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PRELIMINARY MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING
THURSDAY, APRIL 23, 2015
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Mayor Weber convened the meeting at 3:05 p.m.
II. ROLL CALL
Present:
Councilmember Jan C. Harnik
Councilman Sabby Jonathan
Mayor Pro Tern Robert A. Spiegel
Mayor Susan Marie Weber
Also Present:
John M. Wohlmuth, City Manager
Absent:
Councilman Van G. Tanner
Robert W. Hargreaves, Assistant City Attorney
Rudy P. Acosta, Assistant City Manager
Rachelle D. Klassen, City Clerk
Russell Grance, Director of Building & Safety
Lauri Aylaian, 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
John Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Department
Grace L. Mendoza, Deputy City Clerk
ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
None
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IV. ADJOURN TO CLOSED SESSION
Request for Closed Session:
A. Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
1) Property: Lease Property - Parkview Professional Office Complex,
73710 Fred Waring Drive, Suite No. 103, Palm Desert
Negotiating Parties:
Agency: John M. Wohlmuth/Paul S. Gibson/City of Palm Desert
Property Owner: City of Palm Desert
Other Parties: Angel View, Inc.
Under Negotiation: x Price x Terms of Payment
2) Property: Lease Property - 73470 El Paseo, Suite F7, Palm Desert
(Portion of APN 627-202-010)
Negotiating Parties:
Agency: John M. Wohlmuth/Martin Alvarez/Donna Gomez/
City of Palm Desert
Property Owner: El Paseo, LLC/Acadia D.R. Management, LLC
Under Negotiation: x Price x Terms of Payment
B. Conference with Legal Counsel regarding significant exposure to litigation
pursuant to Government Code Section 54956.9(d)(2):
Number of potential cases: 2
C. Public Employment pursuant to Government Code Section 54957:
Title of Position: City Manager
With City Council concurrence, Mayor Weber adjourned the meeting to Closed
Session at 3:06 p.m. She reconvened the meeting at 4:00 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 Sabby Jonathan
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VIII. ORAL COMMUNICATIONS - B
MR. CARL CIESLIKOWSKI, Spyglass Lane, Palm Desert, first thanked City
Councilmembers for their service, as he was well aware that it was sometimes a
difficult job. Secondly, he thanked Councilmembers for reinstating the Champions
Club at Desert Willow Golf Resort and also said the upcoming summer play rate
there was going to be fantastic for residents. Thirdly, he called attention to some
exhibits he'd provided to the City Clerk, things he'd both picked up at and
photographs taken at Homme/Adams Park off of Thrush Road in the City. He is a
frequent visitor, and about six months ago as he was walking there noticed some
big pieces of concrete and other construction debris in the Park. He brought some
of them home for disposal in his trash, but when that wasn't feasible, he took the
pieces back to the Park and started a pile. After four months along with other
people helping, he had several piles of this refuse together (glass, concrete pieces,
tar, wire, etc.) and called Senior Management Analyst Ryan Stendell about it.
He said a project was initiated, and they were able to get most of that debris
cleaned up, thanking Council and Mr. Stendell, specifically, for his assistance in
getting the big City trucks out there and other volunteers to undertake the project.
He added that the material removed filled two large -volume dumpsters. It was a
great undertaking and helped tremendously, but he felt it wasn't finished yet. The
exhibits he provided illustrated the remaining need — more concrete chunks, broken
glass, tar, and wire that needed removal, which he hoped Council would consider
authorizing completion of the clean-up, some of which will require heavy equipment.
He pointed out that the City has a lot of visitors that like to walk through
Homme/Adams Park and urged them to complete this project.
MR. TERRY COLLIER, Ajo Lane, Palm Desert, said he appreciated when Council
took time to recognize military service veterans and wanted to, in return, thank City
Council for their service to country and community. He went on to say that in
looking for innovative ideas to save water, he'd come up with an efficient method
of washing his own car at home several times, each time using less than five (5)
gallons of water. He provided a brief demonstration of this technique and
photographs of his clean car afterward.
MS. NIKOHL VANDEL, Desert Hot Springs, CA, wished Councilmembers a happy
belated Earth Day and noted that the President was in the Florida Everglades
recently regarding climate change. She cautioned the public about what it's facing
with the "nuclearization" of the increase in water temperature as being
overwhelming. Further, she said we have a very large task ahead of us in order to
completely transform all of our resources to prepare the nation and lands for what's
coming, and abandon the notion that we can still play war games and prevent the
damage that is coming. She was at a loss as to how to accomplish this, except for
just changing our priority, and it needed to be done in small spaces, such as a City
Council Meeting, as well as places like Washington, DC, or in the United Nations
and around the world. She encouraged people to have conversations with their
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neighbors, because she felt the numbers being presented by scientists were
correct, including that she'd just experienced a thundershower in Yucca Valley in
late April.
IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS
A. PRESENTATION TO RECOGNIZE BRUCE KASSLER FOR HIS SERVICE
TO THE CITY OF PALM DESERT AND ITS CITIZENS' SUSTAINABILITY
COMMITTEE, 2011 - 2015.
Mayor Weber noted that Mr. Kassler was unable to be present for today's
presentation and that his engraved crystal clock in appreciation for his
service would be forwarded to him separately.
B. PRESENTATION OF PROCLAMATION DECLARING MAY 2015 AS
"MENTAL HEALTH MONTH" IN THE CITY OF PALM DESERT.
On behalf of the entire City Council, Mayor Weber presented the
proclamation to Denise Diamond, representing the Riverside County Mental
Health Board.
Ms. Diamond thanked Mayor Weber for the recognition and the support, and
for agreeing to be a judge in their upcoming art show. She went on to
recognize all the cities working together in the Coachella Valley, first
responders, and citizens who work to keep everyone informed and safe.
She related that she's a family member on the Regional Mental Health
Board, in addition to being a faculty sponsor for a nationwide club at College
of the Desert, called "Active Minds." Today that club hosted its first Mental
Health Expo and was able to invite many of the community resources to
participate and inform everyone in an effort to keep a healthy community and
support each other as we work through some pretty tough issues.
C. PRESENTATION TO THE CITY COUNCIL OF AN UPDATE ON
PALM DESERT YOUTH COMMITTEE ACTIVITIES BY MEMBER
ABIGAIL SANFORD.
Ms. Sanford reported that on April 10, four members of the Youth Committee
greeted guests and helped seat people attending the Senior Inspiration
Awards. She said the Committee has completed its activities for this school
year and looked forward to continuing to help the community in the next.
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REGULAR PALM DESERT CITY COUNCIL MEETING APRIL 23, 2015
X. CONSENT CALENDAR
A. MINUTES of the Regular City Council Meeting of April 9, 2015.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant
Nos. 218, 219, 222, 223, 227, 228, 230, and 231.
Rec: Approve as presented.
C. CITY COMMITTEE AND COMMISSION MEETING MINUTES.
1. Parks & Recreation Commission Meeting of March 3, 2015.
2. Public Safety Commission Meeting of January 14, 2015.
Rec: Receive and file.
D. REQUEST FOR ADOPTION of Categorical Exemption and Filing of a Notice
of Exemption for the Highway 111 Right Turn to Westbound Fred Waring
Drive Project (Project No. 659-14).
Rec: By Minute Motion, adopt the Categorical Exemption for the Highway 111
Right Turn to Westbound Fred Waring Drive Project and authorize the
Director of Public Works to execute and file the Notice of Exemption with
the County Clerk.
E. REQUEST FOR APPROVAL of Second Amendment to Contract with
Prudential Overall Supply for the Second One-year Extension of Industrial
Uniform Rental and Laundry Services in the Amount of $5,324.80 (Contract
No. C31652).
Rec: By Minute Motion: 1) Approve Second Amendment to the subject
contract with Prudential Overall Supply, North Palm Springs, California,
for Industrial Uniform Rental and Laundry Services in the amount of
$5,324.80; 2) authorize Mayor to execute the Amendment — funds are
available in General Fund Account No. 110-4310-433-2140 - Supplies -
Uniform Rental.
F. REQUEST FOR APPROVAL of Second Amendment to Contract with
CleanStreet, the First One-year Extension for Parking Lot Sweeping Services
in the Amount of $34,962.24 (Contract No. C32721).
Removed for separate consideration under Section XI, Consent Items Held
Over. Please see that portion of the Minutes for Council discussion and
action.
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G. REQUEST FOR APPROVAL of Change Order No. 1 to Contract
No. C33310 — Landscape Maintenance Area No. 9 (Project No. 909-14).
