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HomeMy WebLinkAboutPrelim - CC - 06-09-2016DRAFT r PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JUNE 9, 2016 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 CALL TO ORDER - 3:00 P.M. Mayor Spiegel convened the meeting at 3:05 p.m. II. ROLL CALL Present: Mayor Pro Tern Jan C. Harnik Councilman Sabby Jonathan Councilman Van G. Tanner Councilmember Susan Marie Weber Mayor Robert A. Spiegel 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 Janet M. Moore, Director of Finance & Housing/City Treasurer Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Stephen Y. Aryan, Risk Manager Susan Trevino, Chief, Palm Desert Police/Riverside Co. Sheriffs Department Anthony Baur, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Department Dan Talbot, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) None PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING IV. ADJOURN TO CLOSED SESSION Request for Closed Session: JUNE 9, 2016 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Desert Willow Lot Pads-APNs 620-450-012, -014; 620-450-016, -018, -020; 620-370-002, -004, -017, -018, -020, -033, -043; 620-400-005, -026; 620-400-008, -010 Negotiating Parties: Agency: Justin McCarthy/Rudy P. Acosta/ Martin Alvarez/City of Palm Desert/Successor Agency to the Palm Desert Redevelopment Agency Property Owner: Successor Agency to the Palm Desert Redevelopment Agency Under Negotiation: x Price x Terms of Payment 2) Property: 1 acre Located on Country Club Drive (APN 620-430-024) Negotiating Parties: Agency: Justin McCarthy/Rudy P. Acosta/Martin Alvarez/ City of Palm Desert Property Owner: City of Palm Desert Under Negotiation: x Price x Terms of Payment 3) Property: 0.67 acres Located on Dinah Shore Drive (APN 694-060-010) Negotiating Parties: Agency: Justin McCarthy/Rudy P. Acosta/Martin Alvarez/ City of Palm Desert Property Owner: Coachella Valley Water District Under Negotiation: x Price x Terms of Payment 4) Property: APNs 634-030-017 and 634-040-006 (South of Hovley Lane East) Negotiating Parties: Agency: Justin McCarthy/Rudy P. Acosta/Martin Alvarez/ City of Palm Desert Property Owner: Coachella Valley Water District (CVWD) Under Negotiation: x Price x Terms of Payment With City Council concurrence, Mayor Spiegel adjourned the meeting to Closed Session of the City Council and SuccessorAgency at 3:06 p.m. He reconvened the meeting at 4:01 p.m. 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 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 - Councilman Van G. Tanner VII. INVOCATION - Mayor Pro Tern Jan C. Harnik VIII. ORAL COMMUNICATIONS - B MS. ERICA FELCI, Governmental Projects Manager at Coachella Valley Association of Governments (CVAG), the lead agency for CV Link. She said it had been a privilege to attend the Vision San Pablo event and congratulated the City Council for their commitment to improving active transportation in this community, along with City staff who helped make the event happen. She shared that her three -year -old son was having so much fun she could barely get him out of the gymnastic station and the SunLine Bus. The event was one of a dozen community events her team has attended in Palm Desert alone since the beginning of 2015. She said it was part of their commitment to a robust community engagement effort that has involved attending 5K runs, bike races, and community festivals across the Desert. While so engaged on social media, more than 2,900 people have liked their CV Link Facebook page, and more than 1,000 are following their projects through Tweeter. This outreach was not just about educating the community about their plans or getting them excited about the CV Link, it's an effort to get people's feedback. At the Vision San Pablo event alone, they had about 125 people sign up for their updates and they spent countless hours talking to Palm Desert residents. They regularly recap the comments and questions they get at these events and pass them along to the team to ensure plans reflect the community's wishes. The CVAG Executive Committee has in recent months discussed their public outreach events, and in December they discussed the idea of a ballot measure. However, the consensus was that it would be prudent to wait until the Environment Impact Report (EIR) is complete. She said Mayor Pro Tern Harnik made the motion that after the EIR is complete, staff would return with a report on ways to explore and gain public input. That motion passed, and it is the direction that CVAG staff is following. The EIR is an important step in the planning process, because the Council and residents have questions that can't fully be answered until the analysis is done. She was excited to say the report is on track to be completed later this year. After the draft is released, the community will have time to review it and provide even more feedback before the report is finalized. Some people pointed out that other cities had moved forward with ballot measures, and she noted, in both of those cities their city councils had already approved policies that made it difficult to KI PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 plan a safe continuous route for pedestrians and cyclists to travel across the Coachella Valley. Because those ballot measures came after the councils had already made up their minds, the wording was actually designed to limit future councils' decision -making. In closing, she said CVAG greatly appreciates the collaboration they have had with the City of Palm Desert and City staff as it works on the CV Link, stating they will continue to keep the Council informed about its planning efforts and always happy to address any questions. MR. EVAN TRUBEE, Owner of Big Wheel Tours, stated he was a proponent of the CV Link. His company conducts hike, bike, and jeep tours, including bicycle rentals throughout the Coachella Valley. Being in the front lines of the tourism industry, he knew what was happening. When he started his business in 1998, he had zero bikes and rented them as needed from his competitor. In the 18 years since they opened, they have grown and now have 400 bicycles in the fleet, which was a testament to what is happening in the demographics of the visitors. Tourism is a younger crowd and the demand is for more outdoorsey activities. He wasn't anti -golf, but he hadn't seen new golf courses being built. He said the trend has moved toward outdoors cycling activities and exploring the Joshua National Park, etc., etc. Also, when he started in 1998, there was only one local resort that wanted to have bicycles on property for their guests, now every major resort has bikes on their property, including Indian Wells. It wasn't because General Managers are proponents of the CV Link or want to indulge in their own hobby, it's because they are responding to what their guests want. He understood Palm Desert City Council was behind the CV Link, which he appreciated, and other cities like Rancho Mirage have resoundingly shut it down. However, he didn't put much credence in that, because if all major infrastructure projects were voted on by the general public, probably not many would be built. He said residents leave it to government officials to make the best choices with their money, and he was a big believer of the CV Link, stating it will put the Coachella Valley on the map and bring national attention. He made the comment that the future was trending toward outdoor activities. MS. LAURIE BALDWIN, President/CEO of the Palm Desert Chamber of Commerce, introduced Marianne Burton, Vanessa Torres, and Nicole Popper, who are part of her staff, stating the rest of them were back at the office. She announced that the Chamber has their Business Award Ceremony coming up on June 30, and the membership made their nominations. She was happy to announce that each City of Palm Desert Councilmember was nominated for an award this year. The nominations are as follows: Community Service Award of the Year Nominee - Mayor Pro Tem Jan Harnik Community Service Award of the Year Nominee - Mayor Spiegel Community Service Award of the Year Nominee - Councilman Van Tanner Citizen of the Year Nominee - Councilman Sabby Jonathan Businessman of the Year Nominee - Councilman Sabby Jonathan Citizen of the Year Nominee - Councilmember Susan Marie Weber Citizen of the Year Staff Nominee - Director of Community Development Ryan Stendell 0 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 Emerging Leader of the Year Nominee -Director of Community Development Ryan Stendell Median Business of the Year Nominee - City of Palm Desert She congratulated all the nominees, stating it was obvious the Council had a lot of backing from the business community. She invited Council and City staff to join them on June 30 at Aqua Caliente Casino Resort for the Business Awards Ceremony. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION TO RECOGNIZE DR. ABRAM GOLDMAN FOR HIS SERVICE TO THE CITY OF PALM DESERT, ITS RENT REVIEW COMMISSION AND AUDIT, INVESTMENT & FINANCE COMMITTEE, 2012 - 2016. On behalf of the City Council, Mayor Spiegel asked Mayor Pro Tern Harnik to make the presentation of an engraved crystal half -cylinder clock to Mr. Goldman. She said Mr. Goldman had an interesting background of working in Sacramento and all over the world. Mr. Goldman graciously accepted the recognition and thanked her for making the initial invitation to serve on the Commission, adding he had a career of over 20 years with the City Board of Equalization, and a military career which ended with two years in Japan as a Senior Colonel. In digging through his paperwork, he ran across a document dated 1997 that showed he served on the City of Palm Desert Charter. He said he has enjoyed his tenure on the Audit, Investment & Finance Committee to keep the resources for Palm Desert growing, and the City was doing a good job of keeping it going. Mayor Pro Tern Harnik said the City was better off because of citizens like Mr. Goldman who volunteered their time to serve. B. PRESENTATION OF PROCLAMATION DECLARING THURSDAY, JUNE 9, 2016, AS "OFFICER PATRICK MONTALVO DAY" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Pro Tern Harnik presented the proclamation to Officer Montalvo forgoing above and beyond the call of duty. She said Officer Montalvo and his family, on their own time, helped an elderly woman move all her belonging to another location. Officer Montalvo humbly accepted the proclamation, adding that he would want any family, friend, or loved one to be treated the same way. In their career field they wear many hats, including serving the community, and in this case, he was simply responding to someone in need. 5 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 C. PRESENTATION OF PROCLAMATION DECLARING THURSDAY, JUNE 9, 2016, AS "OFFICER JOSHUA ROBERTSON DAY" IN THE CITY OF PALM DESERT. On behalf of the City Council, Mayor Pro Tern Harnik presented the proclamation to Officer Robertson for his decisive and rapid response in performing CPR and ultimately saving the life of an elderly man. Officer Robertson accepted the proclamation stating he recalls that morning, and he's happy he was able to be there and do everything he could. Lt. Trevino stated it was very important for Officer Montalvo and Officer Robertson to be recognized for the good deeds they do, because many times only the negative gets reported. She thanked the City of Palm Desert for recognizing them. D. REQUEST FOR ACCEPTANCE OF LETTERS OF RESIGNATION FROM TEN (10) PALM DESERT YOUTH COMMITTEE MEMBERS AND APPOINTMENT OF EIGHT (8) NEW MEMBERS TO FILL THE RESULTING VACANCIES (TERM DECEMBER 31, 2016). Management Analyst Deborah S. Glickman stated the City didn't have a choice but to allow seniors to go on to college throughout the Country, thereby creating vacancies. Therefore, staff is requesting to appoint the members who have been alternates overthe last year. The Committee is two members short for a full membership, so she is still looking for new members and alternates for next year. Councilman Tanner moved to, by Minute Motion: 1) Accept the resignations of Palm Desert Youth Committee Members Aiden Brossfield, Christie Chaplin, Emily Goldstone, Cory Hutchinson, Andrew Olson, Abigail Sanford, Haley Schmidman, Samantha Sandoval- Heglund, Rachel Seiberg, and Cloe Wood; 2) appoint Zackary Berenbaum, Matthew Chang, Isaac Cho, Timothy Fitzpatrick, Ismael Haile, Tacie Johnson, Sarah Lauer, and Daria Wood to the vacancies created by the aforementioned resignations (term December 31, 2016). Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of May 26, 2016. Rec: Approve as presented. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 5/13/2016 and 5/20/2016. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 5/20/2016 and 5/27/2016 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. CLAIM AGAINST THE CITY (#771) by Orland Ciccola in an Unspecified Amount. Rec: By Minute Motion, reject the Claim and direct the City Clerk to so notify the Claimant. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Hampton Inn & Suites, 74900 Gerald Ford Drive, Palm Desert. Rec: Receive and file. F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by The Palms Cafe, 44150 Town Center Way, Suite B5, Palm Desert. Rec: Receive and file. G. CITIZENS' SUSTAINABILITY COMMITTEE MINUTES for the Meeting of November 16, 2015. Rec: Receive and file. H. REQUEST FOR AUTHORIZATION to Review the City's Conflict of Interest Code. Rec: By Minute Motion, authorize staff to make a formal review of the City's Conflict of Interest Code, pursuant to the Political Reform Act, and if necessary at the appropriate time thereafter, prepare a resolution to be adopted by the City Council to effect the required amendments. 7 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 REQUEST FOR APPROVAL Supplemental General Fleet R L & L Automotive, Inc., and 2016-2017 in an Amount Not to of Specific Automotive Facilities for epairs from Palms Ozzie's Automotive, Exceed $150,000. to Pines Automotive, Inc., for Fiscal Year Rec: By Minute Motion, approve the use of specific automotive facilities for supplemental general fleet repairs from Palms to Pines Automotive, L & L Automotive, Inc., and Ozzie's Automotive, Inc., all of Palm Desert, California, for FY 2016-2017 in an amount not to exceed $150,000 — funds are available in General Fund Account No. 1104331-4334000 - R/M Fleet. J. REQUEST FOR AUTHORIZATION to Streamline Use of Vendors for the Corporation Yard by Granting Exception to Bidding Requirements and Approving the Original Equipment Manufacturer (OEM) Vendor List, and the Various Vendors and Qualified Service Providers List for Fiscal Year 2016-2017. Rec: By Minute Motion: 1) Grant an exception to bidding requirements, as provided for by Section 3.32.090 of the Municipal Code, for FY 2016-2017; 2) approve the Original Equipment Manufacturer (OEM) Vendor List; 3) approve the Corporation Yard Various Vendors and Qualified Service Providers List. K. REQUEST FOR AUTHORIZATION to Streamline Use of Vendors for the Public Works Department by Granting Exception to Bidding Requirements and Approving the Landscape Services Division Various Vendors and Qualified Service Providers List for Fiscal Year 2016-2017. Rec: By Minute Motion: 1) Grant an exception to bidding requirements, as provided for by Section 3.32.090 of the Municipal Code, for FY 2016-2017; 2) approve the Landscape Services Division Various Vendors and Qualified Service Providers List. L. REQUEST FOR