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HomeMy WebLinkAbout2001 - MINUTES - 6/27/2001 CITY OF PALM SPRINGS CITY COUNCIL MINUTES JUNE 27, 2001 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 Large Conference Room, 3200 Tahquitz Canyon Way, on Wednesday, June 27, 2001, at 7:00 p.m. ROLL CALL: Present: Councilmembers Jones, Hodges, Oden, Reller-Spurgin Absent: Mayor Kleindienst The meeting was opened with the Salute to the Flag. REPORT OF POSTING OF AGENDA: City Clerk reported that the: agenda was posted in accordance with Council procedures on June 22, 2001. HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: FINANCING AUTHORITY: COMMUNITY REDEVELOPMENT AGENCY- No Business PUBLIC COMMENTS: Louis A. Morales, 722 San Lorenzo #18, reviewed a news article from the Times, copy on file in Office of the City Clerk, and added that a sports academy for the youth in this area would be a good opportunity and requested Council review the matter. Mayor pro tem directed the City Manager to contact Mir. Morales regarding the matter. Tom Suitt, 38315 Maricarbo, stated that the issue of drive thrus should be supported by the Council, except in the downtown area; that if the Council puts too many restrictions out, businesses will not want to locate in the City; and that there are suitable locations for drive thrus in the City. Carol Markley, 45 year resident, stated that this City its special; that it is not like other areas; that the downtown is special; that peoplle are encouraged to walk downtown; that the drive thrus are contrary to what we promote; that this is a Village; that it is important to keep it that way; that the Council needs the vision of what the residents want in Palm Springs; that the City Council is not qualified to make the decision, regarding the location of drive thrus; and that she is opposed to any drive thrus being located in the City. COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENCY REPORTS: None LEGISLATIVE ACTION: ORDINANCES FOR SECOND READING (Intro 6-20-01) 1. REFINANCING OF 1991 CONVENTION CENTER BONDS Recommendation: That the Council approve and authorize the execution of a Supplemental Lease Agreement #3 relating to the City of Palm Springs Financing Authority Lease Revenue Refunding Bonds, 2001 Series A (Convention Center Project). Council Minutes 06-27-01, Page 2 ' Councilmember Jones stated that this is a mistake; that the refinancing is a good idea, but not the manner in which it is being done; that there is no problem with refinancing to get lower interest rates and payments, but the savings should be used of offset the budget deficit; that the present debt of the convention center is $45 million; that the refinancing will extend the debt for an additional 17 years and add $12 million more; that the facility was not a good idea; that is does lose money each and every year; that what the Council is doing is pulling money out of the convention center to spend on an undetermined capital project; that there is nothing that says what the money will be spent on; that the Council is using the convention center just like it used the waste water treatment plant; that the Council is prevented from using funds at the waste water treatment plant thanks to the citizens; that Option 1 should be approved; that doing so will offset the budget deficit by 20%; that when he ran for office, he stood on financial conservatism; that one should not spend money one doesn't have; that it is against his principles to take the action that is recommended; and that the question is what will the rest of the Council do to offset the budget, what is the plan, what if revenue does not increase; that it is prudent to think ahead; and that he would recommended approval of the refinancing to help offset the budget deficit by 20%. Councilmember Reller-Spurgin stated that it is the Council's job to enhance and encourage business; that to do so, it is.essential to come up with the money to ' build a parking structure for the downtown; that there is no place for the customers to park, so they go elsewhere; that while Councilmember Jones' opinion is respected, her vote has to be in the best interest of the long term for the City. Mayor pro tem stated that as a City Council we discussed priorities; that the number one priority designated was parking for the downtown; that the issue is not just for the future, but is needed now; that we do not have the funds in the budget to build such a structure; that staff has found a way to target the needed funds; that the Council needs to enhance and support its businesses; that there are advertisements in some areas stating that parking is available, implying that there is no parking available in our downtown; that the Council's plan is business retention and expansion; that new businesses are wanted and old business should be retained; that the Council needs to accommodate the downtown needs; that the downtown is facing a life or death situation and we, the Council, need to move that situation towards life. Councilmember Jones stated that the priority for capital projects in the downtown should be to get the Desert Fashion Plaza up and running; that the Desert Fashion Plaza does have an available parking structure; that the structure is never filled; that the Council needs to move forward on the right plan; that the item before the Council is regarding financing; that there is no mention of building a parking structure; that the funds are not restricted, but are still to be ' determined; that the parking structure is just an idea to be located at the back of a few bars in the downtown area and that the priority should be the Desert Fashion Plaza. Council Minutes 06-27-01, Page 3 Councilmember Reller-Spurgin stated that the few bars in the downtown area have a