Rec: By Minute Motion: 1) Approve Change Order No. 1 to increase the
subject contract with Mariposa Landscapes, Inc., for Landscape
Maintenance Area No. 9 in the amount of $2,952; 2) authorize Mayor
to execute Change Order No. 1 — funds are available in Account
No. 110-4614-453-3370 - R/M Medians.
H. REQUEST FOR APPROVAL of an Exception to Bidding Requirements and
the Streamlined Use of Vendors for the Special Programs Department -
Fiscal Year 2015-2016.
Rec: By Minute Motion: 1) Grant an exception to bidding requirements for
FY 2015-2016, as provided for by Section 3.32.090 of the
Palm Desert Municipal Code; 2) approve the Special Programs
Department's Preferred Vendor List - FY 2015-2016.
REQUEST FOR ACCEPTANCE OF WORK for Contract No. C33360A —
Landscaping of Monterey Avenue Medians - Country Club Drive to Dick Kelly
Drive — Cobble and Boulder Treatment (Project No. 965-15)
(Conserve Landcare, Inc., Thousand Palms, 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.
Approved. 3-0-1 (AYES: Harnik, Spiegel, and Weber; NOES: None;
ABSTAINING: Jonathan; ABSENT: Tanner)
J. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C33890C —
COLMAC Soil Stabilization Project (Project No. 767-15)
(Environmental Products and Applications, Inc., La Quinta, 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.
K. REQUEST FOR APPROVAL of the City's FY 2015 State Homeland Security
Grant Program Application.
Rec: 1) Waive further reading and adopt Resolution No. 2015 - 26,
supporting the City's FY 2015 State Homeland Security Grant
Program Application and authorizing the City Manager to sign the
Grant Application and all other Grant documents; 2) by Minute Motion,
appropriate $8,168 from the Unobligated General Fund and transfer
to Account No. 110-4130-411-3090 for FY 2015-2016.
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L. REQUEST FOR ACCEPTANCE of the California Governor's Office of
Emergency Services 2015 Emergency Management Performance Grant in
the Amount of $14,439 to Offset Costs to Contract for an Emergency
Services Program.
Rec: By Minute Motion: 1) Accept the FY 2015 Emergency Management
Performance Grant (EMPG) through the California Governor's Office
of Emergency Services (OES) in the amount of $14,439; 2) authorize
City Manager to execute all required grant documentation.
Councilman Jonathan asked that Item F be removed for separate
consideration and noted he would be abstaining on item I.
Upon a motion by Spiegel, second by Harnik, and 4-0 vote of the City Council
(AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner), the
remainder of the Consent Calendar was approved.
XI. CONSENT ITEMS HELD OVER
F. REQUEST FOR APPROVAL of Second Amendment to Contract with
CleanStreet, the First One-year Extension for Parking Lot Sweeping Services
in the Amount of $34,962.24 (Contract No. C32721).
Councilman Jonathan noted he had previously inquired on this item, but
didn't completely understand, stating $35,000 is being funded out of the
Business Improvement District, but the District's gone.
Mr. Greenwood responded a portion of this contract is still funded from the
Reserves that remained from the pre -bid. The City continues to provide
reduced sweeping once a month to maintain a minimum level of service
there, similar to how the tree trimming is done; the City still does it with
Reserves, as well as maintain the irrigation for landscape.
Councilman Jonathan questioned the cost of $35,000 for sweeping once a
month.
Mr. Greenwood explained the cost for the President's Plaza parking lot is not
the full amount, it's one of the components. This sweeping contract is paid
from a number of sub -accounts, stating some of it is paid out of Parks and
Building Accounts, noting there are a dozen parking lots included in this
contract. Further responding, he said $35,000 was the cost for all the
parking lots.
Councilman Jonathan asked how effective was street sweeping, because he
has observed that it only seems to pick up dust in the air and settles back
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into the ground. Adding that a lot of private property owners have stopped
parking lot sweeping.
Mr. Greenwood said it was his opinion that street sweeping was completely
100% ineffective.
Councilman Jonathan agreed, questioning whether this was something the
City should spend money on; therefore, he suggested not renewing the
contract.
Mr. Greenwood said it was Council's decision.
Councilmember Harnik asked if there was any AQMD (Air Quality
Management District) requirement for street sweeping.
Mr. Wohlmuth answered no, because AQMD requirements exist on speed
limits greater than 25 miles an hour. He said most parking lots are well
under 25 mph, and an average car didn't go that fast in a parking lot even if
the speed limit was not posted.
Councilmember Harnik stated her experience with street sweepers, at least
in front of her home, uses water, so she didn't see the dust come up. She
asked if the procedure had changed.
Mr. Wohlmuth explained that each street sweeper used by the City under
contract has a water tank and a sprayer next to the broom.
Councilman Jonathan stated his opinion may differ from others, although it
seemed to be consistent with the City's professional staff, in that street
sweeping was ineffective. In his observation and experience, even when
water is used, the circular sweeper just spits up dust and one can tell it was
the street sweeper just by the dust trail. He reiterated the contract should not
be renewed, but to keep an eye on the parking lot, stating the Council can
always change its mind.
Mayor Pro Tern Spiegel disagreed, stating there is a lot of trash in the
parking lots that people just leave there and it never gets picked up, and the
sweepers at least help with the problem.
Councilman Jonathan said he wasn't opposed to maintaining the parking lot,
but the street sweeper was just pushing trash around. He was open to
suggestions, but typically properly maintained parking lots are done by the
landscape maintenance company, which sweeps, blows, and cleans up the
parking lot; however, he didn't know if that was an option here.
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Councilmember Harnik stated she was clear on Mr. Greenwood's statement
that street sweepers are 100% useless, so she wonders why they're so
popular, and what was it that the City thought they were doing all along.
Mr. Greenwood replied it's a force of habit, stating that he had never in his
entire 30-year career felt street sweeping was worth the money invested. He
said mechanical sweeping was one of the City's most difficult contracts to
manage, because they are often sent back to do exactly what they claimed
to have done. He wasn't particularly referring to this particular vendor or
contract, but it's always a management issue. As mentioned by Councilman
Jonathan, you can indeed spot where the sweeper has been by the dust trail.
Councilmember Harnik said to Mayor Pro Tern Spiegel's point, there is the
trash issue, and she understood President's Plaza is private property, but
nonetheless the City is taking care of it to avoid blight. She asked if the City
can explore another way to go about it.
Mr. Greenwood said the scope of work could be added to the landscape
contract to do monthly manual sweeping at the curb edges, which would
address the trash issue and litter that would accumulate there.
Councilman Jonathan commented he assumed the cost would be less than
$35,000 a year.
Mr. Greenwood said he wouldn't say that.
Councilmember Harnik stated there are a lot of parking lots, which begged
the question, what happens when the Reserves from President's Plaza are
gone.
Mr. Greenwood replied it was an issue that concerned staff as well.
Councilman Jonathan moved to, by Minute Motion, continue this item to such time
as staff can explore alternatives available for sweeping and removing trash from parking
lots, preferably ones that are more cost effective, versus extending the subject mechanical
sweeping contract. Motion was seconded by Harnik and carried by a 3-1 vote (AYES:
Harnik, Jonathan, and Weber; NOES: Spiegel; ABSENT: Tanner).
Mayor Weber asked if Reserve funds were designated for street sweeping
of the parking lots and/or can they be used for any other method.
Mr. Greenwood replied that the method was not specified.
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XII. RESOLUTIONS
None
XIII. ORDINANCES
A. For Introduction:
None
B. For Adoption:
None
XIV. NEW BUSINESS
A. REQUEST FOR APPROVAL OF THIRD AMENDMENT TO CONTRACT
WITH VINTAGE ASSOCIATES, INC., THE SECOND ONE-YEAR
EXTENSION OF LANDSCAPE MAINTENANCE AREA NO. 1, IN THE
AMOUNT OF $132,600 AND INCLUDE REPAIR WORK AND SERVICES
AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20% OF
CONTRACT (CONTRACT NO. C32162, PROJECT NO. 901-11).
Mr. Greenwood noted this item and the five that follow for a total of six items
are very similar, which he would address at this time. This contract is an
extension of an existing contract for a landscape maintenance area within
the City. The City's latest round of contracts had generally been for a
two-year original term, with the option for two 1-year extensions should both
sides of the agreement are satisfied. In each of these six items being
presented, both the contractor and the City have agreed that things are
progressing nicely, and staff is recommending an extension of the existing
contracts. Three of the items are in their second 1-year extension, and three
are in the first of a possible two 1-year extensions. He said a couple of the
items have minor additions because of additional trash pick ups at the
Community Gardens. Staff recommended approval of all six items.