APPROVAL of the Use of Desert Recycling, Inc., for Dump Fees During Fiscal Year 2016-2017 in an Amount Not to Exceed $40,000. Removed for separate consideration under Section XI, Consent Items Held Over. Please see that portion of the Minutes for Council discussion and action. E: PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 M. REQUEST FOR AUTHORIZATION to Use Named Vendors for Purposes of Providing Recurring, Routine Services, Supplies, and Maintenance to the Desert Willow Golf Resort for Fiscal Year 2016-2017. Rec: By Minute Motion, authorize use of vendors on the accompanying Desert Willow Golf Resort Vendor List for purposes of providing recurring routine services, supplies, and maintenance to the Desert Willow Golf Resort in an amount not to exceed $25,000 per vendor for FY 2016-2017, pursuant to Section 3.32.110 of the Palm Desert Municipal Code. N. REQUEST FOR RATIFICATION of a Professional Services Agreement with Hurdzan Golf to Provide Construction Administration Services for the Desert Willow Firecliff Bunker Renovation Project (Contract No. C34940A). Rec: By Minute Motion: 1) Ratify a Professional Services Agreement with Hurdzan Golf to provide Construction Administration Services for the Desert Willow Golf Resort Firecliff Bunker Renovation Project in an amount not to exceed $20,000; 2) appropriate $20,000 from Desert Willow Capital Improvement Fund 441 to Account No. 4414195-4809200 for this purpose. O. REQUEST FOR AUTHORIZATION of Johnson Power Systems to Service the City Generators for an Amount Not to Exceed $30,000 (Contract No. C35350). Rec: By Minute Motion, authorize Johnson Power Systems, Riverside, California, to service the City generators for an amount not to exceed $30,000 — funds are available in Account No. 1104331-4334000 - R/M-Motor Vehicle Fleet and Account No. 2304220-4331000 - Fire Station R/M Buildings. P. REQUEST FOR APPROVAL of Contract with Studio Instrument Rentals (SIR) Palm Springs for Professional Staff, Instrumental Equipment, and Sound and Lighting Services in Conjunction with City -Produced Concerts for Fiscal Year 2016-2017 (Contract No. C35360). Rec: By Minute Motion: 1) Approve subject contract with Studio Instrument Rentals Palm Springs, Palm Desert, California, for Professional Staff, Instrumental Equipment, and Sound and Lighting Services in conjunction with City -Produced Concerts for FY 2016-2017; 2) authorize Mayor to execute said contract — funds are available in Account No. 1104416-4306101. �67 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 Q. REQUEST FOR APPROVAL of Amendment No. 2 to Contract No. C33082 — EI Paseo Courtesy Carts - Additional Operations and Event Services in the Amount of $5,000. Rec: By Minute Motion: 1) Approve Amendment No. 2 to the subject contract with Glyn Donald Gray d.b.a. GDG in the amount of $5,000 for Additional Operations and Event Services; 2) authorize reallocation of the original total contract amount to be used for expenditures related to hourly operations, special events, or maintenance —funds were appropriated during Mid -Year Adjustments and are available in Account No. 1104416-4368100 - Courtesy Carts. R. REQUEST FOR RATIFICATION of a Second Amendment to Contract with The Lew Edwards Group Relating to Strategic Consulting Services in the Amount of $22,850 and Appropriation for Same (Contract No. C34330). Rec: By Minute Motion: 1) Ratify a Second Amendment to subject contract with The Lew Edwards Group in the amount of $22,850 for additional community surveying services to the City; 2) appropriate funds in the amount of $22,850 from the Unobligated General Fund to Professional - Other Administration Account No. 1104430-4309000 for payment of the amended agreement; 3) authorize Interim City Manager to execute said amendment. S. REQUEST FOR APPROVAL of Change Order No. 1 to Contract No. C35010 — Freedom Park and Hovley Soccer Park Playground Resurfacing Project (Project No. 924-16). Rec: By Minute Motion: 1) Approve Change Order No. 1 in the amount of $1,101 to the subject contract with T. J. Janca Construction, Inc., Orange, California, for the Freedom Park and Hovley Soccer Park Playground Resurfacing Project; 2) authorize Director of Finance to move $1,101 from contingency to base for the project; 3) authorize Mayor to execute Change Order No. 1 — funds are available in Account No. 4304618-4400100 - Park Funds Reserve. T. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C34700 — 2016 Parking Lot Maintenance Project (Project No. 750-16) (S 2 Sealing and Striping, Palm Desert, 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. 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 U. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C35020 — 2016 Basketball Resurfacing at Civic Center Park and Freedom Park (Project No. 946-16) (Pacific Tennis Courts, Inc., Moorpark, 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. V. REQUEST FOR AUTHORIZATION of Out -of -State Travel for Director of Public Works to Attend the International Transportation Engineers 2016 Western District Annual Meeting in Albuquerque, New Mexico - July 10-13. Rec: By Minute Motion, authorize Out -of -State Travel for Director of Public Works to attend the International Transportation Engineers (ITE) 2016 Western District Annual Meeting in Albuquerque, New Mexico, from July 10 through July 13 — funds are available in Account No. 1104300-4312000 - Administration Conference/Seminars/Workshops. Mayor Pro Tern Harnik asked that Item L be removed for separate action under Section XI, Consent Items Held Over. Upon a motion by Jonathan, second by Tanner, and 5-0 vote of the City Council (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None), the remainder of the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER L. REQUEST FOR APPROVAL of the Use of Desert Recycling, Inc., for Dump Fees During Fiscal Year 2016-2017 in an Amount Not to Exceed $40,000. Mayor Pro Tern Harnik noticed the City pays a monthly dump fee to recycle sand, concrete, and/or asphalt collected throughout the year. She understood about recycling concrete and asphalt, but wondered if the City actually recycled sand. Mr. Greenwood explained sand couldn't be dumped in the landfill or spread on the City's own property, because it's potentially contaminated, having been swept off the street. The most common contaminate is copper from break pads, and then there is rubber and other dirt in it. Out of an abundance of caution the City has been sending it to this recycling center. Mayor Pro Tern Harnik moved to, by Minute Motion, approve use of Desert Recycling, Inc., Thousand Palms, California, for dump fees during FY 2016-2017 in an amount not to exceed $40,000 — funds are available in General Fund Account 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 No. 1104310-4332000 - R/M Streets. Motion was seconded by Tanner and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). XII. RESOLUTIONS A. RESOLUTION NO. 2016 - 49 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, INCREASING THE RESIDENT GOLF RATE AT THE DESERT WILLOW GOLF RESORT TO $50.00 BASED ON CONSUMER PRICE INDEX (CPI). Mr. Alvarez stated that in 2013 the City Council implemented a resolution that allowed staff to increase the resident golf rate based on the CPI on an annual basis, and only when it reached a whole dollar increment. In 2013 the resident rate was increased from $45 to $48, but that was retroactive to 2010. In 2015, it went from $48 to $49, and this year's CPI increases it another whole dollar. Therefore, staff recommended increasing the resident golf rate from $49 to $50 for next fiscal year. Councilman Tanner moved to waive further reading and adopt Resolution No. 2016 - 49. Motion was seconded by Harnik. Mayor Pro Tern Harnik commented the