Loading...
HomeMy WebLinkAboutPrelim - CC - 04-28-2016DRAFT X_ PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, APRIL 28, 2016 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Mayor Pro Tern Harnik convened the meeting at 3:03 p.m. II. ROLL CALL Present: Absent: Mayor Pro Tern Jan C. Harnik Mayor Robert A. Spiegel Councilman Sabby Jonathan Councilman Van G. Tanner Councilmember Susan Marie Weber Also Present: Justin McCarthy, Interim City Manager Robert W. Hargreaves, City Attorney Rudy P. Acosta, Assistant City Manager Rachelle D. Klassen, City Clerk Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Bo Chen, City Engineer Stephen Y. Aryan, Risk Manager Anthony Baur, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. Sgt. David Adams, Palm Desert Police/Riverside County Sheriffs Department Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): Number of potential cases: 2 With City Council concurrence, Mayor Pro Tern Harnik adjourned the meeting at 3:04 p.m. without conducting Closed Session. She reconvened the meeting at 4:04 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 - Palm Desert Youth Committee Member Abigail Sanford VII. INVOCATION - Councilman Van G. Tanner With City Council concurrence, Mayor Pro Tern Harnik suspended the agenda at this point in order to take up Section IX - Awards, Presentations, and Appointments, then returned to Section VIII - Oral Communications- B. VIII. ORAL COMMUNICATIONS - B MS. LORI CARNEY, Human Resources Manager for the City of Palm Desert, on behalf of the City Council, presented the proclamation honoring Municipal Clerk's Week, which begins May 1. She said the Palm Desert City Clerk's Department was certainly the best in the Valley, likely the best in the State, and maybe the best in the Country. As partners in democracy, the Office of the City Clerk keeps the business of the people at the heart of everything they do. She recalled being told that you can operate a city without many things, but not without a City Clerk. She further extended her appreciation to City Clerk Rachelle Klassen, Deputy City Clerk Grace Mendoza, and the entire City Clerk staff for the vital services they perform and their exemplary dedication to their work. Ms. Klassen graciously accepted the honor, stating staff likes to work behind the scenes keeping everything going smooth, on time, and on budget. She said her 011 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 staff appreciated working with everyone, as itwas a partnership between colleagues and the City Council, and she believed it showed. Councilman Jonathan expressed his appreciation for all the good work done by the City Clerk's staff and for their incredible patience with the City Council. MS. CAROLE VAN ZANDT, South Sierra Madre, Palm Desert, stated she was opposed to the City Council spending tax dollars, local revenue, and State/Federal subsidies on the Coachella Valley Link Project. Even if private funding covered the entire cost of the CV Link, the Council would still be committing current and future generations to untold millions or billions of future dollars to cover electricity, water, security, emergency services, path/ground maintenance and repairs, stating it would be a 24/7 issue for 365 days a year. She said the residents of Rancho Mirage recently defeated the CV Link in their city, and the same is likely to happen in the City of Indian Wells where they will vote to allow or disallow their Council to allocate funds for the CV Link. She said the residents of Palm Desert must also have the right to vote on whether to authorize the City Council in allocating funds from any source for this project. However, voters first must make an educated decision; therefore, residents must be provided realistic estimates of up -front cost for its development, cost for routine security patrols, operations and maintenance cost, and capital improvements and repairs over a 30-year period. Estimates should also include those non -routine costs such as 911 types of police, fire, and emergency technician requirements. Without the estimates and voters approval, the Palm Desert City Council should not spend another dollar on the CV Link Project. MR. DON UNDERWOOD, Camino Arroyo South, Palm Desert, concurred with the previous speaker, stating that with the outcome in Rancho Mirage, and with what will happen in Indian Wells regarding the CV Link, one would think the citizens of Palm Desert have the right to vote as well. He said there is a lot of concern about the impacts to certain neighborhood, and without knowing what the route will be, whether there will be on -ramps and exit ramps, and parking for vehicles, etc., people are left wondering what the City of Palm Desert will do. Additionally, there hasn't been much publicity and this was a big commitment by all the cities in the Valley. He said for the welfare of the citizens of Palm Desert, he hoped the Council will come up with some answers quickly. Mayor Pro Tern Harnik thanked Mr. Underwood for his comments and explained that because the item was not agendized, the Brown Act didn't allow the City Council to respond. Councilman Jonathan encouraged anyone with interest in the CV Link to get information from the meetings at Coachella Valley Association of Government (CVAG) Transportation Committee, where CV Link is discussed. He said those meetings are open to the public, and beyond that, CVAG has a website that 3 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 answers many of the questions raised. Also, he encouraged people to gain the knowledge and then make an informed decision. MS. AMY LAWRENCE, Program and Events Specialist for the City of Palm Desert, announced that the City's Concert Series is starting next week. The concerts will be held from 7:30 - 9:00 p.m. every Thursday during the month of May. The schedule is as follows: May 5 - The Reflexx (80's New Wave) May 12 - Upstream (Reggae) May 19 - The Dustbowl Revival (Americana/Bluegrass) May 26 - The Blue Breeze Band (Motown/R&B) Additionally, this year the concerts will include three food trucks at the event - We Heart Froyo, the Eat Em' Up Truck, and Bacon Nation. Mayor Pro Tern Harnik announced that Saturday, May 7 from 10:00 a.m. to 9:00 p.m., the City is having the Vision San Pablo Event. She invited Palm Desert residents to attend and asked that they provide feedback to the Council. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION OF PROCLAMATION DECLARING MAY AS "MENTAL HEALTH MONTH" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Pro Tern Harnik presented the proclamation to Ms. Carole Shaudt and invited her to share with everyone about the upcoming event. Ms. Carole Shaudt announced that the Desert Region Behavioral Health Commission is holding the "Each Mind Matters" Wellness and Resource Fair on Tuesday, May 10, 2016, at the Coachella Valley Rescue Mission in Indio, at 9:00 a.m. She invited everyone to pre judge the art that will be displayed there, because some of the art is magnificent, stating people put a lot of expression into their art. She pointed out that today people hear the words "behavioral health" instead of "mental health," because of the stigma of that word and what it represented. She invited the Council to attend the event, stating that Councilmember Weber will again assist with the judging of the art this year. Mayor Pro Tern Harnik thanked Ms. Shaudt and noted that the City Council declared November 12, 2015, as "Carole Shaudt Day," recognizing her for her volunteerism. M PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 B. PRESENTATION OF PROCLAMATION DECLARING MAY 2016 AS "BUILDING SAFETY MONTH" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, proclamation to City of Palm Desert Grance. Mayor Pro Tern Harnik presented the Director of Building & Safety Russell Mr. Grance stated the City has been observing "Building & Safety Week" since 1980, and in 2010 it was expanded, and it's now "Building & Safety Month." He said it provides the opportunity to raise public awareness to the critical life safety issues that affect everyone in the build environment, adding that the Building Department welcomes Council's continued support. He said the following are this year's themes: May 2-8 - "Building Solutions for All Ages" May 9-15 - "The Science Behind the Codes" May 16-22 - "Learn from the Past, Build for Tomorrow" May 23-29 - "Building Codes: A Smart Investment" Mayor Pro Tern Harnik commented that one seldom thinks of the public safety that is being provided, because these people work mostly behind the scenes. And to punctuate her point, she introduced Palm Desert's K9 Team of Deputy Patrick Mushinski and Rio. She said Rio is a Belgium Malinois. Responding to questions, Deputy Mushinski said the Department obtained Rio on June 2, 2014; he was 3'/2 years old at the time and has been in training for 1'/2 years. He said Rio is smart, brave, and a great partner. C. PRESENTATION TO THE CITY COUNCIL BY STUDENTS OF MS. DAVIS'S PALM DESERT CHARTER MIDDLE SCHOOL 8T" GRADE HUMANITIES CLASS IN APPRECIATION FOR THE CITY'S SUPPORT OF THEIR RECENT TRIP TO THE MUSEUM OF TOLERANCE IN LOS ANGELES, CALIFORNIA. MS. NANETTE DAVIS-KIRCHHEVEL, 81h Grade Humanities Teacher at Palm Desert Charter Middle School, introduced students Beverly Talakua, Madison Platt, Stephanie Bautista, and Davis Ramirez, who thanked the Council for its support and funding to make it possible for them to visit the Museum of Tolerance in Los Angeles. They each shared their educational experience and what they learned on this trip. Some of the highlights included meeting a Holocaust survivor, viewing the exhibits, and seeing the realistic models of the houses and camps. Many shared that this trip definitely opened up their eyes and helped them realize how incredibly 9 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 fortunate they are to be living in this generation, and that they have a greater respect for the survivors of the Holocaust. Councilman Jonathan stated he was proud that the City has a Holocaust Memorial at Civic Center Park, and it has an annual event that commemorates the Liberation of Auschwitz Concentration Camps. He noticed last year that there were few youth in attendance; therefore, he looked forward to working with the school to enlist some of the students to attend. He said the event has Holocaust survivors that speak, and really, they should be speaking to the future, which are the young students. Mayor Pro Tern Harnik added that this Sunday is Holocaust Memorial Day, and there will be a Remembrance Ceremony at the Annenberg Theatre on the Eisenhower Campus. D. PRESENTATION TO THE CITY COUNCIL OF AN UPDATE ON PALM DESERT YOUTH COMMITTEE ACTIVITIES BY MEMBER ABIGAIL SANFORD. Ms. Sanford stated the Youth Committee was winding down forthe yearwith ten seniors graduating and departing the Committee. She said Youth Committee Members continue to act as liaisons to other City Committees/Commission that include: Art In Public Places Commission, Public Safety Commission, and the Library Promotion Committee. She announced that on May 22 from 2:00 to 5:00 p.m., there will be a Youth Committee fundraiser at MAKE, which is the Coachella Valley Art Scene's location in the Westfield Mall. She said it will be an Open Mic Night with an auction and raffle. E. PRESENTATION TO THE CITY COUNCIL AND COMMUNITY BY REPRESENTATIVES OF THE COACHELLA VALLEY WATER DISTRICT (CVWD) REGARDING PROPOSED CHANGES TO ITS STRUCTURE OF WATER RATES. MR. JIM BARRETT, General Manager, Coachella Valley Water District (CVWD), reviewed a detailed PowerPoint presentation regarding the proposed changes to its structure of water rates, which had been provided to the City Council in advance of today's meeting and is now on file and of record in the City Clerk's Office. He recognized this was not a popular topic, stating the changes are necessary, and he believes they were equitable in the development of the new rates. He explained the rates themselves are required by a number of State mandates, which they respond to, with the first one being the chromium-6 change to the drinking water that came out in April 2014, and became effective July 1, 2014. He said CVWD