Mayor Pro Tern Spiegel asked why the City didn't go out to bid.
Mr. Greenwood replied the City did go out to bid originally, and the contract
was for an initial 2-year term, which has now expired. Therefore, in each of
these contracts, the potential for an extension is included. The reason for
doing this, is that the bidding process is time consuming and expensive for
both the City and contractor. He said these contracts are covered across a
number of companies, it's not like all the work was focused on just one
company; although, some of them do get more work than others. He said
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the landscape contractors are happy with this situation and want to extend
their contracts. Further responding, he confirmed these vendors were the
low bidders originally.
Mayor Pro Tern Spiegel moved to, by Minute Motion: 1) Approve Third Amendment
to the subject contract with Vintage Associates, Inc., Bermuda Dunes, California, the
second one-year extension for Landscape Maintenance Area No. 1, in the amount of
$132,600-1 2) include repair work and services at the specified contract amount not to
exceed 20% of contract ($26,520); 3) authorize Mayor to execute the Amendment —funds
are available in Account Nos. 110-4614-453-3370 - R/M Medians and
276-4374-433-3320 - Haystack Drainage Channel. Motion was seconded by Harnik and
carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None;
ABSENT: Tanner).
B. REQUEST FOR APPROVAL OF SECOND AMENDMENT TO CONTRACT
WITH VINTAGE ASSOCIATES, INC., THE SECOND ONE-YEAR
EXTENSION OF LANDSCAPE MAINTENANCE AREA NO. 16, IN THE
AMOUNT OF $169,584 AND INCLUDE REPAIR WORK AND SERVICES
AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20% OF
CONTRACT (CONTRACT NO. C32172, PROJECT NO. 916-11).
Please see discussion related to this item under New Business Item A
above.
Mayor Pro Tern Spiegel moved to, by Minute Motion: 1) Approve Second
Amendment to the subject contract with Vintage Associates, Inc., Bermuda Dunes,
California, the second one-year extension for Landscape Maintenance Area No. 16, in the
amount of $169,584; 2) include repair work and services at the specified contract amount
not to exceed 20% of contract ($33,917); 3) authorize Mayor to execute the Amendment
— funds are available in Account No. 110-4611-453-3320 - R/M Landscaping Services.
Motion was seconded by Jonathan and carried by a 4-0 vote (AYES: Harnik, Jonathan,
Spiegel, and Weber; NOES: None; ABSENT: Tanner).
C. REQUEST FOR APPROVAL OF FOURTH AMENDMENT TO CONTRACT
WITH VINTAGE ASSOCIATES, INC., THE SECOND ONE-YEAR
EXTENSION OF LANDSCAPE MAINTENANCE AREA NO. 18, IN THE
AMOUNT OF $95,244 AND INCLUDE REPAIR WORK AND SERVICES AT
THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20% OF
CONTRACT (CONTRACT NO. C32192, PROJECT NO. 918-11).
Please see discussion related to this item under New Business Item A
above.
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Councilman Jonathan noted this contract included $100 a month for the
maintenance of the parking lot own by a church, asking why the City was
doing it.
Mr. Greenwood explained the church parking lot is near the Cahuilla Hills
Park, which has very limited parking and where the former pickleball courts
are now back to tennis courts. The parking lot is also used as a significant
access to the City's trail system. The City acknowledged that the public uses
this private property and leaves trash there. Therefore, rather than requiring
the City to get an easement and do a lot of formal paperwork, the property
owner agreed to having the City pick up the trash and they in turn would not
close the parking lot for public use.
Mayor Pro Tern Spiegel moved to, by Minute Motion: 1) Approve Fourth Amendment
to the subject contract with Vintage Associates, Inc., Bermuda Dunes, California, the
second one-year extension for Landscape Maintenance Area No. 18, in the amount of
$95,244; 2) include repairwork and services atthe specified contract amount notto exceed
20% of contract amount ($19,049); 3) authorize Mayorto execute the Amendment —funds
are available in Account No. 110-4611-453-3320 - R/M Landscaping Services. Motion was
seconded by Jonathan and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and
Weber; NOES: None; ABSENT: Tanner).
D. REQUEST FOR APPROVAL OF SECOND AMENDMENT TO CONTRACT
WITH KIRKPATRICK LANDSCAPING SERVICES, INC., A ONE-YEAR
EXTENSION OF LANDSCAPE MAINTENANCE AREA NO. 2, IN THE
AMOUNT OF$112,163.28AND INCLUDE REPAIR WORKAND SERVICES
AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20% OF
CONTRACT (CONTRACT NO. C32601, PROJECT NO. 902-13).
Please see discussion related to this item under New Business Item A
above.
Mayor Pro Tern Spiegel moved to, by Minute Motion: 1) Approve Second
Amendment to the subject contract with Kirkpatrick Landscaping Services, Inc., Indio,
California, a one-year extension for Landscape Maintenance Area No. 2, in the amount
of $112,163.28; 2) include repair work and services at the specified contract amount not
to exceed 20% of contract amount ($22,433); 3) authorize Mayor to execute the
Amendment — funds are available in Account No. 110-4614-453-3370 - R/M Medians.
Motion was seconded by Jonathan and carried by a 4-0 vote (AYES: Harnik, Jonathan,
Spiegel, and Weber; NOES: None; ABSENT: Tanner).
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E. REQUEST FOR APPROVAL OF FIRST AMENDMENT TO CONTRACT
WITH VINTAGE ASSOCIATES, INC., A ONE-YEAR EXTENSION OF
LANDSCAPE MAINTENANCE AREA NO.4, IN THE AMOUNT OF $142,680
AND INCLUDE REPAIR WORK AND SERVICES AT THE SPECIFIED
CONTRACT AMOUNT NOT TO EXCEED 20% OF CONTRACT
(CONTRACT NO. C32611, PROJECT NO. 904-13).
Please see discussion related to this item under New Business Item A
above.
Mayor Pro Tern Spiegel moved to, by Minute Motion: 1) Approve First Amendment
to the subject contract with Vintage Associates, Inc., Bermuda Dunes, California, a
one-year extension for Landscape Maintenance Area No. 4, in the amount of $142,680;
2) include repair work and services at the specified contract amount not to exceed 20% of
contract amount ($28,536); 3) authorize Mayor to execute the Amendment — funds are
available in Account No. 110-4614-453-3370 - R/M Medians. Motion was seconded by
Harnik and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES:
None; ABSENT: Tanner).
F. REQUEST FOR APPROVAL OF THIRD AMENDMENT TO CONTRACT
WITH KIRKPATRICK LANDSCAPING SERVICES, INC., A ONE-YEAR
EXTENSION OF LANDSCAPE MAINTENANCE AREA NO. 7, IN THE
AMOUNT OF $101,535 AND INCLUDE REPAIR WORK AND SERVICES
AT THE SPECIFIED CONTRACT AMOUNT NOT TO EXCEED 20% OF
CONTRACT (CONTRACT NO. C32621, PROJECT NO. 907-13).
Please see discussion related to this item under New Business Item A
above.
Councilmember Harnik moved to, by Minute Motion: 1) Approve Third Amendment
to the subject contract with Kirkpatrick Landscaping Services, Inc., Indio, California, a one-
year extension for Landscape Maintenance Area No. 7, in the amount of $101,535; 2)
include repair work and services at the specified contract amount not to exceed 20% of
contract amount ($20,307); 3) authorize Mayor to execute the Amendment — funds are
available in the respective Landscaping and Lighting District Accounts. Motion was
seconded by Spiegel and carried by a 4-0 vote (AYES: Harnik, Jonathan, Spiegel, and
Weber; NOES: None; ABSENT: Tanner).
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G. REQUEST FOR AWARD OF CONTRACT TO WESTCON
CONSTRUCTION GROUP, INC., IN THE AMOUNT OF $76,930 FOR
CONSTRUCTION OF THE TIERRA DEL ORO STREET IMPROVEMENT
PROJECT (CONTRACT NO. C34220, PROJECT NO. 608-15).
Mr. Greenwood stated this project is located next to the Cahuilla Hill Parks
parking area. The pavement is severely deteriorating and the Tierra Del Oro
bridge over the Palm Valley Channel has some mandated work that needs
to be done. CalTrans inspects all the bridges throughout the State and
Tierra Del Oro came up on the list as needing minor repair, which is included
in this contract. Responding to question about Brush Bridge, he confirmed
it needed similar maintenance and it will come up at a later time.