staff report made it easy to understand the entire discussion and all the thinking behind the increase, which she appreciated. Councilman Jonathan said he didn't have a problem with the increase; however, for the future, he suggested increasing it in increments of two, three, or even five dollars. Mayor Pro Tern Harnik pointed out that even though $50 for a round of golf was the best deal going, every time it's raised a couple of dollars, there seems to be a significant public outcry, and $1 is a little easier to address. She recalled discussing this issue previously. Mr. Alvarez said it was discussed and agreed it would be easier to address on an annual basis as opposed to making a big jump like it did in 2013. Councilman Jonathan questioned if it was more provocative to have it come up nearly every year, because it will, stating the higher the fee is, the more the CPI will be effective annually. He reiterated it was okay to do it annually, but if the increment was set up for every two or three dollars, the increase wouldn't have to come up for discussion every year. Councilmember Weber said she would be voting no, because she didn't think the City needed to keep raising the resident's rate. She believed there were other ways to cover those cost instead of nickle and dimming the 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 residents. She explained that the CPI was based on the cost of government, so if the City started making cuts, eventually the CPI will stop going up, adding that it was a vicious cycle. Mayor Spiegel said he liked the idea of a $1 increment as opposed to it going up $5 where he would have to think about it. Mayor Pro Tern Harnik quoted the following statement from the staff report, which she felt was note worthy: "Given that approximately 20,000 of all rounds at Desert Willow are resident rounds and the cost per round is $108, the resort is subsidizing the residents' rounds by approximately $59.15." She said the subsidy is substantial, and it's greater than the amount they pay. Mayor Spiegel called for the vote and the motion carried by a 4-1 vote (AYES: Harnik, Jonathan, Tanner, and Spiegel; NOES: Weber). XIII. ORDINANCES A. For Introduction: None B. For Adoption: ORDINANCE NO. 1306 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE AMENDMENT TO PALM DESERT MUNICIPAL CODE SECTION 25.16.050 - DEVELOPMENT STANDARDS, ADDING A PROVISION TO ALLOW FOR HEIGHT EXCEPTIONS WITHIN THE OFFICE PROFESSIONAL(O.P.)ZONE SUBJECT TO APPROVAL BY THE PLANNING COMMISSION. Councilman Tanner noted this was the second reading of the Ordinance. Councilman Tanner moved to waive further reading and adopt Ordinance No.1306. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 XIV. NEW BUSINESS A. REQUEST FOR AWARD OF CONTRACT FOR THE 2016 TRAFFIC SIGNAL L.E.D. INDICATION REPLACEMENT PROGRAM TO SIEMENS INDUSTRY, INC., IN THE AMOUNT OF $78,900 (CONTRACT NO. C35210, PROJECT NO. 586-16). Mr. Greenwood pointed out this was one of the areas where Palm Desert is a leader as it had installed LED Indications on its traffic signals over 15 years ago. As a result, the City has gone through a couple of cycles of having to replace them. Up until now they've had about a five-year life. The newest version has a 15-year warranty, so all of the red, yellow, green indications and signals in the eastern part of the City are being replaced through this contract. Councilman Tanner asked if the work will be completed before the end of the fiscal year. Mr. Greenwood replied he didn't know if the work would be completed by then, but the work will have been started. Mayor Pro Tern Harnik moved to, by Minute Motion: 1) Award subject contract for the 2016 Traffic Signal LED Replacement Project to Siemens Industry, Inc., Riverside, California, in the amount of $78,900; 2) authorize Director of Finance to set aside a 10% contingency in the amount of $7,890 for the project; 3) authorize Mayor to execute said contract — funds are available in Account No. 2134250-4400100 - Measure "A." Motion was seconded by Tanner and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). B. REQUEST FOR APPROVAL OF VOLUNTARY COLLECTION AGREEMENT WITH AIRBNB, INC., TO COLLECT AND REMIT TRANSIENT OCCUPANCY TAXES ON BEHALF OF USERS IN THE CITY OF PALM DESERT (CONTRACT NO. C35370). Ms. Moore stated that over the last several years there has been an increase in short-term rentals with companies such as Airbnb. Staff has been doing audits of these companies, and Airbnb has been one of the most cooperatives at this point. Audits are done to determine if people have short term rental permits, and in some cases, they do not. The City started negotiating with Airbnb to collect on the City's behalf and remit them as one amount as opposed to multiple amounts by their users, and they have agreed. She noted Mr. Hargreaves was involved in that negotiation process. Councilman Jonathan said it was great, but why not include VRBOs (Vacation Rental By Owner). 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 Mr. Hargreaves said this issue has been a constant problem for municipalities all over the states. What happens is that Airbnb and the rest of them, charge and collect Transient Occupancy Tax (TOT) but don't remit to the cities, they remit it back to the property owners who are to remit it to the cites, which doesn't always happen. Various jurisdictions have sued Airbnb overthis claim, and litigation has gone back and forth. Subsequently, Airbnb has entered into agreements with several large jurisdictions. Palm Desert approached them 1'/2 years ago, but they didn't want to talk to one little city. Therefore, all the cities in the Coachella Valley got involved in the negotiations, so this has been a collective effort valley wide. At this point, after going back and forth on a number of issues, most of the cities are on board; it has taken 1'/2 years to get to this point. He said this agreement was experimental in that the City has the right to back out and Airbnb has the right to back out with a 30-day notice. He went on to say there are also efforts being made in the legislature to address this issue. Once this agreement is tied down, the intent would be to get the other ones on board. Mayor Pro Tern Harnik recalled that collection of the TOT from short-term rentals was obviously to collect the revenue that would be generated, but it was also the means for monitoring rentals to ensure the integrity of the neighborhood stayed intact. If Airbnb collects the TOT and the renters are going to be anonymous, the City won't be able to identify where the funds come from. She questioned how this new process would help the City with those people who fail to apply for a short-term rental permit. Mr. Hargreaves explained it was one of the major points in the negotiations, as Airbnb did not want to become part of the City's enforcement effort. They didn't want to be giving the City information, which was one of the deal points. Therefore, the City has to identify these folks on its own, but they are going to help with the collection of the TOT. He said the City has a contractor who has been successful in tracking people down that are not paying TOT, and residents too act somewhat of an enforcement agency by reporting these kinds of uses. He added the cities are hoping for a comprehensive legislative fix, but it's complicated. Mayor Pro Tern Harnik moved to, by Minute Motion:1) Approve Voluntary Collection Agreement with Airbnb to collect and remit Transient Occupancy Taxes on behalf of users in the City of Palm Desert; 2) authorize Director of Finance to execute the agreement. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 C. REQUEST FOR APPROVAL OF AN AGREEMENT WITH ALLIED AFFORDABLE HOUSING, LLC, TO PROVIDE A ONE-TIME SUBSIDY FOR UP TO FIVE (5) UNITS IN THE ARC VILLAGE DEVELOPMENT IN AN AMOUNT NOT TO EXCEED $250,000 (CONTRACT NO. C34970C). Ms. Moore stated that in May the Planning Commission approved the 36-unit Affordable Housing Community known as Arc Village, located behind Desert Arc, and as part of that, it will include units for special needs. She said Desert Arc has wholeheartedly supported this project for the ability to have units that would be available to some of their clients and/or employees for this purpose. She explained that Allied is applying for tax credits, which is a very competitive and long process. In that process they need to show that they have leveraged theirfunding with local jurisdictions. Allied had intended to apply through the County for CDBG and other offerings; however, the City of Palm Desert does not qualify for those funds. Therefore, Allied expectation of being able to obtain funding for that particular purpose through the County is not realizable. Basically, Allied believed their community will score high, but if there is a situation where there is a tiebreaker, they will have to show their local jurisdiction leverage. Even though they have indicated they would not need additional funding from Palm Desert, they have come back and asked for it. Knowing that some of the clients and/or employees would be from Desert Arc, she asked them how many clients traveled to Palm Desert from outside cities. That information is important, because the City tries to encourage people who work in Palm Desert to live in Palm Desert. Some time ago the City established a Housing Mitigation Fee to encourage employers that would be coming on board from commercial development to provide housing for the workers they were creating. Obviously, all of Desert Arc's workers are in Palm Desert, however, 75% of them do not live in Palm Desert. She said Desert Arc actually buses some of its workers and others have alternative means of transportation. Staff determined it would like to see a percentage of the units eligible for special needs' individuals to be allocated to employees that work in Palm Desert. Therefore, since the Housing Mitigation Fee was established for this purpose, staff recommended assisting Allied with funding for this purpose. Councilman Jonathan said this felt like a bait -and -switch, in that the City made its deal with Allied, and if they're a credible substantive investor and developer, why didn't they know about the glitch early on. He said Allied found they have a problem and are now asking the City to bail them out, after essentially giving them free land. He said if they didn't know this part, what's the next thing they won't know. Ms. Moore said it was a good question, but unfortunately Allied was not here this evening to answer questions. However, in some cases, when you go for County funding, depending on the types of folks you're assisting, Palm Desert's eligibility is different. 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 Councilman Jonathan said he understood, but these kinds of developers, if sophisticated, does their due diligence to get an answer to that question before they commit to a deal with the City. He also understood staff wants to pay for this out of the Housing Mitigation Fund, but the City had land it gave to Habitat for Humanity, and they don't have funds to build those houses for veterans. He'd rather see this money go to help Habitat for Humanity to build some affordable housing for veterans that need the help. He wasn't sure this was a good use of City funds, but guessed staffs conclusion was otherwise. Ms. Moore explained she would like to see this project move forward and would hate to lose it on the fact that it couldn't break a tie, if it got down to a tie breaker. However, she understood Councilman Jonathan's concern. Her response is that staff looks at housing mitigation to see what is the benefit, and in this particular case, she believed a much higher percentage of Palm Desert employees will be in this community. The fact that 75% of Desert Arc's clientele does not live in Palm Desert, she would like to encourage living on site and close to work as opposed to a 30-minute bus ride. Councilman Jonathan commented that Allied was not present to indicate if this was a make or break situation. Ms. Moore said she didn't know that Allied would know the answer. However, Desert Arc is here and they have communicated with Allied regarding this matter if the Council had questions for them. Mayor Pro Tern Harnik asked if the 36 units would be credited toward the City's RHNA (Regional Housing Needs Allocation) numbers. Ms. Moore answered they would. Mayor Pro Tem Harnik said she understood Councilman Jonathan's issue with the uncertainty, and she too, agreed everyone wants to ensure veterans had good homes to live in. However, these are developmentally disabled adults who are high functioning and able to live on their own, but they are losing their parents. She said when the parents go, there is another set of problems, so this was something the City needed to address to ensure this group also has a place to live. This was an important issue to Palm Desert and all the clients that Desert Arc serves, and if the City has the funds in the Housing Mitigation Fee Fund, it was a good use of it. Mayor Spiegel agreed it will be money well spent. He said Desert Arc needs these facilities, and it will benefit the people that go there. Mayor Spiegel moved to, by Minute Motion: 1) Approve an agreement with Allied Affordable Housing, LLC, to provide a subsidy for up to five (5) units within Arc Village, in an amount not to exceed $250,000, for income -restricted households in which at least one 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 member is an employee within the jurisdictional boundaries of the City of Palm Desert; 2) authorize legal counsel to prepare and finalize an agreement to effectuate the intent of the actions taken herewith; 3) appropriate $250,000 from the Housing Mitigation Fund to Account No. 2144490-4390101; 4) authorize the Mayorand/orthe City Manager to execute any documents consistent with the actions taken herewith. Motion was seconded by Weber. Councilman Tanner stated the staff report indicates the subsidy is for up to five units but not to exceed $250,000. He asked if Desert Arc anticipated using the full $250,000 on the five units. Ms. Moore said that was a question for Allied, because they will be given this money. She noted Allied is requesting funds from at least 10 other people, and if they do not need the entire $250,000 and they are able to get funds from other places, staff would make that a condition. Further responding, she explained that funds will help pay for the reduced rents; it will not go to the tenants. It will be a one-time payment based on funding that will help with the construction, and they will not receive funding for additional subsidies on those units. She confirmed it will not be an ongoing expense to the City. Mayor Pro Tern Harnik offered an amendment to the motion that: 5) If the $250,000 is not used, it is a guarantee return back to the City. Mayor Spiegel accepted the amendment. Councilman Jonathan commented this was clearly a wonderful project, which is why the Council was in favor of investing the land. However, from a business standpoint, it was naive of the Council, for Allied to come and ask for $250,000 and the Council agreeing to pay it. He would be more comfortable if Allied was here to explain, a) why they needed the funds, and b) why didn't they know they needed it going into this project and making their deal with the City. He said the ship may have sailed, but he would not object to postponing this matter to the next meeting and giving Allied a chance to come before