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HomeMy WebLinkAboutPrelim - CC - 06-08-2017Draft I PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 8, 2017 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Harnik convened the meeting at 3:01 p.m. II. ROLL CALL Present: Mayor Pro Tem Sabby Jonathan Councilmember Kathleen Kelly Councilmember Gina Nestande Councilmember Susan Marie Weber Mayor Jan C. Harnik Also Present: Lauri Aylaian, City Manager Robert W. Hargreaves, City Attorney Rachelle D. Klassen, City Clerk Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Mark Greenwood, Director of Public Works Stephen Y. Aryan, Risk Manager Eddy Moore, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Lt. Coby Webb, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Rocha, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING IV. ADJOURN TO CLOSED SESSION Request for Closed Session: Draft JUNE 8, 2017 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Lease Property - Parkview Professional Office Complex, 73720 Fred Waring Drive, Suite No. 102, Palm Desert Negotiating Parties: Agency: Lauri Aylaian/Janet M. Moore/City of Palm Desert Property Owner: City of Palm Desert Other Parties: State of California, Department of Rehabilitation Under Negotiation: x Price x Terms of Payment 2) Property: APNs 627-152-007, -008 (NEC San Pablo Avenue/Highway 111, Palm Desert) Negotiating Parties: Agency: Lauri Aylaian/Martin Alvarez/City of Palm Desert Property Owners: Jane Sam Group, Inc. (627-152-007) and Victor S. Alsmadi (627-152-008) Under Negotiation: x Price x Terms of Payment B. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): Number of potential cases: 2 C. Conference with Labor Negotiator pursuant to Government Code Section 54957.6: Agency: Lauri Aylaian/City of Palm Desert Employee Organization: Palm Desert Employees Organization With City Council concurrence, Mayor Harnik adjourned the meeting to Closed Session of the City Council at 3:02 p.m. She reconvened the meeting at 4:01 p.m. V. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA - Councilmember Kathleen Kelly VII. INVOCATION - Mayor Pro Tem Sabby Jonathan 2 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING VIII. AWARDS AND PRESENTATIONS Draft JUNE 8, 2017 A. PRESENTATION OF UPDATE TO THE CITY COUNCIL BY THE ABRAHAM LINCOLN ELEMENTARY SCHOOL AFTER -SCHOOL PROGRAM. Ms. Donja Ely, After School Programs Coordinator, thanked the City Council for its support of the Program. She noted the second quarter grades for the students are proficient or advanced for Lincoln Elementary, adding that 70 of the 150 students enrolled are English learners, and 80% of them received a 3 or higher on their report card for reading and math. With the support of the City of Palm Desert, not only were they able to service an extra 75 students, but they were able to run ten after school groups that ran in eight - week -sessions. Teachers were able to service between 7 and 12 students in those after school groups, and ran fifteen enrichment classes that include ballroom dancing, battle of the books, and a golf program. Additionally, District benchmarks are taken three times a year, and the after school students placed close to District averages, if not higher. Ms. Sofia De Silva (3rd grade) stated the After School Program at Lincoln has a lot of kind kids who care about each other, they jump a rope, play ping pong, and birthdays are celebrated, which are some of the reasons she loves the program. Ms. Arlene Chavez (5th grade) noted she's been in the Program since she was in the 2nd grade, stating it was the best place any child could go to learn. When she had difficult homework, the teachers there assisted her with it, and she was able to participate in Math Field Day, ballroom dance, violin, tennis, and cheerleading, adding that the Program has a lot to offer every student, including having their birthday celebrated. B. PRESENTATION OF UPDATE TO THE CITY COUNCIL BY THE PALM DESERT CHARTER MIDDLE SCHOOL AFTER -SCHOOL PROGRAM. Mr. Alfredo Ruiz, Counselor at Palm Desert Charter Middle School and Program Director of the Bridges After School Program, thanked the City of Palm Desert for funding the program, which has been a great support system for the students. He said the Program has been established for five years, and this past year they served 198 students for grades 6, 7, and 8, and they have 15 college -level tutors who have the intention of becoming future educators. The mission of the Bridges Program is to create the idea of college as part of the students future, and it provides high -quality enrichment opportunities, which is one of the ways it rewards success. Of the students enrolled in Bridges, they have 43 students meeting high honor roll expectations of a 3.5 to 4.0 Grade Point Average (GPA), which is the GPA 3 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 8, 2017 Draft needed to enter the University of California. They are grateful that they partnered through the City with Cal State San Bernardino, in that they provide presentations to the students about college life. Additionally, 97% of the students exceed the 2.0 GPA, which is the minimum required to get into college or a university; the overall Program GPA has been 3.29. Lastly, the Program works because of the community and parent involvement, committed teachers and staff, and the City of Palm Desert's support. Ms. Leyla Martinez, Alumni and program volunteer (10th grade), stated she has volunteered at the Bridges After School Program for two years, but when she went through the Program, it helped her excel in her classes and maintain a 3.8 GPA for three years. Ms. Lily Wallis (6th grade) shared that the Program helped her transition from elementary to middle school very easily, stating the tutors were always by her side guiding her step by step and making sure she understood homework materials. Her enrichment class was Art, it was where she could draw, paint, and work with clay; other enrichment classes included, technology, dance, and sports. She expressed how happy she was to have joined the Program and couldn't wait to join again next year. Ms. Willow Wilde (6th grade) stated Bridges is her favorite part of the school day because she has friends there and enjoys going to her technology and art enrichment classes. She always finishes her homework and it's always at its finest quality, thanks to her tutors who know what they are doing. Because of the Program, she is able to go home and spend time with family, and it's great for her mom as well because it's affordable. Mr. Abram Reyes (7th grade) stated he's been in the Program for a year, and it has helped him stay on track and gain confidence in taking tests, adding that math has always been a challenge for him. Because of the help he received in completing his homework, he was able to participate in after school activities like Tae Kwon Do or golf. He said he was no longer afraid of checking his grades or report cards and gave credit for his success to his teacher Ms. Romey Martinez and the tutors. Mr. Owen Lewis (6th grade) said he liked the Bridges After School Program because it gives him a place to go while his parents are still at work and where he finishes his homework. He added that if he ever didn't understand something, there is always someone there to help. He also liked that he could choose his own enrichment activity, which for him was technology, but there are others such as sports, dance, study hall, etc. He shared that one of the things he learned at Bridges, is that with a little bit of time and effort you can finish almost anything. 