was successful in getting Governor Brown to sign special legislation allowing N PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 them time to develop facilities to remove the chromium-6. The average chromium-6 value is 9 parts per billion, and the new standard is 10 parts per billion. The previous standard in California was 50 parts per billion for total chromium, and the Federal standard at the EPA is 100 parts per billion. Therefore, 10 parts per billion is 10 drops in 10,000 gallons, which is a small residential swimming pool; hardly noticeable. However, the removal of chromium-6, places the largest capital program requirement on the District, costing $250 million with an $8 million annual operating cost. Also contributing to the rate increase is not the revenue they lost because of the increase, but the desire to continue moving forward to provide a more sustainable aquifer. He said they are at a 15% overdraft situation, which means more water is being taken out than is being poured in. He said customer performance during this drought was about 24%, but not the 32% or 36% required by the State, which is probably why they were one of four agencies fined for not reaching that target. However, it was an incredible achievement by its customers, so if they can capture and sustain that 25% conservation, the District would be in a better position to comply with the State's new Sustainable Groundwater Management Act, requiring them to be in balance by 2040 or the State will step in and take over. Finally, the San Juan Capistrano Court Opinion does bear on water rates within the State, which is another refinement of how the legislation is trying to decide what's in and what's out, and how to do water rates. This court opinion said yes to water tier rates, but the work must be shown or demonstrated as to why it has segregated or developed the costs. He explained that the last water rate increase for domestic was in 2010, and since that time, the District has deferred maintenance and capital improvement projects, increases to employees, and requiring employees to pay more toward their health insurance and retirement. He noted the District is eligible for a State Revolving Fund loan; although, they have never gone into the Bond Market, because they are "pay as you go" agency. He said it would be impossible for the District to fund $250 million with the cash on hand from its domestic customers, and it wouldn't be appropriate for current customers to pay for equipment and processes that will continue into the future. It was more appropriate to pass these costs onto the beneficiaries that would receive the chromium-6 remediated water for the next 20 and 30 years. Also, since they haven't had a rate increase since 2010, they needed to keep pace with inflation. He displayed a graph showing the significant drivers for the revenue requirements that include chromium-6, conservation efforts, and an increase or adjustment on the RAC (Replenishment Assessment Charge), which is an internal domestic fund that pulls water from the ground for drinking water purposes and sells it to its residents. The District then has to pay for replenishment water to recharge the aquifer, and that rate is also being adjusted. If it isn't for any of those things, they would have the status quo, which basically requires a 7% increase in revenue followed by years of 4% increases just to do capital improvement projects, which are necessary to 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 ensure water is available, reliable, and safe. Therefore, because of chromium-6, conservation, and the RAC, the District will need a significant revenue increase. On June 14, the District will be asking the Board to consider Proposition 218, rate increases for five years. The Board will approve the first year on June 14, and with each subsequent year, the Board will review as part of the budget process. He explained that Proposition 218 establishes a ceiling they can raise the rate, which is contained in Prop 218, depending on the cost and revenue experience each year. He said the tier rates are being adjusted by reducing the amount of water that is available inside. The current rate is 10 units or 10-hundred cubic feet; each cubic foot is 748 gallons. The District is proposing 8 units for Tier 1, which is basically 50 gallons a day for four people for 30 days a month; it's the industry standard and appropriate, because appliances have become more efficient. He went on to describe the adjustments made to Tier 2 through Tier 5, relating to water usage for landscaping, stating that overall it was tightening the budget by 25% for what was allowed in 2008/2009 when the District initially developed the water budgets. He said they are hoping to capitalize on some of the behavioral changes that the drought mandate had required customers to undertake over the last nine months. Before the drought, 80% of customers met their budget without going into Tiers 3, 4, and 5. However, there are about 250 customers that are habitually in Tier 5. He said the District reached out to them to get their attention, stating the drought penalties helped to that end. With the new budget, he believed 78% of the customers will be able to meet their budget without a lot of behavioral change. For customers that use about 20 units, which is average for residential, excluding HOA's, will see about a $6 increase in their monthly water budget. He pointed out there is a fixed charge just for having a meter regardless of whether or not water is used, then there is the consumption charge, which is where the Tier rates come into play. He said the proposed changes compare relatively with the rest of the rates in the Valley. He went on to display and explain some examples of water usage for a single-family home and a larger home and how it affects the water bill. He said the District offers the following programs to manage water use: Turf Removal Program, Free Smart Controllers, Toilet Rebates, Free Indoor Kits, and Landscape Workshops. In conclusion, the District will provide a series of Public Workshops at the Palm Desert building on Hovley Lane on May 2 at 5:30 p.m. and on May 11 at 10:00 a.m. A notice went out about Proposition 218, and it explains in detail the rate increases for the entire five years. He noted the District has about 110,000 domestic water accounts under the Prop 218 process, and if a simple majority protests in writing on the proposed rates, the Board can't take any action. If however, the District doesn't receive 55,000 protests, the Board has the authority to deliberate and decide whether or not to approve the rate increase on June 14, 2016. If approved, the rates themselves will become effective July 1, 2016. He said the District has more information on their website at: www.cvwd.orq/ratechanges. 