Councilman Jonathan commented he was pleased the low bidderwas a local
vendor.
Mayor Weber questioned why both bridges weren't being repaired at the
same time.
Mr. Greenwood replied this started out as a street project and staff took the
opportunity to include the bridge work, since it's directly adjacent. He's
looking at this as a learning opportunity of how to specify and bid these kinds
of minor bridge repairs efficiently, which he believed was accomplished. He
said staff was limited to the one bridge just because it was a learning
experience.
Councilman Jonathan moved to, by Minute Motion: 1) Award the subject contract
for Construction of the Tierra del Oro Street Improvement Project to Westcon Construction
Group, Inc., Indio, California, in the amount of $76,930; 2) authorize the Directorof Finance
to set aside a 10% contingency for the project in the amount of $7,693; 3) authorize Mayor
to execute the contract — funds are available in Account No. 110-4311-433-3320 - Street
Resurfacing. Motion was seconded by Spiegel and carried by a 4-0 vote (AYES: Harnik,
Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner).
H. REQUEST FOR APPROVAL OF AN AGREEMENT WITH THE
LEW EDWARDS GROUP TO PROVIDE STRATEGIC CONSULTING
SERVICES (CONTRACT NO. C34330).
Economic Development Manager Ruth Ann Moore stated the proposed
Agreement is for a consultant contract with the Lew Edwards Group (LEG)
that specializes in ballot measure preparation and public education. The
contract is for Step 1 of the proposal that is attached to the staff report, which
is the assessment of all the residents that constituents use for public opinion
and research. The consultant will develop a survey to gain knowledge
concerning the community's opinion and views on various issues, such as
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quality of life and City services. They will also gain an understanding of how
Palm Desert residents prioritize those things within the community. The
survey will be conducted by phone and email to gain statistically reliable
number of respondents within demographics spread throughout the
community. Once the survey is complete, the City will receive the results
from Lew Edwards along with their recommendation for moving forward
toward placing a measure on the 2016 General Election. Should their
recommendation be to move forward with the ballot measure and Council is
so inclined, staff will return with an additional contract for Step 2 of the
project, which is implementation of the public information part of the
program. Step 2 is not being included at this time because the City needs
to receive the information back from the survey to understand how much
work will be required in the future.
Mayor Pro Tern Spiegel asked if the City didn't already know why the
measure failed and are citizens aware that 50% of the General Fund Budget
will go to Police and fire.
Ms. Moore replied staff thinks it knows why the measure failed, and it was
going to be very important to educate people on why the measure is being
placed on the ballot, which is what staff's role would be. She said it was not
an advocation rather an education of it.
Mayor Pro Tern Spiegel noted for the benefit of the audience that this dealt
with Hotel Occupancy Tax, stating Palm Desert has the lowest in the Valley
at 9%, and almost the lowest in the United States. The City is requesting that
it go up to 11 %, which will still make Palm Desert the lowest in the Valley.
He said other cities are at 11 % and Palm Springs is as high as 16%. He
believed the City tried to sell the measure the wrong way the last time
around, and if staff felt it was necessary to hire a consultant, then it must be
necessary.
Councilmember Harnik stated she has had the opportunity on a couple of
occasions to hear presentations done by the Principal of this organization,
and they do an excellent job of breaking things down. She said they do their
best to understand the community's needs and ways to develop strategic
communication and messaging for the community, which was critical if the
City was going to get the best results.
Councilman Jonathan said that a commitment to this expenditure appeared
to be based on an assumption that this Council wants to place another
measure on the ballot for raising the Transient Occupancy Tax (T.O.T.).
However, he didn't recall having that discussion and wouldn't it make more
sense to have that discussion first before the City commits to spending
$40,000 toward a survey of the residents.
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Ms. Moore responded that part of the reason to do the survey is to
understand what the citizens understand the value of it to be, and that will
hopefully assist the Council in determining whether it wants to place it on the
ballot. She said the consultants will also provide their recommendation, if
they see within the survey results, whether it would be viable to put it on the
ballot.
Councilman Jonathan said that was his point, these surveys gauge the
viability and likelihood of success of these types of ballot measures. If the
Council took an extreme situation where this Council reviews the issue and
determines it didn't want to do it, not saying it would happen, but let's say it
did, then this $40,000 would be wasted regardless of the viability in the
likelihood of success. He asked if there had been consideration given to the
basic premise of whether or not the Council wants to even move in that
direction again before committing these resources.
Mayor Weber recalled the last survey was done with a mail out where
residents were asked what they thought about their City services.
Ms. Moore said that to her knowledge there was no survey done prior.
Mayor Weber stated she was referring to the survey sent out to residents
that asked if they liked their quality of life and where funds should be spent,
which was done about 10 or 15 years ago. Her question was how would the
City get phone numbers and emails to contact people, instead of doing it by
a mail out, because this would be a totally different survey than the ones
seen in the past.
Mr. Wohlmuth explained this survey will primarily identify the issues and
methods to educate for an item on the ballot. In response to Councilman
Jonathan's question, in order to place a ballot measure in the November
2016 election, the Council will first be presented with an Ordinance in June
or July 2016. He explained that once a measure is placed on the ballot, the
Council can no longer advocate or spend money to educate, so it needs to
be done prior to the Council passing that ordinance. As far as identifying
with this current Council whether it should be placed on the ballot, the most
prudent action would be to wait until that point when it has to consider
adopting an ordinance to place it on the ballot. At that time, which may be
June or July 2016, there might be a different Council. Therefore, he
suggested the Council award the contract for Step 1 to the Lew Edwards
Group.
Mayor Pro Tern Spiegel moved to, by Minute Motion: 1) Approve an agreement with
the Lew Edwards Group in the amount of $39,750 for Strategic Consulting Services to
assess constituent views on City services, customer satisfaction, fiscal and revenue issues;
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2) appropriate funds in the amount of $39,750 from the Unobligated General Fund to
Professional -Other Administration, Account No. 110-4430-422-3090 for this purpose;
3) authorize City Manager to execute said contract. Motion was seconded by Harnik.
Councilman Jonathan stated he wasn't opposed to putting it on the ballot,
but he felt this was putting the cart before the horse. He believed the City
needed to go through the proper process of evaluating whether or not, from
a policy standpoint, the Council would advocate putting this measure on the
ballot again, and if so, how would it be different. He recognizes he may be
the only one that felt this way, and it was not a bad thing, but the last time it
was on the ballot, there was an indication that there would be a commitment
to marketing, and this time he's hearing it will be for Police and Fire. He said
he would like to get input from the stakeholders and hoteliers to gauge how
they feel about it, and based on that, make a decision on whether or not to
move forward with the proposed measure on the ballot and/or the proposed
contract. He reiterated he believed this was putting the cart before the horse.
Mayor Pro Tern Spiegel pointed out the general manager of the Marriott
wrote an editorial in The Desert Sun saying this was the right way to go.
Councilman Jonathan replied that things change, including the general
managers of the Marriott. Again, he wasn't disagreeing, but he saw no
reason for not following the proper process on something as significantly as
this.
Councilmember Harnik agreed this was significant, but to define proper
processes was certainly not held by only one person. The general manager
at the Marriott has not changed, there have been extensive discussions in
the Hotel and Special Events Committee about this, there was also a four -
fifth vote on the Council at one time, and those votes in favor of putting the
measure on the ballot are still here. She said it was a valid measure and
what is being sought here was more information so that the Council can
determine what is best for the community, how to present it, how to educate,
and where the need should be met. She said the Council needs solid
information from professionals who do this for a living, and know how to take
information, analyze it, and provide results. She further stated that if this
Council thinks it can make a decision without strong information, it's kidding
itself. Lastly, she stated the City should look to the professionals and the Lew
Edwards Group is outstanding.
Councilman Jonathan noted he had started off his comments by saying he
may be the only one that felt this way, and there was nothing wrong with it,
but things have changed, and he wasn't only referring to the Marriott. He
said the landscape has changed along with the environment and economy,
and the four -fifth's that voted in favor will hopefully take a fresh look. One of
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his favorite Councilmembers often has a quote of saying, "The way we've
always done it before is not a place to end, but a place to start," so he hoped
she still felt the same way. He said a fresh look at the issue would be
appropriate here.
Mayor Weber commented that fora fresh look, the Council was talking about
having a professional obtain more information so that the Council can
analyze it with fresh eyes. She said the Council didn't know how to gauge
the residents' overall attitude or know what their priorities on revenues and
interests are. Once that information is obtained, the Council will then have
a better ability to judge whether or not it wants to endeavor a ballot measure
again. She added the Council needed more education, because it was
clearly lacking the first time around, and as mentioned by staff, the focus will
be on education. Additionally, the Council will find out the areas that it will
want to further educate the population, stating education was important for
everything it did in the City.
