs. 14. SEE EXTENDED CONSENT AGENDA 15. MO ----- approving the reimbursement of $222,000 for a CNG powered food waste vehicle to Palm Springs Disposal Services, per Amendment #4 to A3082, and Res amending the budget thereto. Item withdrawn. 16. Res 20072 and Res 20073 declaring intent to levy and collect annual assessments for 2001-02, and setting July 18, 2001, for hearing thereon for Street Lighting Maintenance Districts (SLMD) 1 and 2. 17. Res 20074 declaring intent to levy and collect annual assessments-for 2001-02, and setting July 18, 2001, for hearing thereon for Street Lighting Maintenance District (SLMD) 3. 18. Res 20075 declaring intent to levy and collect annual assessments for 2001-02, and setting July 18, 2001, for hearing thereon for Street Lighting Maintenance District (SLMD) 4. 19. Res 20076 declaring intent to levy and collect annual assessments for 2001-02, e and setting July 18, 2001, for hearing thereon for Parkways Maintenance District (PMD) 6A, 6B and 6C. 20. Res 20077 declaring intent to levy and collect annual assessments for 2001-02, and setting July 18, 2001, for hearing thereon for Parkways Maintenance District (PMD) 7. 21. Res 20078 declaring intent to levy and collect annual assessments for 2001-02, and setting July 18, 2001, for hearing thereon for Parkways Maintenance District (PMD) 8. 22. Res 20079 declaring intent to levy and collect annual assessments for 2001-02, and setting July 18, 2001, for hearing thereon for Parkways Maintenance District (PMD) 9. 23. SEE EXTENDED CONSENT AGENDA 24. SEE EXTENDED CONSENT AGENDA 25. Res 20080 and 20081 approving Payroll Warrants and Claims & Demands. I Council Minutes 06-20-01, Page 13 ' EXTENDED CONSENT AGENDA: 6. GENE AUTRY BIKEWAY Recommendation: That the Council award contract to 4-Con Engineering, Inc., for the construction of the Gene Autry Trail Bikeway for $230,603.75; and finding the low bid of James E. Simon Co., as non-responsive, CP99-14. A4371. Councilmember Hodges stated that there is concern for the design of the bikeway; that the Heritage Trail did not meet the standard of what was desired; that the contract is being awarded at this time and that clarification is needed on the design. Councilmember Jones concurred with Councilmember Hodges; and added that the City should not be building bikeways that are in fact sidewalks. City Manager stated that the Council would see the final detail plans of the construction at a later date. City Engineer stated that the design of the bikeway is eight feet wide of colored concrete; that it is in accord with Caltrans approval; and that Caltrans did dictate the size. ' Councilmember Hodges stated that there is a problem when a sidewalk is used as a bikeway. Mayor questioned if the two could be separated in this project. City Engineer stated that they could be separate, but that in this project it was deemed to be combined due to the adjacent high-speed roadway; that the wider sidewalk designed also as a bikeway will keep bicycles out of the roadway. Councilmember Hodges questioned the area to be constructed. City Engineer stated that this would fill'in missing links and run from Calle San Rafael by Mesquite to Vista Chino. Councilmember Jones stated that the reality is that the wide sidewalk will be put in and be used by walkers, but the bicycles will ride in the street. Mayor questioned the plan on the east side of the street. Director of Planning & Building stated that the City does have a range of bikeways; that the CODA project will fill in the east side; and that the project will have more of a meandering look to the sidewalks. ' Mayor questioned if there is adequate space for separate sidewalk and bikeway. City Engineer stated that there is only eight feet available. Council Minutes 06-20-01, Page 14 Councilmember Oden questioned how soon the project would be complete, if there will be signage and an update of the bikeway maps; and stated that as society moves more to protection of the environment, more bicycles will be used. Mayor stated that it appears there is not enough land available on this side of the street to separate the paths and that it appears that the other side of the street will be more traditional in its use. Minute Order 6868 was presented; after which, it was moved by Oden, seconded by Reller-Spurgin, and unanimously carried, that M068138 be adopted. 9. STATE PROPOSITION 12 Recommendation: That the Council approve the encumbrance per capita grant program funds as designated in State Proposition 12 on behalf of the City of Palm Springs by the State of California Department of Parks and Recreation, Office of Grant Services for$395,000. Assistant City Manager reviewed the staff report and added that the Parks and Recreation Commission did recommend approval; that: the concept is to submit the resolution for encumbrance for the State to designate the funding to the City; that the City is not required to match the funds, but the funding must be used for parks or recreational needs. Councilmember Oden stated that the Council did anticipate the receipt of the e funds; and that the direction on how to use the funds will come at a later date. City Manager