0 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of April 14, 2016, and the Special City Council Meeting of April 7, 2016. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 4/8/2016 - (2), 4/15/2016, and 4/19/2016. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrant Dated 4/15/2016 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. INDEPENDENT ACCOUNTANTS' REPORTS on Applying Agreed -Upon Procedures of Various Palm Desert Operators for Compliance with the City of Palm Desert's Transient Occupancy Tax Ordinance for Calendar Years 2013 and 2014. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. E. CITY COMMITTEE AND COMMISSION MEETING MINUTES. 1. Marketing Committee Meeting of February 16, 2016. 2. Public Safety Commission Meeting of February 10, 2016. 3. Youth Committee Meeting of March 7, 2016. Rec: Receive and file. F. RESOLUTION NO. 2016 - 33 - A Resolution of the City Council of the City of Palm Desert, California, Setting Forth Its Findings and Authorizing the Destruction of Paper Records that Have Been Digitally Imaged from the Office of the City Clerk, to Rely on the Electronic Record as the Official Record. Rec: Waive further reading and adopt. �61 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 G. REQUEST FOR AUTHORIZATION to Rescind and Ratify Entertainment Contracts for the "Vision San Pablo" Event on Saturday, May 7, 2016. Rec: By Minute Motion: 1) Rescind Contract No. C35130 with Chelsea Rowe in the amount of $1,350; 2) ratify Contract No. C35130A with Dallas and Doll in the amount of $2,800 to provide entertainment at the "Vision San Pablo" Event — funds are available in Account No. 1104417-4321900. H. REQUEST FOR RATIFICATION of Employment Agreement for Interim City Manager Services with W. Justin McCarthy (Contract No. C35220). Rec: By Minute Motion, ratify agreement dated April 19, 2016, with W. Justin McCarthy for Interim City Manager Services. REQUEST FOR APPROVAL of the Donation of Mesa by Luis Montoya to be Included in the City's Permanent Public Art Collection and Authorize Mayor to Sign Deed of Gift to City of Palm Desert Form (Contract No. C35230). Rec: By Minute Motion: 1) Approve donation of Mesa by Luis Montoya to the City's Permanent Public Art collection from Dr. Mark Greenberg; 2) authorize Mayor to sign Deed of Gift to City of Palm Desert Form; 3) authorize expenditures of up to $1,650 for transportation and installation — funds are available in Account No. 4364650-4400100 in Fiscal Year 2016-2017. J. CONSIDERATION of the Approval of a Letter Supporting AB 1869 (Melendez & Gray) — Theft of Firearms. Rec: By Minute Motion, approve a letter of support for AB 1869 (Melendez & Gray). K. REQUEST FOR APPROVAL of Palm Desert Legislative Review Committee's Recommendation to Provide a Letter of Support for AB 2415 (Garcia) — California Renewable Fuels in Freight Act. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 L. CONSIDERATION of the Approval of a Letter Supporting AB 2854 (Cooper) — Theft of Firearms. Rec: By Minute Motion, approve a letter of support for AB 2854 (Cooper). M. REQUEST FOR APPROVAL of Naming Interim City Manager W. Justin McCarthy as Interim Business Contracting Officer for the City of Palm Desert's Banking, Trust, and Investment Relationships. Rec: By Minute Motion, approve W. Justin McCarthy, Interim City Manager, as the Business Contracting Officer for the City of Palm Desert's Banking, Trust, and Investment relationships, with the authority to sign related technical documents on the City's behalf. Councilman Jonathan requested Items D and K be removed for separate consideration. Upon a motion by Tanner, second by Weber, and 4-0 vote of the City Council (AYES: Harnik, Jonathan, Tanner, and Weber; NOES: None; ABSENT: Spiegel), the remainder of Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER D. INDEPENDENT ACCOUNTANTS' REPORTS on Applying Agreed -Upon Procedures of Various Palm Desert Operators for Compliance with the City of Palm Desert's Transient Occupancy Tax Ordinance for Calendar Years 2013 and 2014. Councilman Jonathan understood this was an audit on a random selection of hotels that collect Transient Occupancy Tax (TOT), and checking to see if they remit to the City the correct amount collected. It appears to him that out of six operators, only one complied and five had exceptions. He wondered if that was representative of what is happening and did the City need to take further action. Mr. Gibson explained that two operators the City has had problems in the past, so they were audited again to see if they made the corrections. Obviously, they haven't, so the City will continue to audit them until it gets the right processes working. The other problem the City runs into is that some of these operators have had change of management, meaning another company is running it for them, so they face different processes. He said each of the operators received a copy of the report so they can respond and provide an explanation. The City then reviews their response and addresses any concerns they may have commented back. The audit is then finalized 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 and corrected, which is where staff is at in the process. He said some of the audits took longer than normal, because they didn't have the books available for the auditors to review. The largest operator, Marriott Desert Springs, is reviewed