the Council. Councilmember Weber concurred, however, she didn't think this item had to be postponed. She said Allied could clarify the matter in writing and believed the Council would accept it. She asked how will the renters be chosen. Ms. Moore replied that the unit will designate who lives in it. Within the 36 units, they will fluctuate throughout the term of the project. It won't necessarily be a specific person, but the City will know that if a unit is occupied by a Palm Desert employee, it can count; the unit will not be specific to a person. In response to Councilman Jonathan's comment, the reason for the rush is that staff challenged Allied to move this, and they are going to submit next week for their 9% tax credits. When Allied contacted staff, she had one day to put everything together, but she did ask for additional information, which is why this item is being presented to the PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 Council this evening. She said Allied wants the clarification that they can say they have jurisdictional commitment, so that if there is a tie, they would want to have it in their submission. Mayor Spiegel called for the vote and the motion carried by a 4-1 vote (AYES: Harnik, Tanner, Weber, and Spiegel; NOES: Jonathan). For clarification purposes, the motion is as follows: Mayor Spiegel moved to, by Minute Motion: 1) Approve an agreement with Allied Affordable Housing, LLC, to provide a subsidy for up to five (5) units within Arc Village, in an amount not to exceed $250,000, for income -restricted households in which at least one member is an employee within the jurisdictional boundaries of the City of Palm Desert; 2) authorize legal counsel to prepare and finalize an agreement to effectuate the intent of the actions taken herewith; 3) appropriate $250,000 from the Housing Mitigation Fund to Account No. 2144490-4390101; 4) authorize the Mayorand/orthe City Managerto execute any documents consistent with the actions taken herewith; 5) If the $250,000 is not used, it is a guarantee return back to the City. Motion was seconded by Weber and carried by a 4-1 vote (AYES: Harnik, Tanner, Weber, and Spiegel; NOES: Jonathan). D. INFORMATIONAL REPORT REGARDING PROPOSED INCREASE IN WATER SERVICE AND CONSUMPTION CHARGES BY THE COACHELLA VALLEY WATER DISTRICT (CVWD). Mr. Greenwood recalled for the Council that about a month ago CVWD General ManagerJim Barrettgave a presentation aboutwater rate increases being proposed, and that election occurs next week on June 14. The presentation got staff to look hard at the City's own water use and water rates. In the staff report, the chart show the City currently spends $235,000 annually on the current fee structure. If the increases go through, the City's water rate will nearly double next year, and then there will be a continuous increase that will triple to almost $650,000 by the year 2020. Staffs intent was to inform the Council in case it wants to direct staff to cast ballots in this election. Mr. Barrett indicated there are about 2,000 landscape accounts at CVWD and Palm Desert has about 10% or 200 of those accounts. Mayor Spiegel asked what the Council can do to help. Mr. Greenwood replied the City Council can vote by directing staff to cast ballots for each of the landscape water meters. Mayor Pro Tern Hamik pointed out this was a protest vote. Mr. Greenwood stated this item was on the agenda as an informational report, so he was looking to the City Attorney for guidance if the Council wanted staff to take action. 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 Mr. Hargreaves said he had a serious problem because Best, Best & Krieger also represented CVWD. Responding to question, he said if the Council determined the item requires immediate and urgent attention, it can add it to the agenda, and it needs to be adopted by a 4/5 vote. With City Council concurrence, the Informational Report regarding proposed increase in water service and consumption charges by the Coachella Valley Water District was received and filed (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). PLEASE NOTE: ITEM ADDED TO THE AGENDA Mayor Spiegel moved to, by Minute Motion, to add Urgency Item to the agenda. Motion was seconded by Jonathan and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). D1. CONSIDERATION OF THE CITY COUNCIL TO TAKE ACTION ON THE PROPOSED INCREASE IN WATER SERVICE AND CONSUMPTION CHARGES BY THE COACHELLA VALLEY WATER DISTRICT. Mr. Greenwood noted the City has been contacted by a number of homeowner associations who are most likely affected by CVWD increases. It was one thing for the City's budget to be impacted, but HOA's are on a very tight budget and have a poor ability to increase their budgets, and it's always on a lag. Several of the HOA's have asked staff to have the Council represent them by informing CVWD that the increase will have a big impact on HOAs. Councilman Tanner said that many of the letters were directed to CVWD and the City was copied. He wondered if that constituted a protest on the part of the HOA. Mr. Greenwood deferred to the City Attorney, but he believed the wording needed to include "I protest the proposed ... " Ms. Klassen pointed out that the item at CVWD is a public hearing, but Council can direct staff to cast a ballot as part of this item. Councilman Jonathan moved to, by Minute Motion, direct staff to cast ballots in Opposition to the Coachella Valley Water District proposed rate increase to any and all City of Palm Desert water meters by the June 14, 2016, deadline. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). E. REQUEST FOR APPROVAL OF THE MANAGEMENT DISTRICT PLAN FOR, AND ORDER THE LEVY AND COLLECTION OF ASSESSMENTS 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 WITHIN, THE PRESIDENT'S PLAZA I PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2016-2017. Deputy City Treasurer Thomas J. Metz stated staff was requesting approval of two Resolutions pertaining to President's Plaza and the Business Improvement District for Fiscal Year 2016-2017. The first Resolution deals with approving the Management District Plan for the District, the second Resolution deals with the approval to levy and collect assessments within that District for Fiscal Year 2016-2017. Councilmember Weber moved to, waive further reading and adopt: 1) Resolution No. 2016 - 50, approving the President's Plaza I Property and Business Improvement District Management District Plan for FY 2016-2017; 2) Resolution No. 2016 - 51, ordering the levy and collection of assessments within the President's Plaza I Property and Business Improvement District for FY 2016-2017. Motion was seconded by Tanner and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). F. REQUEST FOR APPROVAL OF DOWN PAYMENT ASSISTANCE LOANS FROM ANY AVAILABLE FUNDING SOURCE RESTRICTED FOR THIS PURPOSE IN AN AMOUNT NECESSARY TO SECURE AN AFFORDABLE HOUSING COSTASSOCIATED WITH A DIRECT SALE IN DESERT ROSE, 75464 ORANGE BLOSSOM LANE (APN 634-062-002) (JOINT CONSIDERATION WITH THE PALM DESERT HOUSING AUTHORITY). Senior Management Analyst Veronica Tapia explained this transaction was a direct sale between the seller and buyer. However, a Home Buyer Assistance Loan is needed to facilitate the transaction. As a side note, she reported that as of May 25, 2016, the Housing Authority had sold all the properties it was holding in inventory. Councilman/Member Jonathan moved to, by Minute Motion: 1) Approve a silent down payment assistance loan associated with a direct sale in Desert Rose, not to exceed 40% of the sales price ($126,840) of the home to ensure an affordable housing cost pursuant to California Health and Safety Code Section 50052.5, for a qualified low- or moderate -income household from any available