stated that the skate park discussion would be scheduled for an upcoming study session. Mayor stated that the funding is based on the Parks Bond Act of the State and is allocated on a per capita basis. Councilmember Jones stated that it was 'not clear what the funding could be spent on; and questioned if the project had to be named for the encumbrance and if the City would then be committed to building the skate park. Assistant City Manager stated that the resolution is merely the encumbrance of the funds and that the project was not named. Councilmember Jones stated that there should be concern regarding a memo from the Assistant City Manager to the City Manager regarding the fundraising portion for the skate park; that the memo indicates only $5,000 from the general public for support; and that indicates there is not a big interest by the Community to support the project. Mayor clarified that the action before the Council is to request the State to encumber the funds that can be allocated to the City. Council Minutes 06-20-01, Page 15 ' Councilmember Oden expressed disagreement with Councilmember Jones; and stated that the Committee does not have any renderings to start the fundraising; that the donations thus far are given without a fundraising program in place and that when the fundraising begins in earnest, the Community will support the skate park. Resolution 20082 was presented; after which, it was moved by Oden, seconded by Reller-Spurgin, and unanimously carried, that R20082 be adopted. 14. FRANCES STEVENS PARK PUBLIC ART Recommendation: That the Council accept the "Rainmaker" sculpture and water features, sidewalk and landscaping by DCM Studios, LTD., and approve final payment of$32,400.02 to DCM Studios LTD, for public art located at the Frances Stevens Park. Councilmember Jones stated that his opinion has been expressed many times on this project and questioned the exact cost of the project. City Manager stated that the original agreement was $221,000; and that there were two subsequent amendments approved bringing the total to $324,000. Councilmember Jones questioned if that included the 2000 invitations that were ' sent out in which 87 people attended. City Manager stated that the grand opening costs were separate. Councilmember Jones questioned the cost. Public Arts Manager stated that the cost was typical of all the receptions for the grand opening of art at $10,000. Councilmember Jones stated that none of the other pieces of art placed by the Public Arts Commission have been as controversial; and added that the cost of the reception ended at $114.00 per person at the cost of the taxpayer. Councilmember Oden stated that the art is good and that the work that has been performed was at City standard. Councilmember Jones stated that the project does create unhappiness; that it is controversial; and that it is unbelievable that the piece was set in place. Mayor stated that the piece is definitely in place; that it is a part of the City's culture; that it is an outstanding piece, a high quality piece of art; and that the work preformed by the artist, staff and the Public Art Commission is appreciated. Councilmember Reller-Spurgin commented that the piece is somewhat bigger than anticipated; that her own opinion is that she does not care for the art; but that she did support the item; that she gave her word to support the item; and that she will continue to support the item. Council Minutes 06-20-01, Page 16 Councilmember Jones expressed appreciation to the Assistant City Manager for not including his name on the invitations and added that support of this matter may be the reason one incumbent was not reelected. Councilmember Reller-Spurgin clarified that it was a vote of the Council that approved the project, not a single vote. Councilmember Jones stated that recently in San Francisco he had viewed a fountain that was donated to the City that was beautiful. Councilmember Oden stated that when it comes to art, it certainly is in the eye of the beholder; that some people will like something, and others will not; that years from now this piece will be appreciated by all; that in the case of the previous incumbent Councilmember, all his work was appreciated; that he made a lot of contributions to the City and added that all past Councilmembers did a good job. Minute Order 6869 was presented; after which, it was moved by Oden, seconded by Reller-Spurgin, and carried by the following vote that: MO6869 be adopted. AYES: Hodges, Oden, Reller-Spurgin and Kleindienst NO: Jones ABSENT: None. 23. 