Councilmember Harnik agreed, stating the Mayor made some great points,
adding that the results will assist the Council in other facets of the community
going forward in the City's development.
Mayor Weber called for the vote and the motion carried by a 3-1 vote (AYES:
Harnik, Spiegel, and Weber; NOES: Jonathan; ABSENT: Tanner).
CONSIDERATION OF THE 2015 SUMMER REGULAR CITY COUNCIL
MEETING SCHEDULE (JULY AND AUGUST MEETINGS).
Ms. Klassen stated in the past couple of meetings with some other
scheduling changes, the Council had asked about defining the summer
schedule. As Councilman Jonathan noted at the last meeting, Palm Desert
has traditionally observed having the first regular meeting in July then
cancelling the second meeting in July and then cancelling the first meeting
in August and conducting the second regular meeting in August. However,
several years ago, because of Councilmembers schedules, the City held the
first regular meeting in July and first regular meeting in August, which was
also an option, stating the schedule was at the Council's pleasure.
Mayor Weber pointed out that if something of importance came up, in the
past, a meeting would be called for the Council to show up.
Ms. Klassen agreed, stating a meeting can be called provided there is a
quorum available. Further responding, she said staff was asking for Council
to take action on the summer schedule with the understanding that the
regular dates will be held in reserve in case there was a need that came up.
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Councilman Jonathan moved to, by Minute Motion, direct that staff observe the
Council's traditional summer schedule of conducting the first regular meeting in July (July
9), the second regular meeting in August (August 27), and cancelling the second meeting
in July and first meeting in August, with the understanding that if matters come up requiring
action in the interim that a regular meeting can be conducted on a date that is being
considered for cancellation. Motion was seconded by Spiegel and carried by 4-0 vote
(AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner).
XV. CONTINUED BUSINESS
None
XVI. OLD BUSINESS
None
XVII. PUBLIC HEARINGS
A. CONSIDERATION OF THE ADDITION OF PALM DESERT MUNICIPAL
CODE CHAPTER 3.47 - AFFORDABLE HOUSING IMPACT FEE - TO
ESTABLISH AN AFFORDABLE HOUSING FEE FOR NEW RESIDENTIAL
DEVELOPMENT WITHIN THE CITY OF PALM DESERT.
Ms. Aylaian stated that due to the in-depth Study Session just one hour ago,
she would provide an abbreviated presentation for those individuals who
weren't able to take advantage of the Study Session. She said the City took
a Nexus Study to identify what impact the increase in market -rate housing
would have on the City's need for affordable housing. This was done recently
in response to the City's desire to promote economic development, because
it will be looking at increasing the hospitality sector in particular, which is a
sector that takes a great deal of employees and staff who are generally paid
at a rate that is insufficient to allow them to live in Palm Desert. She noted
Palm Desert is out in the lead ahead of the other cities in this regard, and
that is in large measure due to the fact that Palm Desert has far more retail
jobs and greater need forservice industry employees than neighboring cities.
Therefore, Palm Desert has a greater need for affordable housing. The
Nexus Study took a look at a typical 100-home development of market -rate
housing to be started in an area such as Palm Desert and looked at the
number of people that it would bring to town. For Palm Desert it was an
average of 2.05 people per household, which equated to 205 people that it
would add to the population. For those 205 people, a certain number of
people are required to service their needs, in particular, there would be 26
people that would be required to service them from a retail and restaurant
service industry; 13 people from the service industries such as beauticians,
teachers, mechanics; 6 government workers; 3 health care workers such as
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nurses and doctors; and 1 person who would be typical from the
entertainment industry. She said these numbers are specific to a $600,000
home. Those who live in houses that cost $200,000 typically have a lesser
need for service industry workers, and those living in an $800,000 to
$1,000,000 would have a greater number. The Study then took a look at how
many homes would be necessary to house these people in each of these
industries. Forthe industries identified, there is information to correlate to the
number of household they will form for the number of workers. In other
words, for every one teacher, a household might be formed; for every three
waiters/waitresses, an individual household might be formed. The Study
took a look at those number to see how many households would be created
by the addition of one hundred $600,000 homes in Palm Desert, which
equated to 31 homes. Of those homes, individuals occupying them would
only have adequate income to house themselves in six of the 31 homes, with
the others requiring some form of a subsidy or affordable housing. After
going through 115 pages of detailed calculations, the Nexus Study revealed,
to no great surprise, that luxury homes have a greater need for service
industry workers than do lower priced homes, and therefore, have a lesser
impact on the community as a whole. The Study identified the burden on a
cost per square foot for building homes that ranged in the $200,000 to
$1.2 million. They did this at every $200,000 intervals for home prices and
identified the cost to the community for providing affordable housing for the
205 people coming in at market -rate, and the cost ranged from $9 to $12 per
square foot. If one looked at market -rate apartments, the need for affordable
housing generated by 100 market -rate apartments, the cost would be $13 to
$20 per a square foot. The numbers were reviewed because they were
higher than staff believed would be palatable for any developer who was
wanting to build in Palm Desert's environment. Staff introduced additional
considerations they felt were relevant, starting with feasibility. The last thing
the City would want to do is price itself such that it was not feasible to build
market -rate housing in Palm Desert, because it wants to remain competitive
and welcoming to single-family home developers. The results of the
Feasibility Study are in a six -page memorandum to the Council from
Economic & Planning Systems, Inc. (EPS), which she felt was worth reading
because it focused more directly on the recommendation made. She said
a number of fees were tested on a fee per square foot basis for buying ability
relative to the cost of development in Palm Desert and relative to the value
of land. The balance of community needs was then reviewed versus
developers concerns. She said developers are in it for profit and they are
looking to make an appropriate margin on their investment and is due a
reasonable return. Developers are also looking for certainty in development
costs, which hasn't been discussed much, but much like the Multi Species
Habitant Conservation Plan and the fee that was adopted Valley wide, this
is something that helps developers know what they're getting into. As it is
now, developers wanting to build market -rate housing are asking what kinds
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of requirements are needed for providing affordable housing. Palm Desert
didn't have a fee that developers can opt to pay, and it is negotiated on an
individual project by project basis. She said it can be protracted, and in
some cases, it can take greater than a year. An affordable housing fee would
allow a developer to know how much it will cost and recognize that affordable
housing in not appropriate in every community or every part of the City. By
having a fee, a developer is able to pay a certain amount into a fund and
know it's done and over with and it won't take an extra year with negotiations
with the City. It will also not require the developer to put an affordable
housing component in their project, if it's not appropriate. Additionally, the
City needs to balance the developers' concerns against the community
concerns, which is that there is a need for affordable housing that is
increased every time the City provides more market -rate housing. The
community would also agree that it's not appropriate to put affordable
housing in every project. Therefore, rather than try to force a component in
each project, allowing payment into a fee would allow for construction of
apartments, which is probably the most appropriate vehicle for affordable
housing in locations that are suitable for the community as a whole. When
staff made its recommendation, it considered context, stating other Valley
cities are currently not assessing fees on affordable housing. As mentioned
previously, Palm Desert is probably out on the lead simply because it has a
greater need; it has more retail and hospitality jobs than other Valley cities.
Palm Desert has a long proud history of providing good affordable housing
programs for its residents, but it needs to keep in mind what the fees for
developers are in other Valley cities, because it didn't want to place a $9- to
$20 per square foot fee, such that it becomes more expensive than any other
city to develop. Staff also considered the Regional Housing Needs
Assessment (RHNA) and how many homes at different levels of affordability
will be required to be planned under State Mandate, which is 165 homes at
an affordable level, but a total of 416 homes at all levels of affordability.
However, the restricted affordable home is 165 between now and the year
2021. Therefore, EPS looked at how much money would be generated and
how the fee revenue would be used to determine whether or not the amount
of money that could potentially come in would meet Palm Desert's affordable
housing needs; would it be sufficient?; or would it accumulate so much
money that it was more than what would be needed. She said staff didn't
want to go to either end of the extreme. With regards to context, she has
detailed information, which will be provided to Councilman Jonathan who
requested these numbers for the fees. The information shows, relative to
other communities and cities, Palm Desert's current fees for developing are
right in the middle of all Valley cities. If the fee were to be established at $1
per square foot, it would slide Palm Desert over to be a little bit more
expensive than Palm Springs in Riverside County, and if raised to as much
as $3, Palm Desert will have the more expensive fees for development.
