Loading...
HomeMy WebLinkAbout1/16/2002 - STAFF REPORTS CITY OF PALM SPRINGS CITY COUNCIL MINUTES August 1, 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 Chambers at City Hall, 3200 Tahquitz Canyon Way, on Wednesday, August 1, 2001, at 5:30 P.M. ROLL CALL: Present: Councilmembers Hodges, Jones, Oden, Reller-Spurgin and Mayor Kleindienst Absent: None The meeting was opened with a Salute to the Flag and invocation by Reverend Tom Rietveld, Palm Springs Baptist Church. PRESENTATIONS: None REPORT OF POSTING AGENDA: City Clerk reported the Agenda was posted in accordance with Council procedures on Friday, July 27, 2001. REPORT OF CITY ATTORNEY ON CLOSED SESSION: See Page 6 of agenda of this date. HOUSING AUTHORITY, INDUSTRIAL DEVELOPMENT AUTHORITY and FINANCING AUTHORITY had no business for this meeting. CITY COUNCIL ADJOURNS, per Mayor Kleindienst, for the purpose of convening as the Community Redevelopment Agency. PUBLIC COMMENTS: Bob McDonald, Las Palmas, requested Members of the Council to re-establish themselves as a working team and for Councilmember Jones to resign. Mark Hunter requested Item 31 be approved. Linda Forte, Tourism Director, expressed appreciation for support given to the Tourism Division during the past year. Tom Suitt, Palm Springs, requested approval of Items#23 and 32. Nancy Stuart, no address given, expressed her opinion regarding the recent referendum process and encouraged members of the Council to work together for the betterment of the Community. Kerry Allen, 832 San Lorenzo, apologized for a letter released to The Desert Sun concerning funding for the Mizell Senior Center and added that the Center would like to renew its request for need of additional funding. Jim Davis, General Manager Holiday Inn, requested approval of Item 32, Jill Hathaway, no address given, stated that the Council should work as a team; that if there is dissension, it should be left behind and the work for the good of the City proceed. 14 Council Minutes 08-01-01, Page 2 Jim Janus, Mizell Senior Center, requested continued financial support of the Mizell Senior Center for the upcoming year. Tom Mulhall, 2388 E. Racquet Club, urged support of the hotel association; that there is advantage to the expansion of the convention center and added that it is a very important issue for our town Dick Hascamp, Palm Springs and Street Bar owner, requested waiver of fees for Item 28. Elizabeth Sanka, no address given stated that the site of the proposed power plant was incorporated into the city with the understanding that it would be used for renewable, non-polluting windmills and light manufacturing, not power plants; that is what was promised when representatives of Wind Tech fought for the incorporation of that area. Dean Carlson, Palm Springs, requested support of Item 31. Mathew Tahlala, requested support of Item #32. Jeff Rollins, Palm Springs, expressed support of Members of the City Council. Frank Tysen, recommended they send out questionnaires and find out what people think on issues concerning the Community. Jim Ballard, 190 E. Palm Canyon, requested support for Item 32. Obstat Dada(?), General Manager of the Hilton Palm Springs Resort, requested support of Item 32. Denise Goolsby, requested support of Item 28 and 32. Jim Manion, Managing Director of the Riviera Resort & Racquet Club, requested support of Item 32. John Connell, Palm Springs, questioned the motives of Councilmember Jones. Jim Dunn, General Manager of the Convention Center, requested support of Item 32. Larry Coslin, Director of Operations at the La Mancha Resort urged support for Item 32. Joy Meredith, owner of Crystal Fantasy, urged support of Item 32. CONSENT AGENDA: Councilmember Reller-Spurgin questioned regarding Item 9, why the funding did not come from the library contract. Director of Finance & Treasurer stated that the Council could direct the allocation from the Library budget; that it would potentially reduce the amount in one of its funds; that the allocation would be from the Library contingency account, which is carried forward from year to year. Council Minutes 08-01-01, Page 3 Councilmember Reller-Spurgin stated that the Council must be prudent with its allocations. Assistant City Manager-Administration stated that the library does not have a contract with the city this year. It was moved by Reller-Spurgin, seconded by Jones, and unanimously carried, that Items 1 thru 21, excluding Items 10 and 16 be adopted. Review by City Manager of Consent Items to be clarified. 1. Approval of Minutes of July 5 & 9, 2001. 2. MO 6893 approving Amendment 2 to A2388 with Skywest Airlines for an additional 1.01 acres located at the Palm Springs International Airport for aeronautics and aircraft modifications at $1,304 per month. 3. MO 6894 approving purchase order to QWEST Communications to provide a dedicated data line from the US Customs Office to the US Customs Data Center in Virginia for$12,500 for Fiscal Year 01-02. 4. MO 6895 approving Amendment 1 to A4372 with Pac West Land Care Inc., for parks landscape maintenance services and steam cleaning in the downtown business district for$579,425. 5. MO 6896 approving a contract with Commercial Diversified, Inc., for expansion joints for bridges located on Sunrise Way across Tahquitz Creek and on Ramon Road across the Whitewater River for $42,000.36, CP97-20, Bid Schedule B only. A4387. 6. MO 6897 approving contract with Contreras Construction Co. for the Arenas Road Improvements, Bid Schedule A, for $309,410, CP01-12, A4388; and Res 20158 amending the budget. 7. MO 6898 approving Change Order 1 to A4368 with E.L. Yeager Construction Company for Crossley Tract Street and drainage improvements Phase 4, for $74,300, CP00-31, total contact amount$300,075. 8. MO 6899 approving a reimbursement agreement with Cathedral City for the Ramon Road Bridge repair; cost of repair $30,000 with 50% reimbursed by Cathedral City, CP97-20. A4389. 9. MO 6907 approving purchase order with Dell for one computer workstation for $1,825. 10. See Extended Agenda below. 11. MO 6900 approving purchase order with Canon Business Solutions Inc., for hardware and software support for the City's records management system for Fiscal Year 2001-02 for$34,344. Council Minutes 08-01-01, Page 4 12. Mo 6901 approving purchase order with Canon Business Solutions, Inc., for equipment, software, training and services for the City's record management system for $137,587; and MO 6902 approving purchase order with Dell Computer Corporation for scanning & workstation equipment for $11,719. Total amount of$149,306. 13. MO 6903 approving purchase order with Motorola Communications and Electronics Inc., for maintenance support of the Motorola 800 Mhz radio system for Fiscal Year 2001-02 for$69,048. 14. MO 6904 approving purchase order with Avaya Communications for maintenance support of two AT & T telephone switches and the Audix voice mail system for Fiscal Year 2001-02 for$23,354. 15. MO 6905 approving purchase order with High Line Corp., for maintenance support of the Personality 2000 Human Resources and Payroll Information Management System for Fiscal year 2001-02 for$15,286. 16. See Extended Agenda below. 17. Res 20140 approving the submission of a grant application to the Integrated Waste Management Board, Park, Playground Accessibly and Recycling Gant Program, for new playground equipment at Demuth Park, for$50,000. 18. MO 6906 approving payment to Riverside County Flood Control & Water Conservation District as the City's share to conduct environmental testing and evaluation within Eagle Canyon to determine hazardous material and usable material levels for$10,000. 19. Res 20141 approving Resolution of Intention for the formation of Rule 20-A Utility Undergrounding District located at Indian Avenue and 1-10; and setting hearing for September 5, 2001. CP99-19. 20. Res 20142 setting public hearing for the Sale of Property consisting of 7,840 square feet located near Via Olivera and the Whitewater Water Company easement to Burnett Development Company. 21. Res 20143 and 20144 approving Payroll Warrants and Claims & Demands. Note abstentions, if any: Councilmember Warrant# Payee Particular Nature of Conflict Reller-Spurgin 966989 Spurgin Spouse Council Minutes 08-01-01, Page 5 EXTENDED CONSENT AGENDA: 10. DELL COMPUTER WORKSTATIONS Councilmember Reller-Spurgin stated at the last council meeting there were multiple computers requested for purchasing; that the City Manager was informed that her support would not be given unless the equipment was absolutely needed; that the matter was withdrawn; that now, two weeks later, two more issues with computers are before the Council; and that the need has not been demonstrated and would not be supported. Minute Order 6908 approving purchase order with Dell for two computer workstations for $2,805.80 was presented; after which, it was moved by Oden, seconded by Hodges and carried by the following vote that MO6908 be adopted. AYES: Members Hodges, Jones, Oden and Mayor Kleindienst NO: Member Reller-Spurgin ABSENT: None. 16. 310-316 NORTH PALM CANYON ENCROACHMENT LICENSE-BERNARD WHITE Recommendation: That the Council approve an encroachment license with Bernard White, dba White Brothers Investments Company for the construction/maintenance of building columns and entry tower within the City's right-of-way located at 310— 316 North Palm Canyon Drive. Director of Planning & Building reviewed the staff report and visual site plans located in the Chamber. Mayor Kleindienst expressed concern regarding the restrictions of traffic on the sidewalks and questioned if the encroachment fully met all ADA requirements. City Engineer stated the project was ADA compliant. Councilmember Hodges stated, as a previous business owner on the block, the sidewalk is very narrow and expressed concern about limiting even more of the access area. Director of Planning & Building stated that this project had been reviewed by the City's standard development review process, which included approval by the Planning Commission. Mayor stated that the light orange area on the pictures encroached too far into the sidewalk area and a reduction of that portion should be made. Resolution 20145 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Oden and carried by the following vote, that R20145 be adopted. AYES: Members Jones, Oden, Reller-Spurgin and Mayor Kleindienst NO: Member Hodges ABSENT: None. Council Minutes 08-01-01, Page 6 PUBLIC HEARINGS 22. VACATION RIGHT-OF-WAY PRESCOTT DRIVE Recommendation: That the Council approve vacating a portion of right-of-way dedicated for the public street named Prescott Drive, Section 10, T4S, R4E, R01- 005. Director of Public Works & Engineering reviewed the staff report and added that during the last month Council approved a 21 unit, multiple-family development called The Hermosa and that as a condition of that approval, Prescott Drive Right-of-Way Vacation was required. Mayor declared the hearing open. Marlene Eveland, 197 W. Via Lola, representing 50 residents around the Prescott Drive neighborhood voiced opposition to the item. Thomas Taylor, 197 W. Via Lola, stated opposition to the project. Andrew Green, representing Church of St. Paul in the Desert, urged support of the project. James Cioffi, project architect, recommended approval of the project; and added that the project does have underground parking; that surrounding neighbors will not lose any vistas; that the project is well designed; that the project will have little traffic impact; and that the project is for luxury condominiums. Marvin Roos, Mainiero, Smith & Associates, concurred with Mr. Cioffi and added that the item has already been approved by the Planning Commission and that this matter is for the vacation of the street. There being no further appearances, the hearing was closed. Councilmember Oden questioned possible impact on residents located on Via Loma. Planning Manager stated that meetings were held with neighboring property owners; that the concern is vehicles accessing and departing the parking area near the neighboring residences; that there are proposed carports and residents have expressed concern regarding possible blockage of the vista. Councilmember Hodges questioned the Notice of Vacation. City Engineer stated the notification was given in accordance with the Street and Highway Code and that the Notice was posted on Prescott Drive in three locations on July 16. Councilmember Hodges questioned if homeowners within 400 feet were individually notified. Council Minutes 08-01-01, Page 7 Planning Manager stated that the previous request for planned development approved last month, did require 400-foot notification and was done; that a vacation of right-of-way does not have the same type of requirements; but that the legalities of the vacation were complied with. Councilmember Hodges stated when the Planned Development District was before the Council it was stated the neighbors supported the project. Mayor clarified that it was the neighbor to the west that was of concern, and that after negotiations the project was supported. Planning Manager stated that prior to Planning Commission, meetings were held with representatives of Las Palmas neighborhood and that the attendance was approximately 5 people. Mayor stated that whether the street is vacated or not, the same amount of traffic is generated; that with the construction of a parking structure, less uncontrolled parking will occur; and that this project does enhance the. Councilmember Oden concurred with the Mayor and added that the area does have some historic value, which is of some concern to the Community. Resolution 20146 as recommended was presented; after which, it was moved by Oden, seconded by Reller-Spurgin and unanimously carried, that R20146 be adopted. 