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HomeMy WebLinkAbout10/17/2001 - STAFF REPORTS (7) CITY OF PALM SPRINGS CITY COUNCIL MINUTES September 19, 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, September 19, 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 Reverend Tom Rietveld, PS Baptist Church REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on September 14, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 8 of agenda this date. PRESENTATIONS: Fire Department— R.J. Woods. HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: FINANCING AUTHORITY: - No Business COMMUNITY REDEVELOPMENT AGENCY: Mayor declared the meeting adjourned for the purpose of convening as the Community Redevelopment Agency; after which, members reconvened as the City Council. PUBLIC COMMENTS: Michael Bracken, CVEP, stated that a new budget work program had been issued; that each City, including Palm Springs contributes $5,000 to the partnership; that the bylaws had been amended to include an additional two elected officials; that Palm Springs had been chosen to fill one of the alternating slots; that the budget will continue to grow to attract business; and requested the appointment be filled as soon as possible. Art Lyons, 646 Morongo Road, stated that recent action by Sunline included the passage of an electric power generating plant and commented that while the City of Desert Hot Springs was opposed to Palm Springs approving an electrical generating plant, its Mayor voted in favor of the Sunline decision. Ray Mickelson, 901 W. Via Livmore, questioned why after 16 months, the Palm Canyon Theatre fire repairs have not been completed. Jim Stuart, 1037 Tamarisk Road, stated that the issue of the Ocotillo Plant could still be acted on; that even though the developer has withdrawn its application, the City could in fact change zoning for future development; that energy will continue to be important to the City; that if the property is rezoned it may be that someone would build a co-gen or wind energy plant and give the City direct access to the power; and that the Members of the Council should protect the citizens interests. l Council Minutes 09-19-01, Page 2 Tom Suitt, 38315 Maracaibo Road, stated that in reviewing the budget it is hoped that the Council will reduce expenditures to curtail the deficit; that the Mayor voted to support the Sunline power plant, but did not vote to support the City's; that a poll was conducted that indicated support by the citizens for the power plant; that none on the Council stood up and did what was right for its citizens; that legislation could have been sought to allow Palm Springs direct access to the energy produced in its boundaries; and that it is questionable as to why the Council is not looking out for its citizens. Fred Noble, no address given, stated that due to recent events in New York, there will be many people placed in harms way; that our soldiers will need America's support and encouragement; and regarding the Ocotillo Plant, three of four experts surmised there would be no health risk regarding the building of an energy plant in the proposed location; that it was repeatedly stated that to delay the plant was to kill the development; that the matter was delayed; that the result was a cost to the City of about $45 million; that the revenue would have come from property taxes, community benefits, building of the plant; that the plant would have been the cleanest emission plant in the State; that it was not clear that the plant had competition from Sunline; that the reality is that the competitor received the approval, and the result is a $700 million dollar investment loss to Palm Springs. Bob McDonald, 222 Chino Drive, stated that retail sales have been eroded by down valley stores; that the City is facing a $2 million dollar deficit; that if the City does not want to reduce the service level, new revenue must be found; that as projects are presented, the Council must evaluate the project removing emotion, and review the impacts on the City; that the power plant was a good deal for the City; that it would have been one of the cleanest running plants in the state; and that the plant would have been environmentally correct for Palm Springs. Darrell, Gilbreath, no address given, stated that the $1.5 million projected revenue generated from the power plant would only represent 2% of the City's budget; that the real question is whether the plant would be appropriate in the City; that InterGen is intending to build the plant, but in 2004; that the objection is that the plant should not be built in the headwinds of the City, but placed in the lower end of the Valley; that much of the information being passed around was generated by the developer; that it would be better to get the AQMD reports and numbers for accuracy; that the Desert Sun poll indicated that 74% of its calls were against the development; and that the truth of the matter should be sought. Barbara Gromwell, Smoke Tree Ranch, stated that if the City decides to pursue the development of a power plant, it would be better for the plant to be environmentally friendly; that there are alternatives to what was being proposed; and that whatever is approved, the appropriate security would need to be provided. APPROVAL OF CONSENT AGENDA: It was moved by Oden, seconded by Hodges, and unanimously carried, that Items 1 thru 8, excluding item 5, be adopted. Council Minutes 09-19-01, Page 3 CONSENT AGENDA: Review by City Manager of Consent Items to be clarified. Councilmember Hodges requested clarification on the issue regarding the Palm Canyon Theatre. City Manager stated that the building was damaged due to fire; that as