2000-01 FISCAL YEAR BUDGET AMENDMENT Resolution 20083 and Resolution 20084 amending 2000-01 fiscal year budget to concur with CRA B was presented; after which, it was moved by Oden, seconded by Reller-Spurgin, and carried by the following vote that R20083 and 20084 be adopted. AYES: Hodges, Oden, Reller-Spurgin and Kleindienst NO: Jones ABSENT: None. 24. NEXTEL COMMUNICATIONS Recommendation: That the Council deny approval of Case No 5.0865, Nextel Communications Inc., for a Conditional Use Permit for the installation of a commercial communications antenna located at the Canyon Country Club Golf Course as directed at the June 6, 2001. Councilmember Reller-Spurgin stated that in reviewing the visual aides for the monopole, it was difficult to see the difference between the monopole and the palm trees and added that the item will have her support. Councilmember Hodges stated that there are two monopoles located by Palm Springs Ford in Cathedral City; that one of the poles looks like a tall pole with a bush on top, and it is not certain what the second one looks like. Council Minutes 06-20-01, Page 17 City Attorney stated that based on the public comments regarding the matter the Planning Director did have two separate resolutions for Council decision; that one is in support and the second in denial. Councilmember Jones stated the matter should not be supported; that the rights of an individual is why this nation has the constitution; that his own property is 200 feet wide and that a 60 foot pole disguised as a palm tree in that space would not be acceptable. Resolution 20085, revised to approve the Conditional Use Permit, with conditions, was presented; after which, it was moved by Oden, seconded by Reller-Spurgin, and approved by the following vote, that R20085 be adopted. AYES: Oden, Reller-Spurgin and Kleindienst NO: Hodges and Jones ABSENT: None. COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENCY REPORTS: 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. ' Mayor stated that CVAG, Energy and Environmental Committee, is reviewing a shopping cart retrieval program proposed by Sunline. Councilmember Hodges requested a copy of future Planning Commission Meetings; and added that one matter before the Commission was referred back to Architectural Design, where it has already been six times. Councilmember Oden stated that the Council needs to be provided with a downtown corridor update. City Manager stated that a report would be provided to the Council regarding any possible closures for businesses or hotels. Councilmember Oden stated that the financial support for the Mizell Senior Center needs to be reviewed by the Council; and added that there are many services provided by the Center that will stop without the financial support. Mayor stated that there is a study on those who come to the Coachella Valley and the name of Palm Springs being thought of for all jurisdictions; and that the Council should start reviewing the possibility of changing the Coachella Valley name to the Valley of Palm Springs or Palm Springs Valley for future discussion. Council Minutes 06-20-01, Page 18 LEGISLATIVE ACTION: 27. 2001-02 FISCAL YEAR ALLOCATED POSITION AND COMPENSATION PLAN Recommendation: That the Council approve the Fiscal Year Allocated Position and Compensation Plan. City Manager reviewed the staff report and added that there were 445 positions in the last fiscal year and that there is 445.5 being presented. Councilmember Hodges questioned where the part-time: position would be located. City Manager stated that there were changes based on the filling of part time positions to full time at the James O. Jessie Desert Highland Center. Mayor questioned if there were any organizational changes, such as new department heads. City Manager stated there were none. Councilmember Reller-Spurgin questioned if the recommendation was the same as was discussed during the budget process. City Manager stated the recommendation is the same. Resolution 20086 as recommended was presented; after which, it was moved by Oden, seconded by Reller-Spurgin and carried by the following vote that R20086 be adopted. AYES: Hodges, Oden, Reller-Spurgin and Kleindienst NO: Jones ABSENT: None. 28, FISCAL YEAR 2000-01 CONTINUING APPROPRIATIONS Recommendation: That.the Council authorize the continuation of appropriations from the fiscal year 2000-01 budget for projects not yet completed. City Manager stated there was a revision, copy on file in the Office of the City Clerk, which concerned funds at the airport. Councilmember Hodges stated that there is $19,000 available for use by the Historic Site Preservation Board and questioned if the Board was aware of the allocation. Director of Planning & Building stated that the Board was aware of the allocation and that it is designated for plaques. Mayor questioned the account titled Big Mac K-9 fund. Council Minutes 06-20-01, Page 19 ' Director of Finance & Treasurer stated that the fund was established in honor of a police officer, Mike McMullan, who has passed away, to help purchase new canines for the police department. Councilmember Jones stated that there is funding allocated for the design of the animal shelter and questioned if a new shelter was being proposed. Director of Finance & Treasurer stated the account is a carryover from the previous year; and the funds are available for possible use in the design stage. Resolution 20087 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Oden and unanimously carried that R20087 be adopted. 