24. CASE 5.0883 — CUP LAKSHMAN & WICKREMESINGHE Recommendation: That the Council approve a Conditional Use Permit, with conditions, for a private Montessori school for childhood education on a 0.53- acre parcel located at 1800 Vista Chino.(northeast corner of Vista Chino and Via Negocia), P zone, Section 1. Planning Manager reviewed the staff report and added that the school is targeted to open on September 4, 2001. Mayor declared the hearing open; there being no appearances, the hearing was closed. Resolution 20147 as recommended was presented; after which, it was moved by Oden, seconded by Reller-Spurgin and unanimously carried that R20147 be adopted. 25. CASE 5.0877— CUP VERIZON WIRELESS Recommendation: That the Council approve a Conditional Use Permit, with conditions, for the installation of a commercial communications antenna on a 60 foot monopole and associated 230 square foot equipment building located within a 812 square foot leased area adjacent to 1555 South Palm Canyon Drive (Plaza Del Sol)zone PD131, I.L., Section 22. Councilmember Oden stated Conflict of Interest and exited the meeting at this point. Council Minutes 08-01-01, Page 8 Planning Manager reviewed the staff report, no further report was given. Mayor declared the hearing open. John Wessman: 1555 S. Palm Canyon Drive, requested approval of the item. Resolution 20148 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Hodges, and carried by the following vote, that R20148 be adopted. AYES: Members Hodges, Jones, Reller-Spurgin and Mayor Kleindienst NO: None ABSENT: None ABSTAIN: Member Oden. 26. CASE 5.0868 — CUP SPRINT PCS Recommendation: That the Council approve a Conditional Use Permit, with conditions, for the installation of a commercial communications antenna on a 73 foot monopole and seven equipment cabinets within a 728 square foot leased area adjacent to 1555 South Palm Canyon Drive (Plaza Del Sol) zone PD131, I.L., Section 22. Mr. Oden stated Conflict of Interest. Planning Manager reviewed the staff report, no further report was given. Mayor declared the hearing open; there being no appearances, the hearing was closed. Resolution 20149 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Hodges, and carried by the following vote, that R20149 be adopted. AYES: Members Hodges, Jones, Reller-Spurgin and Mayor Kleindienst NO: None ABSENT: None ABSTAIN: Member Oden. Councilmember Oden returned to the meeting at this time. 23. CASE 5.0874E - OCOTILLO ENERGY PROJECT Recommendation: That the Council amend the Zoning Ordinance to allow natural gas fueled electrical generation in the "E-I" Energy Industrial Zone; and review of the California Energy Commission application for certification of a proposed facility located within a 75 acre site north of Dillon Road, east of Diablo Road, Zone E-1 and W, Section 9, R4E, SBBM. Council Minutes 08-01-01, Page 9 Director of Planning & Building reviewed the staff report and added that there are two separate items for consideration and requested that the portion concerning the energy plant design, operation and how it would fit in the Community be continued to September 5, 2001. City Manager stated that there are some additional Community benefits to the City; that the project will produce property tax revenue at the end of a period of two years; that the tax would be approximately $943,000 per year; that the plant will be required to buy approximately $25 to $30 million in air emission credits; that the public arts fee would be approximately $250,000 for a one-time fee; that sales tax will also be generated; that the initial construction will result in construction jobs at approximately 440 professional jobs, permanent jobs will be approximately 30 full-time professional and technical personnel, with an annual payroll of about $2 million dollars to the region; that the Ocotillo plant will offer, when available, accessibility long-term contracts; that a commitment to approximately $5 million dollars in PM10 mitigation has been made; that a one- time $1 million dollar contribution to the City to be used to enhance the environment, assist youth, provide elderly care or promote economic development has been made; that the agreement includes further contributions of $100,000 annually thereafter to be used in the same sort of categories and that the annual amount is adjusted to actual year's dollars; and agreement has been reached to cooperate with the city to the extent possible to allow us to potentially purchase natural gas at the same rate as the plant. Norm Strashire, no address given, stated that the City Manager did review the letter proposal to direct negotiations for terms and conditions of a final agreement. Councilmember Hodges questioned what was nitrogen oxide and the effect. Director of Planning & Building stated it is a chemical component. Mayor requested the air quality expert define the chemical effect and questioned the PM10 comparison on the peaker versus the Ocotillo, the sulfur content based on PUC General Order 588; that the issue is air quality and the impact that will be made Councilmember Jones requested the data be given in laymen's terms. Robert Wren, stated that the project has been considered for some time; that the company is world known as leaders in generation projects; that the plant concept has been accepted by the CEC for a 4-month expedited process; that production is expected by late 2002; that there are many project pending at the CEC; that any obstacles in the process will cause the approval to derail; that it is the zoning that is before the Council for consideration at this meeting and requested approval; that in laymen's numbers on air emission the Plan is in the 0.7% of the existing emissions for Knox; that is less than 1%; that in RPM10, the plant will put out .04% that would exist in the valley today on an average day that these are very low numbers; that it is not a significant source of air pollution, and anything that is put out will be mitigated. Council Minutes 08-01-01, Page 10 Mike Carroll, Layman Watkins law firm representing the Ocotillo Energy Project, stated that Knox is a precursor to smog; that when Knox is in the atmosphere it can enter into chemical reactions in the presence of sunlight and it does form smog; that it does not cause cancer; that it is not an air toxic; but that at certain high concentrations it can be unhealthful and therefore the EPA and the State of California have both set Ambient Air Quality Standards which are the levels which should not be exceeded in order to protect public health; that the project does not exceed any of the Ambient Air Quality standards for Knox emissions; that there are other standards such as the South Coast AQMD thresholds that if the thresholds are exceeded the project is deemed to potentially have significant impact and must be mitigated; that the project did exceed the standards for two pollutants; that mitigation measures have been set in place; that the result is . around $25 to $30 million dollars worth of emission offsets as mitigation; with respect to the sulfur content, the assumed sulfur content in all the modeling and all the emissions analysis that was done is .25 grains per 100 standard cubic feet; that the sulfur content is actually going to be considerably lower than that, but to be conservative, in the analysis that was done for the California Energy Commission, the figure used was .25 grains; that PM10 emission will be lower; that it is not clear what the exact percentage will be, but that the reduction is evident due to the increase in the fuel efficiency of the power plant. Tom Dosey, Landscape Architect, stated that there are a variety of erosion control measures that would include stabilization of cut and fill slopes as well as a re-naturalization of the actual graded area; that a number of landscaped zones have been designated; that one goal is to develop a functional and sustainable landscape under the conditions that exist out at the desert location; that another is to develop a streetscape that would provide some type of screening from automobiles as the street begins to develop and continue the balance with the hillside development; that the plant pallet will contain plants that are suitable for the area under the conditions of both low water use and that would withstand the wind conditions that would be prevalent on the site. Steven Bayrd, Mission Creek area, recommended approval of the project, but requested some type of lighting around the plant be addressed. Sherry Joseph, no address given, expressed opposition to the project and added that the regional haze and air pollution would be high; that Parks Services, representing Joshua Tree National Monument are against the project; that residents will be affected; that the tourism base will erode and recommended relocation of the plant at the very eastern end of the valley where the wind will blow the pollutants into the desert. Doug Gilbreath, expressed opposition to the project and requested a summary on how much CO2, carbon monoxide, ozone, particulate matter and sulfur oxide would be generated in the valley. Dr. Peterson expressed opposition to the project and added that natural gas is a contaminate. Barbara Grumbine, 61895 Smoke tree Road, expressed opposition to the project. Fred Nobel, 125 E. Tahquitz Canyon, requested support of the zoning change. Council Minutes 08-01-01, Page 11 There being no further appearances, the hearing was closed. Councilmember Hodges questioned if the plant would produce an odor. Director of Planning & Building stated that none of the reports indicated that the plant would emit any odors. Councilmember Hodges questioned if the landscaping would help with air quality issues. Director of Planning & Building stated that the landscape would assist with PM10 issues; that a tree-planting program could be implemented to try and offset some of the components that are released into the air, but that the size of the program would be quite large and not typical of these types of projects. Councilmember Hodges questioned if the agreement could specify what cities to apply the PM10 mitigations to; and added that constructing paved roads through the area will also mitigate some PM10 issues; and if it would be possible for the project to purchase the homes of those that felt the plant was offensive. City Attorney stated that there is no clause in the agreement addressing hardship home purchases. Councilmember Hodges stated that if the clause could be added to the agreement it could benefit some