reconstruction takes place there are other deficies that are uncovered; that it may be that the Theater needs to be closed due to safety or that each problem weighed on its merit. Director of Procurement & Contracting stated that the fire did occur one year ago; that the funds were not available to immediately reconstruct; that time elapsed waiting for the insurance company to determine its level of coverage; that as work is done there are code violations uncovered; that without spending General Fund monies, the task to pay for the needed repairs becomes burdensome; that some of the options that Council have chosen resulted in additional time; and that the completion time should be by the end of the year. City Engineer stated that structural damage was uncovered during the reconstruction process; that when the roof was removed, timber was uncovered that was coming apart; that it is not safe to just repair, but those types of problems need to have structural replacement. City Manager stated that a commitment is being made to the City Council and the Community that time will be an issue; that a path has been made and the resources in place; and that this project will be brought to line. 1. MO 6931 approving Amendment #1 to A3990 with Palm Desert National Bank for automated teller machine supply and servicing services at the Palm Springs International Airport for a fee of 75 cents per ATM transaction and a term of three years. 2. MO 6932 approving the installation of domestic and fire service water valves by Desert Water Agency related to the expansion of the Airport Fire Station for $9,308. CP00-32. 3. MO 6933 approving Change Order #4 to A4223 with EL Yeager Construction Co., related to the East Palm Canyon and Gene Autry Trail Widening for an increase of$45,150.54, total contract $1,337,405.37, CP92-36. 4. MO 6934 approving a five-acre option to Lease Agreement#1764 with Million Air — Palm Springs at the rate of$77,319 per year. 5. SEE EXTENDED CONSENT AGENDA 6. Res 20171 concurring with CRA-A regarding approval of Disposition and Development Agreement with New Millennium Development, LLC. Council Minutes 09-19-01, Page 4 7. Res 20172 concurring with CRA-B regarding approval of third amendment to Disposition and Development Agreement with John Wessman dba Wessman Development Company; and Res 20173 amending the budget for$128,000. 8. Res 20174, 20175, and 20176 approving Payroll Warrants and Claims & Demands. Note abstentions, if any: Councilmember Warrant# Payee Particular Nature of Conflict Reller-Spurgin 968355 Spurgin Spouse 968471 EXTENDED CONSENT AGENDA: Councilmember Reller-Spurgin stated that while there is no questions concerning the staff report it is fiscally responsible not to spend money one does not have, and therefore would not support the item. 5. FINANCE DEPARTMENT OFFICE FURNITURE Recommendation: That the Council approve purchase order with Trendway Corporation of modular office furniture for the Finance Department via participation in the State of California Multiple Award Schedule (CMAS) for $18,963.76. Councilmember Hodges requested a staff report. Assistant City Manager-Operations stated that staff was requested by the City Manager to bring work groups together; that although adding to the building would be the easiest solution, it was not a viable alternative; that instead ways to convert storage space was reviewed; that with the new groupings the only plausible configuration for Finance would be to convert to modular furniture in order to place a higher number of people in the same available workspace. Director of Finance & Treasurer stated that staff time was charged for the processing of the recent bond refinancings; that the result was $15,000 dedicated to the Finance Department; that the fee was based on .25% of the refinance; that the balance of the funds were transferred from the Department of Procurement & Contracting due to redirection of funds. Councilmember Oden stated that Council has discussed the need to bring functions together; that currently departmental staff is scattered throughout the buildings; and the reconfiguration will allow for more efficiency. Mayor stated that the space was reviewed two weeks ago; that one room had to be built to support a function; that the departmental teams will now be able to work together; that the old furnishings make it impossible to add more people to the existing area; that the modular furniture will assist in increasing the amount of staff in the existing area; that the workspace will be more defined; that this action will allow a streamlined function, and it is a bargain purchase. Council Minutes 09-19-01, Page 5 Minute Order 6935 was presented; after which, it was moved by Oden, seconded by Hodges and carried by the following vote that MO6935 be adopted. AYES: Hodges, Jones, Oden and Kleindienst NO: Reller-Spurgin ABSENT: None. PUBLIC HEARINGS: 9. CASE 5.0874B - OCOTILLO ENERGY PROJECT Recommendation: On September 5, 2001 Council continued this matter to consider the following actions: approval of a Memorandum of Understanding relating to Community benefits; approval of forwarding the Planning Commission Conditions of Approval to the CEC regarding the project; and amend the Zoning Ordinance to allow natural gas fueled electrical generation in the "E-1" Energy Industrial Zone. City Manager stated that applications for power plants is not a smooth process; that in this case the applicant has withdrawn its application from the State Energy Commission, and on that basis, the matter was withdrawn. City Attorney reviewed past history of the city application process, and stated although the item is a Noticed Public Hearing, the applicant has withdrawn its application resulting in no subject matter to be discussed; that should the applicant decide to move ahead, the process within the City of Palm Springs would need to start over; that the applicant has also withdrawn its request for any City action and that the Council is deprived of jurisdiction. 