However, none of the fees considered were even close to the most
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expensive City, which is Coachella. Based on all those considerations, staff
recommended a fee of $2 per square for market -rate homes and
apartments, as well as for additions involving new bedrooms being added on
to existing homes, reason being that when you add bedrooms you add more
residents, which will require more services from service industry workers.
The total fee generated against need is as follows: Over the course of the
build out of Palm Desert, which is anticipated within the next 20 years, the
fee can generate somewhere between $14- and $24.5 million. The more
density and larger house size, more would be generated, but if the City was
at the lower end of the spectrum, it would generate fewer fees, stating it was
impossible to be more specific than this. The types of things that can be
accomplished with these fees are: the City can build 69 to 121 affordable
apartments, or subsidize 100 apartments for approximately 30 years, or
purchase covenants restricting some of the units to be affordable and to
subsidize them, which was one of the most cost-effective methods to
providing affordable housing. Additionally, if there are blighted apartments
that need to be renovated and improved, which is a preferred method, the
City can renovate between 117 and 204 apartments. Further, the apartments
can be subsidized to an affordable level, which will require additional
money/revenue from other sources. The City can also extend covenants,
stating the City has a couple of larger apartment complexes where there are
a number of units that are restricted to affordable incomes and staff can
negotiate with the owner to extend the covenant for a couple of years for up
to 30, 40, or 50 years. According to her calculations, if the covenant is
extended for 45 years, it can be done for 140 to 245 apartments with the
potential revenue from the fee. She encouraged the Council to open the
public hearing to hear testimony from the public and offered to answer
questions.
Mayor Weber declared the public hearing open and invited public testimony
FAVORING or OPPOSING this matter.
MR. NATHAN A. MILLER, Building Industry Association (BIA) of Riverside
County, stated staff's recommendation was broad and an overreach to the
industry. He said there was a statement made that it was equated to the
fees that builders pay with regards to Multiple Species Habitat Conservation
Plan (MSHCP), which was apples and oranges. Staff also talked about the
certainty of builders meeting environmental needs at the front end as
opposed to the back end, which is what the MSHCP is about. However,
there are no developers that are in support of this, and Palm Desert would
be the only City in Riverside County making an attempt to subsidize what is
called low-income housing by making developers pay for it. He said it was
on par with charging an additional increase of another school fee, which was
a significant fee that builders paid. The $2 recommendation is lower than
what the Nexus Study supposedly supported, stating it was not a gift to the
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industry and definitely a negative impact should it pass. He said it was an
inequitable solution, and in many regards the BIA felt it was unlawful. Market
demand would seem to indicate there isn't a need for it, if there was, it would
be seen. He read out loud from the letter dated April 23, 2015, from the BIA,
which was in Council's packet and is on file and of record in the Office of the
City Clerk as follows: "It should be noted at the onset that we greatly
appreciate the opportunity to comment. We do regret that we have been
forced to communicate our concerns in this rushed manner, and so close to
the scheduled Council meeting. However, BIA and other members of the
public were not given adequate prior notice of this proposed action, nor any
meaningful opportunity to review the associated nexus studies that assumes
to supports the proposed resolutions - other than a workshop two hours prior
to this meeting. The BIA did not receive notification until April 13, 2015, and
then had to request for an electronic copy of the study which was not initially
provided. There was no advance informal meetings between staff and the
affected stakeholders, nor any study sessions or opportunities to question
the consultant about the novel methodology and assumptions used in
creating the Nexus Studies, nor to discuss the negative impacts of this fee
on all housing construction activity in Palm Desert. We strongly recommend
that this matter be deferred and continued, to allow for public review and
input, should the Council choose or choose not to consider it at a later date."
He noted the BIA has a notification letter on file with the City requesting at
least 14 days of notice and they were given 10, stating the 14-day notice is
the letter of the law. He resumed reading out loud as follows, "The BIA does
not question the importance of attempting to improve the affordability of
housing in Palm Desert and other Riverside County communities that is a
worthy and legitimate public objective. The BIA and its members are among
the most supportive advocates for constructive reasonable, and lawful
measures that will actually improve the supply and affordability of housing,
including policies promoting the increased production of homes affordable
to residents in all income ranges. Local governments concerned about the
affordability of housing should therefore be encouraging new housing
production and adopting policies to incentivize new housing development as
opposed to creating new burdens on housing development that many have
determined to be counterproductive as such is the case with inclusionary
zoning types of impact fees." He thanked the Council for the opportunity to
speak on this matter.
Mayor Pro Tern Spiegel inquired about the statement made that there are no
other cities in Riverside County with this impact fee.
MR. MILLER stated that no other city in Riverside County has this type of
inclusionary zoning type of impact fee.
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Councilman Jonathan stated he was curious if there were other cities in
Riverside County that have been successful in creating affordable housing
without the use of a mitigation fee such as this.
MR. MILLER said he lives in the City of Corona, which has a lot of affording
housing and they haven't used these types of fees to accomplish it, or any
other entity incorporated or otherwise throughout Riverside County.
Councilman Jonathan said he understood and encouraged Mr. Miller to do
a little bit of research where he could provide hard data. He said the
information would be very useful for him to know if there are other
communities, especially if they are similar to Palm Desert that have been
successful in creating affordable housing.
MR. MILLER replied that was exactly the point of their recommendation of
having the matter postponed. He said they would like to sit down with staff
to find and be part of the solution as they are partners with the City, stating
their relationship with staff wasn't adversarial. He reiterated their
recommendation was to postpone this matter.
MR. MATT NEVINS, RJT Homes, Redlands, CA, was called to speak, but
then declined, stating there was nothing further to add.
MR. RUDY HERRERA echoed the BIA's comments, stating more time was
needed to dive into the details to see if it was a viable fee that needs to be
implemented. He briefly looked at the context as Council did at today's
Study Session, stating he paid fees at multiple cities in this Valley and
multiple States, and they seem a little distorted. For instance, Indio has an
$8,000 per home infrastructure charge for a storm drain, which skews
things, and if he had more time he would elaborate on other cities like Palm
Springs, Rancho Mirage, and La Quinta. He encouraged the Council to take
more time to make a decision on this matter.
MR. CHAT MEYER, RJT Homes, Portola Avenue, Palm Desert, CA, stated
they are a residential developer in the Desert since 1998 and owns property
in Palm Desert since 2004. He said contemplating any fee for new
residential construction puts a lot of pressure on the industry and on an
already price -sensitive market. They are concerned the Council may
consider adopting this unique fee, which may very well cause Palm Desert
to have the most expensive building fees in the Desert.
MR. BOB GARRISON, The True Life Companies, Newport Beach, CA,
stated the company does business in northern and southern California,
Arizona, and Colorado, and they are a residential single-family development
builder. He said they are under contract to purchase the property owned by
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Matt Nevins and Chat Meyer, Santa Rosa Golf Club, and the adjacent
property known as Catavina. He said they would like to do business in Palm
Desert because it is a great location. He said they are opposed to the
affordable housing fee, and just for context, their research indicates that out
of the 28 cities in the County of Riverside, if this fee is adopted, Palm Desert
would be the only city with a citywide inclusionary housing fee, as stated
earlier by the BIA representative. In reviewing the DVBA study, the City of
Palm Desert's impact fees are the fourth highest in the Valley, and if the
proposed fee is added, Palm Desert will be near or at the top. If the
affordable housing fee is implemented, it won't be an easy path where it's
simply passed on to the home buyer, because this was a price sensitive area
as mentioned by Mr. Chat Meyer, which was absolutely true. He said
average sale prices here are not the same where the inclusionary housing
fees are generally implemented like in the coastal zone bay area; the Nexus
Study actually reads that way and talks about it. He respectfully requested
a no vote on this fee or, at the very least, a reduction on the fee.
MS. NIKOHL VANDEL, Desert Hot Springs, Ca, stated that in October a
gentleman came to speak about the conflict with affordable housing, which
she was trying to follow, but the ball got dropped. She didn't know if at the
current affordable housing reality, if the City has resolved the conflict that
was created. In her past life, she was fortunate to work with real estate
developers, none of whom would come here to say no to a fee for affordable
housing. In fact, they would say, "This is how were going to use that fee to
help you, help us, help the community, so that it didn't have a ghetto." But
then you have staff saying let's put them all in apartments. She questioned
what kind of quality of life the Council wanted to have for all its residents,
because people need homes to live in. She said apartments are for people
from age 17 to 25 until they get married and move on, which should be the
type of community the Council should want, even for the service industry
workers, because Palm Desert can afford it. She said these developers can't
afford it, and Palm Desert doesn't want to have developers that will say they
want their people in apartments. You want developers that come here and
say "Where is the need and how can we balance our bottom line with your
bottom line." She agreed this matter needed to be discussed further.