every year. He said Marriott represented a good portion of the total TOT collected, so staff feels responsible for verifying them every year, and they have done an exceptional job of meeting the rules. The other ones are smaller operators and don't always have bookkeepers on board, which is a problem staff runs into. They may have bank statements, but not include all the details such as exemptions, which is one of the bigger problems. He said hotels exempt people for less than 30 days, and they don't have the proof to exempt them. Additionally, land sales are another issue the City faces typically on these audits. He's already given a list of additional hotels to the auditors to be audited, hopefully doing 100% of them over a period of time. Councilman Jonathan commented that in the audit world, if you have a random sample and it indicates a widespread noncompliance, than generally, that sample is expanded to determine how widespread the problem is. He said that if 5 of the 6 hotel operators are not submitting the correct amount of TOT, it's a concern, because it's a significant part of the City's revenue. Mr. Gibson replied that if the auditors find an error and it continues, the City will continue to audit until the problem is corrected. Councilman Tanner was concerned that this was a random selection process and not an audit of all the hotels. He believed there is also a problem with Vacation Rental By Owners (VRBO). Mr. Gibson replied that VRBO's is a separate audit, which was performed on the top 15 property managers. The only concern, are the extra fees for cleaning the pool or dogs, etc., and them not remitting the TOT for those types of fees. Therefore, with City Manager's concurrence, staff made a ruling that it wouldn't go backwards in time, but going forward, they must comply. Councilman Tannercommended Mr. Gibson in collecting so much more TOT from the VRBO's than had been collected in the past. Mr. Gibson credited the contractor that works on all the rental applications, stating she goes after all the advertisements and verifies that those operators have a license with the City of Palm Desert; she's the start of the process. He went on to say he will no longer be employed with the City when her contract is up for renewal in October, but he would recommend for it to be approved. 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 Councilmember Weber asked if staff was going to expand its number of selections since a large percentage was not in compliance. Mr. Gibson replied that the current budget would not afford it, and if that was the desire of the Council, the budget would have to be adjusted. Mayor Pro Tern Harnik pointed out that there are some operators that are always missing their TOT requirements, thereby always being audited. Therefore, the report reflects a high percentage of problems because Finance is always looking at the "problem children." Also, the lady tracking the VRBO has done a great job, and she agreed the City should keep her on board. Mr. Gibson added that the contractor works with Code and obtains proof from the online systems in order for Code to go after them and conduct administrative fines. He reiterated that he highly recommended the current contractor, as she did a fine job for the City. Councilman Jonathan noted that Mr. Gibson has worked with the City for more than 27 years and congratulated him on his retirement. Mayor Pro Tern Harnik added that on the following day it would be Mr. Gibson's last day and thanked him for everything he's done for the City and for keeping Palm Desert in good stead. Councilman Tanner moved to, by Minute Motion, receive and file the Limited Procedures Review of various Palm Desert operators for compliance with the City of Palm Desert's Transient Occupancy Tax Ordinance for the 2013 and 2014 calendar years. Motion was seconded by Jonathan and carried by a 4-0 vote (AYES: Harnik, Jonathan, Tanner, Weber; NOES: None; ABSENT: Spiegel). K. REQUEST FOR APPROVAL of Palm Desert Legislative Review Committee's Recommendation to Provide a Letter of Support for AB 2415 (Garcia) — California Renewable Fuels in Freight Act. Councilman Jonathan thanked Mr. Aryan for providing clarification on this matter. It's his understanding that Measure AB 2415 is not mandatory, but it did further the State's agenda of taking the City's mission standards to a higher level, and they're already at the highest. He might be the only one that disagrees with the policy in this State, which makes Palm Desert less competitive with the rest of the Country, and maybe went beyond the pale in promoting this particular agenda. Therefore, he will be voting against AB 2415. 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 Mayor Pro Tern Harnik recalled there were programs that helped with placement of some of the offending engines. Mr. Aryan explained that this measure could be more of a grant program and not a mandated act, because the phrase "all truck's transition to a cleaner technology" is not mandated within the bill. In talking to the legislative authors office and Gas Company representatives, it's his understanding that it's not mandated. Further responding, he said the measure extends the sunset date on existing legislation from 2018 to 2023, stating it just allocates additional monies going from 20% allocation to 50% for clean air technology projects or less than 50% or $100 million. Councilman Jonathan said he respected everyone's opinion, but personally he couldn't get behind this bill or agree with this letter of support. Councilman Tanner moved to, letter of support for AB 2415 (Garcia) received NO ACTION on a 2-2 vote Weber; ABSENT: Spiegel). XI1. RESOLUTIONS None XIII. ORDINANCES A. For Introduction: None B. For Adoption: None XIV. NEW BUSINESS by Minute Motion, authorize the Mayor to send a Motion was seconded by Harnik and the motion (AYES: Harnik andTanner; NOES: Jonathan and A. REQUEST FOR APPROVAL OF A ONE-YEAR EXTENSION TO CONTRACT WITH KNORR SYSTEMS, INC., FOR MECHANICAL MAINTENANCE AND CHEMICAL ACQUISITION SERVICES AT THE PALM DESERT AQUATIC CENTER FOR FISCAL YEAR 2016-2017 IN THE AMOUNT OF $83,596 (CONTRACT NO. C34281). Management Analyst Kimberly Warpinski noted the staff report and offered to answer questions. 