10. TTM29788 - BARBARA FOSTER HENDERSON Recommendation: That the Council adopt the draft Mitigated Negative Declaration and approve the proposed Tentative Tract Map 29788, subject to conditions, for property located between Ramon Road and Sunny Dunes Road, west of La Mirada Road, R-1-A zone, Section 22. Director of Planning & Building reviewed the staff report and added that no appearances were made at the Planning Commission hearing and that one letter of opposition was received; and that the applicant did meet with the opposition to address the needs. Mayor declared the hearing open. Barbara Foster Henderson, no address given, stated availability to answer questions; and added that the process had taken a long time; that an easement was granted for flood control at the entrance of the canyon. There being no further appearances the hearing was closed. Council Minutes 09-19-01, Page 6 Resolution 20177 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Oden, and unanimously carried, that R20177 be adopted. 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. Councilmember Oden reported that the Riverside County Community Access Ad Hoc Energy Task Force did recommend to State legislature direct access; and volunteered to serve as the CVEP representative. LEGISLATIVE ACTION: 11. CAMINO ALTURAS AND CAMINO MONTE SEWER SERVICE Recommendation: That the Council approve the addition to the Capital Improvements Program for the 2001-02 fiscal year for sanitary sewer extension on Camino Alturas and Camino Monte providing potential sewer service to seven residences for $100,000; and authorize reimbursement from the property owners at time of connection to the sewer. City Manager withdrew the matter. 12. ACANTO DRIVE SEWER SERVICE Recommendation: That the Council authorize extension of sewer service to the South Palm Canyon properties located in an unincorporated area adjacent to and outside the City limits, south of Acanto Drive and east of the southerly extension of South Palm Canyon Drive. City Attorney stated that the request by the Tribal Council is to allow Tribally owned facilities that are adjacent to City boundaries to be allowed to hook up to the sewer system at the normal charge; that it is a Government to Government request; and that staff would recommended the allowance. City Manager stated that it is in the interest of the City to have areas adjacent hooked up to the sewer system for health and safety. Mayor questioned if schools were charged the double fee for hookup. Director of Planning & Building stated that the schools are within the boundaries of the City and that no other requests by schools outside the boundaries had been made. Councilmember Oden stated that there are trade offs in relationships; and that the Central Valley Animal Shelter is another example. Council Minutes 09-19-01, Page 7 Resolution 20178 as revised to allow Tribally-owned facilities located outside the boundaries of the City to pay the normal fee for sewer hook up within the City, was presented; after which, it was moved by Oden, seconded by Jones, and unanimously carried that R20178 be adopted. 13. TAHQUITZ CREEK GOLF RESORT— MARKETING STUDY Recommendation: That the Council approve a Memorandum of Understanding with Colliers Seeley International, Inc., to market the Tahquitz Creek Golf Resort as a resort hotel site and to commission a market and feasibility study for the hotel at its own cost. A-----. City Manager withdrew the matter. 14. BOND SAVINGS CAPITAL PROJECTS FUND 2001-02 FISCAL YEAR BUDGET AMENDMENT Recommendation: That the City authorize the creation of a new fund to segregate, for accounting purposes, the proceeds of the recent refinancing of Assessment District 157 and 158; and approve amending the 2001-02 fiscal year budget for $300,159.61. City Manager reviewed the staff report, and no further report was given. Resolution 20179 and 20180 as recommended were presented; after which, it was moved by Oden, seconded by Jones, and unanimously carried, that R20179 & 20180 be adopted. 15. 2001-02 FISCAL YEAR BUDGET AMENDMENTS Recommendation: That the Council transfer $300,000 from the 2001-02 fiscal year Capital Projects Fund to the Bond Savings Capital Projects Fund; and transfer$450,000 from the Capital Projects Fund to the General Fund. Director of Finance & Treasurer reviewed the staff report and added that the funds being moved are related to the Library Parking Lot fund; that the second part of the action will be to take the savings created of $300,000 and $150,000 for capital project not done and use the total of$450,000 to decrease the budget deficit. Mayor stated the previous action established the fund and that now the funds are being transferred. Director of Finance & Treasurer stated that the funds were a result from unexpended funds of the library parking lot; and that the $300,000 was a result of savings from the refinancing of Assessment District 157 & 158. Councilmember Jones stated that in essence, funds are just being moved around to get back to the General Fund. Council Minutes 09-19-01, Page 8 Resolution 20181 and 20182 as recommended were presented; after which, it was moved by Jones, seconded by Hodges, and unanimously carried, that R20181 and 20182 be adopted. 