homeowners; that the situation may not occur at all and that the topic should be brought forward to determine if they would be willing to buy those properties if needed, Councilmember Oden stated that it should be determined if any offers have been made on any of the properties at this point. City Attorney stated that the negotiations have been based on issues such as impacts and mitigation; that if there are further concerns, instruction and direction is needed; that factual questions should be put to the applicant. Mayor requested the applicant to address forthcoming questions of the Council Councilmember Oden questioned the issue of contaminated natural gas. Mr. Whren stated that the same information was received just prior to the start of the meeting; that the brochure outlines the types of contaminates that are in the gas supply system from various sources; that the limited information makes it difficult to determine the level of health hazard, if any; that thus far there has been no supporting data that indicates that the release of those compounds as a result of burning the natural gas constitutes a health hazard in this particular area; and that further study would be needed to make a determination; that a determining factor in the placement of the plant was the availability of transmissions lines; that this project is next to a deal substation; that it does have the ability to accept the production of energy and transmit it to the grid system; that natural gas is readily available; and that there are two established shipping lines for the gas through the area. Council Minutes 08-01-01, Page 12 Councilmember Oden questioned possible impact due to the location of the San Andreas Fault line. Mr. Whren stated that there is a significant pipeline that goes from the proposed location of the plant to the high desert that does cross the San Andreas fault system, located at both the southern leg and the northern leg; that the lines are compartmentalized; that if there is a rupture in one location it shuts down and isolates; that the plant facility is designed in the same way; that should the area between the components separate there would be some release of natural gas; that the natural gas supply for this plant is south of the Banning fault; that the plant is south of the Banning fault resulting in not taking the gas across the San Andreas fault; that being said, the electrical utility connect and overhead wires do cross the fault system; that the fault is very close to the facility; that it runs between the facility and the dealer substation; that the facility will have to meet all of the current earthquake standards, including all of the fire prevention and all the other backup systems to make sure that there would not be a significant release or problem. Councilmember Oden questioned what impact the plant could have on the Valley's air quality and in terms of the water table. Mr. Whren stated that without the offsets to reduce emissions elsewhere the pollutants that come through the pass due to the emission of Los Angeles would be added to; that in concept, the AQMD program for mitigation requires the developer to purchase credits for actual pollution in other locations so that the net increase in the South Coast Air Quality Management District area when this facility goes online is none and in fact, for some of the pollutants under certain programs there would be a reduction in pollutant levels; that this does not mean that all the credits would be purchased immediately upwind of Palm Springs; and that efforts have been made through the community benefit outline to try to bring as many of those credits to the Valley; that the water basin for the project is from Missions Springs Water District; that there will be some depletion of the ground water reserves; that specific information on the amount of depletion has been determined; that the plan is on Phase I to use well water for the facility; and that Phase 11 Mission Springs Water District would participate in bringing in treated waste water, such as is done at the golf courses in the City of Palm Springs. Councilmember Oden questioned impacts of increased energy efficiency. Mr. Whren stated that three turbines go in Phase I and are a single cycle; that in theory, they run at their permitted level and generate 454 megawatts of energy that in Phase 11, with the addition of the steam-driven facility the heat from Phase I, creates the steam at the same rate of need of natural gas the increase of rate output is from 454 to 900 megawatts; that results in efficiency; that is the portion of the project alluded to as co-generation; that another benefit of Phase II is the cooled exhaust that comes out of the facility; that better control technology for air pollution is used and the air pollution comes down rather significantly; that one of the concerns regarding Phase I is from the National Park Service because of that hot exhaust, but in Phase II the exhaust is cooler and additional technology comes into play that reduces air pollution. Council Minutes 08-01-01, Page 13 Mayor clarified that Phase II does not actually cool as much as draw the heat off the system. Councilmember Reller-Spurgin questioned the affect on humidity; that 28 years ago the desert was much dryer; that it is of concern; and what would the production rate of electricity be on a hot day. Mr. Whren stated that the energy output would change to less. Councilmember Reller-Spurgin questioned the effect of lighting of the plant on night skies. Director of Planning & Building stated that the Planning Commission was concerned with protection of the dark skies; and that it was determined the project could be designed in a way to be non-offensive. Councilmember Reller-Spurgin stated the greatest benefit to this community would be if the energy it produced was able to come directly to the City of Palm Springs. Councilmember Jones stated that the letter of community benefits was not a legal document that's been negotiated or that would be enforceable. City Attorney stated that at this time it is an offer; that it is evidently intended to be something that can be accepted by the City; that it is best to have a legal mechanism such as a development agreement; that a development agreement is recognized by state law as a land use agreement; that it is binding, it binds future councils and it can reflect economic turns; that it is fairly broad as to what those economic terms can be; that one of the issues is that the letter relates to the mitigation of the plant; that, and actually a number of those things could also be included as comments on the state application process and in the state license. Councilmember Oden questioned if the State could override the City's decision; and added that if the project is going to be approved anyway, the Council should seek all the benefits for the Community it can negotiate. Councilmember Jones stated that the interest of the citizens needs representation and that the Council should not make a decision in haste. Director of Planning & Building stated that the project is on a 4-month fast track; that if all necessary regulations are not in place during that period, the project falls to a one year process; that the immediacy is based on the applicants intent to allocate turbines to this project from another slated project in another State; and that due to the investment cost of the equipment, the project that is closest to fruition will get the equipment. City Manager stated that the statement was made that if the applicant did not get the required approval this evening, that as an economic, internal and corporate decision, the project would go elsewhere. Director of Planning & Building stated that the State is scheduled to review the project with all related comments the first week of September. Council Minutes 08-01-01, Page 14 Mayor stated that this project is regulated not only at the local level, but at the State level as well; that the issue is of concern due to the energy crisis; that the CEC approved a process that established a 45-day deadline for preliminary comments and a 100-day deadline for final comments; that it is confusing based on that why a decision must be made tonight; that this is the first review by the Council; that there have been no discussions about any aspects of this project that would make the Council aware of what was coming up tonight and that is seemingly unfortunate; that it is premature to discuss the matter with any level of technicality; that there are questions, such as where is the opportunity for the City to gain direct long term benefit for the reduction of the cost of electricity; that the City presently has co-generation plants; that a major factor with economic development is trying to get a lower cost of power; that there is nothing in the reports that guarantees that aspect or directs the Council to believe it can be obtained; that the question of impact of air quality is of issue; that the standard for the Community is clean air; that to change to a lower level of air quality may also impact the tourist economic base; that a report is needed from an independent air quality professional; that the City has already approved a Peaker Plant in the area; that the approval process was expeditious; that the reports in the packet state an allocation of$5 million for PM10 mitigation; that the question is does the mitigation effort go within the City limits or outside; that regarding pollution and emission, everyone, everyday pollutes; that it is projected that this plant will replace 30-year old polluting plants with new, less polluting technology; that the life expectancy of this plant is 50 to 70 years; that the impact on using this plant that long is not given for future generations; that the intent is to have all the emission reduction credits to be utilized inside the air district where the plant is located; that in theory, if the old plants are replaced with this plant less pollution will blow through the pass; but that there is no insurance that the old plant will shut down; that the State is in an energy crunch; that no plants are going off line; that the City is already out of PM10 conformity; that there are noise concerns for the surrounding residences; that there is no sound mitigation program proposed; that the plant can not be landscaped out of sight; that it will be seen as it is; that there is interest in pursuing the idea, but that there are many unanswered questions at this point and time; that the revenue stream needs to be guaranteed; that guarantees need to be made concerning the benefits to the Community; and that a clear package needs to be delivered before the Council can take action. Councilmember Oden stated that there are some concerns; that the project is being fastracked due to the emergency situation; that this is a different path than the City would normally take; that the Council has been told this is the best technology in terms of energy producers and in terms of clean energy; and that there is no reason for doubt. Director of Planning & Building stated that in review of all reports submitted, the plant proposed is at the height of available technology. Councilmember Oden stated technology is constantly evolving; that right now the City does have the opportunity to assist the State and receive benefits from the project; and that the project will expand the City's tax base. Council Minutes 08-01-01, Page 15 Mayor stated that based on the applicant's estimates the proposed project would generate maximum daily emissions; that, in fact, the project will emit more than is allowed, thus the buying of credits; that one question is are the offsets bought each year or just one time and the pollution continues on year after year. Councilmember Hodges stated there is no plant that will produce energy that will be satisfactory for everyone; that this project does have the latest technology; that it is a one time mitigation fee; that there will be emissions; that there are items that need to be negotiated; that the benefits do need to be further defined and refined; that to wait to September 5 is not needed; that all