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 Councilman Tanner moved to, by Minute Motion: 1) Approve one-year extension to subject contract with Knorr Systems, Inc., Santa Ana, California, for Mechanical Maintenance and Chemical Acquisition Services at the Palm Desert Aquatic Center in the amount of $83,596 for FY 2016-2017; 2) authorize additional repair work and services at the specified contract amount, not to exceed 20% ($16,700); 3) authorize Mayorto execute said Contract Extension — funds are available in Account Nos. 242-4549-454-2111 and 242-4549-454-3311 in the proposed FY 2016-2017 Operating Budget. Motion was seconded by Weber and carried by a 4-0 vote (AYES: Harnik, Jonathan, Tanner, and Weber; NOES: None; ABSENT: Spiegel). B. REQUEST FOR APPROVAL OF EIGHTEEN (18) SCULPTURES AND FOUR (4) ALTERNATES FOR THE 2017/2018 EL PASEO EXHIBITION AND APPROVE HONORARIA OF $2,576 FOR EACH OF THE PARTICIPATING ARTISTS (CONTRACT NOS. C35240A-R). Management Analyst Deborah S. Glickman noted the staff report and offered to answer questions. Responding to question on the change over of the pads, she said she will be working with Mr. Greenwood to figure out the process. Also, depending on what is approved in the budget, staff will return to Council with a bid, and if they need to extend beyond the six pads, staff will request appropriation of funds. Part of it will depend on the deinstallation process of the current show and how this evenings selection will fit on the new pads. Mayor Pro Tern Harnik requested that the slides of the 18 sculptures be displayed, and asked if the site locations were already decided. Ms. Glickman replied they were not with the exception of two. One piece is going in at Highway 74 and El Paseo, the second one will be by Bank of America, mainly because the pieces are a good fit. She will play with the remaining pads and curate the exhibition at a higher level. Responding to question about who decided where the artwork pieces are located, she said she did. Councilmember Weber thanked the Commission for working hard on the selection of the art pieces, stating they are very conscientious in their selection. Ms. Glickman agreed, stating they had about 60 pieces from about 47 artist, and the Commission went through the process quite seamlessly. She said the alternates are very important in that the Commission had to go into their 3rd alternative the last time. Responding to question about the 18 pieces, she confirmed there are 18 pads on El Paseo for the exhibition, but there is other artwork on El Paseo that is permanent. The exhibit covers the pads from Highway 74 to Portola Avenue. 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 Councilman Jonathan asked if it was by choice to replace all 18 pads as opposed to doing six every year for three years. Ms. Glickman explained that the process is incredibly cumbersome, including the process for receiving the applications. For efficiency purposes, she said it was much easier to do it all at once. Councilmember Weber moved to, by Minute Motion: 1) Approve 18 sculptures and 4 alternates selected for the 2017/2018 El Paseo Exhibition; 2) approve honoraria of $2,576 for each of the participating artists — funds will be available in Account No. 4364650-4400200 in Fiscal Year 2016-2017. Motion was seconded by Jonathan and carried by a 4-0 vote (AYES: Harnik, Jonathan, Tanner, and Weber; NOES: None; ABSENT: Spiegel). C. REQUEST FOR APPROVAL OF WELLS FARGO SECURITIES LLC; JEFFERIES LLC; PIPER JAFFRAY & COMPANY; AND STIFEL, NICOLAUS & COMPANY; AND CONDITIONAL APPROVAL OF J. P. MORGAN SECURITIES LLC, AS BROKER -DEALERS FOR THE CITY OF PALM DESERT. Deputy City Treasurer Thomas J. Metz stated that over the last few years it's been more profitable for the City to stay in local agency investment pools and to buy individual securities due to near zero interest rates. However, that has recently changed with an upward trend in short-term interest rates, and the City is actually buying. Over the last two years the City has lost three of its investment brokers due to industry restructuring, asset sales, and reductions - in -force. Therefore, staff recommended approval forthe proposed fourfirms. He added that in the case of J.P. Morgan, the City received the application, reviewed their references, and they were excellent. He noted the Audit, Investment & Finance Committee unanimously approved staffs recommendation. Councilman Jonathan moved to, by Minute Motion, approve Wells Fargo Securities LLC; Jefferies LLC; Piper Jaffray & Company; and Stifel, Nicolaus & Company; and conditionally approve J. P. Morgan Securities LLC, as broker -dealers for the City of Palm Desert. Motion was seconded by Tanner and carried by a 4-0 vote (AYES: Harnik, Jonathan, Tanner, and Weber; NOES: None; ABSENT: Spiegel). 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 D. REQUEST FOR DIRECTION TO STAFF BY SELECTING A CONSULTANT TO DELIVER RECRUITMENT SERVICES FOR THE POSITION OF CITY MANAGER AND TO NEGOTIATE AN AGREEMENT WITH SELECTED FIRM FOR AMOUNT NOT TO EXCEED $30,000 (CONTRACT NO. C35250). Human Resources Manager Lori Carney recalled for the Council that it directed staff to request proposals for recruitment services for filling the current vacant position of City Manager. Five proposals were received and provided to the City Council for their review. Staff recommended Ralph Anderson and Associates based upon feedback from similar communities they've previously done work with. She noted Project Director David Morgan is available to answer questions if the Council decides to select that firm. Responding to question, she said their references were very good, especially with regard to responsiveness. She also checked references on the other firms that submitted a proposal and was told they had received good service, but perhaps the client load was a little heavier and the responsiveness wasn't as great as it had been with Ralph