16. MUNICIPAL CODE AMENDMENT— MANAGED PARKING That the Council amend Sections 5.38.010, 5.38.260 and add Sections 5.38.270 and 5.38.280 of the Palm Springs Municipal Code regulating special event valet parking services. Assistant City Manager-Operations stated that this amendment will fill a void within the existing ordinance for valet parking for short term and residential; that the fees are more in line with smaller operations and that the amendment will authorize the City Manager to shorten the process for obtaining a permit when needed. Mayor stated there was a concern with a 30 day wait to obtain a permit; that operators desired to conform with the Ordinance, but in some cases did not have enough time before the event to comply; and that this amendment would allow the City Manager to have discretionary choice in the issuance of permits. City Clerk read Title of Ordinance as follows: AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.36.010, 5.38.260 AND ADDING SECTIONS 5.38.270 AND 5.38.280 OF THE PALM SPRINGS MUNICIPAL CODE, REGULATING SPECIAL EVENT VALET PARKING SERVICES. After which, it was moved by Kleindienst, seconded by Oden, that further reading be waived and that the Ordinance be introduced for first reading. 17. 2002 AIR SERVICE DEVELOPMENT INCENTIVE PROGRAM Recommendation: That the Council approve an Air Service Development Incentive program for 2002 to be known as "Freeport 2002 Air Carrier Operations Cost Reduction Initiative." City Manager withdrew the item. 18. PALM CANYON THEATRE Recommendation: That the Council approve amendment 7A to A4089 with Interactive Design Corporation, for design services related to development of construction documents, design, and monitoring services, which are a result of the age and use of the building not readily visible prior to the recent removal of the theatre's roof sheathing for $5,800; total contractual portion amendment $36,100. City Manager reviewed the staff report and added that the item had been placed on the DOGS agenda and that the Council will be briefed if delays occur and why. Council Minutes 09-19-01, Page 9 Councilmember Oden stated that the report given is appreciated; that many have invested in season tickets for the Theatre; that for the interim, port-a-potties are set up; and that a discussion should be held on whether City-owned facilities are properly insured. City Manager noted that a Historic Site rehabilitation grant has been identified and will be competed for in December 2001. Councilmember Reller-Spurgin stated that three and one-half hours were spent the previous day in reviewing Performa's for insurance brokers. Minute Order 6936 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Jones, and unanimously carried, that M06936 be adopted. ADDITIONAL LEGISLATIVE ITEMS: 19A. AIRPORT OVERTIME — SECURITY MEASURES Recommendation: That the Council authorize the use of overtime compensation for all airport employees carrying out special/added duties in response to the recent national tragedy. City Manager reviewed the staff report. Mayor questioned if the funds would be reimbursed by the airlines. Assistant City Manager— Special Projects affirmed and added that the Resolution would be revised to reflect a not to exceed amount of$50,000. Resolution 20183 as revised for amount not to exceed $50,000 was presented; after which, it was moved by Reller-Spurgin, seconded by Hodges and unanimously carried, that R20183 be adopted. 19B. ALLOCATED POSITIONS AND COMPENSATION PLAN —AMENDMENT#1 Recommendation: That the Council approve Amendment#1 to the Allocated Position and Compensation Plan adopted by Resolution 20086 to establish an allowance for overfill of one Fire Fighter position. City Manager stated that the Council did approve two overfills in last years budget; that the Fire Department did exercise one of the positions last year and that this action would allow the second overfill to be activated; and that the fill should result in a reduction of overtime within the Department. Resolution 20184 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Hodges and unanimously carried, that R20184 be adopted. Council Minutes 09-19-01, Page 10 ADDED STARTER: AS1. Recommendation: That the Council authorize the City Manager to accept grants from the FAA related to the Airport's response to the September 11, 2001 terrorists attacks. City Manager stated that the need for action regarding the matter arose subsequent to the posting of the agenda and requested the Council consider adding the matter. Motion to add the item for consideration to the agenda was presented; after which, it was moved by Reller-Spurgin, seconded by Oden, and unanimously carried that the Motion be adopted. Assistant City Manager — Special Projects reviewed the staff report and added that the action would allow the City Manager to execute and accept any grants that may be forthcoming; that the authorization would allow for flexibility to obtain any grants that may become available. Minute Order 6937 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Oden and unanimously carried, that MO6937 be adopted. REPORTS & REQUESTS: DEPARTMENTAL reports or requests — Received and Filed 20. Treasurer's Investment Report as of July 31, 2001 CITY COUNCIL reports or requests 21. CVAG Animal Shelter subcommittee appointment—Jones appointed. City Manager stated in October 2001 staff will bring recommendations to the Council regarding three separate alternatives regarding the Palm Springs Animal Shelter. Motion to nominate Councilmember Jones to subcommittee was presented; after which, it was moved by Reller-Spurgin, seconded by Kleindienst and unanimously carried that the Motion be adopted. PUBLIC reports or requests STAFF reports or requests ADJOURNMENT: There being no further business, Mayor declared the meeting adjourned. PATRICIA A. SANDERS City Clerk