4 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 C. PRESENTATION TO THE 2017 PALM DESERT HIGH SCHOOL AZTEC BASEBALL TEAM FOR SECURING THEIR SPOT IN THE DIVISION 2 CIF SOUTHERN SECTION CHAMPIONSHIP GAME AT DODGER STADIUM. On behalf of the entire City Council, Mayor Pro Tem Jonathan and Mayor Harnik presented the proclamation to Coach Darol Salazar and the entire Aztec Baseball Team for their near -perfect 11-1 record in league play, an overall season record of 23-8, securing their 19th Desert Valley League Championship, and Coach Salazar's 600th career wins. The 2017 Aztec Baseball Team members are: Travis Adams lzayah Alvarez Austin Bartlett Kegan Baird Johnny Cuevas Sammy Diaz Toren Diffey Bryson Dowdle Jeremiah Estrada Josh Hernandez Garrett Perezchica Max Puls Dillon Silver Mayor Pro Tem Jonathan stated he had the pleasure of attending some of the playoff games, and what was most impressive was not what they did on the field but how they conducted themselves off the field, stating they were true gentlemen and they make their City and community proud. IX. ORAL COMMUNICATIONS - B MR. JIM BARRETT, General Manager at Coachella Valley Water District (CVWD), stated they are a special District organized under the California Water Code. He reported that on Saturday, June 3, they received a report of a significant soil erosion that was occurring in the White Water Storm Water Channel across from Palm Desert High School. Staff was dispatched immediately and learned that eroded soil had undermined two sewer lines that run parallel to the CVWD Channel. Additional personnel was dispatched to secure the flow, but more important, to route that existing sewer flow around the failure to avoid interruption of service to residents that rely on that sewer line, and they were successful. Unfortunately, it has been an inconvenience to folks driving on Hovley Lane East or Portola Avenue, because of the pumps and pipes they've had to install there to reroute the sewer line around. They were successful in obtaining an emergency contractor to start the restoration of the soil before they re -install the sewer line. He expects the restoration of the land will take a week, and hopefully after that, they will remove the pumps and pipes to restore traffic flow on Portola. He said they were fortunate there were no injuries, and as far as any environmental impacts, they will clean up any non -organic material that is there. He's been assured by the Regional Water Quality Control Board and staff, with regard to the sewer itself, all they need to do is contain it until it dries, adding that the sun itself is a natural remedy. Lastly, he appreciates 5 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 the patience exhibited by Palm Desert residents to this event, stating they will do everything they can to expedite this matter moving forward. MS. WENDY JONATHAN, Desert Sands Unified School District Trustee Board Member for the Region of Palm Desert and Rancho Mirage, thanked the City Council for the support it's always given to the schools. She said the Board recognizes that the City donates funds to many Palm Desert schools, which is not overlooked and very much appreciated. She also thanked the Council for taking the time to recognize the successful season of the Aztec Baseball Team, and their participation at school graduations, specifically Mayor Harnik for her wonderful speech at one of them. She hopes to continue to have this wonderful relationship with the City. MR. CHRIS GEYER, Palm Desert Middle School, announced there are a lot of great things happening at the schools, and today he would talk about one of their programs, "Authors, Athletes, and Community Action Triathlon," where all PDMS students are eligible and can participate. This Triathlon includes three events, a writing contest at the beginning of the year, a Panthers 5K, which the City supports, and community service, adding that this year they included Sacred Heart students to participate in the writing contest. He thanked the City for its constant support, specifically City Staff, Amy Lawrence and Stephen Aryan for their assistance with the 5K event. He said they had record participation at all three events, providing them the most monetary success than they ever had. This year 30 students completed all three events, which doubled from last year. He said they are always looking for bigger and better things each year, so this year they put together a magazine called "Sports Life Jr Edition." He provided a copy to each of the Councilmembers, noting that Palm Desert Middle School students were on the front cover, and it was PDMS students writing the articles for the magazine. He said students are attending professional sporting events, interviewing professional athletes, and writing the articles for the next six issues. By participating in the writing contest, the triathlon, and Sports Life Jr. Edition, students are learning what they can do out in the public. X. MAYOR AND COUNCILMEMBER COMMENTS TO THE COMMUNITY 1. CVAG Hornlessness Committee Mayor Pro Tem Jonathan stated they had a Study Session where it received a presentation from Path of Life Ministries regarding their proposed contract for homeless services at the west end of the Valley. He said it was very encouraging in that the model being followed is adopted by the State and County as opposed to traditional shelter -type approaches that have a success rate of 30%. The one being proposed, which is the new state-of- the-art approach, has an 80+% success rate. 6 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 8, 2017 Draft 2. Palm Desert Recreational Facilities Corporation (PDRFC) Mayor Pro Tem Jonathan noted he attended the annual PDRFC meeting, which is the entity that oversees the food and beverage operation at Desert Willow. He reported the audit results were good and everything is solid there, and they adopted a budget for next year. 3. Hotel and Signature Events Committee Mayor Pro Tem Jonathan stated an update was provided regarding the Swing 'N Hops Event, where it was all good news. 4. Fashion WeeK and Food & Wine Festivals Mayor Pro Tem Jonathan shared that a detail presentation was provided by the Jones Group regarding next year's Festivals along with a request for the City to consider a five-year commitment. Staff will be meeting with various individuals on the Committee and on the Council to present the details of that proposal so that the Council can make an educated decision. 5. Safe House Tour Mayor Harnik noted she, Mayor Pro Tem Jonathan, and the City Manager toured the Safe House. She said it was an asset for the community, adding if offers a safe place for teenagers and adults who need guidance. 6. Public Art at the Renova Building Mayor Harnik encouraged everyone to go over to the Renova Building where they painted a mural, which shows pictures that remind everyone how important green energy and sustainability is today. It puts the City over 160 pieces of art in the community. 7. Salton Sea Management Program Status Mayor Harnik announced there will be six or seven meetings throughout the Valley where a status report is to be provided on what is going on with the Salton Sea Management Plan and encouraged everyone to make the effort to be engaged on this important matter. She asked staff to provide the information on the City's website, but one could also learn more about these meeting by going to the following website: http://resources.ca.aov/salton-sea. 8. Signal Synchronization Mayor Harnik reported that at CVAG, both the Executive Committee and Transportation Committee are addressing the Signal Synchronization throughout the Valley, stating they are looking at how they can go from one end of the Valley to the other and be most effective. Also, the General Assembly for CVAG is coming up and she hoped to see everyone there. 7 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 9. Memorial Dav Observance Mayor Harnik said she hoped everyone was able to observe Memorial Day, stating there were some great observances, one that took place at Forest Lawn and a few others throughout the Valley. 10. Short -Term Rental Task Force Councilmember Kelly stated she, Councilmember Nestande, and staff have been working hard in trying to come up with models that would be responsive to everyone's concerns. The next meeting is on June14 at 3:00 p.m., stating she looked forward to sharing ideas and getting some feedback. XI. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of May 25, 2017. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 5/12/2017, 5/19/2017, and 5/26/2017. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrant Dated 5/19/2017 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. REQUEST FOR DECLARATION of Surplus Property and Authorization for Disposal — Miscellaneous Computer and Electronics Equipment. Rec: By Minute Motion, declare items listed on the accompanying staff report's Exhibit "A" as surplus and authorize disposal as appropriate. E. REQUEST FOR AUTHORIZATION to Streamline Use of Vendors for the Public Works Department by Granting Exception to Bidding Requirements and Approving the Original Equipment Manufacturer (OEM) Vendor List and the Maintenance Services Divisions' Various Vendors and Qualified Service Providers Lists for Fiscal Year 2017-2018. Rec: By Minute Motion: 1) Grant an exception to the bidding requirements, as provided for by Section 3.32.090 of the Palm Desert Municipal Code for FY 2017-2018; 2) approve the Original Equipment Manufacturer (OEM) Vendor List, the Building and Street Maintenance Divisions' Various Vendors and Qualified Service 8 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 8, 2017 Draft Providers List, and the Landscape Services Division Vendor and Service Provider List. F. REQUEST FOR AUTHORIZATION of Johnson Power Systems to Service the City Generators for An Amount Not to Exceed $35,000. Rec: By Minute Motion, authorize Johnson Power Systems, Riverside, California, to service City generators in an amount not to exceed $35,000 — funds are available in Account Nos. 1104331-4334000 - R/M Motor Vehicle Fleet and 2304220-4331000 - Fire Station R/M Buildings. G. REQUEST FOR AUTHORIZATION to Use Desert Recycling, Inc., for Fiscal Year 2017-2018 and for Associated Dump Fees in An Amount Not to Exceed $40,000. Rec: By Minute Motion, approve use of Desert Recycling, Inc., Thousand Palms, California, for FY 2017-2018 and associated dump fees in an amount not to exceed $40,000 — funds are available in General Fund Account No. 1104310-4332000 - R/M Streets. H. REQUEST FOR APPROVAL of the Payment of Honorariums to Three College of the Desert Students for Design of the Charger Sculpture Turf Removal and Landscaping Project in the Total Amount of $2,000 (Project No. 960-17). Rec: By Minute Motion, approve payment of honorariums to three College of the Desert (COD) students for design of the ChargerTurf Removal and Landscaping Project in the total amount of $2,000 — funds are available in Account No. 4004650-4391503 - Art In Public Places Turf Retrofit. I. REQUEST FOR AUTHORIZATION of BMW Motorcycles of Riverside and Honda/Yamaha of Redlands to Perform Police Motorcycle Maintenance in Excess of $25,000. Rec: By Minute Motion, authorize BMW Motorcycles of Riverside, California, and Honda/Yamaha of Redlands, California, to perform motorcycle maintenance for the Police Department in excess of $25,000 but not to exceed $45,000 — funds are available in Account No. 1104210-4334000 - Police. 9 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 8, 2017 Draft J. REQUEST FOR AWARD OF CONTRACT to Same Day Express for Maintenance of the City of Palm Desert's Public Art Collection and the El Paseo Exhibition (Contract No. C36130). Rec: By Minute Motion: 1) Award subject contract to Same Day Express, Palm Desert, California, for Maintenance of the City of Palm Desert's Public Art Collection and the El Paseo Exhibition for a period of one year in the amount of $49,992; 2) authorize Mayor to execute same — funds are anticipated to be available in FY 2017-2018 Budget, Account No. 4364650-4337200. K. REQUEST FOR APPROVAL of Extension No. 3 to Contract with Judicial Data Services — Renewing Services for the Period of July 1, 2017, to June 30, 2018, for the Processing of Parking Citations (Contract No. C33842). Rec: By Minute Motion: 1) Approve Extension No. 3 to subject contract with Judicial Data Services, Costa Mesa, California, for the period of July 1, 2017 - June 30, 2018, for processing of parking citations; 2) authorize the Mayor to execute said contract extension — funds will be made available in Account No. 1104470-4309000 with approval of the proposed FY 2017-2018 Budget. L. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C35740 — Joe Mann Park New Shelter Installation Project (Project No. 925-17) (T. J. Janca Construction, Inc., Orange, CA). Rec: By Minute Motion, accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project. M. REQUEST FOR APPROVAL of Martha's Village & Kitchen's Thanksgiving Day 5K — November 23, 2017 (Martha's Village & Kitchen, Applicant). Rec: By Minute Motion, approve: 1) Martha's Village & Kitchen Thanksgiving Day 5K scheduled for Thursday, November 23, 2017; 2) road closures on El Paseo between Highway 74 and Portola Avenue; 3) allow the consumption of alcoholic beverages on City -owned property for the event, pursuant to Palm Desert Municipal Code Section 9.58.040. 10 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 N. REQUEST FOR APPROVAL of Palm Desert Charter Middle School's Panther 5K — January 21, 2018 (Palm Desert Charter Middle School, Applicant). Rec: By Minute Motion, approve: 1) Palm Desert Charter Middle School's Panther 5K scheduled for Sunday, January 21, 2018; 2) road closures on El Paseo between Highway 74 and Portola Avenue. O. REQUEST FOR APPROVAL of Family YMCA of the Desert's Y-Be-Fit Palm Desert Challenge Event and Sponsorship — October 1, 2017 (Family YMCA of the Desert, Applicant). Rec: By Minute Motion, approve: 1) Family YMCA of the Desert's Y-Be-Fit Palm Desert Challenge scheduled for Sunday, October 1, 2017; 2) proposed event route and road closures; 3) temporary waiver of Palm Desert Municipal Code Section 11.01.140 - Amplified Sound; 4) preauthorization of sponsorship expenditure in an amount not to exceed $25,000 from Account No. 1104416-4306201. P REQUEST FOR APPROVAL of the New Balance Palm Desert Half Marathon and 5K Event and Sponsorship — February 11, 2018 (Southland Events, LLC, Applicant). Rec: By Minute Motion, approve: 1) 2018 New Balance Palm Desert Half Marathon and 5K scheduled for Sunday, February 11, 2018; 2) proposed event route and road closures; 3) temporary waiver of Palm Desert Municipal Code (PDMC) Section 11.01.140 - Amplified Sound; 4) temporary waiver of PDMC Section 11.01.080(W) - Possession/Consumption of Alcohol in City Parks pursuant to PDMC 9.58.040; 5) temporary waiver of PDMC Section 11.01.080(Q) - Prohibited Conduct Generally in City Parks - Vendor Sales; 6) preauthorization of sponsorship expenditure payable to Southland Events, LLC, in the amount of $5,000 from Account No. 1104416-4306201. Q. CONSIDERATION of the Approval of a Letter of Opposition for AB 1479 (Bonta) — Amending the California Public Records Act. Rec: By Minute Motion, approve a letter of opposition for AB 1479 (Bonta). 11 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 R. CONSIDERATION of the Approval of Correspondence Concerning the United States Immigration System. Rec: By Minute Motion, approve the accompanying staff report's attached correspondence concerning the United States Immigration System. Upon motion by Kelly, second by Nestande, and 5-0 vote of the City Council (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None), the Consent Calendar was approved as presented. XII. CONSENT ITEMS HELD OVER None XIII. RESOLUTIONS A. RESOLUTION NO. 2017 - 41 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 91-1 (INDIAN RIDGE) FOR FISCAL YEAR 2017-2018. Ms. Moore stated this was an annual levy of a special tax and the City Council must authorize the levy. Councilmember Nestande moved to waive further reading and adopt Resolution No. 2017 - 41. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). B. RESOLUTION NO. 2017 - 42 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2017-2018. Ms. Moore stated this was an annual levy of a special tax that the City Council must authorize. Councilmember Kelly moved to waive further reading and adopt Resolution No. 2017 - 42. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). XIV. ORDINANCES A. For Introduction: None 12 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING B. For Adoption: Draft JUNE 8, 2017 1. ORDINANCE NO. 1323 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE MONTEREY CROSSING SPECIFIC PLAN, AND ADOPTING A MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT FOR THE DEVELOPMENT OF A MIXED -COMMERCIAL DEVELOPMENT ON 18 ACRES LOCATED AT THE NORTHEAST CORNER OF MONTEREY AVENUE AND DINAH SHORE DRIVE, Case No. SP/EA 16-188 (Fountainhead Shrugged, LLC, Applicant). Mr. Stendell noted this was the second reading and final passage for adoption. Mayor Pro Tem Jonathan moved to waive further reading and adopt Ordinance No. 1323. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). XV. NEW BUSINESS A. REQUEST FOR APPROVAL OF THE SUCCESSOR MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF PALM DESERT AND THE PALM DESERT EMPLOYEES ORGANIZATION (PDEO) FOR THE PERIOD OF JULY 1, 2017 - JUNE 30, 2022 (CONTRACT NO. C36180). Ms. Carney stated the Council is being asked to approve the successful MOU between the City and employees of the City of Palm Desert. She said negotiations on this MOU were collaborative, creative, and productive. She thanked the employees and their representatives for the good work they did in reaching this agreement. She offered to answer questions. Councilmember Kelly expressed Council's appreciation to everyone involved in the process and for the good collaborative work. Mayor Pro Tem Jonathan concurred, thanking Ms. Carney for navigating the process. He also thanked the employees, because the City of Palm Desert has the greatest team, and it's a pleasure for the Council to be supported by its employees, and if they didn't say it often enough, he apologizes, but this Council respects and appreciates City staff. Councilmember Weber moved to, by Minute Motion, approve the MOU between City of Palm Desert and the Palm Desert Employees Organization for the period of July 1, 2017, through June 30, 2022, and authorize City Manager and designees to execute same. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). 13 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 B. REQUEST FOR APPROVAL OF DESERT CANCER FOUNDATION'S 2017 PAINT EL PASEO PINK EVENT AND ROAD CLOSURES (Desert Cancer Foundation, Applicant). Management Analyst Amy Lawrence stated staff is requesting to close El Paseo from Portola Avenue to Highway 111 the morning of Desert Cancer Foundation's 2017 "Paint El Paseo Pink" Event. As noted in the staff report, last year's event had 1,400 participants, which was a lot of people walking the sidewalks and crossing the streets without any sort of traffic control. Therefore, beginning this year, staff is requesting full closure of the street during the walk, which they feel will make for a much safer event. This closure will be similar to what is done for the 5K events that are currently held on El Paseo. She noted that representatives from the Cancer Foundation were available to answer questions. Mayor Harnik suggested a big balloon arch on El Paseo. Councilmember Weber moved to, by Minute Motion, approve: 1) Desert Cancer Foundation's Paint El Paseo Pink Charitable Walk on Saturday, October 14, 2017; 2) road closures on El Paseo between Highway 74 and Portola Avenue. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). C. REQUEST FOR AWARD OF CONTRACT TO WESTCON CONSTRUCTION GROUP, INC., FOR CONSTRUCTION OF THE 2017 CURB RAMP MODIFICATION PROJECT IN THE AMOUNT OF $119,280 (CONTRACT NO. C36040, PROJECT NO. 753-17). Mr. Greenwood stated this was the City's annual and routine project for replacing curb ramps and improvements associated with the City's Street Overlay Project, and noted staff was recommending a local contractor. Responding to question about how many of these types of projects are done every summer, he said 50. Councilmember Kelly moved to, by Minute Motion: 1) Award subject contract for Construction of the 2017 Curb Ramp Modification Project to Westcon Construction Group, Inc., Indio, California, in the amount of $119,280; 2) authorize Director of Finance to set aside a 10% contingency for the project in the amount of $11,928; 3) appropriate $34,000 from Unobligated Measure "A" funds to the project account; 4) authorize Mayor to execute said contract — following appropriation, all funding will be available in Account No. 2134312-4400100 - Measure "A" - ADA Curb Ramp. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). 14 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 8, 2017 Draft D. REQUEST FOR APPROVAL OF PLAN REVIEW / INSPECTION SERVICE CONTRACTS FOR THE DEPARTMENT OF BUILDING & SAFETY — FISCAL YEAR 2017-2018 IN A CUMULATIVE TOTAL NOT TO EXCEED $150,000. Mr. Grance stated this item was for Council consideration and approval of three contracts for plan check and inspection services for Fiscal Year 2017- 2018; the current contract expires June 30, 2017. The proposed contracts have a one-year option to extend. He noted eleven (11) proposals were received, and through a scoring process, three (3) are recommended for approval. Mayor Pro Tem Jonathan commented that it was creative to utilize and enter into three contracts, which he believes will serve the City well. Councilmember Weber moved to, by Minute Motion, award Professional Services Agreements for Building Plan Review and Inspection Services with a beginning date of July 1, 2017, and ending date of June 30, 2018, not exceeding a cumulative total of $150,000, and the Mayor to execute same, as follows: 1) Contract No. C36190A to Scott Fazekas & Associates, Inc., Irvine, California; 2) Contract No. C36190B to Willdan Engineering, San Bernardino, California; 3) Contract No. C36190C to Interwest Consulting Group, Palm Springs, California — funds are available in General Fund Account No. 1104420-4301000, as set forth in the FY 2017-2018 Budget, which will be considered at the regular City Council Meeting of June 22, 2017. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). E. REQUEST FOR APPROVAL OF EXTENSION TO CONTRACT WITH FG CREATIVE, INC., IN THE AMOUNT OF $245,000 FOR ADVERTISING SERVICES AND EXPENDITURES FOR THE EL PASEO BUSINESS IMPROVEMENT DISTRICT — FISCAL YEAR 2017-2018 (CONTRACT NO. C34482). Economic Development Manager Ruth Ann Moore stated this item was a contract renewal for advertising services associated with the El Paseo Business Improvement District (BID). Funding for the District is not part of the City's General Fund, rather it is through collection of fees through the property owners and the businesses within the District. All funds are used for marketing and public relations of the District, and because the fees are collected by the City, they fall under the Purchasing Ordinances, which requires the contract to be approved by the City Council. At their May meeting, the El Paseo Board of Directors approved a recommendation to the City Council that the contract is extended for one year. If approved, this will be the third year of the contract and staff will go out for Request for Proposals next year. Funding is available in next fiscal year's budget. 15 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 Councilmember Weber said she has observed FG Creative over the last years, and they've done a great job. Mayor Pro Tem Jonathan noticed there are several contracts like this one that are in their final years of extensions, stating he hoped there is or will be implementation of a calendaring system where the City gives itself enough time to go out to bid on these contracts that are due to expire. Ms. Moore said she just had a conversation with Tourism and Marketing Manager about having to calendar multiple advertising contracts. Mayor Harnik noted she is the Council Liaison at the BID Meetings, stating she's watched them evolve in technology, geo fencing, and how they accumulate their data is very impressive, adding that the group lead by FG Creative works very hard. Councilmember Weber moved to, by Minute Motion: 1) Approve subject contract extension with FG Creative, Inc., Palm Desert, California, in the amount of $245,000 ($45,000 in Agency Retainer Fees and $200,000 in Advertising and Promotional Expenditures); 2) authorize City Attorney to make non -substantive changes to the contract extension and Mayor to execute same — funds have been included in the proposed Financial Plan for 2017-2018 - Other Advertising, Account No. 2714491-4321500 (this expenditure is not part of the General Fund). Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). F. REQUEST FOR APPROVAL OF EXTENSION TO CONTRACT WITH H & L PARTNERS TO PROVIDE MARKETING SERVICES FOR FISCAL YEAR 2017-2018 (CONTRACT NO. C34642). Tourism and Marketing Manager Thomas Soule stated this item was for renewal of the City's contract for marketing services with H & L Partners. He said H & L Partners was hired two years ago and the contracts provided for two 1-year extensions, and this will be the third and final extension. Staff will be going out for a Request for Proposal (RFP) again next year. At the Marketing Committee meeting of June 6, the Committee reviewed H & L's performance for the past fiscal year and recommended approval for the final extension. Councilmember Kelly stated the staff report indicates the ad campaign has been performing well in the marketplace, and she's certainly been pleased, but she was curious to know by what measure did staff know it's been performing well. Mr. Soule explained that staff tracks the performance on line of the video that is included with the campaign, the digital ads, and the engagement rates for 16 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 people that are served with the ads. They also track how many people have clicked on them or have gone on to sign up to be on the email list, or visited the website, so by those measures they have been tracking. He said this campaign has done much better than the previous one. Councilmember Nestande added she believed this firm has also offered to be given a report card from an outside agency to rate its performance for next year's contract. Mr. Soule agreed, stating he's been working with H & L to give the City a proposal for a study among potential visitors or people within the drive market, which is where the City heavily advertises, to see what kind of an awareness they have of the campaign and of Palm Desert. And if they have seen the