information is before the Council; that there will not be new information and that action should be taken at this meeting. Mayor stated the attached report stated that the project is a major stationary source with the air-quality impacts significant; that additionally, there are accumulative air-quality impacts of all plants proposed within the Coachella Valley that would be significant. Director of Planning & Building stated that last week the CEC staff withdrew that report; that the recommendation to the CEC was changed; that the CEC did accept the new recommendations; that the CEC does not now consider the new project as a significant stationary source; and that the CEC revised report is in the stack of materials before the Council. Councilmember Reller-Spurgin stated that the City is in a deficit situation; that it is tempting to ignore the reports and look at the benefits; that the Council is business minded; that it does try to do what is right for the City; that there is concern on the long term effect of the pollution; that the electricity is needed, the money is needed, but that the reports make one feel uncomfortable with the long term impacts on the air quality. Councilmember Hodges stated that if something is not done about the energy crisis, the bottom line is that the power needed to run air conditioners in the summer in this valley will not exist; that if we do not start addressing the issue we will continue to see businesses close as they have this past summer; that the City needs to step up to the plate; that the project is not perfect; that if the Council does not act, it will not make a difference if TOT is raised, there won't be any tourists to generate it; that right now there is terrible air quality coming through the pass; that some of the offsets will help improve it; and that the Council needs to step forward and take action. Motion by Councilmember Jones that a negotiating team be put together to pull a benefits package together for the City and the matter be continued to September 5 for further action. Councilmember Oden stated there is no second. Motion to introduce the Ordinance, waive the text for first reading and adopt the Resolution as recommended was presented; after which, it was moved by Oden, and seconded by Hodges. Council Minutes 08-01-01, Page 16 City Manager stated that it has been noted that the State may reactivate the direct access issue within a few years. Mayor stated there is a motion on the floor and questioned the outcome if the motion failed. City Attorney stated if the motion is defeated the issue is still on the floor for some other motion to be made; and questioned the intent of the maker of the motion regarding the August 1 letter proposal. Councilmember Oden stated the proposal is an offer. City Attorney stated for clarification the motion is to introduce the Ordinance, approve the Resolution and when the project comes back for approval, the letter proposal would be refined. Councilmember Oden concurred. Councilmember Jones questioned who would be on the negotiating team. City Manager recommended the City Attorney, City Manager, Assistant City Manager and a consultant with specialized knowledge in this field. Assistant City Clerk read Title of Ordinance as follows: AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA AMENDING THE ZONING ORDINANCE IN REGARD TO ALLOWING NATURAL GAS FUELED, ELECTRIC GENERATION FACILITIES, SUBJECT TO CONDITIONAL USE PERMIT IN THE E1 ENERGY INDUSTRIAL ZONE. AYES: Councilmembers Hodges and Oden NO: Councilmember Jones, Reller-Spurgin and Mayor Kleindienst. ABSENT: None Motion to continue the matter to September 5, 2001 was presented; after which, it was moved by Jones, seconded by Reller-Spurgin and carried by the following vote, that the matter be continued. AYES: Councilmembers Jones, Reller-Spurgin, and Mayor Kleindienst NO: Councilmember Hodges and Oden ABSENT: None Council Minutes 08-01-01, Page 17 COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENCY REPORTS: None 27. TAHQUITZ CREEK GOLF RESORT Recommendation: That the Council approve Amendment 1 to A3468 with Arnold Palmer Golf Management Company regarding the lease for the Legend Course; and approve a management agreement for the Resort Course. A4390. Director of Parks, Recreation and Facilities reviewed the staff report, no further report was given. Minute Order 6909 approving Amendment 1 to A3468 and Minute Order 6910 approving A4390 were presented; after which, it was moved by Reller-Spurgin, seconded by Jones, and carried by the following vote that MO6909 and 6910 be adopted. AYES: Members Jones, Oden, Reller-Spurgin and Mayor Kleindienst NO: Member Hodges ABSENT: None. 28. PALM SPRINGS AIDS ASSISTANCE PROGRAM Recommendation: That the Council waive rental fees for use of Pavilion on August 25, 2001 and January 20, 2002 for$770.00. Director of Parks, Recreation and Facilities reviewed the staff report, no further report was given. Councilmember Reller-Spurgin questioned whether the program for exemption requests was developed. Assistant City Manager-Administration stated the draft policy is in the final revision stages; and not yet ready for approval. City Attorney stated that the policy will clarify the different types of events, how they are organized and suggest categories for each; that once the policy has been approved all requests will be evaluated on a consistent basis. Councilmember Oden recommended the approval based on community service rendered by the organization. Minute Order 6911 as recommended was presented; after which, it was moved by Hodges, seconded by Jones and unanimously carried, that MO6911 be adopted. Council Minutes 08-01-01, Page 18 29. COMPREHENSIVE FEE SCHEDULE AMENDMENT Recommendation: That the Council amend the Comprehensive Fee Schedule, as amended, to increase Fire Department fees for safety training and inspections. City Manager reviewed the staff report, no further report was given. Resolution 20150 as recommended was presented; after which, it was moved by Jones, seconded by Reller-Spurgin, and unanimously carried, that R20150 be adopted. 30. TOUR de PALM SPRINGS Recommendation: That the Council waive the facility rental fee of $500.00 for use of decommissioned Taxiway A for charitable event parking on February 2, 2002. City Manager reviewed the staff report, no further report was given. Minute Order 6912 as recommended was presented; after which, it was moved by Hodges, seconded by Oden and unanimously carried, that MO6912 be adopted. 31. RESOLUTION OF CONVENIENCE & NECESSITY Recommendation: That the Council approve a Resolution of Convenience and Necessity at a nightclub located at 611 South Palm Canyon Drive (Sun Center). Director of Planning & Building reviewed the staff report, no further report was given. Councilmember Reller-Spurgin stated that for clarification to the business owner support would not be given to the item due to being opposed to approving letters of convenience of necessity to buy alcohol. Resolution 20151 as recommended was presented; after which, it was moved by Oden, seconded by Hodges and carried by the following vote that R20151 be adopted. AYES: Members Hodges, Jones and Oden NO: Members Reller-Spurgin and Mayor Kleindienst ABSENT: None. 32. NOVEMBER 2001 BALLOT MEASURES Recommendation: That the Council consider possible Advisory Measure concerning the Convention Center refinancing; a Measure concerning an amendment to the Transient Occupancy rate and a Charter Amendment concerning the commencement of terms of office for Members of the City Council for placement on the November 6, 2001 General Municipal Election; and related election resolutions thereto. Council Minutes 08-01-01, Page 19 City Manager stated that this discussion is regarding the possibility of three ballot measures; that one measure addresses the need of parking downtown; that the refinancing of the Convention Center bonds has caused some discord with the Members; that by placing the matter on the ballot, the Council can gain the advice of the electorate; and that the City Attorney may have additional comments. City Attorney stated that through discussion, the issue is focused on downtown parking and how to obtain funding; that proposed language for the measure is "shall city use the moneys made available because of the 2001 Convention Center refinancing to issue debt to finance downtown parking?" and that it would be a simple question, yes or no. City Manager stated that there had been some discussion of what exactly this parking could be; that the "parking think tank" did conclude to authorize an architect to come up with renderings on what the structure would look like; that this is a viable project; and that it would be a public/private partnership. Director of Downtown Development stated that the project not only deals with a parking structure, but improvement of Arenas, Indian Canyon and Baristo Road to create more surface parking as well; that the net gain is 343 spaces on this one block, 511 total spaces on the block and 388 in the parking structure itself; that meetings have been held with the property owners; that this project is smaller than the original project; that the location is south of the Fisherman's Market Place; that it will not require the relocation of that business; that work with the property owners for a service drive which would be a public right of way has been addressed; that meetings between the businesses, property owners and the City has resulted in a viable way to share a $6 million project cost.; that cost estimates have been done by Walker Parking Engineers; that the first reports are in from Dosier Appraisal; that it has been determined that with a $6 million project the property acquisition under current fair market values is about $1.5 million, which represents 25% of the project budget; that discussions with the property owners resulted in the property owners in exchange for dedicated parking in the structure essentially dedicating the land to the project; that the final result is approximately the city's share at $900,000 in the streetscape improvements around the parking structure in the public right of way, landscaping, lighting, beautifying the street and so on; that the City then would participate in the parking structure itself, which is a total of $3.6 million; that the city's share would be $2.1 million; that the private side would be $1.5 million; that the final result is the private side is $3 million, the City side is $3 million; that the way that is figured is the top 125 spaces, the least desirable 125 spaces, would be reserved for employees; that the property owners would actually buy into that with their employees share in an employee parking program; that is 125 spaces valued at $12,000 a space, equaling $1.5 million; that two property owners did discuss this matter and verbal commitments for 85 spaces have already been made; that the building is 25 feet tall, which is equal to a 2-story building; that the Zoning Ordinance does have a 35-foot height limit; that this structure is 10 feet below the height limit for this area; that the structure would be fronted with store front display windows, which could be used for the benefit of the Desert Museum, the Convention Center, the telling the history of Palm Springs, the events that are going on at the ground floor and would provide some signage opportunities for businesses on Palm Canyon; that the Fisherman's Market Place and the parking Council Minutes 08-01-01, Page 20 lot that is currently there would stay; that the Saloon would be relocated; and that the existing building would be demolished Councilmember Hodges questioned why adding the measure calls for a special municipal election to be consolidated; and that there is concern that sometimes special elections require a different vote such as 2/3's rather than a majority. City Attorney stated that the wording would be reviewed with the City Clerk to verify the appropriate language. Resolution 20152 as recommended was presented; after which, it was moved by Jones, seconded by Reller-Spurgin and unanimously carried that R20152 be adopted. City Manager stated that the