funding source restricted for such purpose (Low and Moderate Income Housing Asset Fund, BEGIN Fund, and Housing Mitigation); 2) authorize payment of the transaction costs, if necessary, for the purpose of repairs required for closing, fees customary to real estate transactions in Riverside County, including escrow, title, FHA fees, inspections, vermin eradication, commissions, and disclosures, up to a maximum of $3,500; 3) authorize use of the Desert Rose Sales Program and documents, including the restrictive covenant and loan documents for the applicable funding source, and authorize Mayor to execute; 4) authorize the Director of Finance to draw monies from the relative funds to facilitate the transaction; 5) authorize the Authority Chairman and/or the Authority's Executive Director, or his designee, to finalize and execute any ancillary documents necessary to effectuate the actions taken herewith — monies are available in the appropriate account in the Low and Moderate 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 Income Housing Asset Fund, BEGIN Fund, and Housing Mitigation Fund. Motion was seconded by Tanner and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). XV. CONTINUED BUSINESS A. REQUEST FOR APPROVAL OF AMENDMENT NO. 2 TO CONTRACT WITH PREMIER HOLIDAY DESIGN FOR PURCHASING REPLACEMENT LIGHTING MATERIALS AND APPROVING A LABOR COST INCREASE FOR THE CITY'S EL PASEO SEASONAL LIGHTING AND DECOR PROGRAM IN THE AMOUNT OF $79,278.76 (CONTRACT NO. C32980) (Continued from the meeting of May 26, 2016). Risk Manager Stephen Y. Aryan recalled for the Council that it directed staff to form a subcommittee to review the seasonal decor recommendations. Along with staff, Mayor Pro Tern Harnik and Councilmember Weber were part of that Committee. The Committee recommended that on El Paseo, the holiday decorthat had been previously placed on the ground not be used this year. The decor was not pleasing and dated, and it did nothing to improve the aesthetics of that area. Instead of rushing to create a new seasonal decor, the Committee would like to take time to explore other options for 2017. The only decor that will still be installed is the banners and garland on the street lights, wreathes on the street pole along Highway 111, and continue with the wreathed lighting at City Hall. He said the seasonal tree lights and snow tubes on El Paseo will be installed, which now stay up from October through May, seven months of the year. The current inventory requires replacement as they have been on longer than anticipated, and that replacement cost is approximately $58,000; a one-time replacement cost. Additional cost to the existing installation is due to increase labor cost, primarily due to minimum wages and a miscalculation on behalf of the vendor, which adds $21,000 to the contract, making it approximately $104,000 recurring cost each year. The breakdown of the labor costs is found on page 3 of the staff report. Mayor Pro Tern Harnik noted that some of the fiber glass displays from the old vendor were delivered damaged. She asked if they can be donated. Mr. Aryan replied he had discussed the issue with the vendor, but based on their condition, he didn't think anyone would want them. Further responding, he said the City assumed the cost for the damage items, because it couldn't be determined if it was damaged through delivery or over time. He added that items were purchased in 2008 and the new vendor started in 2013. Mayor Pro Tern Harnik said the lights on El Paseo are so important for the ambiance of the street, and it's unfortunate there is an increase in labor cost, but it's going to be seen in just about everything the City does. Wx PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 Mayor Pro Tern Harnik moved to, by Minute Motion: 1) Approve Amendment No. 2 to subject contract with Premier Holiday Design, Palm Desert, California, increasing annual labor costs by $21,682.90 through 2018 and extending current contract term through May 31, 2018, amongst other revisions; 2) approve purchase of new LED and snow tube lights for the City's El Paseo Seasonal Lighting Program in the amount of $57,595.86 and appropriate $57,595.86 from the FY 2015-2016 Unobligated General Fund to Account No. 1104310-4391001; 3) authorize Interim City Manager to execute any contractual documents related to these enhancements to the City's Seasonal Lighting and Decoration Program (Contract No. C32980); 4) declare existing seasonal decor purchased in 2008 for the El Paseo medians, with exception of the seasonal trees/garland, as surplus and dispose of appropriately. Motion was seconded by Weber. Councilmember Weber commented that the Committee was excited to work on this, stating Deborah Glickman was brought in from Art In Public Places so it could all be tied together, because El Paseo is such an important part of the City. She appreciated the vendors commenting that people are impressed, because it does have that wow factor. The Committee looks forward to working on this to be ready for the Christmas Holidays and so forth in 2017. Mayor Spiegel called for the vote and the motion carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). XVI. OLD BUSINESS A. REQUEST FOR APPROVAL OF AMENDMENT NO.1 TO PROFESSIONAL SERVICES CONTRACT NO. C33330A - ENGINEERING DESIGN OF THE ALESSANDRO WEST IMPROVEMENT PROJECT. Mr. Alvarez stated this item was a contract amendment for engineering services. The Altum Group is helping the City with the Alessandro West Corridor Project and it's 90% complete; currently in plan check with the design. The additional scope of work addressed in the staff report was not originally included in the contract. Funds for the design improvements or design contract are available under the Successor Agency Bond Funds. Staff recommended approval of the contract amendment. He would like to have a discussion with Council on the Alessandro West Business Improvement District Formation. In the past, there was discussion of the possibility of putting together a district that would help maintain the improvements once they are in place. After discussion with Interim City Manager and staff, the recommendation is to postpone the formation until the improvements are in place in order to provide actual costs for the maintenance of those improvements. At that point, return to the City Council for direction on whether to proceed with the formation or look at other opportunities for cost recoveryforthe improvements through redevelopment of properties as they move forward. For instance, if a property owner were to redevelop, the City would work with them to secure, as a Condition of 23 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 Approval, that they pay for the additional parking they will incur for the expansion of their property, and also for the maintenance of that section. Councilman Jonathan said he didn't object, but wanted to make sure everyone understood that by doing the BID process after completion of the project, there was a risk that funding won't exist for the maintenance, and then the City would be hard pressed to find those dollars somewhere else. He asked if staff was okay with that and if they believed the maintenance would get funded. Mr. Alvarez agreed there would be a risk, but staff believed there will be options down the road to recover those cost, such as a partnership with property owners as the City moved forward. Mr. McCarthy said staff reviewed this a great deal, but unfortunately, the BID process has been a critical path issue, that in some cases delayed moving forward on Alessandro Alley. When looking at the General Plan and where that's going, along with the development/redevelopment opportunities along Highway 111, it seemed it was in the City's interest