MS. GRETCHEN GUTIERREZ, CEO of the Desert Valley Builders
Association (DVBA) in the Coachella and Imperial Valley's, stated they
provide service to more than 200 member companies in the development
and home building industries. She thanked the Council for the workshop
held earlierthis afternoon, which was very informative. They also appreciate
the engagement with City staff to date, specifically with Director of Planning
Lauri Aylaian. As been mentioned already, there is lot of issues and
information for the Council to gain, glean, and make an informed decision on.
She asked the Council not to make a rush or hurried decision on this topic,
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stating that all the cities in California are dealing with the fact that they have
an affordable housing need, whether they are a build out communities or still
growing such as Palm Desert. Unfortunately, Redevelopment went away,
which was a long subsidy for most of the communities, but it's no longer an
option, so alternatives are being sought. The Council had a proposal
brought forward today as an alternative, which DVBA believes is not the right
one. She believes members of the industry can reach an accord, but it will
entail more time, thought, and discussion. She said there was a lot of
information given to the Council at the Study Session today, and there have
been discussions with DVBA along with City staff, and she would like to
continue that discussion moving forward. She noted that for every $1,000
increase on the sale price of a home, 10,000 potential home buyers within
the State of California are being priced out. She said there is a severe
housing crisis at all levels within the State of California and it needs to be
met, because it hadn't been met in the past two+ decades. Secondly, there
was a chart provided as part of the DVBA fee study that showed where Palm
Desert ranked within the Coachella Valley, but one of the factors not included
was the land value cost estimate. She said any type of increase in fees
whether it's $1 or $2, the land cost has to be factored in, which will make
Palm Desert the most expensive city to do business in the Coachella Valley.
She thanked the Council for the opportunity to speak on the matter, stating
the exchange of information between the DVBA and staff has been very
informative.
Councilman Jonathan agreed the Council was presented with one option. If
the objective is to facilitate more affordable housing, and there are other
options that can accomplish the goal, he would be interested in learning
about them, especially if they have been tried and true Statewide.
MS. GUTIERREZ responding to the question raised at the Study Session on
whether the State was doing anything to assist with this problem, she said
there are currently two pieces of legislation at the State, Assembly Bill 82
and Assembly Bill 1335. She said one of them would create a $75 transfer
recording fee on all real estate transactions whether they were on existing
or resale transactions that would go into a fund that could be used at the
local cities level for affordable housing. There is also a creation of a
low-income housing fund, which is Assembly Bill 82. She said both bills are
currently working their way through committees at the State level. Therefore,
there is the potential for something at the State level to assist local
jurisdictions in their housing needs, which was an option, but it was not tried
and true. However, there is availability of other methods out there that need
to be continued to be pursued.
Councilman Jonathan asked if the proceeds would go to the State and then
disbursed in some manner to the cities.
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MS. GUTIERREZ responded that on the $75 transfer fee, the funds would
be collected as part of the closing documents, and the assumption is that
there would be an agency that would collect those funds and in turn have to
be transmitted to the local agencies. She noted this has been attempted
before and has failed, but she is hoping this time around they will be
successful.
Councilmember Harnik asked that staff take a look at those bills and if there
is one for the Council to get behind and push, it would like to get involved
with other entities that can assist with the effort. She said between the BIA,
DVBA, League of California Cities, and lobbyist, all can help push those bills
through.
With no further public testimony offered, Mayor Weber declared the public hearing
cl�secl.
Councilmember Harnik pointed out there is a premium to living in Palm
Desert, because the location is the best and it's close to everything with
wonderful amenities, and the Council understands land value is higher here,
and why people want to live in Palm Desert. Therefore, she agreed this topic
deserved more exploration, and she would like to hear back from both BIA
and DVBA of other solutions from other cities in the State.
Councilmember Harnik moved to continue this matter to the meeting of May 28,
2015. Motion was seconded by Spiegel.
Councilman Jonathan said there is a comment that caught his attention from
the staff report, which is as follows: 'It is important to acknowledge the
interest of the residential developers and single-family homebuilders in Palm
Desert, all of whom will be opposed to an increase of fees charged for
development." He agreed with the first portion of the statement that it was
important to acknowledge the needs of the development community,
because at the end of the day, the City didn't build anything and the
development community did. Therefore, it was important for all to work
together. However, he wasn't sure he agreed with the second portion of the
statement, because he believed people here are willing to work together,
stating he believed developers understand that affordable housing is
important and necessary for the well being of a community, and if done right,
it can enhance the community. He hopes he's not being naive to think
everyone can find a way to work together to create a solution that is
acceptable to both the development community and the City that accomplish
the goal of creating quality affordable housing.
Mayor Pro Tern Spiegel stated there were four weeks to convince the
Council to change what it proposes to implement. He said everyone heard
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the remarks made at this meeting and at the Study Session, so everyone
knows who they need to talk to, including the Council. He said the Council
was available to hear others thoughts and input on how it should proceed,
because Palm Desert will have affordable housing, it's a fait accompli, and
the idea is to make it easier on the developer.
Mayor Weber noted the motion was to continue this item for four weeks; therefore,
she re -opened the public hearing.
Mayor Weber called for the vote and the motion carried by a 4-0 vote (AYES:
Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner).
B. REQUEST FOR APPROVAL OF THE IMPLEMENTATION OF TAX ROLL
BILLING FOR RESIDENTIAL SOLID WASTE COLLECTION AND AN
AMENDMENT TO PALM DESERT MUNICIPAL CODE SECTION 8.16 -
SOLID WASTE.
Ms. Riddle stated on April 9 the City Council conducted a Study Session to
discuss the integrated Solid Waste Management Franchise Agreement with
Burrtec Waste and Recycling Services. One of the items discussed was the
Residential Tax Roll Billing for non -gated or non -master billed residences.
Approval of the Tax Roll Billing will generate $1.06 per customer to the City,
which would be allocated $0.73 to the Recycle Fund and $0.33 to the
General Fund. The first step for Tax Roll Billing is through the amendment
of the Palm Desert Municipal Code through the amended Ordinance that
Council is considering this evening. Approval of the Ordinance will allow
staff to move forward with the Tax Roll Billing process, part of which is
required by the County. Other items discussed were the terms and
conditions of the Franchise Agreement as well as fees and programs that will
be brought before Council at either the May 28 and/or June 11 meeting for
consideration.
Mayor Weber declared the public hearing open and invited public testimony
FAVORING or OPPOSING this matter. With no public testimony offered, she
declared the public hearing closed.
Mayor Pro Tern Spiegel said it was the right thing to do.
Mayor Pro Tern Spiegel moved to: 1) By Minute Motion, approve implementation of
Tax Roll Billing for Residential Solid Waste Collection and filing of same with the County
of Riverside Assessor's Office; 2) waive further reading and pass Ordinance No. 1284 to
second reading, approving an amendment to Palm Desert Municipal Code Section 8.16 -
Solid Waste - for this purpose. Motion was seconded by Jonathan and carried by a 4-0
vote (AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner).
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C. REQUEST FORAPPROVAL OF AN INCREASE TO THE WATER QUALITY
MANAGEMENT PLAN DEPOSIT FOR PLAN REVIEW SERVICES FROM
$2,000 TO $3,700.
Mr. Greenwood stated State water quality regulations require the City to have
certain development projects prepare a Water Quality Management Plan for
their storm water runoff that will be generated from their proposed
development, which is a process the City has been doing for a few years
now. The City previously established a deposit of $2,000 to cover the City's
cost for reviewing the study. However, over the last year staff has been
tracking the actual cost, and it turns out its more like $3,700 rather than
$2,000, requiring staff to go back to the developer for more money toward
the end of the approval process. Staff is requesting the Council approve the
increase to the deposit to $3,700, which is closer to the average cost to
perform the review. If approved, staff won't have to ask the developer for
more money. Responding to question as to why this was a public hearing,
he said because it was a fee increase.
Ms. Klassen added it was the same nexus as the affordable housing, stating
it was a development impact fee.
Councilman Jonathan asked if it was a deposit or a fee and what would
happen if the review went quickly only costing $2,500.
Mr. Greenwood explained it was a fee deposit, representing the cost of the
review, and the City would reimburse the developer the difference if the cost
was less than the deposit.
Mayor Weber declared the public hearing open and invited public testimony
FAVORING or OPPOSING this matter. With no public testimony offered, she
declared the public hearing closed.