hoteliers had requested the issue of raising TOT, Transient Occupancy Tax, be considered at the next election; that the request is to raise the TOT from 10.8 for large hotels to 12.5% and from 10% for small hotels to 11.5%; that it would result in raising an additional $1.8 million; that the funds would go to the General Fund to be used for general purposes of the city; that means that the funds are not committed to a specific purpose; and recommended approval. City Attorney stated that the language has been revised to comply with Proposition 218; that the Ordinance would be amended, upon approval of the voter; that the intent of the funds is to go towards the expansion of the Convention Center, but that there is no restriction on the funding increase. Mayor recommended that the structure of TOT increase be based on the size of the hotel, such as under 10 rooms would be 10%, those that are 50 or more could be at 10.7 and so forth; that comments have been made that the hotels under the 100 room level be broken down incrementally; and that the measure should include the flexibility to do so. City Attorney stated that if flexibility were the intent, it would need to be included in the impartial City Attorney analysis. Mayor directed the City Attorney to proceed with the analysis to include flexibility on behalf of the rate structure. Councilmember Reller-Spurgin stated that this measure has been put forth by the Hotel Association due to its perception of need of expanding the Convention Center; and that it should be clear that this was suggested by the Association, and not the City or the Convention Center. Councilmember Oden concurred with Councilmember Reller-Spurgin and added that it is even broader than the Hotel Association; that Tourism and the Chamber are also expressing the need for the Convention Center expansion. Councilmember Jones stated that while not in favor of expanding the Convention Center without an independent feasibility study, the matter would need to come back to the Council to vote again for the refinancing of the bonds. Council Minutes 08-01-01, Page 21 City Attorney stated that the Hotel Association has made it clear that it is not in favor of an increase in the TOT unless the Convention Center project moves forward; that the measure does need to go before the voters for authorization; that there have been no conceptual plans drawn regarding the expansion, but with voter approval the legal authority for the financing is in place; that the thought is that if approved, a refinancing package for the expansion could be put in place; that then this authority could be utilized to increase the tax to pay for the expansion and that is why this is a two-step process instead of a one-step process. Councilmember Jones stated that previously it had been suggested to raise the development tax on a shared basis; that the increase was to be divided between the General Fund and tourism; that concerns were addressed to the hoteliers and they do understand his position on the matter. Mayor question how much of the impartial analysis or argument in favor of the increase could be citing using the funds for the expansion of the Convention Center. City Attorney stated that the reference would not be in the impartial analysis, nor should be in the argument. Mayor questioned if there is no ability to state what the funds are intended for how can the public be reassured that the funds are for the expansion and not for general fund uses and that there is a concern for a clear message to the voters. City Attorney clarified that a special tax for a specific purpose does require a 2/3's vote and for that reason this increase will be going to the General Fund requiring a majority vote. Mayor stated that the difference on the vote requirement is clear, but that does not clear up how the voter can be convinced that the funding is needed for the expansion of the Convention Center. Councilmember Oden stated that Tourism and the Hospitality Industry would communicate the message. Mayor stated that the Convention Center is the focus of the measure; that it is not referenced in any document or vote; that there is no way to inform the public that the Council stands behind the expansion and questioned, if asked, how would one respond. City Attorney stated one could state their opinion of what the priority should be; that legally something can not be represented to the public that is not absolutely correct; that this is an issue of good faith between the Hospitality Industry and the Council, but that from a legal standpoint, it is not a legal commitment. Councilmember Hodges stated that an analysis must be done on the Convention Center to determine the feasibility; that the expansion may not happen based on the analysis; that even with the voters approving the increase, the Council does not have to implement it; and that it is the option of the increase that is needed at this time. Council Minutes 08-01-01, Page 22 Councilmember Jones questioned if membership in the Hotel Association would prevent voting due to Conflict of Interest. City Attorney questioned if there was any monetary benefit received or if an Office was held, and determined no conflict existed. Resolution 20154 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Oden, and unanimously carried, that R20154 be adopted. City Manager reviewed the staff report. Councilmember Oden stated that, in his opinion, the action was unnecessary, but that support would be given due to the support of the majority of the Council. Resolution 20156 as recommended was presented; after which, it was moved by Hodges, seconded by Oden and unanimously carried, that R20156 be adopted. City Attorney stated that with respect to all three items approved, there does need clarification for arguments; that the Council does have the opportunity to file arguments as the first priority and that if that is desired, the resolutions designating the authors need to be set in place. Councilmember Jones questioned if the action needed to be taken immediately. City Attorney stated this would be the opportune time, or an adjourned meeting could be called; that after the arguments are written any of the designated authors could refuse to sign. Resolutions 20153, 20155 and 20157 were presented; after which, it was moved by Oden, seconded by Hodges, and unanimously carried, that R20153, 20155 and 20157 be adopted. 33. ADDITIONAL LEGISLATIVE ITEMS: None ADDED STARTERS: None Council Minutes 08-01-01, Page 23 REPORTS & REQUESTS: None DEPARTMENTAL REPORTS OR REQUESTS: 34. TREASURER'S INVESTMENT REPORT OF JUNE 30, 2001 received and filed. CITY COUNCIL REPORTS OR REQUESTS: None PUBLIC REPORTS OR REQUESTS: None STAFF REPORTS OR REQUESTS: None There being no further business, Mayor declared the meeting adjourned. PATRICIA A. SANDERS City Clerk BARBARA J. WHITE Assistant City Clerk CITY OF PALM SPRINGS CITY COUNCIL MINUTES DECEMBER 4, 2001 An Adjourned 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 Tuesday, December 4, 2001, at 12:00 (Noon). ROLL CALL: Present: Councilmembers Jones, Hodges, Oden, Reller-Spurgin, and Mayor Kleindienst Absent: None 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 November 30, 2001. HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: FINANCING AUTHORITY: COMMUNITY REDEVELOPMENT AGENCY: No Business PUBLIC COMMENTS: The following persons complimented outgoing Councilmember Hodges for past achievements and congratulated incoming Councilmembers Oden and Mills. Stanley Barnes, no address given Mathew Tahlala, Palm Springs 15` Denise Goolsby, PS Hotel and Hospitality Association Gann Carter, Hodges Campaign Manager Linda Fort, Tourism Board Denys Acuri, Supervisor Roy Wilson's Office Don Williams, Palm Springs Joy Meredith, PS Main Street PRESENTATION BY MAYOR ON BEHALF OF THE CITY Mayor read Proclamation and presented a gift on behalf of the City. LEGISLATIVE ACTION: 1. 2001 GENERAL MUNICIPAL ELECTION - RESULTS Recommendation: That the Council declare the results of the November 6, 2001, General Municipal Election. City Clerk reviewed the proposed Resolution. Resolution 20224 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Jones, and unanimously carried, that R20224 be adopted. Council Minutes 12-04-01, Page 2 2. 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. 3. COMMENTS BY OUTGOING COUNCILMEMBER Councilmember Hodges stated that the past 11 plus years have been of great reward to serve the City; that the job is not yet done; that there are many goals the City has yet to reach; that appreciation is extended to members of the campaign committee; that congratulations are given to the winners of the election; and that the people of the City should remain involved, concerned and active in the Community. Councilmember Reller-Spurgin stated that Councilmember Hodges is an example of humility. Councilmember Oden stated that the Community has benefited by Councilmember Hodges and what she has done for the Community. Councilmember Jones concurred with previous comments. Mayor stated that Councilmember Hodges had done an honorable job; that the leaving of the seat is with love, integrity, honor and tenacity; that she is an example of a classic; that the Councilmember had worked on many projects in the City; that much had been accomplished under her watch; and that a better path has been defined for the City due to Councilmember Hodges efforts. 4. SWEAR-IN NEWLY ELECTED COUNCILMEMBERS a) Christopher Mills b) Ronald Oden City Clerk administered the Oath of Office to incoming elected. 5. COMMENTS BY NEWLY ELECTED COUNCILMEMBERS Councilmember Mills expressed appreciation to Ms. Hodges for past time and effort given on behalf of the Community; that appreciation is extended to the campaign committee, family and wife for all the work done on the election; that as part of the team on Council, he is anxious to lead the City into the future; and that it is recognized that one is elected to represent the people, not judge them. Council Minutes 12-04-01, Page 3 Councilmember Oden stated that congratulations is extended to Councilmember Mills; that in fact Councilmember Mills did serve as his own co-chair at a previous election; that there have been some articles in the Desert Sun regarding Councilmember Mills; that the Community needs to give a chance to a person before prejudging them; that appreciation is extended to his own parents, campaign committee and extended family at Desert Career College; that the various endorsements were appreciated; and thanked the voters for the confidence in his work. ADDITIONAL LEGISLATIVE ITEMS: None. ADDED STARTERS: None. REPORTS & REQUESTS: CITY COUNCIL reports or requests Councilmember Jones stated that he would be resigning as a Member of the City Council effective December 12, 2001; that there are health problems that impair his ability to function fully; that a recent stroke affected his hearing and that the loss of hearing impacts his effectiveness; that the decision was difficult to make; but that the situation with the hearing will make it impossible to give to the Community what is needed. Councilmember Oden requested the matter be added to the December 5, 2001 agenda for discussion. PUBLIC reports or requests: None STAFF reports or requests: None City Manager stated that on behalf of staff, appreciation is extended to Ms. Hodges. ADJOURNMENT: There being no further business, Mayor declared the meeting adjourned. PATRICIA A. SANDERS City Clerk CITY OF PALM SPRINGS CITY COUNCIL MINUTES DECEMBER 12, 2001 An Adjourned 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 12, 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 Mills, Oden, Reller-Spurgin, and Mayor Kleindienst Absent: None 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 December 7, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 3 of agenda this date. PRESENTATIONS: None. HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: FINANCING AUTHORITY: COMMUNITY REDEVELOPMENT AGENCY: - No Business PUBLIC COMMENTS: The following persons spoke in favor of a Council appointment to fill an unexpired term for a Member of the City Council, term ending November 2003. Jim Stuart, Palm Springs 1s` Thomas Van Etten, 1379 Barrymore Lloyd Maryanov, 2060 LaMerced Rick Combs, 1245 Colony Way Gann Carter 2076 Sandalwood Drive Sol Sanfield, 210 Coyote Drive Ginny Foat, 1901 N. Nogales Bill Feingold, 393 S. Calle Jasmin Randolph Scott, 181 Paseo Florida Joseph Schreck Fr., 3395 Camino Rojos Minna Maryanov, 2060 LaMerced Frank Wenxel, 775 E. Mel Avenue Pat Atkinson, 365 Club Circle Drive Percy Shiels, 4760 Winners Circle Jerry Gerardot, 65 Corona Drive Alissa Goforth, 175 S. Cahuilla Mike McCullough, 5005 Cherry Hills Drive, stated that it sounds like the Council is deadlocked on the appointment issue and if consensus cannot be made, the alternative is election. Council Minutes 12-12-01, Page 2 Wendie Busig-Kohn, no address given, stated that petitions had been signed as one message of the voice of many; that the voices should be heard; and that it is hoped the Council does the right thing. Bruce Bushore, 3778 Escoba Drive, requested support of the alternative funding for the skate park and swim center project. Shelly Saunders, 2295 Tamarisk Road, concurred with Mr. Bushore's comments. Bobby Wallace, PO Box 354, requested a television for public viewing in the Large Conference Room and added that parents should be incarcerated for the conduct of their minor children. Art Garcia, no address given, announced the appointment of Councilmember Ron Oden as Chairman to the Riverside County Community Action Commission. 