Anderson, including some of the local cities. She said responsiveness was very important to Palm Desert, because of the current need for a City Manager. Mayor Pro Tern Harnik commented that she called some councilmembers from cities that were represented in their proposal and heard very glowing remarks. MR. DAVID MORGAN, Project Director with Ralph Anderson and Associates, stated they took particular pride in serving high quality of life communities with the understanding that expectations are high. He said they go out of their way to be responsive and accessible, stating he never works on more than two or three projects at a time. He said many consultants in this business don't have that option, but he did. He said Palm Desert has a wonderful community and he hopes to have a chance to serve the Council. Councilman Tanner added that Ralph Anderson's presentation was one of the best. Being a retired owner of an insurance business, presentation always comes into play, stating Ralph Anderson's firm definitely took the time and effort to present a great program. Councilman Tanner moved to, by Minute Motion: 1) approve the firm of Ralph Anderson and Associates to deliver Recruitment Services for the position of City Manager and staff to negotiate an agreement with the selected firm in an amount not to exceed $30,000; 2) appropriate $30,000 from Unobligated Reserves to Human Resources Professional Services, Account No. 1104154-4309000 for this purpose. Motion was seconded by Jonathan. 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 Councilman Jonathan said the Council lives and dies by its staff, and he believed Palm Desert has the best staff in the Valley and beyond. He said the Council will be relying on Ralph Anderson and Associates to help select leadership of that stature. Councilmember Weber stated she didn't see cities listed that were similar to Palm Desert. MR. MORGAN replied he tried to focus on communities that were of equal quality such as the cities of Santa Barbara, Beverly Hills, San Juan Capistrano, Pacific Grove, and Solana Beach, stating they're all communities of high expectations and constituencies that are noted for being highly sophisticated. Therefore, they tried to identify communities that he felt really did compare. He recognized they are of different sizes, but his firm has done work for a lot of other communities as well. Councilmember Weber stated Palm Desert is very different from other places in California, including Los Angeles and northern California. She said Palm Desert did things in a different manner, so she was looking for a city that was similar to this desert area, which is very unique. Therefore, her question was how would Mr. Morgan identify one of those cities as being similar to the desert area and how familiar was he with Palm Desert. MR. MORGAN responded he owned a place in La Quinta, and he views Palm Desert as a highly respected, well run city with a good history, sophisticated with a level complication, retail is second to none and world class. Therefore, when Councilmember Weber states Palm Desert has a different way of doing business, he wasn't exactly sure of what she was referring to. Councilmember Weber said she didn't know either, but she's always hearing that Palm Desert is unique and does things differently, and if she could pin point it, she would absolutely do that. But hearing that Mr. Morgan has a place in La Quinta, it meant he was aware of Palm Desert's uniqueness. MR. MORGAN said he understood, but he felt some of the communities he mentioned have similar attributes. He said Palm Desert is a sophisticated and high -demand community, and the cities he listed matched up pretty well. If selected, he will learn more and make sure the firm responds to any concerns. Further responding, he confirmed that if selected, the very first thing he will do is schedule individual meetings with each Councilmember and have detailed discussions about next steps and Council's expectations. Councilmember Weber said she appreciated him taking the time to come and talk to the Council this evening. W PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 Mayor Pro Tern Harnik stated she appreciated that Mr. Morgan cited cities that not only have a large population, but also have second homes and are high tourism communities. Adding that she liked to think Palm Desert has its own unique personality traits. Councilman Jonathan thanked Ms. Carney, as this was something the City needed to move quickly on, and she did. She moved quickly, efficiently, and very productively. Mayor Pro Tern Harnik called for the vote and the motion carried by a 4-0 vote (AYES: Harnik, Jonathan, Tanner, and Weber; NOES: None; ABSENT: Spiegel). XV. CONTINUED BUSINESS A. APPOINTMENT/REAPPOINTMENT TO THE PALM DESERT PLANNING COMMISSION AND REASSIGNMENT (Continued from the meeting of April 14, 2016). Ms. Klassen noted the staff report that was provided to the Council with their recommendation, adding that the Council had a couple of study sessions and interviewed candidates and incumbent for the Planning Commission. Based on the choices Council provided to her office, the recommendation is to appoint Ron Gregory to the current vacancy, with the term ending December21, 2017, and appoint Kathleen Kellyto the Planning Commission for a four year term ending December 31, 2019, to fill the seat formerly held by Sonia Campbell. In this process, there was also a request for reassignment, which is to appoint Sonia Campbell to the Art In Public Places Commission to fill the seat formerly held by Megan Miller for a term ending December 31, 2019. Councilman Jonathan stated there were extensive discussions about the numerous qualified individuals, but the Council can't appoint all of them. He hoped the Council made the right decision, and encouraged others to not lose interest and continue serving the City, and as vacancies occur make their wishes known. He asked the audience to spread the word that the City needs more applicants, because there are many vacancies on many Committee/Commissions and more people are needed. Councilman Jonathan moved to, by Minute Motion, appoint: a) Ron Gregory to the Planning Commission to fill the vacancy left by the resignation of Ken Stendell for a term ending December 31, 2017; b) appoint Kathleen Kelly to the Planning Commission for a four-year term ending December 31, 2019, to fill the seat formerly held by Sonia Campbell; 2. By Minute Motion, appoint Sonia Campbell to the Art In Public Places Commission to fill the seat formerly held by Megan Miller for a term ending December 31, 2019. Motion was seconded by Weber. 