Mayor Pro Tern Spiegel moved to waive further reading and adopt Resolution
No. 2015 - 28, increasing the Water Quality Management Plan (WQMP) Review Deposit
amount from $2,000 to $3,700. Motion was seconded by Harnik and carried by a 4-0 vote
(AYES: Harnik, Jonathan, Spiegel, and Weber; NOES: None; ABSENT: Tanner).
XVIII. REPORTS AND REMARKS
A. CITY MANAGER
City Manager Meeting Summaries for the Period of March 30 -
April 10, 2015.
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Mr. Wohlmuth noted the printed report provided in the agenda
packets and offered to answer questions.
With City Council concurrence, the Meeting Summaries were received and filed.
2. City General Fund Loans to Former Redevelopment Agency
Mr. Wohlmuth reported that an important milestone for the City
occurred: on February 23, 2015, the Oversight Board of the
Successor Agency to the Palm Desert Redevelopment Agency
unanimously approved a resolution to re-establish the City loans to
the former Redevelopment Agency. He explained they were loans
the City made to the Redevelopment Agency (RDA) for various
projects and exceeded $22 million in total. On April 10, 2015, the City
received the State Department of Finance's determination that
approved the Oversight Board's resolution, thereby making the loans
an enforceable obligation of the Successor Agency. Therefore, the
City will receive its $22 million back. Upon inquiry, he said the money
will go to the City's General Fund, because that was where the loans
were originated to the RDA when they were made. He went on to say
that repayment of the City loans will be contingent upon final
repayment of the SERAF (Supplemental Education Revenue
Augmentation Fund) loan to the Housing Authority and will be based
on calculations set forth in the Redevelopment Dissolution Law.
Reimbursement will require approval of future ROPS (Recognized
Obligation Payment Schedule) requests. He said pending any
unforeseen changes to the current law, staff anticipates payback of
the City loans to be within 5-6 years. He added that 80% of the $22
million in loans will go back to the General Fund, with 20% of that
amount going into the Housing Asset Fund under requirements of the
current law, and that 20% can be used for Affordable Housing. In
further response, he said repayment in 5-6 years was based on
current trends of assessed valuation and the amount that will be
available in the trust fund.
Councilmembers agreed that this was very good news.
3. Introduction of New Fire Department Battalion Chief John Cortez
Mr. Wohlmuth was pleased to introduce the City's new Battalion
Chief, John Cortez, who replaces former Battalion Chief
Casey Hartman who'd moved on to bigger and better things. He
noted that the City is still also served by its other Battalion Chief,
Rick Griggs.
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Chief Cortez appreciated the introduction and said he was glad to be
back working in the City of Palm Desert.
B. CITY ATTORNEY
None
C. CITY CLERK
None
D. PUBLIC SAFETY
1. Fire Department
Please see introduction of new Battalion Chief John Cortez under
Section XVIII - Reports and Remarks, City Manager, Item A(3),
above.
2. Police Department
None
E. MAYOR AND MEMBERS OF THE CITY COUNCIL
1. Mayor's Meeting Summaries Report for the Period of March 30 -
April 12, 2015.
Mayor Weber referred to the printed report in the agenda packets and
offered to answer questions.
With City Council concurrence, the Mayor's Meeting Summaries Report was
received and filed.
Councilmember Harnik noted that along with Mayor Weber, she and
the other Councilmembers attended the Senior Inspiration Awards on
Friday, April 10, where one of the City's COPS (Citizens On Patrol)
was honored, Capt. Saul Roisentul. She said it was a great event
with almost 600 people in attendance, and everyone was very proud
of Saul.
Mayor Weber added that Councilmember Harnik also filled in for one
of the emcees at that event and did an astounding job.
2. Council Requests for Action/Committee Reports/Comments:
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a) Water Conservation — Mayor Pro Tern Spiegel commented that
according to the newspaper, Palm Springs International Airport had
turned off its large fountain, which led him to ask if the City was going
to shut off its fountain in the Civic Center Park lake.
Mr. Wohlmuth answered that the fountain in the middle of the lake in
Civic Center Park is used to improve water quality there. Water in the
lake is stored for its ultimate use of being pumped into the irrigation
system throughout the Park. Therefore, the pump/fountain feature is
an integral part of the entire system.
b) Plastic Bag Regulation — Councilman Jonathan observed that
Councilmembers have been receiving a lot of correspondence and
direct comments in opposition to the Plastic Bag Ordinance. He
noted that none of the City's immediate neighboring cities have such
an ordinance in place — only Palm Springs and Indio do.
Consequently, it puts Palm Desert's retailers at a competitive
disadvantage. Further, he said it was beginning to appear that
recyclable plastic bags are perhaps the most environmentally friendly
and healthiest way to transport food from the stores to the homes. He
noted that the State's ban has been temporarily rescinded, pending
legal challenges, and he felt the City needed to consider a suspension
or moratorium of its Plastic Bag Ordinance subject to resolution of the
State's ban, and that it needed to give further consideration of
whether it's the best thing for Palm Desert. He asked that this be
placed on the next City Council Meeting Agenda.
In response to Mayor Pro Tern Spiegel's remark about the person
outside Jensen's Market who was handing out reusable Palm Desert
bags recently, Mr. Wohlmuth responded that effort was part of the
City's robust education program prior to implementation of the plastic
bag ban. He said that program included going out to the stores,
telling people why Palm Desert instituted the ban, and providing
residents with a free reusable bag. He added that nearly all of the
bags acquired for this program have been distributed, and the
gentleman was one of the City's consultants for commercial recycling.
Mayor Weber said she'd also noticed the sign in front of Jensen's that
said customers should be sure and bring reusable bags to their store
because of Palm Desert's "mandate." She was concerned that this
sounded rather harsh.
Councilman Jonathan observed that there's also been a lot of
misinformation from some of the retailers about the fee being
charged, as well.
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Upon inquiry, Mr. Wohlmuth confirmed that staff will place an item on
the next Council Meeting agenda.
c) San Pablo Pet Store — Councilman Jonathan referred to the letter
he and his colleagues received recently, alleging the possibility of
legal violations by a pet store on San Pablo Avenue (i.e., "puppy mill"
suppliers). He was certain that his colleagues and he were all
justifiably concerned about the well being of the community's pets and
asked if City staff was aware of the business and its practices, and if
there was a way to verify that they were operating within the laws
governing that type of business.
Mr. Wohlmuth said staff is aware of the business that's been in the
location approximately 18 months; however, he, personally, was not
totally familiar with all the laws regulating the sale of puppies.
Councilman Jonathan said as long as the business is licensed and
nothing comes to the City's attention that constitutes a violation, they
have a right to do business; and the people who don't like it have a
right not to trade with them.
Mr. Wohlmuth reiterated that in terms of compliance with the law, he
was not versed in such regulations regarding puppies but offered that
staff could take a look.
Councilman Jonathan stated he didn't want to learn that there was a
business in the City that breaks the law regarding puppy mills — it was
a cruel practice. He asked staff to give consideration as to whether
the City has any authority to gain verification.
Mr. Hargreaves said staff could research the law in that area and work
cooperatively to find out if any violations exist.
Mayor Weber added that it may also be good to verify statements
made in the letter, as she felt they may not all be exactly truthful.
Mr. Wohlmuth agreed to have staff look into the matter.
d) Coachella Valley Economic Partnership — Councilmember Harnik
reported that she attended CVEP's recent meeting and said that the
Interim President & CEO Joe Wallace is still taking steps and getting
the organization to be very lean and effective. She added that they're
still achieving some great results with local businesses, along with
attracting more businesses for the Incubator Center.
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e) Riverside County Scholars Award Night — Councilmember Harnik
said she and Councilman Tanner attended the event last week at the
Riverside Convention Center. She explained that depending on the
population of each high school, between one and three seniors
who've excelled were honored. She noted that Palm Desert High
School had three honorees. This was followed by their going through
the room to have seniors stand up according to their GPA, then
according to their performance on SATs and ACTs. Then they
announced the 10 top scholars in the County, of which a member of
Palm Desert's Youth Committee, Kaylie Chen, was one of those being
recognized.
Mayor Weber noted that Ms. Chen was also honored yesterday
morning as Senior of the Month at the Optimist Club Breakfast and
is an outstanding youth representative.
3. Council Consideration of Travel Requests and Reports:
None
XIX. ADJOURNMENT
With City Council concurrence, Mayor Weber adjourned the meeting at 5:51 p.m.
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
SUSAN MARIE WEBER, MAYOR
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