significant impact on sales tax in the City; that the Convention Center was not built to bring revenue, but rather it was discussed and made known that the purpose was to bring conventions to fill hotel rooms and increase the TOT; and that since LMI has taken over the management of the convention center, operating costs have been lowered. Councilmember Hodges stated that the Desert Fashion Plaza is important, but that at this time additional downtown parking is more important and is needed; that there is no parking available, and that when the downtown is busy the parking facilities at the Desert Fashion Plaza is used 90% of the time. It was moved by Hodges, seconded by Reller-Spurgin and unanimously carried, Kleindienst absent, that the Title of Ordinance 1597 be read, and further reading be waived. City Clerk read Title of Ordinance 1597 as follows: AN ORDINANCE OF THE CITY COUNCIL 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 SPRINGS FINANCING AUTHORITY LEASE REVENUE REFUNDING BONDS, 2001 SERIES A (CONVENTION CENTER PROJECT) after which, it was moved by Hodges, seconded by Reller-Spurgin, and carried by the following vote that Ordinance 1597 be adopted. AYES: Hodges, Oden and Reller-Spurgin NO: Jones ABSENT: Kleindienst. 2. ASSESSMENT DISTRICTS 157 AND 158 BOND ISSUE: Recommendation: That the Council authorize supplements to the bond indentures relating to 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, not to exceed $3,000,000. Councilmember Jones stated his previous statements are applicable for this item. It was moved Hodges, seconded by Reller-Spurgin and unanimously carried, Kleindienst absent, that the Title of Ordinance 1598 be tread, and further reading be waived. City Clerk read Title of Ordinance 1598 as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA AUTHORIZING SUPPLEMENTS TO THE BOND INDENTURES RELATING TO THE CITY'S ASSESSMENT DISTRICT NO. 157 Council Minutes 06-27-01, Page 4 ' (RAMON/EVELITA) AND ASSESSMENT DISTRICT 158 (ANDREAS HILLS); THE ADOPTION OF A BOND ISSUANCE PROCEDURAL ORDINANCE; AND THE ISSUANCE AND SALE OF LEASE REVENUE BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,000,000 FOR THE PURPOSE OF FINANCING ACQUISITION OF ASSESSMENT BONDS, AND APPROVING RELATED AGREEMENTS AND ACTIONS after which, it was moved by Hodges, seconded by Reller-Spurgin, and carried by the following vote that Ordinance 1598 be adopted. AYES: Hodges, Oden and Reller-Spurgin NO: Jones ABSENT: Kleindienst. 3. PALM CANYON THEATER REPAIRS Recommendation: That the Council approve Change Order #1 to A4375 with Commercial Diversified for a credit regarding roof tile for the Palm Canyon Theater. Materials to be provided. City Manager withdrew the item. 4. SANTA ROSA/SAN JACINTO MOUNTAIN CONSERVANCY ' Recommendation: That the Council appoint a representative to the Santa Rosa/San Jacinto Mountain Conservancy. City Manager stated that the Secretary of the Interior will make the actual appointment, but is seeking the recommendation from the City of Palm Springs. Director of Planning & Building reviewed the staff report. Councilmember Hodges stated that the applicants were impressive. Mayor pro tem questioned if the individual could apply directly to the Secretary of State for other slots. Director of Planning & Building stated that there are 16 to 17 slots available; that the categories are fairly targeted; and that application can be made directly to the Secretary of State. Councilmember Hodges stated that the Council should discuss what type of person is needed; that all the applicants are excellent and it is difficult to select just one. Mayor pro tem stated that this type of Board does have a lot of special interest ' groups coming to the table and it is important for the City selection to the be right representation. Councilmember Hodges recommended Frank Bogert. Council Minutes 06-27-01, Page 5 Councilmember Reller-Spurgin stated that Mr. Cornett, would likewise be a good representative; and questioned if recommendations can be made for other categories. Councilmember Jones recommended Frank Bogert. Mayor pro tem stated that there are openings that others can apply for; that the Council could appoint the one representative and recommend Mr. Cornett be supported in another category. Minute Order 6872 as recommended was presented; after which, it was moved by Hodges, seconded by Jones, and unanimously carried, Kleindienst absent, that MO6872 be adopted. ADDITIONAL LEGISLATIVE ITEMS: None ADDED STARTERS: None REPORTS & REQUESTS: CITY COUNCIL reports or requests a) Councilmember Jones stated that there is some: confusion regarding the convention center operating in a deficit; that the facility loses $5.25 million each year; that it brings in just over $1 million in TOT; that the total sales tax in the City is $7 million, and can not be just from the convention center; that the tax on TOT is 10% of hotel revenue; that sales tax is 1%; that if a direct relationship is used between the two, then the result is $100,000, but it loses $5 million; that there are some problems that can never be cured; that the Council does need to admit there is a problem when the convention center loses more money than the Utility User Tax brings in; that it is correct to say that most Cities do build convention centers, but they don't lose 13 — 14% of the entire budget; that the Council was told by the consultant that the convention center would end up in the black within five or so years; that it simply has not happened and that there is something wrong when a facility loses over $5 million a year and does not enhance anything near this revenue. PUBLIC reports or requests STAFF reports or requests ADJOURNMENT: There being no further business, Mayor pro Am declared the meeting adjourned. C "4 1 PATRICIA A. SANDERS City Clerk