campaign, find out if they have visited or plan to visit Palm Desert. He said it's not an exact science, but it's as close as they can get to figuring out exactly how the print campaigns are doing. Mayor Harnik noted she and Councilmember Nestande serve as Council Liaison's on the Marketing Committee, stating that the committee members are real professionals, and they know how to drill the questions about how to gauge performance, click through rates, etc. Again, they do the geo fencing and everything is on a mobile device, so they have evolved incredibly. Mr. Soule agreed, stating they have really helped the City step up its game and marketing campaign. Mayor Pro Tem Jonathan commented that it's great and important that the City is getting current with technology and with state-of-the-art marketing, particularly with tourism, which is so critical to the City's success financially and otherwise. It was a goal of the Strategic Plan and part of the priorities that Council set with the City Manager, and he's seeing the results. Mayor Pro Tem Jonathan moved to, by Minute Motion: 1) Approve subject contract extension with H & L Partners, St. Louis, Missouri, for FY 2017-2018 Marketing Services; 2) authorize City Attorney to make non -substantive changes to the contract extension and Mayor to execute same — funds in the amount of $108,000 (exclusive of media buys, production, public relations, and creative expenses) have been designated forthis purpose in Marketing Account Nos. 1104417-430900 in the proposed FY 2017-2018 Budget. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). 17 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE8,2017 G. REQUEST FOR APPROPRIATION OF ADDITIONAL FUNDS FOR REIMBURSEMENT TO PALM DESERT UNIVERSITY GATEWAY, LLC, IN THE AMOUNT OF $160,000 FOR UTILITIES AND STREET IMPROVEMENTS MADE TO DINAH SHORE DRIVE. Mr. Greenwood recalled for the Council that it had previously authorized and made reimbursement to the Millennium development located on the north east corner of Portola Avenue and Gerald Ford Drive. Part of that initial reimbursement was for the extension of Dinah Shore Drive. At the time there were some additional utilities and other minor cost that were still in dispute, so the City went ahead and authorized $800,000. Staff has since resolved the remainder of it, in that the additional utilities and street improvements have been completed, and therefore, recommended approval. Councilmember Kelly moved to, by Minute Motion: 1) Appropriate additional funds for reimbursement to Palm Desert University Gateway, LLC, in the amount of $160,000 for utilities and street improvements made to Dinah Shore Drive; 2) authorize Director of Finance and City Manager to determine the proper proportionate amounts from Measure "A" Fund 213 and Parks Fund 223, based upon cost of the improvements. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). H. REQUEST FOR AUTHORIZATION TO PURCHASE FOUR TRAFFIC SIGNAL CONTROLLER CABINET ASSEMBLIES FROM ECONOLITE GROUP, INC., IN THE AMOUNT OF $99,379.98. Mr. Greenwood stated the City suffered a near -perfect storm of catastrophes with its signal system. He said there was a serious collision at Cook Street and Hovley Lane East that destroyed a signal cabinet, and in the northern part of town there was a lightening strike that destroyed two additional cabinets, which completely depleted the spares. Staff thought it had more than enough spares at three, but it turns out that was not the case, staff is actually robbing parts out of functioning cabinets to make the signals run. Staff is asking for Council's authorization to replace these four spares. Responding to question about recouping the cost caused by the collision, he said Risk Manager Stephen Aryan is diligent in pursuing reimbursement. Further responding, he confirmed the funding will come out of the current fiscal year's budget. Councilmember Weber moved to, by Minute Motion: 1) Authorize the purchase of four complete traffic signal controller cabinet assemblies in the amount of $99,379.98 from Econolite Group, Inc., Anaheim, California; 2) appropriate $99,379.98 from Unobligated General Fund to Traffic Signal Repair and Maintenance Account No. 1104250-4332500 — funding is available for this purchase in the Unobligated General Fund. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). 18 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 Councilmember Weber said she wasn't aware of a lightening strike. Mr. Greenwood explained staff suspected it was a lightening strike, because something caused the Edison system to back feed into the City's system, and with such high voltage, it physically damaged the electrical components and set them on fire. I. REQUEST FOR ADOPTION OF RESOLUTIONS, APPROVING THE PALM DESERT "STATEMENT OF INVESTMENT POLICY," AS AMENDED (JOINT CONSIDERATION WITH THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT FINANCING AUTHORITY, AND PALM DESERT HOUSING AUTHORITY). Deputy City Treasurer Thomas J. Metz stated that pursuant to State law the City Treasurers Office is requesting approval of the City's state of Investment Policy. Recently, staff received two additional recommendations for textual changes to the policy by Councilmember Kelly, which staff concurs with, and are as follows: 1) On page 3, under 4.0.2, the language is being added to the last sentence in the second paragraph to read, "Its purpose shall be to maximize profit within the parameters of Risk Management'; 2) on page 7, under 8.010, the last sentence of the 5th paragraph to read, "The City Treasurer shall provide all authorized brokers with a copy of the City's investment policy and any amendments as they occur." Lastly, Councilmember Kelly had a question to the language that was added to page 1, under 1.0 Policy, the second blue -lined paragraph, which reads as follows: "At its discretion pursuant to minute order, the Palm Desert City Council may direct that funds be made available to facilitate other lawful investment actions that the city council takes. In that case, either the City Manager or the Director of Finance & City Treasurer is authorized to invest the funds accordingly." He said Councilmember Kelly wanted to know the reasoning behind that insertion, which he felt Mayor Pro Tem Jonathan might be in the best position to explain it. Mayor Pro TemNice ChairNice ChairmanNice President Jonathan explained that the intent was to provide flexibility if opportunities arise to enable the Council to make an exception to the normal investment policy. The normal investment policy boils down to very conservative CDs, conservative bonds, cash in some cases, and there may be occasions, as there have before, where there may be a temporary use of General Fund Reserves that Council feels is appropriate. However, if it conflicts with the Investment Policy, Council would not have the ability to make such investment. By having this language inserted, it provides Council flexibility to take action where it deemed appropriate. As a separate issue, he noticed the staff report indicates the City Treasurer shall provide the City Council with a monthly investment report within 30 days after the Audit, Investment & Finance Committee reviews it. However, the Investment Committee last 19 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 discussed not meeting monthly; therefore, the language would not be consistent with the Investment Committee, because it will no longer meet on a monthly basis. He suggested striking the word monthly. Mayor/Chair/Chairman/President Harnik pointed out that the Policy itself already reflected that change on page 18. Councilmember/Director/Member/Commissioner Kelly said she appreciated the explanation for the paragraph on page 1 of the staff report and on page 1 of the Policy itself, but she is troubled by the language, because it seems to say that despite the fact that great effort has gone into defining an appropriate investment policy, the City Council can do whatever it wants. However, Councilmembers are not investment experts, and while she may trust present company to be very prudent, it didn't strike her as good policy to invite that kind of initiative from Council without following the usual process for amendment of the investment policy. If the thought is that sometimes sensitive opportunities could come up, her response would be that it should probably stay away from it, because the level of risk that the City has adopted doesn't warrant jumping into a time sensitive opportunity. Additionally, she hadn't heard anything that makes her comfortable with it. Mayor Pro TemNice ChairNice ChairmanNice President Jonathan