29. CHOPHOUSE PAYMENT OF IN-LIEU PARKING FEES Recommendation: That the Council approve an agreement with Zachary Franks for the payment of In-Lieu parking fees for $110,000, for the Chophouse Restaurant, located at 262 South Palm Canyon Drive, CBD Zone, Section 15. A4374. City Manager reviewed the staff report and added that the business will be opening in the previous Chillers location; that it is nearing completion; that a soft ' opening is anticipated at the end of the month; that the original in lieu fee was $110,000; that $30,000 has already been paid; and that the business is requesting a three year payment schedule for the balance. Mayor questioned if the agreement is in keeping with the rate of $2,000 per stall. Director of Planning & Building stated that the agreement is in compliance with the Ordinance. Mayor stated that while a parking stall cannot actually be built for $2,000 each, the $110,000 would be going to assist the parking fund. Councilmember Oden stated that the agreement is commendable and indicates willingness for the community to work towards a private/public partnership. Councilmember Hodges stated that normally she is opposed to bending payment of fees; that in this case it is a landlord that does have a history of paying his bills and on time; and that this will allow Kaiser Grill to be located in two separate areas of the downtown. Councilmember Jones questioned if a business changes its use does it pay an in-lieu for parking. Director of Planning & Building stated that one a property pays, it covers that paid intensity of use; that in this case, the previous night club did operate under a conditional use permit, in which it leased up spaces for parking in the area; and that now all the leases are expired. Council Minutes 06-20-01, Page 20 Councilmember Jones stated that there is support by the merchants downtown for a parking structure, but that most of those merchants are not the property owners; and that it is the property owners that will have to pay for a parking structure. Councilmember Reller-Spurgin stated that there are responsible property owners; that for example, even when the economy was not doing as well, Las Casuelas paid its parking fees. Mayor stated that the Parking Think Tank is comprised of property owners in the downtown. Minute Order 6870 as recommended was presented; after which, it was moved by Oden, seconded by Reller-Spurgin, and unanimously carried, that MO6870 be adopted. 30. INSURANCE RENEWALS FOR THE CITY OF PALM SPRINGS Recommendation: That the Council approve the City's insurance renewals effective July 1, 2001, authorizing the membership to The Independent Cities Risk Management Authority; and appointing representatives to same. City Manager reviewed the staff report and added that the renewal of insurance is needed before July 1; that the goal was to get the lowest price possible; that this year the premium did increase over last year, due to the liability policies; that it is recommended to join the Authority with one member to be the representative; that staff did scan the market and did find the best premiums available at this time. Councilmember Oden stated that Councilmember Reller-Spurgin is at the forefront of insurance issues and recommended that she be the representative for the City. Councilmember Reller-Spurgin accepted the designation; and added that it is disappointing that it is mid-June when this comes before Council with a decision necessary before July 1; that staff provided a large report that needs review by the Members of the Council, with no time for review; that a few years ago the Community at large was involved in the process, but not this time and added that it is difficult for a member to review such an item in a limited time frame. City Manager stated that staff would have preferred to get the issue before the Council at an earlier date, but that with the Insurance Industry the prices are not given until a policy is ready to expire; and that in the future, staff will endeavor to get a handle on the issue at an earlier date. Councilmember Reller-Spurgin stated that the Community has many assets in its citizens; and that the Community should have been involved in this process. Councilmember Jones concurred with Councilmember Reller-Spurgin and added that it is virtually impossible to review so much in the: time permitted; that it is hard to evaluate the data other than the price has increased 40%. Council Minutes 06-20-01, Page 21 Councilmember Oden stated that with Councilmember Reller-Spurgin's representation for the upcoming year, the Council should be updated on the Industry on a timely basis, Resolution 20088 approving premiums and Resolution 20089 authorizing membership as recommended were presented; after which, it was moved by Reller-Spurgin, seconded by Oden, and unanimously approved, that R20088 and 20089 be adopted. 