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 Councilmember Weber was grateful for the quality of candidates that interviewed, stating it was valuable to the City to have the community involved at this high level. Mayor Pro Tern Harnik called for the vote and the motion carried by a 4-0 vote (AYES: Harnik, Jonathan, Tanner, and Weber; NOES: None; ABSENT: Spiegel). B. REQUEST FOR APPROVAL OF THE STREAMLINED USE OF VENDORS FOR THE SPECIAL PROGRAMS DEPARTMENT FOR FISCAL YEAR 2016-2017 BY GRANTING AN EXCEPTION TO BIDDING REQUIREMENTS PROVIDED IN PALM DESERT MUNICIPAL CODE SECTION 3.32.090 (Continued from the meeting of April 14, 2016). Program and Event Specialist Amy Lawrence noted the staff report and offered to answer questions. Councilman Jonathan clarified this was not a step where the City was going to start skipping the competitive bidding process, stating there was some confusion about it. Ms. Lawrence explained this item was about sole -source vendors for some of the business recycling implementation programs. In the case of Classic Party Rentals, it allows staff to move forward with them quickly in a pinch. She confirmed that staff would not be skipping the bidding process. Councilman Jonathan added that this would be the exception to the rule where the situation warrants it. Councilman Tanner moved to, by Minute Motion: 1) Grant an exception to vendor bidding requirements, as provided for by Palm Desert Municipal Code Section 3.32.090 - FY 2016-2017; 2) approve the Special Programs Department's Preferred Vendor List for FY 2016-2017. Motion was seconded by Weber and carried by a 4-0 vote (AYES: Harnik, Jonathan, Tanner, and Weber; NOES: None; ABSENT: Spiegel). XVI. OLD BUSINESS A. REQUEST FOR APPROVAL OF AMENDMENT NO. 1 TO CONTRACT NO. C30140 WITH TY LIN INTERNATIONAL FOR ADDITIONAL ENVIRONMENTAL CLEARANCE SERVICES FORTHE MID -VALLEY BIKE PATH PROJECT (PROJECT NO. 707-07). Mayor Pro Tern Harnik stated she recalled that in 2013 there were some issues that came up, and even in the staff report it mentions that the City has $3 million of CMAQ grant funds, but it's actually $2.2 million, because there was a project done by CVAG with Sunline. She pulled old agendas from 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 both CVAG and the City of Palm Desert, stating she would like continue this item to review them. Responding to question, she confirmed she would like to continue this item to find clarification and address the confusion. Mayor Pro Tern Harnik moved to continue this matter to the meeting of May 12, 2016. Motion was seconded by Jonathan and carried by a 4-0 vote (AYES: Harnik, Jonathan, Tanner, and Weber; NOES: None; ABSENT: Spiegel). XVII. PUBLIC HEARINGS None XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. Actinq Citv Manager Meeting Summaries Report for the Period of April 4-15, 2016. With City Council concurrence the Acting City Manager Meeting Summaries were received and filed. B. CITY ATTORNEY None C. CITY CLERK Ms. Klassen said there was still more work to do on the Committee/Commission process, and the Secretary to the City Council identified dates and times available to discuss the topics of retaining/ downsizing any of the standing Committees/Commissions, including the appointments/reappointments thereto, retention of incumbents, and solicitation of prospective applicants. The available dates are Wednesday, May 11 from 1:00-3:00 p.m. and Thursday, May 12 from 1:00-3:00 p.m. The City Council duly noted the dates, indicating they would check their calendars. D. PUBLIC SAFETY 1. Fire Department None 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL Councilmember Susan Marie Weber's Meetina Summaries Report for the Period of April 2-17, 2016. Councilmember Weber's report was noted and with City Council concurrence, was received and filed. 2. Council Requests for Action/Committee Reports/Comments: a) Councilman Sabbv Jonathan Requests/Reports/Comments - - Spare Generator - He and Councilmember Weber attended the Cove Commission meeting where they discussed the spare generator, which has very few hours on it, but requires $180,000 to be modified, moved, and placed at the Joslyn Center. The Joslyn Center will be used as an Emergency Cooling Center, adding that the generator has the capacity to keep a lot of food frozen. He said there was initially some resistence, but at the last meeting the recommendation was finally approved. He said the City of Palm Desert will not incur the entire cost, as there is a sharing formula; Palm Desert will incur 60% of the cost. Councilmember Weber thanked Mr. Aryan for providing the facts, figures, dates, times, and places, which brought this matter to its conclusion. b) Mavor Pro Tern Jan C. Harnik Reauests/Reports/Comments - - East Countv Detention Center in Indio - She toured the construction of the 1,626 bed detention center. She said it will bring jobs and provide a better detention center situation than what it was previously. She said the construction is overwhelming as the building will be eight stories with tunnels underneath for safety purposes. Responding to questions, Assistant Chief Anthony Baur confirmed the facility was for both male and female detainees, and the estimated completion date is year 2020. 22 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 28, 2016 3. Council Consideration of Travel Reauests and Rer)orts: None XIX. ADJOURNMENT With City Council concurrence, Mayor Pro Tern Harnik adjourned the meeting at 5:34 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JAN C. HARNIK, MAYOR PRO TEM 23