concurred, stating the intent of this language was to give the Council the ability to take action using General Fund Reserves, which is a departure from the normal investment policy. For example, if the City Council felt it needed to temporarily acquire a strategic piece of real estate using General Funds, the current policy prohibits it, because it's limited to investments of CDs, bonds, etc. The idea is to give the Council flexibility to utilize General Fund Reserves in such a way that it deemed appropriate. If there is other language that would make that point clear, he was open to it. Again, the intent is not to jump into some investment that may offer a 12% return. Another example, if in fact the City moves forward with the Community Choice Aggregation Energy (CCA) Program, there are start-up funds that are required, and many cities have provided those funds because it's a very secured loan to the CCA, adding it might pay 4% instead of 1 c%. He's not here proposing that the City do that, but he's just providing an example where other cities have used General Fund Reserves in a way that would not be consistent with Palm Desert's investment policy. He explained that taking that type of action is beneficial to the City, but if this language is not clear, he's open to other language that would limit the departure from the investment policy to actions of that nature. Ms. Moore replied that with regard to the investment policy, staff may offer a compromise, in that the investment policy doesn't prohibit Council from taking action for the use of reserves. What the investment policy encourages and requires, is that there are policies for investable funds to be 20 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 8, 2017 Draft followed. Therefore, when the City has investable cash, it is to be invested in accordance with the policy. If Council were to take action to dedicate some of the monies available for a specific purpose that would make that un- investable according to the plan. If the goal was to look at a property, the policy may not prohibit that, and perhaps that's where there is confusion or where a compromise may occur. Mayor Pro Tem/Vice ChairNice ChairmanNice President Jonathan asked that if the paragraph in question was stricken, would Council still have the ability to use General Fund Reserves in a way other than traditional investing. Ms. Moore answered yes, but would caution that if any of the things Council decided to do with the funds were of an investment nature, then that would then be subject to the investment policy. Mayor Pro TemNice ChairNice ChairmanNice President Jonathan commented he thought a loan to the CCA, which is a promise or notice of security, subject to legal interpretation, was considered an investment. Councilmember/Director/Member/Commissioner Weber disagreed, in that she wouldn't consider a loan to the CCA or purchasing property an investment, stating investments are defined differently in the policy. Therefore, she shared Councilmember Kelly's concern about the language making it sound like Council can haphazardly invest, which is not the function of the Council. The City is extremely conservative, so if this is how the language is being translated, she would agree that the paragraph is not needed, because it can be translated down the road in that manner. Mayor Pro Tem/Vice ChairNice ChairmanNice President Jonathan agreed, but he wants to make sure Council has the ability to act in the City's best interest when opportunities arise. He reiterated that investing in a note might be deemed an investment, stating that if the City lends money to the US Treasury or the State of California, those are loans the City is making with General Fund Reserves. Therefore, a loan to the CCA would not be any different, but perhaps different from a purchase of real estate. He suggested tabling this issue to get legal opinion. However, he completely concurred with his colleagues in that the wording opens the door to an imprudent investment, which is not the intent of the Audit, Investment & Finance Committee who is making the recommendation. Their intent was to enable the City Council to have flexibility when opportunities arise. He said if purchasing real estate is not an investment, that's not an issue, but other opportunities may arise. So, if something like the CCA would be prohibited by the existing policy, then wording needs to be found that would satisfy all concerns. 21 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE8,2017 Councilmember/Director/Member/Commissioner Kelly offered that the overall approach to changing the policy is extremely well -thought out, over due, and probably should be adopted as soon as possible, because the thrust of the recommendation is that the City's policy has been overly conservative to its disadvantage. She would like to see this policy adopted this evening without the paragraph it has been discussing, because staff can continue to research whether some addition to the policy is necessary to address the concerns Mayor Pro Tem Jonathan has raised, and if needed, an amendment can be made in the future. However, she didn't see any reason to hold up the very thoughtful and important changes that make up the substance of what's before the City Council this evening. Mr. Hargreaves concurred with the suggestion, because trying to decide the nature of a particular investment will depend on the specifics, more importantly, what's the purpose of it, and is it just to make money, adding that the same would apply for real estate. He encouraged the City Council to adopt the Investment Policy without the subject paragraph and address specific situations as they arise. At that time, figure out if it comes under the policy, and if it does, Council can modify the policy if necessary. Councilmember/Director/Member/Commissioner Kelly said she will move to approve the policy with the two verbal changes made in language this evening and striking the paragraph that's been under discussion and appears on page 1 of the policy. Councilmember/Director/Member/Commissioner Kelly moved to, waive further reading and adopt the following, approving the Palm Desert "Statement of Investment Policy," as further amended, including the changes orally provided at the meeting: 1) City Council Resolution No. 2017 - 43; 2) Successor Agency Resolution No. SA -RDA 066; 3) Financing Authority Resolution No. FA - 68; 4) Housing Authority Resolution No. HA - 81. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). J. REQUEST FOR AUTHORIZATION TO INITIATE PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR FISCAL YEAR 2017-2018 FOR CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1. Mayor Harnik and Mayor Pro Tem Jonathan recused themselves from this item and left the Council Chamber. Deputy City Treasurer Thomas J. Metz stated this is the initiation of intent for the Benefit Assessment District No. 1 for the purposes of levying the assessment and also appointing a time and place for a public hearing. The recommended date for that hearing is July 13, 2017. Responding to question, he said he has not received any feedback with regard to this assessment. 22 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 8, 2017 Draft Councilmember Nestande moved to waive further reading and adopt Resolution No. 2017 - 44, declaring intention to levy the annual assessment for Fiscal Year 2017-2018 for City of Palm Desert Benefit Assessment District No. 1, pursuant to The Benefit Assessment Act of 1982, and appointing a time and place for a public hearing on these matters. Motion was seconded by Kelly and carried by a 3-0 vote (AYES: Kelly, Nestande, and Weber; NOES: None; ABSENT: Jonathan and Harnik). K. REQUEST FOR AUTHORIZATION TO INITIATE PROCEEDINGS TO LEVY AND COLLECT ANNUAL ASSESSMENTS WITHIN, AND TO GRANT PRELIMINARY APPROVAL OF THE ENGINEER'S ANNUAL LEVY REPORT FOR, THE CONSOLIDATED PALM DESERT LANDSCAPING & LIGHTING MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2017-2018. Deputy City Treasurer Thomas J. Metz stated this is the initiation of intent meeting for the Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1. Staff is requesting adoption of two resolutions, the first is to initiate proceedings to levy and collect the annual assessments for Consolidated Landscaping & Lighting Maintenance District No. 1. The second resolution is to grant preliminary approval of the Engineer's Annual Levy Report for the Consolidated District No. 1 for Fiscal Year 2017-2018. Councilmember Kelly recalled that in a previous Council agenda, there was concern about a district where maintenance of palm trees was not adequately funded and exploratory efforts were being made to address that matter. She questioned if action here would adversely impact those ongoing efforts or are the two separate and apart. Landscape Supervisor Randy Chavez responded that staff was still fact gathering with the residents and a meeting is scheduled for June 13 to get their opinion and feedback. Staff will be presenting to Council on July 13 their findings on that matter, and depending on what is ultimately decided, any increase in levy will take effect fiscal year 2018-2019, but for 2017-2018, there won't be an increase. However, that matter is separate from this item. Councilmember Kelly moved to waive further reading and adopt: 1) Resolution No. 2017 - 45, initiating proceedings to levy and collect the annual assessments for Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1 for FY 2017-2018; 2) Resolution No. 2017 - 46, declaring the intent to levy and collect annual assessments within, and granting preliminary approval of the Engineer's Annual Levy Report for, Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1 for FY 2017-2018. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). 23 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 L. CONSIDERATION OF REQUEST FOR APPROVAL TO PURCHASE A REMOUNTED AND REFURBISHED AMBULANCE FROM FRAZER, LTD., IN AN AMOUNT NOT TO EXCEED $160,000 TO REPLACE RESERVE MEDIC UNIT NO. 233. Mr. Aryan stated this was a request from the Fire Department to use Frazer Limited as a sole source vendor to refurbish and remount an existing Palm Desert reserve ambulance. He noted that all medic units within the Cove Cities are standardized Frazer units for the last 18 years. Frazer has the ability to refurbished the patient compartment and place it upon a new chassis. Such action has cost -savings compared to purchasing a new ambulance, and this item is related to the Public Safety and Emergency Services section of the Palm Desert Strategic Plan, specifically under Priority 1: Enhance the Delivery of Public Safety Services. He noted that Division Chief Eddy Moore is available to answer questions. Mayor Pro Tem Jonathan stated the City has been looking at leasing versus buying, and in this case, Council is considering spending $160,000 to refurbish a very old vehicle. He asked if staff explored the alternative of leasing a brand-new one, questioning if that would be more cost effective. Chief Moore replied he would look into it, but in this case, the vehicle itself is brand new and refurbishment of the box becomes new as well. Currently, all ambulances, with the exception of ambulance No. 233, it's the last one that will go through the refurbishment process, adding that the cabinets, flooring, bench seats, and patient compartment will essentially be brand new when it comes back from Frazer. After it's refurbished, there is only recurring maintenance. Mayor Pro Tem Jonathan said he didn't want to hold this item, but Palm Desert and other cities are looking at leasing as an option, because it tends to have several advantages, in that not only are you getting a new vehicle, the maintenance cost is way down, because it's included with the lease agreement. Therefore, if not with this ambulance, maybe in the future it's something that can be investigated as an option. Chief Moore stated he and Mr. Aryan have discussed looking at other options, vendors, or leasing. The worry he has is the compatibility of ambulances with their mechanics and having to send ambulances out to different vendors and not having the stability with the maintenance cost. Mayor Pro Tem Jonathan recognized those were valid concerns, however, there are leasing companies, where even if that particular brand didn't do leases, one can still purchase a vehicle through them. He said it's worthy of exploration for the future. 24 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 8, 2017 Chief Moore agreed. Draft Councilmember Weber moved to, by Minute Motion: 1) Approve purchase of a refurbished and remounted ambulance from Frazer, Ltd., Houston, Texas, in an amount not to exceed $160,000; 2) authorize designation of Frazer, Ltd., as a sole -source vendor; 3) appropriate $40,000 from the Unobligated Equipment Replacement Fund to Account No. 5304220-4403000 for this purpose — there is currently $120,000 in the FY 2016-2017 Budget for this ambulance refurbishment, and with requested appropriation, the amount of the expenditure will be covered. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). M. REQUEST FOR DIRECTION RELATED TO ENTERING INTO A JOINT POWERS AGREEMENT TO IMPLEMENT A COMMUNITY CHOICE AGGREGATION ENERGY PROGRAM FOR THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG) REGION. Mr. Stendell stated this item is a continuation of the Study Session of May 11 where CVAG staff provided a presentation on what the Community Choice Aggregation (CCA) Program is all about. Since that time, he and Mayor Pro Tem Jonathan have been actively participating in CVAG's ad hoc committee and rapidly approaching action items that CVAG is requesting of all the cities that wished to be part of the program. At the most recent ad hoc meeting, discussions centered around the four bullet points outlined in the staff report, which are Governance Structure, Potential Up -front Financing, Benchmark Steps for Forming a CCA, and Rates and Rate Structure. Any time staff has an item like this where its been presented at a study session and Council has not had a full buy -in, it's prudent to present it to the Council for direction before it spends a terrible amount of staff time, resources, legal time, and chasing down what the pros and cons are for such a program. The intent with the staff report is to get direction from the City Council before it went too far down the rabbit hole. He said staff can return in about a month with a reasonable recommendation, which is what they are asking from the Council, permission to explore this item further and return back to the July 13 agenda. He will do his best to answer questions, although admittedly, this is not completely in his wheel house, but Director of Environmental Resources Katie Barrows from CVAG is available to hopefully fill in any gaps. Councilmember Nestande asked staff if it was aware that Riverside County also has a competing plan, questioning if staff had plans to get a presentation from them as well when considering the CCA, because there are some difference. Mr. Stendell agreed, and if Council's direction is that they would like to hear more about other competing programs, it might slow down the ultimate action, but staff is happy to get that information and perhaps hold a study session on what Western Riverside Council of Governments (WRCOG) is 25 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 doing. However, CVAG has done extensive research on this and they have strong feelings as to why this should remain regional under CVAG. He added that CVAG's consultant said there are a lot of energy plans in specific regions around California looking to form CCAs. Councilmember Kelly said if the City wants to look at this thoughtfully, it should include who the potential partners are, and the upside and downside of alternative partnerships. Additionally, if feasible, she would like to know what percentage of customers would be interested in making the change, understanding that it couldn't really promise a cost savings, but potentially, the ability to have more local control over sources of power. Mayor Pro Tem Jonathan said the historical experience of the CCAs that exist in California, participation has been well over 90%, and some are approaching 100%. In other words, if the City enters into the Joint Powers Agreement (JPA) and participates in the CCA, every customer of Edison gets a choice of whether they want to continue with Edison or take part in the CCA. The data from the existing 17 CCA's in California, in terms of how many of their residents have chosen to sign up with the CCA, exceeds 90% participation, which is not a guarantee of what Palm Desert would experience, but it's certainly an indicator. MR. KIM FLOYD, Sorrento Court, Palm Desert, stated he is a Sierra Club activist. He will speak for the Sierra Club generally in the Coachella Valley where hey have about 1,000 members. They are strong supporters of CCA, primarily for the opportunity it presents for local communities to decide to use cleaner energy. He has a high-level of confidence on what's been done with this effort, both with the City and CVAG, in that Council should take a full view of what the options are and understand the alternatives. He said the Sierra Club has some expertise on this issue, in that there are clear choices to make in the process of selecting vendors. His advice to the Council is to be careful and understand the choices it will be making, stating he strongly supported the motion being proposed. However, there is a reference in the staff report under the "Discussion" section that CCAs have not delivered savings to their customers, which is generally not correct. He said there has been savings generated by CCAs to their customers, so something was misunderstood by someone in that regard. He explained that locally, a CCA can choose to pass or not pass the savings it generates to its customers or it can invest in other things such as rooftop solar. Councilmember Kelly agreed Council needed to know more, but felt this was the appropriate next step. She's pleased that staff is making the recommendation, but the question that came to her, may or may not be within staff's expertise to grasp, but she will pose the question. It seems, from looking at the materials, a paramount reason that a cost savings has happened, is that utilities had long-term contractual obligations to purchase 26 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING Draft JUNE 8, 2017 power, and for quite a few years it has been an environment where prices were declining. Therefore, new CCAs could accomplish an advantage as compared to utilities stuck with Tong -term contracts. Based on the material, it suggests everyone is entering a different environment in which costs are increasing instead of decreasing, which could entirely shift the advantages or disadvantages of having long-term contractual obligations. It's what led her to say the City was not in a position to guarantee price advantages. The paramount motive is to have greater control over the sources and types of power. She didn't know if cost forecasting is something staff can look at in the context of the study time, staff could hopefully at least find out what others are saying about this. Mayor Pro Tem Jonathan stated he amazingly asked the same question at the ad hoc committee, because he was concerned that if prices went up and it became disadvantages to have a CCA, would it make sense for the City to withdraw. The discussion went into details, but there are mechanisms that make it relatively easy for a City to simply withdraw from the JPA and its participation in the CCA. There is also the natural force of the market, because if CCA customers are experiencing higher rates than Edison, then the same reasoning that drove 90+% to participate in the CCA, the same will drive them away from the CCA. He explained that in the end, the CCA is simply a power broker, it purchases electricity and deals with the delivery, but everything else continues to happen through Edison. It's unlikely that a smaller, less flexible, and less regulated organization would result in higher purchasing prices than Edison, which is bound by various restrictions. He was personally convinced that the City and the customers could get out of the JPA. Mr. Stendell confirmed his assessment. Councilmember Kelly noticed the JPA language from the one provided in the packet, establishes a party, where a City may withdraw effectively at the beginning of the next fiscal year, but giving no less than six -months advance notice. She said all of these nuances definitely warrant the kind of study that's proposed at looking at the upside and downside, so she was in support of staffs recommendation. Councilmember Weber recalled for the Council that Palm Desert supported people to acquire solar for their roof, so she's curious how this will affect them. Also, would the CCA do the same as Edison and buy back their electricity, in that case, what would be the point of this. Mr. Stendell replied it was a question he posed, because it's a very big picture question to their Edison contact, and it's all part of the analysis. Mayor Pro Tem Jonathan responding to Councilmember Nestande's concern, he said the ad hoc committee looked at what other opportunities were available and whether Palm Desert needed to form its own, because 27 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 8, 2017 Draft there were other CCAs in formation, including WRCOG. In the end, what it came down to and what Councilmember Kelly alluded to, is local control. He said this JPA will consist of several Coachella Valley cities, but not ones that aren't with Edison. There is a cost saving associated with CCAs, but the JPA makes the decision whether to pass along those savings to the customer, charge lower rates, or to utilize those savings for other purposes. Some CCAs have developed their own green power grid, whether that's solar or some other mechanism. In his mind, one of the biggest benefits to a CCA is local control and purchasing ability. He said local control is as important to him, or more so, than the potential cost savings. He added that joining another CCA like the one in Temecula or Riverside, which is what the City of Rancho Mirage is doing, you lose the ability to have local control. Therefore, he didn't see the need to invest in resources or staff time to research it, because it has been done at the CVAG ad hoc level and the recommendation is to form our own JPA. However, if this Council still felt it needed staff to research it, he certainly wouldn't object. Councilmember Nestande stated she didn't have all the fact, but she's been told that the County of Riverside program also allows for local control. Mayor Pro Tem Jonathan explained that it would allow control by the members, but now the members are largely outside of the Coachella Valley. Therefore, Palm Desert would become one small player and one small vote, because the voting ability is based on various factors including size, population, etc. Further, the members wouldn't have the same local concerns that Palm Desert would, because most of those members would be outside of the Valley and Palm Desert's voting ability would be largely diluted. Councilmember Kelly commented that on the basis of the exchange here, it will be helpful to have staff look into it and make a thoughtful recommendation so that all Councilmembers are equally informed. Mayor Pro Tem Jonathan noted CVAG was asking for a quick timeline because of the current rates and the opportunity for a greater cost savings by acting quickly. However, on big items like this one, Council needs to allow staff to reach a comfort level where whatever the recommendation is, it has to protect the City and he wouldn't want to sacrifice due diligence for haste. Mayor Pro Tem Jonathan moved to, by Minute Motion, direct staff to investigate potential risks and benefits related to involvement in a Joint Powers Agreement (JPA), implementing a Community Choice Aggregation (CCA) Program and report back to the City Council at its meeting of July 13, 2017. Motion was seconded by Kelly and carried by a 5-0 vote (AYES: Jonathan, Kelly, Nestande, Weber, and Harnik; NOES: None). 28 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING XVI. CONTINUED BUSINESS None XVII. OLD BUSINESS None XVIII. PUBLIC HEARINGS None XIX. REPORTS AND REMARKS A. CITY MANAGER Draft JUNE 8, 2017 1. City Manager's Meeting Summaries Report for the Period of May 15-26, 2017. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. Personnel Update: Ms. Aylaian welcomed Ron Moreno and Heather Horning, the two newest City of Palm Desert employees working in the Public Works Department. B. CITY ATTORNEY None C. CITY CLERK None D. PUBLIC SAFETY 1. Fire Department None 2. Police Department None 29 PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 8, 2017 E. MAYOR AND MEMBERS OF THE CITY COUNCIL Draft 1. Councilmember Susan Marie Weber's Meeting Summaries Report for the Period of May 13-28, 2017. With City Council concurrence, the Meeting Summaries Report was received and filed. 2. City Council Requests for Action: a) Honorariums to College of the Desert Students - Mayor Harnik noticed that in today's agenda, under Consent Calendar - Item H, the City Council approved honorariums to three college students for designing the Turf Removal and Landscaping Project, which resulted in them receiving honorariums. She asked if this was a program where the City could engage more students, stating it was also another one of those Helen Putman award opportunities. Ms. Aylaian responded staff will keep it in mind and look for other opportunities. 3. City Council Consideration of Travel Requests and Reports: None XX. ADJOURNMENT With City Council concurrence, Mayor Harnik adjourned the meeting at 6:00 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JAN HARNIK, MAYOR 30