31. PALM CANYON THEATER FIRE DAMAGE REPAIR Recommendation: That the Council award an agreement to Commercial Diversified, Inc, for the Palm Canyon Theater fire damage repair, with options, total amount of contract with all options, not to exceed $252,000, and amend the budget in the amount of$60,000. A4375. City Manager reviewed the staff report and added that the agreement does include all concerns that the Council had wanted added, to include hiding the electrical lines; changing of tiles on the roof and hiding of electrical boxes located on the side of the building. Councilmember Hodges questioned if the insurance covered the restrooms. ' City Engineer stated the insurance did cover the renovating of the restrooms and is in Option 1. Councilmember Hodges questioned where the additional $60,000 would be allocated. Director of Finance & Treasurer stated that the grand total of the project is $386,588; that $321,000 would be paid by the Insurance Company; that the City would fund the additional items requested by the Council in the amount of $60,000 from Reserves; and that the insurance deductible would be covered through Risk Management funds at$5,000. Councilmember Reller-Spurgin questioned where the $186,190 was allocated and if the work has already been done. Procurement Manager stated that the design portion of the project was previously approved by the Council; that the Council also authorized certain upgrades past what the Insurance Company would cover; that the work has not been done as of yet; that the Historic Site Preservation Board did recommended the covering of exposed electrical conduit; that the roof is currently composed of two different types of tiles; that the Historic Site Preservation Board was concerned with the replacement; and that additional funds would be needed. Councilmember Hodges stated that the City just passed its budget and is now amending it; that it would be best to go with what the Insurance Company covered; and not take funds out of the City's reserves. COUnd Minutes 06-20-01, Page 22 Procurement Manager stated that it is the Council's decision and that if they did not want to do the additional work, it would not be done. Councilmember Jones stated that when this matter was first brought before the Council the deficit was not known; and that if it had been, the additional work may not have been recommended. Councilmember Hodges stated that the item could be approved, but that the work should not start until an additional $60,000 is found within the budget, but not through reserves. City Manager stated that other options for the additional $60,000 would be reviewed and brought back for Council consideration. Minute Order 6871 as recommended was presented; after which, it was moved by Oden, seconded by Hodges, and unanimously carried, that MO6871 be adopted. ADDITIONAL LEGISLATIVE ITEMS: 34. LIVESCAN FINGERPRINT EQUIPMENT Recommendation: That the Council consider approval of live scan fingerprinting equipment for an approximate amount of $20,000 plus monthly maintenance costs, installation and delivery. Materials to be provided at meeting. City Manager withdrew the item. ADDED STARTERS: (Determine eligibility for consideration) City Manager requested the matter bf consideration of appointment to the Santa Rosa and San Jacinto Mountain Conservancy be added to the agenda for discussion. Councilmember Hodges questioned why the matter was not listed on the agenda for consideration. Mayor stated that discussion was held with the City Manager; that there will not be a meeting held next week; that an appointment does need to be made by July 2; and that recommendation was to add the item for discussion at this meeting. Councilmember Hodges stated that the item does not meet the criteria for adding it to the agenda; that staff was aware of the item last Friday; and that the Council packets did include a letter requesting the appointment,. Director of Planning & Building stated that a letter was received by the BLM; that the City does need to endorse a representative; that the appointment will be forwarded to the Secretary of the Interior for consideration; and that while the letter had been received last week, the matter was actually not reviewed until after the agenda posting requirements. Council Minutes 06-20-01, Page 23 ' Councilmember Oden questioned if the representation was open to individuals; and if each municipality received one representative. Director of Planning & Building stated that each City that abuts the boundary was afforded a representative. City Manager stated that the requirements are from the Federal Government, and is not clear on what is needed, but that the City could open the appointment to anyone. Councilmember Hodges stated that the individual should be a resident of the City. Councilmember Oden requested the matter be continued to an adjourned meeting to be held on July 27, 2001. Council consensus to continue the matter for discussion on July 27, 2001. REPORTS & REQUESTS: CITY COUNCIL reports or requests 35. a) Filing of nuisance abatement proceeding and accounting reports for 20 public nuisances. Received and filed. b) Councilmember Jones requested duties and obligations of the Director of Downtown Development; and added that the Council did hold discussions regarding the appointment of a member to one Board and that an apology should be made to that Board on how the process was handled. c) Mayor requested the Ordinance concerning Valet Parking be scheduled for discussion at study session. PUBLIC reports or requests STAFF reports or requests ADJOURNMENT: There being no further business, Mayor declared the meeting adjourned. PATRICIA A. SANDERS City Clerk 1