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. LEGISLATIVE ACTION: 1. MUNICIPAL CODE AMENDMENT — TRANSIENT OCCUPANCY TAX FOR SECOND READING &ADOPTION (Intro 12-5-01) City Clerk read Title of Ordinance 1603 as follows: AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA AMENDING SECTION 3.24.037 (a) TO THE PALM SPRINGS MUNICIPAL CODE TO IMPOSE AN ADDITIONAL ONE AND SEVEN TENTHS PERCENT (1.7%) TRANSIENT OCCUPANCY TAX FOR GROUP MEETING HOTELS AND AN ADDITIONAL ONE AND FIVE TENTHS PERCENT (1.5%) FOR ALL OTHER HOTELS ADOPTED PURSUANT TO GOVERNMENT CODE SECTION 36937(d), after which, it was moved by Reller-Spurgin, seconded by Oden and carried by the following vote that further reading be waived and Ordinance 1603 be adopted. AYES: Councilmembers Mills, Oden, Reller-Spurgin and Mayor Kleindienst NO: None ABSENT: None. Council Minutes 12-12-01, Page 3 2. VACANCY OF MEMBER OF CITY COUNCIL Consideration of City Council vacancy created by Councilmember Jim Jones' resignation. City Manager stated that the matter is for Council discussion and direction. Councilmember Oden stated that at the previous meeting a motion was made to appoint Ms. Hodges as the third place runner in the last election to the vacancy; that the motion did fail; that many phone calls had been received in support of Ms. Hodges; and that if other members of the Council have someone in mind other than those who ran at the last election, who is it. Mayor stated that there is no one person in mind, but that the Council should allow an open period to consider individuals in the Community. Councilmember Oden stated that it sounds like the Mayor is requesting an election; that if an extensive process is being recommended, then the matter should go to election. Councilmember Mills stated that personally he has no one in mind; that it has been said that Ms. Hodges is interested, but that Ms. Hodges has not said that to him; that it is appropriate to hear from those that are interested; that the process would not have to take long, but that it does need to be done. Councilmember Reller-Spurgin stated that she had called Ms. Hodges; that she is willing to accept the appointment; that many comments were made about the team issue of the Council; that she personally was not aware the Council was not functioning as a team; that there are times that Members of the Council do not agree, but that does not mean they are not a team; that to be a part of a team does not mean you have to control the team; that this issue does not have to be this way; that the issue has divided the people of the Community; that the appointment should have been seamless and completed last week; that the Council is projecting a picture of division and needs to show unity; that there are many good things that are happening in the City; that the past week should have been sufficient time for Councilmember Mills to consider the appointment; that it takes time to come up to speed as a Councilmember and that the appointment of Ms. Hodges eliminates that learning curve. Motion to appoint Ms Hodges to the unexpired term for Member of City Council was presented; after which, it was moved by Reller-Spurgin, seconded by Oden, and discussion continued. Councilmember Oden stated he was asked what if the appointment potential was not Ms. Hodges, but someone else who ran; that an inventory has to be made of this own ethics and stated that whomever was third in the race should be supported for the appointment; that the movement of the City is important; that there are issues to address; that the healing process needs to be promoted; and that as leaders the Council's job is to correct efforts. Council Minutes 12-12-01, Page 4 Councilmember Mills stated that it is not clear where the sentiment came from that he stated he does not want Ms. Hodges; that he stated some additional time was needed to review the consequences; that there may be others in the Community interested in serving the short term; that the Council should interview those interested; and that until those interested are interviewed, an appointment should not be made. Councilmember Reller-Spurgin questioned if the recent forums of which Ms. Hodges was a candidate left any questions that were not answered. Mayor stated that all the candidates were offered to the voters; that a change was made by the voters; that a cooling period of time is needed; that it is counterproductive to have this issue ongoing; that a healing needs to take place in the City; that the voters had made their statement and a change is requested. Councilmember Oden stated that taking time can work for you or against you; that there have been many that have come forward to support the appointment of Ms. Hodges; that, in fact, there were 300+ in the past election that did so; and that as leaders there are times an emergency decision must be made without alot of time; the Council does not choose the team; that individuals are elected to work together; that when Mr. Jones was elected he did not support him; that one is duty bound to support the voters wishes; that this issue is not about Ms. Hodges, but the opportunity to appoint the next highest voter getter from an election that was certified two weeks ago; that the vacancy occurred on the same day the election results were certified; and that clearly Ms. Hodges is the Community's choice. Motion on the floor was taken and failed by the following vote. AYES: Councilmember Oden and Reller-Spurgin NO: Councilmember Mills and Mayor Kleindienst ABSENT: None Motion directing the City Clerk to prepare Resolutions calling a Special Municipal Election to be held April 9, 2002 to fill an unexpired member of the City Council vacancy was presented; after which, it was moved by Oden, seconded by Reller- Spurgin, and carried by the following vote that the Motion be adopted. AYES: Councilmembers Oden, Reller-Spurgin and Mayor Kleindienst NO: Councilmember Mills ABSENT: None Council Minutes 12-12-01, Page 5 ADDITIONAL LEGISLATIVE ITEMS: None ADDED STARTERS: None REPORTS & REQUESTS: CITY COUNCIL reports or requests: None PUBLIC reports or requests: None STAFF reports or requests: None ADJOURNMENT: There being no further business, Mayor declared the meeting adjourned. PATRICIA A. SANDERS City Clerk CITY OF PALM SPRINGS CITY COUNCIL MINUTES DECEMBER 14, 2001 An Adjourned Regular Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor Kleindienst, in the Large Conference Room, 3200 Tahquitz Canyon Way, on Friday, December 14, 2001, at 3:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 4:15 p.m., the meeting was convened in open session. ROLL CALL: Present: Councilmembers Mills, Oden, Reller-Spurgin, and Mayor Kleindienst Absent: None 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 Brown Act Procedures. REPORT OF CITY MANAGER ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 3 of agenda this date. PRESENTATIONS: None HOUSING AUTHORITY: INDUSTRIAL DEVELOPMENT AUTHORITY: FINANCING AUTHORITY: COMMUNITY REDEVELOPMENT AGENCY: - No Business PUBLIC COMMENTS: Wendie Busing-Kohn, no address given, held signs stating "Comm"—"unity". Philip Tedesco, 1303 Primavera, stated that a letter addressed to the Desert Sun Opinion Page was turned down for publishing due to allegations of nature of attacks on persons; that it should be known that Desert Chapel is in control of the Members of the City Council; and that the membership is not in the spirit of Article I. David Logerstat, 1311 Primavera, stated that the public has voiced its opinion in favor of Ms. Hodges and that it would be inappropriate to appoint another member of Desert Chapel. CONSENT AGENDA: None EXTENDED CONSENT AGENDA: None PUBLIC HEARINGS: 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 clarified that no one would be recommended to fill the unexpired vacancy due to religious affiliation. Council Minutes 12-14-01,Page 2 LEGISLATIVE ACTION: 1. APRIL 9, 2002 SPECIAL MUNICIPAL ELECTION Recommendation: That the Council call for a Special Municipal Election to be held April 9, 2002 to fill an unexpired vacancy term ending 11-4-2003. Councilmember Oden stated that calling for election is a second choice; but that the Council has not reached a consensus at this point for appointment and that the issue needs to be moved forward. Resolution 20234 calling election and Resolution 20235 regarding candidate statements were presented; after which, it was moved by Oden, seconded by Reller-Spurgin and carried by the following vote that R20234 and R20235 be adopted. AYES: Councilmembers Oden, Reller-Spurgin and Mayor Kleindienst NO: Councilmember Mills ABSENT: None. ADDITIONAL LEGISLATIVE ITEMS: None. ADDED STARTERS: Motion to add the item for consideration due to the need arising subsequent to the posting of the agenda was presented; after which, it was moved by Oden, seconded by Reller-Spurgin and unanimously carried that the item be added for consideration. 2. NORTEL NETWORKS PALM SPRINGS INTERNATIONAL FILM FESTIVAL 2001-02 FISCAL YEAR BUDGET AMENDMENT Recommendation: That the Council consider amending the 2001-02 fiscal year budget for Nortel Networks Palm Springs International Film Festival increased emergency one-time funding of$100,000. City Manager reviewed letter dated December 11, 2001 from David Baron, Executive Committee and Harold Matzner, Chairman of the Nortel Networks Palm Springs International Film Festival for a request of $100,000 in support of the Award Gala. Councilmember Oden stated that due to the economic times the City does need to provide the additional support to the program. Resolution 20236 as recommended was presented; after which, it was moved by Oden, seconded by Reller-Spurgin and unanimously carried, that R20236 be adopted. Council Minutes 12-14-01,Page 3 REPORTS & REQUESTS: None CITY COUNCIL reports or requests: None PUBLIC reports or requests: None STAFF reports or requests: None ADJOURNMENT: There being no further business, Mayor declared the meeting adjourned. PATRICIA A. SANDERS City Clerk CITY OF PALM SPRINGS CITY COUNCIL MINUTES DECEMBER 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, December 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 Mills, Oden, Reller-Spurgin, and Mayor Kleindienst Absent: None The meeting was opened with the Salute to the Flag, and an invocation by Dr. Jim Tom — United Methodist Church of Palm Springs REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on December 15, 2001. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All Entities) - See items on Page 8 of agenda this date. PRESENTATIONS: Proclamation for Dallas J. Flicek. 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: Dolliah "the Black Dalliah", P.O. Box 354, stated the wedding dress cost $150.00 to dry clean and did expect reimbursement from the City; and advised the Council not to wait to start plans for Black History Month. Mr. Ramie, Spanish Inn, stated that a call had been placed to the City Manager with no response and added that the Spanish Inn will be rebuilt; that the property only closed escrow five months ago; that it has been an asset to the City in the past and recommended that the action scheduled for the agenda not be taken. Jenny Sorenson, Ballantines Hotel, stated that it is good to see Indian Avenue upgraded; that there are some additional steps that could be taken such as the reduction of speed on Indian Avenue, a four-way stop at Tamarisk, additional crosswalk at the hospital, fines imposed for semi-trailer use of Indian Avenue and strong enforcement for illegal activities. Donnie Frank, Palm Springs, stated that the downtown parking think tank worked hard on an issue that is not needed and urged denial for a downtown parking structure. Frank Tysen, 175 S. Cahuilla, questioned the Council's fear for public discussion of the proposed pedestrian bridge over Indian Avenue; that support should be given to the Council Minutes 12-19-01, Page 2 Spanish Inn and the Biltmore renovations and added that the public does have the right to know what is going on. APPROVAL OF CONSENT AGENDA: Items 1 thru 11. (Except Items 1, 6, 7, and 10) It was moved by Oden, seconded by Reller-Spurgin, and unanimously carried, that Items 1 thru 11, excluding items 1, 6.7 and 10, be adopted. 1. SEE EXTENDED CONSENT AGENDA 2. Res 20237 supporting Proposition 40, the "Clean Water, Clean Air, Safe Neighborhood Parks and Coastal Protection Bond Act'. 3. Res 20238 supporting 'Inland Empire First' for use of existing Inland Empire airports prior to expansion of Los Angeles Airport. 4. MO 6977 approving an agreement with Redrock Communications, Inc., for providing and installing a wireless wide area network for Fire Department facilities for$176,791. A4432. 5. MO 6978 ratifying City Manager authorization to American LaFrance for emergency repairs of fire apparatus #443-T, to include replacement of swivel, control functions, pump and minor body work for$33,867.26. 6. SEE EXTENDED CONSENT AGENDA 7. SEE EXTENDED CONSENT AGENDA 8. MO 6979 approving purchase order with NEC Business Network Solution to provide and install communication cabling for the airport ground transportation center for$13,995.29. 9. MO 6980 approving an agreement with Alcalde & Fay for Washington D.C. lobbying services for a term of one year for$50,600. A4435. 10, SEE EXTENDED CONSENT AGENDA 11. Res 20239 and 20240 approving Payroll Warrants and Claims & Demands. Note abstentions, if any: Councilmember Warrant# Payee Particular Nature of Conflict Reller-Spurgin 971246 Spurgin Spouse 971366 Mills 971129 C. Kell-Smith Business related EXTENDED CONSENT AGENDA: 1. Recommendation: That the Council approve an agreement with American Youth Soccer Organization (AYSO) to promote and provide soccer for the youth of Palm Springs for a term of three years for a rental of 18% of its registration fees. A4436. Council Minutes 12-19-01, Page 3 Mayor requested an accounting of the rental collected and resulting improvements made to the concession stand; and added that the position of "no smoking" should be reviewed for possible conflict with existing regulations. Director of Parks & Facilities stated that an accounting and report would be made to the Council through the weekly report. Councilmember Oden requested the issue of no smoking in public parks should be scheduled for an upcoming study session. Minute Order 6981 as recommended was presented; after which, it was moved by Kleindienst, seconded by Oden, and unanimously carried that MO6981 be adopted. 6. COACHELLA VALLEY HOUSING COLITION — FM29695 Recommendation: That the Council approve Final Map 29695 for Fomotor Engineering related to Coachella Valley Housing Coalition to divide property located at 909, 921, 933, 945, 957, 969 and 999 Cottonwood Avenue and 970 and 990 Chuckwalla Road. APN 507-042-009, 507-042-010, 507-042-011 and 507-042-022. Section 11, T4S, R4E. A4433. Resolution 20241 as recommended was presented; after which, it was moved by Oden, seconded by Reller-Spurgin and carried by the following vote, that R20241 be adopted. AYES: Members Mills, Oden and Reller-Spurgin NO: Mayor Kleindienst ABSENT: None 7. DEMOLITION OF 1841 N. FARRELL AND 1750 SHARON ROAD PROPERTIES Recommendation: That the Council approve an agreement with Vision's West for demolition of two houses on airport property located at 1841 N. Farrell Drive and 1750 Sharon Road for$19,300. A4434. Councilmember Mills questioned if in addition to the demolition of the houses would a soil stabilization also be completed. Assistant City Manager-Operations stated that the properties would be restored to level ground. Resolution 20242 as recommended was presented; after which, it was moved by Mills, seconded by Oden and unanimously approved, that R20242 be adopted. 10. OWNER PARTICIPATION AGREEMENT STEVENS ROAD AND INDIAN CANYON WAY Recommendation: That the Council concurs with Community Redevelopment Agency to find pursuant to Section 33421.1 of the California Health & Safety Code relating to Owner Participation Agreement for the construction of a Council Minutes 12-19-01, Page 4 hotel/condominium resort located at Stevens Road and Indian Canyon Way MA#1. (CRA A). Resolution 20243 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Oden and carried by the following vote that R20243 be adopted. AYES: Members Oden, Reller-Spurgin and Mayor Kleindienst NO: None ABSENT: None ABSTAIN: Councilmember Mills. PUBLIC HEARINGS: 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. LEGISLATIVE ACTION: 12. SOLID WASTE FRANCHISE AUDIT SERVICES 2001-02 FISCAL YEAR BUDGET AMENDMENT Recommendation: That the Council approve an agreement with Hilton Farnkopf & Hobson LLC for audit services of Palm Springs Waste Disposal Services for $69,500; and amend the budget thereto. A4437. City Manager reviewed the staff report and added that the City will be negotiating for Palm Springs Disposal Services to reimburse the City for one-half the cost of the audit. Councilmember Oden questioned if Palm Springs Disposal Services was aware of the request and added that it is good to have an independent audit of the services; and that due to the nature of the audit company the possibility of conflict of interest would be limited. Minute Order 6982 approving agreement and Resolution 20244 amending the budget were presented; after which, it was moved by Oden, seconded by Reller- Spurgin, and unanimously carried, that MO6982 and R20244 be adopted. 13. UAW-GM CONFERENCE WAIVER OF FEES Recommendation: That the Council waive rental fees for use of closed Taxiway "A" at the Palm Springs International Airport for a period of January 7 through February 1, 2002 for $4,000. City Manager reviewed the staff report, no further report was given. Councilmember Oden stated that the benefits given to the Community by this Company is tremendous, that not only is safety driving offered, but also an infant Council Minutes 12-19-01, Page 5 car seat program and assistance to high school students, and added that it is hoped to retain this event in our Community. Minute Order 6983 as recommended was presented; after which, it was moved by Reller-Spurgin, seconded by Oden, and unanimously carried, that MO6983 be adopted. 14. MEMORANDUM OF UNDERSTANDING — GENERAL UNIT Recommendation: That the Council approve a Memorandum of Understanding with the General Unit (CLOCEA) employees for related wage and benefit package for a period of eighteen months terminating June 30, 2003. City Manager reviewed the staff report, no further report was given. Councilmember Oden stated that it is good to see the unit come to agreement in a reasonable amount of time; and that it is an opportunity to say to the employees, their service is valued. Mayor requested a master list of all allocated positions that are being changed. Assistant City Manager-Operations stated that a master listing would be a part of the fiscal year budget process. Mayor questioned if there were any new positions being added. Assistant City Manager-Operations stated there were none. Mayor requested the allocated position plan be provided to the Council. Resolution 20245 as recommended was presented; after which, it was moved by Oden, seconded by Reller-Spurgin and unanimously carried that R20245 be adopted. 15. DOWNTOWN PARKING STRUCTURE DESIGN-BUILD SCOPE Recommendation: That the Council approve an agreement with Walker Parking Consultants for the preparation of Design Build documents for the construction of a parking structure located on the west side of 200 South Indian Canyon Drive for$68,000. A4438. City Manager reviewed the staff report. Councilmember Reller-Spurgin stated that additional downtown parking is what the voters have requested. City Attorney stated that there are final refinements needed to the agreement; that there is no schedule of payment of compensation listed in the exhibits and requested that the agreement be approved subject to City Attorney approval. Director of Downtown Development stated that the changes requested by the City Attorney have been completed and are in final form. Council Minutes 12-19-01, Page 6 Councilmember Reller-Spurgin requested the proposed resolution be approved subject to City Attorney final language. Mayor stated that the issue needs to be resolved quickly and that each day lost is another day without the needed parking downtown. Director of Downtown Development stated that it is not easy to break each individual task down to a time and percentage of the overall contract; that Walker does have architectural abilities, but is hiring a local architect to allow the local familiarity of rules and regulation to help speed the term of the contract. Councilmember Oden questioned why the firm is hiring a local architect. Director of Downtown Development stated during the design process with the Planning Commission there were many issues raised that were site related; that with the assistance of a local architect those types of issues can be resolved. Councilmember Oden stated that the local component to the contract is enhancing. City Attorney stated that if the contractor does in fact have two architects it is not indicated in the contract; that if the contract does not outline the tasks there is no way to monitor a payment schedule for completed tasks. Councilmember Mills stated that it is impressive that Walker has hired a local architect to help with the process; but that the contract before the Council is between Walker and the City; that the City should not be involved with the scope of work of a subcontractor; that what the City is interested in is a product that is architecturally appropriate; and that if Walker desires a local subcontractor that is not a part of the City's negotiations. Councilmember Oden stated that the scope of work being presented should not be changed and recommended that the contract with Walker be approved. Councilmember Reller-Spurgin stated that the City Attorney is indicating that the compensation should be monitored and paid in monthly installments according to the percentage of work completed. City Attorney stated that the scope is not clear when payment is triggered; that there are different stages for the contract; that the Council can provide in the contract for approval of any subcontractors; but that the issue is that the $58,000 is not broken down in any manner for payment; that if the contractor comes forward and says the work is 50% completed, then it is entitled to 50% of payment and that the City has no way to evaluate what is done nor on what scope. Director of downtown Development stated the City should get two invoices; that this is a six week project; that it is hoped that the ground breaking will be by June 1, 2002; that the exhibits have been reviewed; that the contractor is reputable; that there is a good architect on board; that the team is ready to proceed; that Council Minutes 12-19-01, Page 7 there can be more regulation added for the details of the contract, but that how much more detail is not certain. Councilmember Mills stated enough detail is needed to determine payment; and that there should be a Phase breakdown that would give guidelines. Councilmember Oden stated that staff has clearly heard Council concerns; and added that the breakdown in scope should not be so cumbersome as to delay the work. Resolution 20246 as revised, subject to City Attorney approval, was presented; after which, it was moved by Reller-Spurgin, seconded by Oden and unanimously carried, that R20246 be adopted. 16. PALM SPRINGS SKATE PARK AND SWIM CENTER 2001-02 FISCAL YEAR BUDGET AMENDMENT Recommendation: That the Council approve a $500,000 advance from future Measure "Y" allocations to be repaid at $100,000 annually from the allocation for construction of the Palm Springs Skate Park and Swim Center project; and amend the budget thereto. Director of Parks, Recreation and Facilities reviewed the staff report, no further report was given. Councilmember Mills questioned if the contract would be design/build. Director of Parks, Recreation and Facilities stated that there is no commitment on the part of the City to that aspect; and that what part the architect will have is yet to be resolved. Councilmember Mills stated that there might need to be a separation between the architect and the general construction work. Director of Parks, Recreation and Facilities stated that there are three separate components to the project; that there is new construction, renovations to existing facilities and the design of the overall project; that the architect may well oversee the construction phases, but would not be the general contractor for the project. Councilmember Mills stated the distinction should be contract administration rather than construction administration. Mayor stated that there should be a repayment schedule to show that the City funds are to be reimbursed through private donations and that the Measure "Y" funds should likewise be outlined. Resolution 20247 as recommended and Resolution 20248 amending the budget as recommended were presented; after which, it was moved by Reller-Spurgin, seconded by Oden and unanimously carried that R20247 and 20248 be adopted. Council Minutes 12-19-01, Page 8 17. ORDINANCE FOR SECOND READING & ADOPTION (Intro 12-5-01) City Clerk read Title of Ordinance 1604 as follows: AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 1.34.011 OF THE PALM SPRINGS MUNICIPAL CODE, REMOVING REFERENCES TO "NO-FEE PERMITS' REGARDING AIRPORT FEE REGULATION FOR MEETERS AND GREETERS after which, it was moved by Oden, seconded by Mills and unanimously approved, that further reading be waived and that Ordinance 1604 be adopted. 18. MUNICIPAL CODE AMENDMENT— PROCUREMENT ORDINANCE Recommendation: That the Council repeal Chapter 3.12 in its entirety and adopt Title 7 Procurement and Contracting Ordinance to the Palm Springs Municipal Code; and adopt the State Uniform Public Construction Cost Accounting Procedures. City Manager reviewed the staff report. Assistant City Manager-Operations stated that much staff time has been devoted to the refinement of the proposed ordinance; that there is one revision staff would recommend to emergency procedures and reviewed a handout, copy on file in Office of the City Clerk. Councilmember Mills stated that this is high on the list of things to be done when the Charter was enacted; that the overall proposed ordinance does look sufficient, although one issue which needs additional addressing is the particulars stated in 7.04.020; they are common linkage of 7.05.030, and that in fact, the two should be tied together. City Attorney stated that the distinction is necessary due to the fact that a brand name could be specified, but a competitive process still be used; that in a sole source, the specification of why the sole source procured is required. Councilmember Mills stated that Chapter 7.05 needs to include the following: why needed, a listing of types and for what reasons, possible situations; that the purpose of this ordinance is to streamline the procurement process; that this area is where the issues need to be addressed and that the only other concern would be that of authorization. City Attorney stated that from a personal perspective, the review of contracts is boring; that there is a boilerplate form that is used; that the only part of review are the exhibits; that the exhibits is where the City can place a high number of controls which include things such as what is to be done, when is it due, how much payment is linked to the percentage of completion; that these types of safeguards assist staff to ensure payment does not get ahead of performance; that in the course of reviewing the past six contracts, there were repetitive problems for each one; that the payment schedule needs to be coordinated with the tasks; that without the coordination there is the potential for a disconnection; that the City Manager has stated in the past that it is his thought not to allow for Council Minutes 12-19-01, Page 9 upfront payments; that there are contracts that still come through with this type of allowance; that there is a staff issue of a delay from legal review; that if staff would start the legal review process before Council consideration, most concerns could be addressed; that there are a high percentage of current contracts that contain repetitive legal concerns; that the same concerns are readdressed each time and that if there is no required legal review of all contracts, there will be contracts where the dots are not connected. Councilmember Oden stated that the task force created for formation of the City's Charter, clearly saw this as a benefit to being a Charter City; that one of the benefits of having the Ordinance is the allowance to act expidisously; that there are times when there is not a wide window for review; that there are improved controls that need to be set in place; that the controls could rest with the City Attorney or with the City Manager; that if a step needs to be added to the process, it is not a problem as long as things do not stop in the process; that if the same thing is continued to be looked at by a lot of people, then the process needs to expedited; and questioned where final documentation is retained. Assistant City Manager-Operations stated that all original contracts would end up in the Office of the City Clerk. City Manager stated that the current review process is at times lengthy; that staff is recommending contracts under $25,000 not be given legal review; that the examples cited by the City Attorney were for contract over $25,000; that the current ordinance is 30 years old; that it does tie the City to get the job done; that the new proposed ordinance allows staff to run fast, and that the question is at what level does the Council want established that triggers City Attorney approval. Councilmember Mills stated that the issue with brand name should likewise be addressed; that the first reading should be done with the revision included; that the issue to define the situation should be included when the need occurs; that the design/build issue also needs criteria to be used in appropriate circumstances; and that there may be other fine tuning to the ordinance at a later date; that the language in design/build is very open; that it may be that by trial experience the problems may be solved and that defining the brand name language would be helpful. Councilmember Reller-Spurgin stated that ultimately the City Council is accountable for all contracts; that the City Attorney does in fact keep legal issues at bay; that one should listen to what the City Attorney has to say; that designating someone to oversee multiple contracts controlled by a budget could be significant and that in her opinion the City Attorney should review all contracts on behalf of the City Council. Councilmember Mills stated that the $25,000 threshold is for a single project; that portions of a project should not be divided to move around the threshold limit; that one of the reasons there was movement to implement a Charter City was to get past dealing with 180 pages of boiler plate language to get to the 3 pages of specifics in a contract and waiting for the City Attorney to review the entire document; and with smaller projects, it can result in a great deal of frustration. Council Minutes 12-19-01, Page 10 Councilmember Reller-Spurgin questioned if the Director of Procurement and Contracting was comfortable with the proposed ordinance. Director of Procurement and Contracting affirmed. Mayor stated that the proposed ordinance addresses many facets that have been ongoing; that staff is being empowered to deal with contracts; that contracts are specific; that there is typical language used to bring projects to fruition; that there is a degree of exactness on how a document is drawn that must be adhered to; that there is a series of checks and balances; that the department head is being given a responsibility; that all documentation does need to be forwarded to the Office of the City Clerk; that the Clerk's Office must maintain a complete and full documentation of the contracts; that on the training side, there may be extensive training needed for the known procedures; that a document checklist should be compiled; that the contract amount triggering City Attorney review is not as significant as the need for a process to be followed; that a structure should be established on expediting the contracts and that the training is paramount. City Manager stated that there is a contract system in place; that Bruce Johnson does in fact handle all contracts; that Mr. Johnson has been fully trained by the City Attorney and uses exact wording; that the City Clerk is the ultimate gatekeeper for the retention of the contracts, and that with the new system in place there is one person in the system that can identify where the exact physical location of any given contract is. Assistant City Manager-Operations stated that alot of work has gone into the working of the proposed ordinance and added that staff will revisit proper contractual language. Mayor stated that the offer is appreciated, but that the open engagement as a team is required; that there is a reason the City has an attorney; that intent of a contract is one thing, but wording is another; that this responsibility should not be taken lightly; that the proposed ordinance is a good document; and that it is hoped that staff will identify strengths and any weaknesses in the document. Councilmember Oden stated that staff should be aware that input from the City Attorney might be requested on any dollar level of contracts. City Clerk read Title of Ordinance as follows: AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, REPEALING IN ITS ENTIRETY, CHAPTER 3.12 — PURCHASES, OF TITLE 3, REVENUE AND FINANCE AND ADOPTING A NEW TITLE 7, ENTITLED PROCUREMENT AND CONTRACTING after which, it was moved by Oden, seconded by Mills and unanimously carried that further reading be waived and that the Ordinance be introduced for first reading. Resolution 20249 as recommended was presented; after which, it was moved by Oden, seconded by Mills and unanimously carried, that R20249 be adopted. Council Minutes 12-19-01, Page 11 19. AIRPORT GRANT AMENDMENTS Recommendation: That the Council authorize the City Manager to execute Amendment #1 to eight Airport Improvement Program Grants. A4020, 4021, 4086, 4087, 4129, 4130, 4144 and 4431. Councilmember Mills stated Conflict of Interest due to business relationships. Minute Orders 6984, 6985, 6986, 6987, 6988, 6989, 6990, & 6991 (8) as recommended were presented; after which, it was moved by Reller-Spurgin, seconded by Oden and unanimously carried, Mills abstaining, that MO6984 — 6991 be adopted. 20. ADDITIONAL LEGISLATIVE ITEMS: None ADDED STARTERS: None REPORTS & REQUESTS: None CITY COUNCIL reports or requests 21. Treasurer's Investment Report of October 31, 2001-Received and filed. PUBLIC reports or requests: None STAFF reports or requests: None ADJOURNMENT: There being no further business, Mayor declared the meeting adjourned. PATRICIA A. SANDERS City Clerk