to move forward with the construction project and putting in place the parking, and that would become then a Quid pro quo, in terms of the negotiations with the property owners, because they are going to need more parking. Secondly, if the City binds the area with a BID, the City may be precluded from doing that. Therefore, these are some of the issues floating around the project. Councilman Jonathan's point is absolutely correct in that the City is taking a little bit of a risk, but there might be a curing period, and as it redevelops, there will be an opportunity to recoup. Mayor Spiegel added that the City has been trying to improve Alessandro Alley to become a street, and then get adjacent businesses become better. Mayor Spiegel moved to, by Minute Motion: 1) Authorize Interim City Manager to execute Amendment No. 1 to subject contract with The Altum Group in the amount of $28,860 for the Alessandro West Improvement Project Design; 2) authorize transfer of contingency in the amount of $10,556 to contract base — funds are currently available in Capital Project Fund Account No. 4004341-4400100 and will be reimbursed to the City from bond proceeds, pursuant to the approved Alessandro Bond Proceeds Funding Agreement; 3) direct staff to postpone formation of the Property and Business Improvement District for the Alessandro West Corridor until the improvements are complete and staff investigates otheroptions to condition the existing commercial property owners to participate in future maintenance as they redevelop. Motion was seconded by Weber and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). 24 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 XVII. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF THE FINAL ENGINEER'S ANNUAL LEVY REPORT FOR, AND ORDER THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN, CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 2016-2017. Deputy City Treasurer Thomas J. Metz stated staff was requesting approval of the proposed Resolution that would approve the Final Engineer's Annual Levy Report and also order the levy and collection of assessments within that District. Mayor Spiegel declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, he declared the public hearing closed. Councilman Tanner moved to waive further reading and adopt Resolution No. 2016 - 52, approving the Engineer's Annual Levy Report for, and ordering the levy and collection of assessments within, City of Palm Desert Benefit Assessment District No. 1 for FY 2016-2017, pursuant to the provisions of The Benefit Assessment Act of 1982. Motion was seconded by Jonathan and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). B. REQUEST FOR APPROVAL OF THE FINAL ENGINEER'S ANNUAL LEVY REPORT FOR, AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS WITHIN, CONSOLIDATED PALM DESERT LANDSCAPING & LIGHTING MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2016-2017. Deputy City Treasurer Thomas J. Metz requested approval of two resolutions, the first will approve the Final Engineer's Annual Levy Report and the second would approve and order to levy and collect annual assessments within the District. Mayor Spiegel declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, he declared the public hearing closed. Councilman Jonathan moved to waive further reading and adopt: 1) Resolution No. 2016 - 53, approving the final Engineer's Annual Levy Report for Consolidated Palm Desert Landscaping & Lighting Maintenance District No.1 for FY 2016-2017; 2) Resolution No. 2016 - 54, ordering the levy and collection of annual assessments within Consolidated Palm Desert Landscaping & Lighting Maintenance District No. 1 for FY 2016-2017. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). 25 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. City Manager Meeting Summaries Report for the Period of May 16-27, 2016. With City Council concurrence, the City Manager Meeting Summaries were received and filed. B. CITY ATTORNEY Mr. Hargreaves announced that the hearing on the proposed rate increases by Coachella Valley Water District is on June 14, 2016, at 9:00 a.m. at their Palm Desert building. C. CITY CLERK 1. Announcement of City Council Study Session on Thursday, June 30, 2016, at 2:00 p.m. in the Administrative Conference Room — CalPERS. Ms. Klassen called attention to the scheduling reminder, and Councilmembers so noted. D. PUBLIC SAFETY 1. Fire Department None 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL 1. Councilmember Susan Marie Weber's Meetina Summaries Reoort for the Period of May 14-29, 2016. With City Council concurrence, Susan Marie Weber's Meeting Summaries Report was received and filed. Mp PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 2. Council Reauests for Action/Committee Reports/Comments: a) Councilman Sabbv Jonathan Reports/Comments Palm Desert Hiah School Baseball Team - He congratulated the high school baseball team, in particular, Isiah Alvarez, who is the son of Director of Economic Development Martin Alvarez. He said the team, school, and community has a lot to be proud of, stating that losing in the CIF Semifinals to a fine team like Woodbridge was not bad. b) Councilman Van Tanner Reports/Comments Graduation at Jean M. Benson Child Care Center- He attended the ceremony, stating it was probably the first time Jean Benson wasn't able to make it. He said it was an absolute riot to see these kids in their red robes and hats and doing their performance. He added that the YMCA was very important to the Coachella Valley and particularly to Palm Desert. c) Mavor Pro Tern Jan C. Harnik Reports/Comments Mid-Vallev Bike Path - She inquired if any further Council action was required on this issue. Mr. Greenwood replied staff considered it done. Cap and Trade Fundina - She said there have been several meetings at Southern California Association of Governments (SCAG), Riverside County Transportation Commission (RCTC), and Coachella Valley Association of Governments (CVAG), and at all of them, the Cap and Trade issue has come up, which directly affects Palm Desert and the Coachella Valley. In the last round of funding SCAG received 14% of all the money available, and yet they have 48% of the population. Because of the guidelines setforth bythe Strategic Growth Council, the Coachella Valley is at a disadvantage because of the lack of density, stating it was needed across the Valley. She said a lot of work has been done, but obviously not creating the success needed. Additionally, in the last round of options on the Cap and Trade Credits, only 2% of what was expected to be generated was generated. Therefore, there are big problems with this on many different levels. Thirdly, at SCAG an MOU was signed with the Federation of Local Authorities in Israel. They had the Consul General of Israel in Los Angeles, and a partnership was formed with them for the entire SCAG Region. Through the MOU they will be able to exchange information support in the areas of 27 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 9, 2016 sustainability, smart growth, water conservation management, alternative energy, technology, cybersecurity, public health, emergency preparedness, public safety, and start-up eco systems. She said this was the first of a relationship between a Metropolitan Planning Organization and the State of Israel; this was important and groundbreaking. She said the Regional Council also approved the Active Transportation Program, which is importation in getting funding from the Federal and State. 3. Council Consideration of Travel Requests and Reports: None XIX. ADJOURNMENT With City Council concurrence, Mayor Spiegel adjourned the meeting at 5:15 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA ROBERT A. SPIEGEL, MAYOR r: