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HomeMy WebLinkAboutPrelim Minutes - City 05/28/2015PRELIMINARY MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, MAY 28, 2015 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 CALL TO ORDER - 3:00 P.M. Mayor Weber convened the meeting at 3:16 p.m. II. ROLL CALL Present- Councilmember Jan C. Harnik Councilman Sabby Jonathan Mayor Pro Tern Robert A. Spiegel Councilman Van G. Tanner Mayor Susan Marie Weber Also Present: John M. Wohlmuth, City Manager 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/Cal Fire Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Department Grace L. Mendoza, Deputy City Clerk III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS) MR. BRIAN TORSNEY, SR., Colebridge Street, Palm Desert, wished to register his opposition to the City Council's proposal for Burrtec Waste & Recycling Services to charge for solid waste services via tax roll billing effective July 1, 2015. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 Mayor Weber advised Mr. Torsney that since the item to which he was referring would be considered by the City Council later on the agenda under Section XVII - Public Hearings, Item B, his comments would be deferred until that point of the meeting. Mr. Torsney agreed to wait until that time. IV. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): Number of potential cases: 2 With City Council concurrence, Mayor Weber adjourned the meeting to Closed Session at 3:20 p.m. She reconvened the meeting at 4:05 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 - Councilman Sabby Jonathan VII. INVOCATION - Councilman Van G. Tanner VIII. ORAL COMMUNICATIONS - B MS. JEANNE AKIN, 73910 El Paseo, Palm Desert, addressed the City Council about a parking lot problem adjacent to her property, noting that she'd been both a property and business owner on the street for some 40 years. She's been trying to work with City staff for well over a year regarding trees that were planted in the President's Plaza parking lot when the City renovated it, and in the process, totally crushed the sewer lines to her building, which now keep backing up. She noted that Ms. Sonia Campbell has been one of her tenants for 28+ years and is well aware of her outreach to the City on this matter — Code Compliance Officer Terfehr and Senior Management Analyst Stendell, who both said it was her responsibility. Further, she'd spent well over $5,000 cutting down trees in the parking area to stop the advance of their aggressive roots; they keep growing back up, it's a trip hazard, adding that she's fallen several times because of them and was at a loss for what to do now. She went onto say that someone keeps patching over the asphalt there when it buckles, yet was told that she needed to cut into the area, install a whole new sewer line, and re -pave it at her expense. She invited City Council to come and meet at her property any time to see the situation for themselves; it was difficult 2 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 for people without a disability to negotiate, much less for anyone who had one, and was very dangerous. She said it was fortunate that there haven't been a major injury and resulting lawsuit. Besides taking up the whole parking lot, there was nothing she could do, in addition to not being able to put anything down the sewer lines but water. She again offered to host City Councilmembers at her property to see the situation. Lastly, she was very concerned with the balloting coming up in President's Plaza, asking why she would want to get involved with it now when it hasn't been taken care of for years, reiterating that it was the City that planted the problematic trees when it redesigned the lot to provide angled parking. Upon question, Mr. Wohlmuth replied that Initiation of Proceedings to Form the President's Plaza Property and Business Improvement District (PBID) is on today's agenda under Section XIV - New Business, Item A. He went on to recall for Council that in 2013 balloting on the District failed, and while there were some residual funds in the District from previous years' assessments, the City was barely able to continue paying for the lighting, trash service, and water there with those funds. Therefore, the first step was to consider re-forming the PBID by initiating property - owner balloting. A favorable vote at the end of this process would result in the City being able to proceed with plans it's developed for the parking lot — renovating it entirely, either with a different style or an improved asphalt lot. He reiterated that approval of the PBID is first required in order to expend City funds there. Further responding, he said over the past year City staff has conducted educational community meetings with property owners and merchants in the area of this District. MS. PRUDENCE OUTRY, a.k.a. Nikohl Vandel, Palm Springs, CA, quoted a "Talking Points Memo," which related that a new study from Princeton indicated bad news for the American Democracy — namely, that it no longer exists. Using data from over 1,800 policy initiatives from 1981 - 2002, it was concluded that rich, well- connected individuals on the political scene now steer direction of the country, regardless of, and even against, the will of the majority of the voters. She went on to say from her own perspective that bullies use an element of leverage without consent of the other, outside of common courtesy. She felt that Mayor Weber, in addition to Councilmembers before her, were all very capable of presiding over these meetings. There was no excuse for an interruption by Councilmembers except to ask questions, for which she believed they had electronic buttons to indicate this. The important part of these meetings was to share information and make decisions that everyone, by and large, consented to. She noted that even though she doesn't put in a speaker request for every agenda item just in case she has something to offer, and the Mayor not soliciting any further public comment before a vote, should not prevent her having the right to do so. She recounted her experience at the last City Council Meeting where she spoke to an agenda item but was interrupted and silenced when, during those comments, she referred back to a previous item on that agenda to provide valuable suggestions on it. She didn't care how uncomfortable Councilmembers were, they shouldn't run for office in order to be bullies. If they have a question or need to interrupt, she was sure the Mayor would accommodate them. K PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 MR. ROB BALLEW, Executive Director, Family YMCA of the Desert, Palm Desert, thanked City Council for allowing the Swim To Win Foundation to come in with 10 Olympians on Saturday, May 23, to utilize the best pool in the nation — the Palm Desert Aquatic Center — where a total of 1,090 children and family members learned about water safety and how to swim. He said it was a great day and also expressed appreciation to the Councilmembers who were present and for their support of swimming. As an aside, he said three children here in the Coachella Valley nearly lost their lives to drowning that very same day; and it was the YMCA's and Swim To Win's hope to teach every child here how to swim free of charge, if need be. Mayor Weber thanked Mr. Ballew and added that Councilmembers who were there were also very appreciative of the effort. Councilmember Harnik said she was amazed to watch the event with the accomplished Olympians, which by her count had earned some 37 Olympic medals. Further, to watch them with the four- and five -year -old children, who had no idea who was teaching them to swim, was very sweet and very generous on their part; it was a very special day. She thanked Mr. Ballew for his contribution to this worthwhile event. Councilman Tanner agreed and encouraged keeping this effort going well into the future. He said seeing the smiles on the kids' faces when they got into the water was priceless. IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS A. PRESENTATION OF PROCLAMATION DECLARING MAY 2015 AS "OFFICER STEVE RIVERA AND K-9 VAN SNAPP MONTH" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Weber presented the proclamation to Officer Rivera and a water -bottle dog toy to K-9 Van Snapp, which he enjoyed heartily during the presentation. Officer Rivera expressed sincere gratitude forthe recognition and said it had been both an honor and a blessing to have been Palm Desert's first dedicated K-9 Officer. He thanked the City, Sheriff's Administration, and his fellow officers for this wonderful opportunity. (City Council, staff, and audience members provided a standing ovation on their way out of the Chamber.) 0 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 B. PRESENTATION OF PROCLAMATION DECLARING THURSDAY, MAY 28, 2015, AS "MARIA A. MALTER DAY" IN THE CITY OF PALM DESERT. On behalf of the entire City Council, Mayor Weber presented the proclamation to Ms. Malter, recognizing her generous contribution of $10,000 toward the City's next K-9. Ms. Malter graciously accepted the honor and recounted some of her experiences with numerous exotic animals throughout the world. C. PRESENTATION TO THE CITY COUNCIL BY BRYAN CLYMER OF BEN CLYMER'S THE BODY SHOP, IN RECOGNITION OF THE MARCH 2O15 BENEVOLENCE CAR GIVE AWAY EVENT IN PALM DESERT. Mr. Clymer appreciated the opportunity to be before Council today. He came from a small family without a father, yet worked hard at fixing cars. Along the way, they found a way to reach out to others who also struggled. One of the ways they did it is by partnering with some insurance companies that donate total -loss vehicles to them as a family, and at each of their five body shops, people who work there volunteer their time to rebuild those cars, along with vendors donating both parts and paint for them. He added that they've only been here in the desert for about 18 months and feel very welcome, for which he was very grateful. He showed a brief video presentation of their March 2015 Car Giveaway, from the car being in the wrecking yard to its presentation to a deserving individual, thanking Mayor Weber for her presence at the ceremony that day. He related that the car donated in this instance was a theft recovery and deemed a total loss from damage it sustained. He again thanked the City for its support of their project and let Council know that they anticipate doing this each year in late February or early March. Additionally, this yearthey were able to give away a second car in April, which they weren't expecting to do, but after being approached and offered another car from another insurance company, they were able to put it together. Further, the two donations this year have been to Palm Desert residents in order to give back and support their business's new hometown. He looked forward to again inviting Councilmembers to next year's giveaway, their way of giving back and making the community stronger. Mayor Weber said she'd asked Mr. Clymer specifically to make today's presentation because Palm Desert is so focused on and grateful for its strong volunteerism, including all of them serving the City's Committees and Commissions, as well as those out in the public. She was especially impressed by not only Mr. Clymer's donation, but also his staff that volunteers all their time to this worthy project that sets a wonderful precedence for everyone. 5 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 X. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of May 14, 2015. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrants Dated 4/30/2015, 5/6/2015, 5/7/2015, and 5/8/2015. Rec: Approve as presented. C. CLAIMS AND DEMANDS AGAINST CITY/HOUSING TREASURIES - Warrants Dated 4/20/2015-4/24/2015, 4/24/2015, and 5/1/2015 (Joint Consideration with the Palm Desert Housing Authority). Rec: Approve as presented. D. COMPLIANCE ANALYSIS AND INVESTMENT REPORTS for the Month of March 2015 (Joint Consideration with the Successor Agency to the Palm Desert Redevelopment Agency). Rec: Receive and file. E. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Desert Oil, 72300 Highway 111, Palm Desert. Rec: Receive and file. F. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by International Wine, 77900 Avenue of the States, Palm Desert. Rec: Receive and file. G. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Louise's Pantry of Palm Desert, 73155 Highway 111, Suite B, Palm Desert. Rec: Receive and file. H. APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE by Ralphs 27, 74884 Country Club Drive, Palm Desert. Rec: Receive and file. C PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 CITY COMMITTEE AND COMMISSION MEETING MINUTES 1. Art In Public Places Commission Meeting of March 11, 2015. 2. Audit, Investment & Finance Committee Meeting of March 24, 2015. 3. Citizens' Sustainability Committee Meeting of February 23, 2015. 4. Marketing Committee Meeting of March 24, 2015. 5. Youth Committee Meeting of April 6, 2015. Rec: Receive and file. J. REQUEST FOR ADOPTION of Resolutions, Setting Forth Findings and Authorizing the Destruction of Paper Files from the Department of Building & Safety that Have Been Digitally Imaged (October, November, and December 2014 Records). Rec: Waive further reading and adopt Resolution Nos.: 1) 2015 - 38 - October 2014 Records; 2) 2015 - 39 - November 2014 Records; 3) 2015 - 40 - December 2014 Records. K. REQUEST FOR AUTHORIZATION to Streamline the Use of Various Vendors and Qualified Service Providers by Approving the Abatement Services Vendors List, and Granting Exception to Bidding Requirements as Provided in Palm Desert Municipal Code Section 3.32.090 for Fiscal Year 2015-2016. Rec: By Minute Motion, approve and authorize: 1) Staff to use vendors on the Abatement Services Vendors List attached to the accompanying staff report for this item; 2) exception to Bidding Requirements as provided for by Section 3.32.090 of the Palm Desert Municipal Code for FY 2015-2016. L. REQUEST FOR EXTENSION of Contract for Banking Services with MUFG Union Bank, N.A., for an Additional Five Years and Authorize the Director of Finance/City Treasurer to Execute Same (Contract No. C29641A). Rec: By Minute Motion: 1) Approve an extension of the Banking Services Contract with MUFG Union Bank, N.A., for five (5) additional years with an additional 4.5% discount (Option 1 from the accompanying staff report); 2) authorize the Director of Finance/City Treasurer to execute the contract extension. INA PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 M. REQUEST FOR APPROVAL of Amendment No. 1 to Contract for Processing of Parking Citations, Renewing the Agreement with Judicial Data Services for the Period of July 1, 2015 - June 30, 2016 (Contract No. C33841). Rec: By Minute Motion: 1) Approve Amendment No. 1 to the subject contract with Judicial Data Services, renewing the Processing of Parking Citations Agreement for the period of July 1, 2015 - June 30, 2016; 2) authorize Mayor to execute Amendment No. 1 —funds have been requested in the FY 2015-2016 Budget, Account No. 110-4470-412-3090. N. REQUEST FOR AUTHORIZATION of the Purchase of a Type P Traffic Signal Controller Cabinet Assembly. Rec: By Minute Motion: 1) Authorize purchase of a complete Traffic Signal Controller Cabinet Assembly from Econolite Group, Inc., Anaheim, California, in the amount of $23,047.20; 2) appropriate $20,000 from Unobligated General Fund to Account No. 110-4250-433-3325 forthis purpose — balance is available in Account No. 110-4250-433-3325 - Traffic Safety R/M Signals. O. REQUEST FOR AUTHORIZATION to Purchase Two Traffic Signal Controller Cabinet Assemblies for Two Capital Improvement Projects. Rec: By Minute Motion, authorize purchase of two (2) complete Traffic Signal Controller Cabinet Assemblies from Econolite Group, Inc., Anaheim, California, in the amount of $49,321.44 — funding is available in Capital Project Reserve Funds, Account No. 400-4438-433-4001, and in Measure "A" Funds, Account No. 213-4383-433-4001. P. REQUEST FOR ACCEPTANCE OF WORK for Contract No. C33860 — Civic Center Shade Structure Replacement Project (Project No. 725-15) (Creative Contractors Corp, Rancho Santa Margarita, 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. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 Q. REQUEST FOR AUTHORIZATION to Release Security for Tract No. 31020 and Accept a One-year Maintenance Bond (Knightswood Ventures, LLC, Applicant). Rec: By Minute Motion, authorize the City Clerk to release security on file for Tract No. 31020 and accept a One-year Maintenance Bond. Upon a motion by Harnik, second by Spiegel, and 5-0 vote of the City Council (AYES: Harnik, Jonathan, Spiegel, Tanner, and Weber; NOES: None), the Consent Calendar was approved as presented. XI. CONSENT ITEMS HELD OVER None XII. RESOLUTIONS A. RESOLUTION NO. 2015 - 41 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 91-1 (INDIAN RIDGE) FOR FISCAL YEAR 2015-2016. Mr. Gibson explained this was a routine matter where the County requires the City to adopt a resolution in order to place the levy of a special tax on the tax roll. Mayor Pro Tern Spiegel moved to waive further reading and adopt Resolution No. 2015 - 41. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Spiegel, Tanner, and Weber; NOES: None). B. RESOLUTION NO. 2015 - 42 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR FISCAL YEAR 2015-2016. Mr. Gibson stated the County requires the City to adopt a resolution in order to place the levy of a special tax on the tax roll. Mayor Pro Tern Spiegel moved to waive further reading and adopt Resolution No. 2015 - 42. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Spiegel, Tanner, and Weber; NOES: None). K PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 C. RESOLUTION NO. 2015 - 43 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADJUSTING THE RESIDENT GOLF RATE AT THE DESERT WILLOW GOLF RESORT BASED ON CONSUMER PRICE INDEX (CPI). Mr. Alvarez stated that in 2013 the Desert Willow resident golf rate was adjusted from $45.00 to $48.00 per round. Also in 2013, the City Council directed staff to bring forward CPI (Consumer Price Index) adjustments to the golf rate only when it reached whole dollar amounts. Today the recommendation is to increase the resident golf rate from $48.00 to $49.00, which is consistent with the City's policy. Responding to question, he said upon the opening of the golf course in 1997, the rate was established at $45.00, and what is being proposed today is $49.00. Councilman Tanner stated the CPI has increased considerably and it was a great consideration. Mayor Pro Tern Spiegel added that the increase was fair. Mayor Pro Tern Spiegel moved to waive further reading and adopt Resolution No. 2015 - 43. Motion was seconded by Tanner. Councilman Jonathan said the Council received input that Desert Willowwas running a special, whereas the regular rate is $95.00 per round and the special is $49.50. The sender of the email questioned why there was no resident discount. He said holders of a Resident Card deserved to have a discount as they do with normal rounds along with specials, stating it was a benefit the City can and should provide for its residents. Perhaps it was something that could be combined with today's recommendation, but if not, he hoped it can be investigated. Secondly, price increases always draws reactions, and he understood past Council's have asked that staff wait until the cumulative increase is $1.00. However, he wondered if that should be changed to $2.00 to avoid seeing frequent increases, and therefore, offered it as a consideration. Mayor Weber called for the vote and it carried by a 3-2 vote (AYES: Harnik, Spiegel, and Tanner; NOES: Jonathan and Weber). XIII. ORDINANCES A. For Introduction: None B. For Adoption: None 10 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 XIV. NEW BUSINESS A. CONSIDERATION OF THE INITIATION OF PROCEEDINGS FOR THE FORMATION OF THE PRESIDENT'S PLAZA I PROPERTY AND BUSINESS IMPROVEMENT DISTRICT. Senior Management Analyst Ryan Stendell stated this item was in reference to earlier discussions under Oral Communications. This item is to bring the Business Improvement District (BID) in the President's Plaza back on line. In June 2013, the property voted down the funding mechanism for the City to maintain the parking lot. Staff has been hosting community meetings throughout the past period that it's been dormant, trying to engage property owners in understanding the issues and finding out a way to move forward. Staff is proposing this as a temporary BID, understanding the General Plan Committee is studying the commercial core parking and what appropriate parking lot will be needed in that area. The intent is to get the BID back on line so that the City can fund trash and lighting services, landscaping, and minor maintenance to the asphalt. Hopefully in January 2016, the General Plan will be concluded and staff will start to understand what will be needed in the parking lot to move forward. Tied in with this discussion are bonding agreements with funds set aside for the rehabilitation of the President's Plaza parking area. He said this was a big and broad discussion, but tonight's action is to allow the initiation process to move forward. Staff is confident it has enough support from the property owners for the BID to be approved. Some of the misconceptions are that property owners believed this was a City -owned parking lot, which has been treated that way over the years. Unfortunately, it's not so, because this is private property maintained by the City working in the capacity of property manager. The City takes in money on the tax rolls, but those funds can only be used for X, Y, and Z; the plan is very specific. Again, the intent is to establish a temporary BID for the next three to five years until the final plan of President's Plaza is known. Responding to question, he said staff is confident the BID will pass this time around because property owners have been informed on what will happen if not approved. If not approved, it will leave the parking area very crippled with each property owner taking care of their own trash and maintenance and their slice of the parking lot. Responding to question about notification, he said staff has sent out letters with request for meetings, with about 12 of the 42 property owners attending. Those that do show up are responding and are engaged in the process. Councilman Tanner asked about the participation in 2013 when this District was not approved to be formed. Mr. Stendell responded participation in 2013 was very low, and it was now better, but it was still not great. 11 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 Councilman Tanner noted Ms. Jeanne Akin, who spoke under Oral Communications, indicated she had not been contacted. Mr. Stendell agreed to make contact with Ms. Akin's and set up a meeting with her. Councilman Tanner encouraged staff and everyone else in the Plaza to put their nose to the grindstone to get the District passed. Councilman Jonathan remarked he didn't have the history with this property, but typically a shared parking lot in a retail or office center is usually the responsibility of the owners where there is an association formed to manage the common areas, or there are parking easements or shared parking agreements. He asked why the exception here and why is the City involved with private property. Mr. Stendelll explained there is an easement in the parking area, and the City has been involved with President's Plaza since the beginning. The initial parking lot constructed was thinner, which has been expanded over the years. The City has been involved because that parking area is important to the commercial code, which is why it's trying to fosterthis BID to a resolution. In 2013 when the BID was denied, staff sent out a letter with options, one of which was to create its own commercial HOA, but property owners were not interested in taking it on, because it requires100% participation. Therefore, the public/private partnership is kinda the only way this will work. Councilman Jonathan said he understood staff to say this shared parking lot was important to the City, from the City's standpoint, and secondly, if the City didn't step in to facilitate the formation of the District, it will likely fall into greater disrepair. Mr. Stendell answered yes. Councilmember Harnik recalled one of the issues was that businesses and real estate owners didn't understand what had been going on all those years and thought this was a new tax not realizing they had been part of this District. Further, the City couldn't depend or rely that each individual property owner will maintain and fix their parking area. Therefore, it was nice that the City was coordinating the effort, however, she was concerned about the necessary outreach required to get a positive outcome, because communication and education were needed here. Mr. Stendell said he has been trying to engage every property owner he knew to get the message out to others, stating the deadline was July 9. He encouraged everyone who had any partners in that area to talk to people about this. 12 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 Councilmember Harnik suggested going door to door. Mr. Stendell agreed, stating staff was already doing that. Mayor Weber asked for further clarification on the formation of an HOA. Mr. Stendell explained that if the property owners wanted to step away from the City by creating their own mechanism, 100% participation by the property owners was required. Mayor Pro Tern Spiegel pointed out that the BID only required a 51 % majority vote. Mayor Pro Tern Spiegel moved to waive further reading and adopt: 1) Resolution No. 2015 - 44, initiating proceedings for the formation of the President's Plaza I Property and Business Improvement District (PBID), and the levy and collection of assessments for Fiscal Year 2015-2016, pursuant to provisions of Part 7 of Division 18 of the California Streets and Highways Code; 2) Resolution No. 2015 - 45, describing proposed improvements and services, and approving the Management District Plan and preliminarily approving the Engineer's Report for FY 2015-2016 regarding the proposed formation/renewal of the President's Plaza I Business Improvement District, pursuant to provisions of Part 7 of Division 18 of the California Streets and Highways Code; 3)Resolution No. 2015 - 46, declaring City's intention to form the President's Plaza I Business Improvement District, and to levy and collect assessments therein, and calling for an Assessment Ballot Proceeding to submit to the qualified property owners within such district the question of levying assessments for such district, commencing FY 2015-2016. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Spiegel, Tanner, and Weber; NOES: None). B. REQUEST FOR APPROVAL OF A ONE-YEAR AGREEMENT WITH KNORR SYSTEMS, INC., IN THE AMOUNT OF $83,596 FOR MECHANICAL MAINTENANCE AND CHEMICAL ACQUISITION AT THE PALM DESERT AQUATIC CENTER FOR FISCAL YEAR 2015-2016 (CONTRACT NO. C34280). Senior Management Analyst Ryan Stendell stated that on Friday, May 15, 2015, staff opened bids for this project, which is the annual mechanical maintenance of the Aquatic Center and chemical acquisition. Two bids were received, one from Water Line Technologies, Inc., Santa Ana, California, and Knorr Systems, Inc., from Santa Ana, California. He said it was a very tight bid with only a difference of $3,600 between the two. He noted the City has been working with Knorr System and staff is very happy with their work. Therefore, staff recommended award of contract to Knorr Systems. Responding to question, he said there were no local vendors that had the knowledge or man power to handle the system at the Aquatic Center. 13 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 Mayor Pro Tern Spiegel moved to, by Minute Motion: 1) Approve the subject one- year agreement with Knorr Systems, Inc., Santa Ana, California, in the amount of $83,596 for Mechanical Maintenance Services and Chemical Acquisition at the Palm Desert Aquatic Center; 2) authorize additional repair work and services at the specified contract amount, not to exceed 20% of contract ($16,700); 3) authorize Mayor to execute the contract — funds are available in Account Nos. 242-4549-4211100 and 242-4549-4331100 in the proposed FY 2015-2016 Budget. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Spiegel, Tanner, and Weber; NOES: None). C. REQUEST FOR REVIEW AND APPROVAL OF THE OUTSIDE AGENCY FUNDING COMMITTEE'S RECOMMENDATIONS FOR CHARITABLE CONTRIBUTIONS - FISCAL YEAR 2015-2016. Mr. Gibson stated the Committee met on May 13, 2015, and the staff report outlines it's recommendation. He noted two schools were denied due to lack of paperwork and not following through with the procedures required for the agreement. The City Manager and staff attempted to get their application through, but unfortunately their efforts were unsuccessful. Responding to question, he agreed this was the first time it had ever happened. Councilman Jonathan pointed out he noticed the Committee recommended awarding $167,000, but not utilizing the full budgeted amount of $190,000. Mr. Gibson explained that if the high school and Washington Charter Elementary follow through on their paperwork, it will bring the total up. He said the Committee felt others weren't qualified and two applications arrived late, so the Committee decided to adhere to the policy. Councilman Jonathan questioned why the Committee decided not to disburse the remaining funds. Mr. Gibson responded the high school could still submit their application, because technically they had until June 30 to resolve the problem. If they do, staff will return to the City Council with a recommendation to award to the high school. Councilmember Harnik stated the high school didn't resolve their problems from the previous year. She explained that prior to serving on the Council, she was always making the grant request and City staff assisted in getting the application through, so she was sorry to hear the high school was not getting the award. Additionally, in reference to the request by ACT for Multiple Sclerosis, the staff report indicates the Committee discussed the role of local agencies that are part of national and global organizations. However, ACT is an organization that was started in Palm Desert by Gloria Greer when her daughter was diagnosed with the disease. Although ACT didn't look to find a cure for the disease, they do try to provide quality of life, 14 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 stating young people are being diagnosed with Multiple Sclerosis. It used to be something that only happened to the elderly, but people in their 20's and 30's are now being diagnosed. Given there are excess funds, she would like to see ACT be given some of those funds. She understood the Committee didn't always award the full amount requested, which she appreciated, but she would like consideration of award to ACT for Multiple Sclerosis. Mayor Weber stated that because the Multiple Sclerosis organization is national, the Committee likes to look at local ones, she asked Mr. Gibson if that was looked at. Mr. Gibson recalled the Committee recommended staff return with a policy for dealing with agencies such as this, and he had promised that by October he would return with a report and policy dealing with these types of organizations, but right now they are basically excluded. He agreed to revisit this matter in October. Councilmember Harnik stated this agency was not in any shape or form a national organization, adding that it was started in Palm Desert. Further, if the Committee uses this loose thinking, then it can look at Friends of the Desert Mountains, which can serve across the nation, including Learning in Retirement, however, that request was denied. There is also Loving All Animals ASPCA, which is a larger umbrella type of agency. She reiterated ACT is a local organization started by someone who lives in Palm Desert. Mr. Gibson stated if Council wanted to make a motion to award to ACT, it can indicate that funds should only be used locally in Palm Desert and specify it as part of the agreement. Mr. Wohlmuth recommended changing the policyto addressthe national and global organizations and come up with guidelines for local organizations. Secondly, once the policy is modified, it can be taken back to the Charitable Contributions Committee to consider both the policy and how it amends the request for the remaining $23,000, and at that point, bring it back to the City Council. Responding to question, he said staff was suggesting that Council approve today's recommendation and direct staff to review the policy, change the guidelines as necessary, and bring back a recommendation for the remainder of the funds. Further responding, he said it can all be done by the end of summer. Mr. Gibson noted he would be on vacation, but agreed to get it done at the next earliest available meeting. Councilmember Harnik moved to, by Minute Motion: 1) Approve of the award of Charitable Contributions totaling $156,174 to the agencies listed in the accompanying staff report, with associated restrictions and conditions; 2) authorize the Mayor to execute 15 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 agreements with said agencies for awarded funding; 3) direct staff to look at the balance of the currently unallocated Outside Agency funds, specifically for a contribution to local organization ACT for Multiple Sclerosis, at the first available Council Meeting. Motion was seconded by Tanner. Responding to question, Mr. Wohlmuth explained staff was closing out Fiscal Year 2014-2015, and what Councilmember Harnik was suggesting and if the Council desires, is to open up the guidelines for discussion. Historically, the Charitable Contributions Committee has considered ACT as national. Councilmember Harnik has raised the concern that it's not as national as the Committee interprets the policy. Therefore, one will find that in prior years applications were not funded. Councilmember Harnik stated she was not suggesting a review of the policy, she was saying ACT was not a national organization but a local one. Adding it was not the Multiple Sclerosis organization, which is looking for a cure. Councilman Jonathan said the Committee has done its process and he wasn't comfortable selecting one of the applicants and saying they should be reconsidered. He preferred giving funds to the schools that were denied, to ACT, or any of the others, but waiting until the June deadline. However, he did have concerns, in that while everyone seemed to favor local organizations, the Committee recommended $4,600 for bombero supplies and equipment to Zihuatanejo and $1,500 to their scout troop for equipment, which is not local or even in this Country. He understood Zihuatanejo was Palm Desert's Sister Cities, but he had a problem with Palm Desert dollars going abroad, when there is a great demand here locally. Further, there is a grant to Palm Springs Branch of the National League of American Pen Women, which apparently gives scholarships to high school students. He would like the agreement to be contingent on the full $2,000 going to Palm Desert High School students. Mr. Gibson explained the League indicated the entire $2,000 would be used for Palm Desert students, which is clarified in the agreement. Mayor Weber believed it was one of the reasons, as discussed, to narrow the policy down to avoid these types of questions and instead focus on what would benefit the community. In response to question, Assistant City Attorney Bob Hargreaves recommended that Councilmembers who serve on one of the boards being awarded abstain from the whole action or pull the particular organizations and address them separately. Mayor Weber called for vote and the motion carried by a 3-1-1 vote (AYES: Harnik, Spiegel, and Tanner; NOES: Jonathan; ABSTAINING: Weber). 16 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 D. CONSIDERATION OF THE APPROVAL OF A COMPREHENSIVE WATER CONSERVATION STRATEGY BEING IMPLEMENTED DUE TO STATEWIDE MANDATORY WATER REDUCTIONS. Senior Management Analyst Ryan Stendell stated the staff report intends to convey the global look of how the City is treating the water mandates coming from the State. Staff's first recommendation is to affirm the City's policy as presented - split between reductions in parks, medians, and public spaces, with special consideration to both Civic Center Park and El Paseo given their importance to the community. Also indicating the City's communication and enforcement strategies. The second portion of the report indicates the turf reductions, which are identified as Phase I. Staff outlined what it believes are nonessential turf areas remaining around the Civic Center complex as identified in the maps attached to the staff report. Therefore, recommendation 2 and 3, are related to approving the turf reduction and the funding for it in the amount of $110,000 from the Unobligated General Fund. In summary, the presentation is a big picture at water conservation, stating the Council could direct staff to make a 36% water reduction. He noted staff picked bigger reductions in certain area and less in others hoping to arrive at that 36% reduction. He said all departments will be monitoring this closely, because Code, Planning, and Public Works have a role in this as it affects the entire City. He said staff is trying to be thoughtful, creative, and conscientious in its plan. Councilmember Harnik said Palm Desert has long been a leader in water conservation, so it makes it that much more difficult to find places to cut back. She thanked staff for all the work done with this issue, stating she knew there were discussions about having College of the Desert do horticulture testing in small areas, such as the north wing area, to see how it could work for us, and at one point even considered artificial turf. Councilman Jonathan pointed out the State mandate was actually a range of 25% to 36%, but the City of Palm Desert has been lumped into the 36% goal. He asked if that goal will be reexamined, because there were some flaws with the calculation that were not taken into consideration, such as residents and snow birds. Mr. Stendell agreed, stating this was moving on the fly, but Public Works has been monitoring the various water bills, and it's changing rapidly. At first, it was looking at the 36% reduction, but if affects the tiers. He said this was work in progress and staff was learning every day on how this is being implemented. In some cases, there is the potential that it may cut too much or not enough. Councilman Jonathan asked if there was an expectation that the City's goal may be reduced possibly to as low as 25%. 17 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 Mr. Stendell said he didn't think so, because last he heard from Coachella Valley Water District (CVWD) was that it was 36%. Mr. Wohlmuth explained the State mandate is 25%, so in order for the State to get there, they have allocated percentages to various water districts in different areas, and CVWD's request is 36%. If the water is measured off CVWD meter, it's 36%, but if it's off one's well, it's 25%, which is where the 25% to 36% range comes in. Therefore, the 36% requirement for Palm Desert won't change. Mr. Stendell pointed out the consumption is measured off CVWD's meter, because this issue is bigger than just the City of Palm Desert. However, the measuring stick is very vague and Palm Desert is trying to be reactive and conscientious going forward protecting the City's investment by not allowing its facilities to be unduly affected. Mayor Weber agreed, stating it wouldn't be logical to just allow plants to go dry, and she would imagine residents who have done their landscaping wouldn't want to let that happen. She asked staff to elaborate on the statement made under Enforcement where it states: "Enforcement of Chapters 8.20 and 8.70 be temporarily suspended." Mr. Stendell replied those chapters are about how Code Enforcement will deal with dormant turf as it relates to the consistency with the neighborhood clauses, however, the City will show leniency. Councilman Tanner stated that although the City will not be overseeding, Civic Center will continue to be watered, but it will be restricted. Mr. Stendell agreed, stating staff is only proposing to overseed approximately 17% of the City's controlled turf around the Civic Center Park and everything else will go dormant through the winter, but it will be watered. He said that's why the staff report included the portion about communication, because it's important to let users know the City is not just turning off the water. Councilman Tanner moved to, by Minute Motion: 1) Affirm staff's Comprehensive Water Conservation Policy to address the Statewide Mandatory Water Reductions; 2) authorize staff to bid Phase I Turf Reduction Projects located in the Civic Center Complex (Contract No. C34440); 3) appropriate $110,000 from the Unobligated General Fund to FY 2015-2016 Account No. 400-4614-4-3915-01 to fund Phase I Turf Reduction Projects. Motion was seconded by Harnik. Councilman Jonathan said it breaks his heart to see the park going brown, because it's an important resource for the City, a place of community where people take their family to be together, and a reason to motivate people to `FQ PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 convert their lawns to drought tolerant landscaping. When City parks grass turns brown and gets barren spots, people are not motivated to go there. He said the City provides amenities like misters and water play features so that people can use the parks in the summer, which past Council's have worked hard to develop. Additionally, the staff report indicates that implementation of these water conservation efforts during this drought period demonstrates leadership by the City of Palm Desert, which he respectfully disagreed. He said leadership has to be intelligent and creative solutions, not knee jerk reactions where people acts like sheep and lockstep with the Governor telling this desert area, which is a drought every year, what it needs to do. Further, whatever water is saved by Palm Desert was not going to have an impact on the State of California, because 80% of the water is used by agriculture and certainly very little of that is the desert. Even if water is cut to zero, it won't have a negligible impact on the State's water shortage. He said Palm Desert has been smart all along, offering Desert Willow as an example, which is drought tolerant and uses recycled water, and the City doesn't get credit for doing those things. The City's landscaping is already on a drip system, so Palm Desert has done its hard work. Therefore, why should residents be punished because someone in Sacramento has mandated to cut water consumption by 36%, not caring about what has already been done in the past or caring that 87% of the water is used by farmers; inefficiently for the most part. He believed it was wrong for the City to just react by sacrificing the resources it has worked hard to provide for its residents; more importantly, there are alternatives. He said there was extensive discussions at the Sustainability Committee, which he served as a liaison to the Council. One member who is a water expert, at the top of his head came up with a number of alternatives. He agreed the grass will get somewhat brown during the summer months, but the City will be able to reseed and it will be green for at least nine months out of the year, and the City will be able to save as much water. He suggested continuing the matter and direct staff to study alternatives before compromising these very important resources that it provides for its residents. Mayor Weber agreed the City has cut back more than anybody else in the State, because Palm Desert was a leader in that area. However, she disagreed the City was following lockstep, but instead is conscientiously making a decision on what to cut. Councilmember Harnik said the goal was to keep Civic Center Park in great shape, but having to lower the standard a little, knowing it will not look as expected. However, the City had to look in the mirror and acknowledge the 120 golf courses in the Valley. She believed it won't hurt Palm Desert to take out some lawn and putting drought tolerant landscaping where applicable. As stated by Mr. Stendell, the cuts will keep the Civic Center park in good shape, and it will continue to be an amenity, but it won't look as green. She knew staff is working at taking out more turf at Desert Willow, and the City 19 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 needs to continue working in those fashions, because one can see the millions of gallons of water saved. She believed many have already implemented conservation efforts at home and it should be continued. Of course she didn't want to see brown spot in the parks, but she believed the City could get through this and still do a good job. She agreed with staff that communication is critical, and if there are bad brown spots that are creating dust issues, the City should be contacted. In response to the comment made as to why the City should do what someone in Sacramento mandates, well the Governor has a lot of control and last she heard he was head of the State. Therefore, Palm Desert had to comply, because it didn't get to fight the Governor, as it found out with the elimination of redevelopment. Councilman Tanner stated this was about a few areas that are concentrated by participation like the soccer field at Hovely Park, which he understood, and now it will be eleven months out of the year. In the past, the City has never reseeded, but it did put sod in the goal box area. If the City continues to do it that way, it will require substantially more water. He sympathized with Councilman Jonathan because they both raised their kids on the soccer patch, but as far as he can recall, it's never been over -seeded. There have been issues with the goal box areas, but it's never been over -seeded, it's been watered. Mr. Stendell agreed, but with the timing of the soccer season it can't be over seeded effectively. He pointed out that these recommendations were being proposed as a one-year measure to accommodate this mandatory mandate. Councilmember Harnik stated she went out to the park three times a week to work out, so she understood this was not optimum. Councilman Tanner added the City of Palm Desert has taken pride over the last 30 years to ensure its parks are at their optimum, stating people moved to Palm Desert for its parks and schools. And for people to think that it will lose its parks in the course of one, two, or three years, that's not true, stating he's served on the Parks and Recreation Commission, Planning Commission, and now the City Council, so he wouldn't let that happen. Today, the Council's responsibility is to do its part in helping California with this drought situation. Therefore, he was in favor of the recommendation and see what happens in one year. Councilman Jonathan said he listened to comments made with great respect and reasonable minds can differ reasonably, and this is just one of those situations. He added there was no lack of respect for the work of staff and Mr. Stendell, as they have worked closely together on many projects. However, he disagreed with the recommendation, because if the City really wanted to have an impact on water reduction it can close down the Aquatic Center or Desert Willow, but it won't because they are economic generators 20 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 and high value resources to its residents, and he just happens to think the soccer park, Civic Center Park, misters and water play features for kids and residents are equally important and shouldn't be shut down. He believed in water reduction and the City taking a leadership position, but it should be done intelligently. Mayor Pro Tern Spiegel noted the misters have already been turned off and not being used. He said staff's recommendation is for one year and it should be given a try, because staff has worked on this. This mandate wasn't something that came out of the sky and staff said this is what were going to do. Therefore, it should be given a chance and if it doesn't work, the Council can take a different direction. Mayor Weber called for the vote and the motion carried by a 4-1 vote (AYES: Harnik, Spiegel, Tanner, and Weber; NOES: Jonathan). E. CONSIDERATION OF REQUEST BY MAYOR PRO TEM SPIEGEL, TO PROVIDE CITY -PAID BENEFITS TO CITY COUNCILMEMBERS AND DEPENDENTS. Mr. Wohlmuth stated that on May 14, 2015, Mayor Pro Tern Spiegel requested a Resolution on the Council agenda to allow the Council to consider Councilmembers getting health benefits and dependent benefits with the opt out provisions remaining for the rest of the Councilmembers. He said the Council has considered this a number of times, and the proposed Resolution accomplishes that request. The following individuals spoke in OPPOSITION to the proposed Resolution, and they are standing by their initial recommendation: MR. LEO SULLIVAN, Camino Arroyo, Palm Desert, served on the City Council Compensation Committee in 2012. MR. ROBERT J. LEO, Zircon Circle East, Palm Desert, served on the City Council Compensation Committee in 2012. MR. MICHAEL B. ROVER, Willow Street, Palm Desert, served on the City Council Compensation Committee in 2012. The following individual spoke in FAVOR of the proposed Resolution, stating it will bring this Council in parity with neighboring cities. - MR. DALE GRIBOW, El Paseo, Palm Desert, served on the City Council Compensation Committee in 2012. 21 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 There was an attempt by Mayor Pro Tern Spiegel to display a chart with Councilmembers salaries and benefits, but after review and discussion, Assistant City Attorney Robert Hargreaves determined to err on the side of caution and not display it because net wages are subject to individual deductions. He approved the second chart that reflected benefits by neighboring cities. He added that under the law, the Council cannot receive benefits that are better than the employee, it can be less, but it didn't have to be equal. Mayor Pro Tern Spiegel said that with the exception of the City of Indian Wells, Palm Desert City Council receives 50% of what other council's get in benefits, and in his opinion, it wasn't right. As compared to $1,800 in Palm Springs, $1,900 in Rancho Mirage, $1,800 in La Quinta, $1,300 in Indio, $1,900 in Desert Hot Springs, $1,600 in Coachella, and $2,000 in Cathedral City. He believed Palm Desert City Council should receive the same benefits as other cities in the Valley, stating this wouldn't take away from Councilmembers salaries. He said Councilmember Harnik is making about $500 a month, and he's making $900 a month, when others on the Council are grossing $2,000 a month, because they opted out of health benefits. What it means is that they are getting money from the City that would have gone toward their health benefits, but it's not because they have their own health program. He said Councilman Jonathan's wife is on the school board, and he gets his insurance from them, and Mayor Weber is getting it from a school institute, and Van Tanner is probably getting insurance from his own business. Therefore, he requested the same benefits equal to the other cities in the Valley, with the exception of the City of Indian Wells. Councilmember Harnik stated this issue has been a long process, and as mentioned, it was recommended that it could come back in front of the Council, so she didn't see any objection to revisiting the matter. However, she would never suggest the Council have any benefits superior to that of staff, but in looking at her schedule, she gets less than minimum wage, which was okay, because she feels she's doing something good for her community. Also, when she's filling out forms, they that her employer is the City of Palm Desert. Therefore, she would like the same benefits as employee, but solely the medical benefits. She said she worked hard and she does a good job. She added that somewhere in Amercia it was decided that families, health, and hard work were important, and the City of Palm Desert didn't chastised employees for having children, but rather compensates them to ensure the family is healthy, and she asked for that same treatment. She said she was fine with her less than minimum wage, because she would never change her work ethic. However, because she is an employee of the City of Palm Desert, she should like to be treated as one, which would be fair. The word parity has been mentioned, but how do you say parity for Councilmembers, would that mean all should work the same amount of hours, because that's not how it worked. Councilmembers are on 22 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 different committees and commissions, some drive into Riverside, Los Angeles, and others perform their work locally. She said Councilmembers work until the job is done and are satisfied the City has been well represented, and for those reasons mentioned, she would like to be treated as an employee when it comes to health benefits. Councilman Jonathan said he was so uncomfortable with this discussion and comments such as "I want this and I deserve this," because no one twisted Councilmembers arms into running for this position. He said if Councilmembers wanted something other than minimum wage, they should find another job. He said Council receives compensation, limited retirement benefits, and health benefits, and what is being proposed are health benefits for dependents, which he disagreed. Most importantly, previous Council's told themselves they were employees of the City, yet how many employees set their own compensation. The prior Council wisely put together a City Council Compensation Committee of very capable individuals, which were heard again this evening. Bringing this issue back to Council once, okay, but twice, and now four times. He said what is the definition of insanity, doing the same thing over and over and expect a different result; he for one felt it was enough. Councilman Jonathan moved to, by Minute Motion, DENY the resolution and table any further discussion of this subject at least through the end of Fiscal Year 2015-2016 (June 30, 016). Councilman Jonathan stated his motion, at the minimum, eliminate taking more Council, public, or staff time to deal with something that has been decided through a proper process. Additionally, he didn't want to hear from anyone how he paid for his insurance. Councilman Tanner noted this was the third time considering this issue. He said he was an owner of a business, owning 25% of a very large insurance agency here in the Coachella Valley. During difficult times, hard decisions were made, one of which was insurance, including salaries for the four owners. They decided to give themselves a substantial decrease in salary, which is exactly what the City of Palm Desert has done. They also capped the HMO product to the employees, because previously they were paying 100% of the health insurance, which was a great way to attract people to work for them. However, they capped the insurance, because costs were increasing astronomically, which is exactly what is happening here. If the Council passes the resolution and accepts providing health benefits to Councilmember dependents, it would be a slap in the face to at least three individuals on the Compensation Committee, because they oppose it. He said the amount of money he receives from the City is equal to the other four Councilmembers, and he too hopes to deny the resolution and move on to the 2015-2016 Budget and not have to review this again. 23 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 Mayor Weber asked for clarification, because she understood the reason Councilmembers are called employees is that the IRS determined that wages had to be recorded on a W2, stating they weren't actually employees, because they can't be fired; they would have to be recalled. Mr. Gibson said that was true. As a matter of fact, back with the City was reviewed by the IRS, it determined that because Planning Commissioners were getting a stipend, could also be employees of the City of Palm Desert. Mayor Weber stated it was not the City's intention to make the Council an employee, because it didn't work for the City of Palm Desert. She said the public elected the Council and it can de -elect them at any time. Therefore, the terminology is very important when considering this matter. She is on record as being opposed to benefits, because she thinks everyone that's elected should be getting a fee and does with it as they please. At this point, she was not open to changing anything already in place, but it should be discussed and eliminate benefits to avoid these discussions. Councilman Jonathan stated the proposed resolution seeked to increase a line item in the budget by almost $20,000. Therefore, from a budget stand point his motion is to deny the resolution, table the issue, and adhere to the current policy, at least through the upcoming fiscal year end June 30, 2016. Councilman Tanner seconded the motion and it carried by a 3-2 vote (AYES: Jonathan, Tanner, and Weber; NOES: Harnik and Spiegel). Councilman Jonathan thanked the Compensation Committee for their hard work, stating their work hadn't stopped, because here they were again. He said perhaps at a future time the Council may reactivate the Committee. Mayor Weber agreed, stating she appreciated their work as well as the volunteers that served on City Committees and Commissions. With City Council concurrence, Mayor Weber called for a recess of the meeting at 5:51 p.m. She reconvened the meeting at 6:02 p.m. XV. CONTINUED BUSINESS None XVI. OLD BUSINESS None 24 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 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 (Continued from the meeting of April 23, 2015). Councilman Tanner recused himself from this item until he further reviews the potential conflict from an agency he retired from and left the Council Chamber. Ms. Aylaian stated on that April 23 staff held a Study Session and at the City Council meeting it opened the public hearing on this issue. Today her presentation will provide a brief update on information that was investigated at the direction of the City Council, new findings since the last meeting, answers to specific questions raised by Councilmembers, report on meetings held with impacted parties, and the revised recommendation for affordable housing. Question 1 asks how Palm Desert compared. She said the Council typically likes to keep tabs of where Palm Desert is compared to other cities in the Valley with the provision of affordable housing. In particular, there are concerns that Palm Desert provides more affordable housing than anybody else, secondly, Regional Housing Needs Allocation (RHNA) tends to treat Palm Desert more partially with assignment of numbers than they do other Valley cities. She displayed a chart that lists the cities by percentages of dwelling units by today's numbers. She said Palm Desert fell right in the middle of the list with 5% of the units, whether houses or apartments, is provided to people with reduced income. The list also reflects the number of units assigned to the City by the State, and Palm Desert again falls in the middle. Palm Desert has an assignment of .45 RHNA Housing Units per 100 Dwelling Units for RHNA cycle 2014 to 2021. She said it was fair to say Palm Desert has an outstanding affordable housing program, in terms of the quality of units, and the management is unparallel. The standard to which the properties are maintained cannot be matched by other Valley cities. Question 2 asks if there is something else other than a fee that would work to provide affordable housing. The first mechanism identified used in the past and is still being used, in some cases since the elimination of redevelopment, is tax credit projects. These are projects where the State Tax Credit Allocation Board awards money/financing on a competitive basis. First one would have to score 100% in order to be considered, and that 100% is based upon location, proximity to jobs, proximity to schools and public transportation. Once the 100% is reached, then one enters into the final jeopardy where one is rewarded bonus points based upon the soft debt brought to the project. In order to be competitive in Riverside and San Bernardino Counties, you need 40% to 50% in the form of land, fee waivers, 25 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 funds from elsewhere in order to get the tax credit financing. After talking with counterparts in various cities, reviewing trade publications, and consulting with developers of affordable housing in other jurisdictions, they have indicated that since redevelopment was dismantled there are no other mechanisms available. Question 3 asks what else could work. The most promising mechanism would be an Enhanced Infrastructure Financing District, which has been proposed and approved by State legislation as SB628, which became effective the first of this year. She said it was much like redevelopment with a different name on it, where if a district is formed, it will be able to provide tax increment financing and can be used for affordable housing projects. This is something that shows a great deal of promise, but it would take two to three years to get the mechanism in place, and there is no certainty, because it requires a 51 % vote of the property owners. It also requires negotiations with all taxing entities (school districts, vector control, etc.) and agreements on how much money would be passed through to them. She said it was a cumbersome process because each of those agencies would have to approve the formation of a district. She said this was new legislation and found no one that has been able to put it into effect, but it was a potential for the future. She said there are two other bills proposed, one of which requires higher crime levels and higher unemployment than State averages, and Palm Desert wouldn't meet the criteria. Therefore, even if the legislature is passed, Palm Desert will not be able to take advantage of it. The other is a $75 fee on the sale of a home, which may or may not pass, stating it been presented before, but the legislation has never been passed. However, if it were, that money would go to the State and it would be up to them to allocate as they found appropriate. Again, she didn't think it was a viable alternative. Next, the City Council asked that staff meet with impacted parties to work out something that would be mutually supported by everyone involved. She met with affordable housing developer and those who have provided affordable housing in the past or the Coachella Valley; however, none of them are currently working in Palm Desert, because it's not producing any affordable housing. In a nutshell, they said projects won't be done without financial assistance spelled out in dollar signs. As mentioned, the assistance needs to be tax credit financing, a waiver of fees and/or provide land. However, waiving fees by itself won't be sufficient. Fees charged for new affordable homes don't provide near as much subsidy needed for a developer to quality for a tax credit financing. She also spoke with market -rate developers who are interested in doing project in Palm Desert now or in the near future, and they suggested a base fee on livable square footage of the house rather than the gross square foot, which includes garage space. Another developer suggested $1.00 per square foot rather than $2.00. The City has had a longtime fee on commercial and service industrial construction that requires a payment of $1.00 per square foot toward the Affordable Housing Fund for housing in Palm Desert. To impose that same fee on Market -rate Development would give some sort of comparison between the two and a 26 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 feeling of participation equally across the board, and there was a developer that suggested it. The same developer previously offered a fee that came out to $3.00 a square foot toward the development they are planning for Palm Desert. Mayor Pro Tern Spiegel inquired about the current balance in the Affordable Housing Fund. Ms. Aylaian said she heard it was $2.4 million, which was as a result from money that came in by way of fees. She went on to say she talked to industry groups, the trade organizations that represent the market -rate developers. In particular, the Desert Valleys Builders Association (DVBA), members of the Building Industry Association (BIA), and their input included that the new fee would violate law. Each of them has legal counsel that provided written letters that are in Council's package. She said the City Attorney has reviewed them and has provided a written response, stating the City felt comfortable that what staff is proposing is a legal mechanism. Other communities in California are going through the same process and they have had it in placed greater than a decade, a fee based upon the same Nexus Study, and they have not been successfully challenged. Therefore, the City was comfortable in imposing the fee. The DVBA and BIA have indicated fees could be ineffective and counterproductive for providing affordable housing. The specific examples provided to her typically don't have inclusionary housing. She would usually agree with them that inclusionary housing ordinance is not an effective way to provide affordable housing, but that is not what is being proposed. However, there were many points they did agree with staff. They agreed with staff that the enhanced infrastructure financing districts are the way to go, as far as long term and getting the mechanism that would be equitable, effective, and reliable sources of revenue in the future. However, staff felt it was something that could provide a revenue stream within several years time, but a fair amount development is expected in Palm Desert within that time. Staff's is concern with the time it will take to accomplish a district and then there was the uncertainty of a positive vote. Therefore, staff wasn't comfortable counting on it. Councilmember Harnik asked if AB628 was something that had to go on the ballot to approve an infrastructure district. Ms. Aylian responded it would go to a vote of the property owners, adding a district can be formed much like a redevelopment agency project area. She said a district didn't have to cover the whole city but parts and pieces of the City. She said property owners within that district would have to vote on it. Assistant City Attorney Robert Hargreaves stated the major obstacle for an Enhanced Infrastructure Financing District (EIFD) and tax increment financing, is that under redevelopment law, RDA got a particular percentage 27 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 of tax increments from other agencies whether they wanted to willingly or not. But with an EIFD, the City has to go to those other agency and basically beg. He said those entities have to be willing to contribute their tax increment into your district, and the chance of that happening is somewhat unlikely. Additionally, 50% of the tax increment would first go to schools and you can't get anything from them. Therefore, the City would have to go to CVWD, Vector Control Board, and other folks to get property tax allocations and ask them to contribute to this district to build affordable housing. Ms. Aylaian added the City would be asking them to give up a percentage of the tax increment money that they would otherwise be receiving. Finally, the industry groups would not support any fee nor did they feel it was appropriate. Based upon the information discovered, staff revised the recommendation, which is $2.00 per square foot for livable space, which is a reflection of the way other fees are structure, and it's a reasonable thing to offer as a compromise. She said it will reduce the amount of fees that would be collected over time by the City to apply for affordable housing. Responding to question, if approved, the fee would be charged at permit. One of the things discussed was whether to assess the fees at the time of sale and close of escrow. The general perception was that it would be palatable, because there aren't recurring charges to the developer over the time that the home is built, but developers were still not in favor of a fee. Also, staff believes that if another financing or mechanism becomes available, the fee should be revisited at that time and determine whether to eliminate or reduce the proposed fee, depending on how it played into the overall financial picture. At the Study Session, staff presented a Fee Revenue and Use, which ranged from $14 million to $25.5 million depending on the density with which the northern sphere is developed. It also looked at what the City could do with that money if the fee was collected, which ranged from building 69-121 apartments; subsidize 100 apartments for 30 years; renovate 117-204 apartments; or extend covenants on 140-245 apartments. She emphasized that these options are either/or, stating the City couldn't do all of them, but one of those options. In conclusion, because staff revised its recommendation to only apply the fee to livable space and exclude garage spaces, it reduces the amount of money that would be generated to $11.3 million to $20.7 million, thereby removing $3.5 million off the potential revenue, which also lowers all the numbers initially presented. She offered to answer questions. Councilman Jonathan complimented Ms. Aylaian on the exhausted work done in the preparation of the staff report, studying the Nexus Study, Study Session, working with the development community, stating she's done a great job and he appreciated it. He asked how many other cities in the Coachella Valley or Riverside County have a Nexus -based Affordable Housing Fee. KIQ PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 Ms. Aylaian replied there are none, stating staff has gone to two or three other cities in the State, but none are in this County, most are in northern California and four or five are in southern California. Councilmember Harnik asked what were other cities doing for affordable housing. Ms. Aylaian said that at this point, all cities are waiting for something to change and nobody is moving forward with a provision. She said there are a couple of projects that have been wrapped up that were already in the pipe lines. Responding to question about the mandate, she said the State mandates that the City plan for a certain number of affordable housing units, and they dictate how many units and at what level of affordability. Further responding, she said there was no deadline. However, with respect to planning for them, the City has already rezoned properties, identified land and location. Councilman Jonathan stated the City has to have a plan, but it's not mandated to create the units. Ms. Aylaian answered yes. However, there is a stipulation that adds more requirements, but as far as the RHNA, those are units the City is required to plan for but not required to produce. Responding to question as to what would happen if the City didn't comply, she said there was the potential of getting tied up in the housing element, which is part of the General Plan. The City could potentially, in the future, not be able to make findings of consistency with the General Plan for other discretionary projects that its considering. Mr. Hargreaves added the City has plans forthe RHNA numbers, and if there isn't a Housing Element Plan, it will not be approved by the State, which has potential catastrophic ramifications for development here in Palm Desert. He said all the City is required to do is have a plan and space for that housing. He said the City didn't have to collect fees, because there is no requirement for the City to actually engage in subsidizing affordable housing. Councilmember Harnik asked if this would influence anything already accomplished thus far with the dissolution of redevelopment. Mr. Hargreaves stated State law requires the City to have an approved Housing Element Plan. If there isn't an approved Housing Element, any project approved for development can be challenged and potentially stop construction, which hasn't happened when it was talked about 10 or 15 years ago. 29 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 Ms. Aylaian added staff just updated the Housing Element and it includes provisions for all the areas needed that identifies the properties and densities needed in order to provide the affordable housing. She said the City is required to plan for within the next planning period. Mr. Hargreaves pointed out that it has been approved by the State, so the City was safe on that aspect. Ms. Aylaian said the City is not required to provide affordable housing, and the proposed fee would certainly be the first in the Coachella Valley or Riverside County, and the Council is not obligated to do it. In the past, Palm Desert has prided itself on provision of affordable housing and liked many of the benefits that come with having a variety of housing products and housing price points in their own community, stating they have endorsed a robust program. It's clearly a policy decision, and if that is not a concern front and center of the current Council, it can focus its priority elsewhere. Mayor Pro Tern Spiegel inquired about the amount of money put into the Hovely Gardens apartments. Ms. Aylaian recalls the City provided the land and favorable loan terms. Ms. Moore said the City participated by providing a low -interest loan to the developer. The City provided about $7 million, and it's getting it back on positive cash flow, but it is a process. Further responding, she said the proceeds go back into Housing to supportthe programs already established. She said incoming funds are very little at this point. In the beginning it may look like they can make payments up front, because everything is brand new, but as you progress some payments have been reduced, because they are doing deferred maintenance. Mayor Pro Tern Spiegel asked about the Carlos Ortega Villas. Ms. Moore said the cost was approximately $20 million, which is just for the construction, and those dollars are coming from bond funds issued a long time ago by the Redevelopment Agency. Responding to question, she said the Carlos Ortega units will count toward the RHNA numbers. Mayor Weber declared the public hearing open and invited public testimony on the proposed Affordable Housing Impact Fee. The following individuals spoke in OPPOSITION to the proposed Affordable Housing Impact Fee for the following reasons/claims: The fee is illegal, impact to a sensitive new home sales market, economic impact to projects; proposed funds will not be received today but over a 20-year span; the industry is already devastated; funding for projects is difficult; it's the wrong solution; there is no 30 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 mandate; consider current and pending legislation as alternatives; developers should not shoulder the burden. MR. CHAD MEYER, RJT Homes, Portola Avenue, Palm Desert, CA. MR. BOB GARRISON, The True Life Companies, Corporate Plaza Drive, Newport Beach, CA. MR. RUDY HERRERA, Family Development, Fiddleneck, Palm Desert, CA. MR. FRED BELL, Desert Valleys Builders Association, Chairman of the Housing Trust, and former builder for Habitat for Humanity. MR. NATHAN A. MILLER, Building Industry Association, Riverside, CA. MS. GRETCHEN GUTIERREZ, Chief Executive Off icerofthe Desert Valleys Builders Association, Mediterranean, Palm Desert, CA. MR. MARIO GONZALEZ, GHA Communities, Date Palm Drive, Cathedral City, CA. The following individuals spoke in FAVOR of the proposed Affordable Housing Impact Fee for the following reasons/claims: There is a need for affordable housing to address the needs of those working in the agriculture and hospitality industry, students wanting to live in close proximity to where they attend school, and the homeless. MR. MICHAEL WALSH, Coachella Valley Housing Coalition, Monroe Street, Indio, CA. The following individual spoke on the matter taking a NEUTRAL stand on the proposed Affordable Housing Impact Fee. MS. NIKOHL VANDEL, S. Palm Canyon, Palm Springs, CA. With no further testimony being offered, Mayor Weber declared the public hearing closed. Councilman Jonathan said he appreciated the great discussion and believed everyone embraced the need and desire for affordable housing, but the revenue source for building it was taken away by the Governor of the State. The proposal from staff is to put the burden on the developer, making Palm Desert the only city in Riverside County doing it. He shared he read with great interest an article in The Desert Sun from Friday, May 22, where the City of Indio extends reduction on development fees in an effort to attract new business, stating their new city council decided to extend the reduction 31 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 of development impact fees by 25%. He said Palm Desert competes with other cities for attracting developers and it's gone through great pains to have a productive relationship with hoteliers because the City need them to bring T.O.T (Transient Occupancy Tax), retailers for the sales tax, and restaurants, etc. He believes the City needs to put the development community at that same level and work with them to find ways to facilitate their development. From a policy standpoint, he believed the timing was wrong and it was the wrong thing to do. He said the City needs to remain competitive and attract developers and development and not be a barrier. The other consideration is that Palm Desert is regional with nine other cities, so it should see itself in isolation. He understood Palm Desert had 2,000 housing units, but throughout the entire Coachella Valley there are a lot of affordable housing units at market rate. He said one can drive ten minutes out of Palm Desert and find homes well under $200,000 and apartments affordably priced. There are many projects undertaken regionally through CVAG (Coachella Valley Association of Governments) by just cooperating, and this should be one of them. Finally, there have been requests for the City to work with the development community and other stakeholders, and he clearly heard there are alternatives now and emerging, which appeared viable. His recommendation is to not impose the proposed fee and continue working with the development community and other stakeholders to find better solutions that will be more effective in creating affordable housing. Councilman Jonathan moved to, by Minute Motion: 1) DENY imposition of a Nexus -based Affordable Housing Impact Fee, as proposed by staff; 2) continue to work collaboratively with the development community and other stakeholders to seek solutions that will create additional Affordable Housing in the City of Palm Desert. Councilmember Harnik said it's been mentioned that Palm Desert would be the first City as if it were a terrible thing, which she felt people needed to get over, because that wasn't the issue here. She also heard from staff, developers, and industry groups say they cared about affordable housing. In reference to the General Plan, this was not about attracting developers, but the right one with the right development that will create communities in close proximity to where people work and are educated, which are the types of projects it will seek. Therefore, developers may be turned away when the project doesn't fit into the future of the City. There was also discussion on the amount of permits issues last year and now, but it's all a cycle, and trends can be followed to know when the next up turn is coming. She said Mr. Bell said the City should be working with the League of California Cities, which she agreed. Additionally, everyone should be working with assemblymen and senators, letting them know its unacceptable for them not to do anything in Sacramento to at least come up with something with the same genes as redevelopment so it can allocate money specifically for affordable housing. Although, people got lost with redevelopment, because it was used for things it was not intended for. She said mentioned Palm 32 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 Desert could try SB628, however, she didn't believe that was a good investment of the City's money, because if the vote fails, it would be throwing money away. She also didn't believe in having bigger developers pay for it, because she didn't believe in punishing success. In summary, everyone needs to contact the League and elected officials in Sacramento and push their feet to the fire. Having said all that, she couldn't support a fee per square foot to the people coming into the City to develop. However, the City will ask that developers produce a product that is up to the Palm Desert standard, and the Council shouldn't have to apologize for having high standards, because it's the reason people want to live and build here. She agreed it will be tough on the developers, but the standard shouldn't be that it will put more charges on their backs. Councilmember Harnik seconded the motion. Mayor Pro Tern Spiegel stated Palm Desert is one of the best cities in the Valley with affordable housing, no one had more units than Palm Desert. The proposed fee of $2.00 on a livable space of 20,000 feet would be an additional $40,000 for someone to buy a house, which he was against. Therefore, he was totally opposed. 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). Mayor Weber thanked members of the community showing up to share their thoughts, stating their input obviously influenced the vote. B. CONSIDERATION OF REQUEST BY BURRTEC WASTE AND RECYCLING SERVICES FOR APPROVAL OF TAX ROLL BILLING, CONTRACT EXTENSION, THE ANNUAL PRODUCER PRICE INDEX (PPI) AND COUNTY OF RIVERSIDE GATE/DISPOSAL FEE INCREASES, AND APPROVAL OF THE NEW RESIDENTIAL AND COMMERCIAL RATES. Ms. Riddle stated this item is a request for approval of the Tax Roll Billing, rate increases for Fiscal Year 2015-2016, and the amended Franchise Agreement with Burrtec. Items within the contract were negotiated, and one was the terms of the contract. The current Franchise Agreement expires May 31, 2015, and within the existing agreement there is a one four-year extension term to May 31, 2019. Staff negotiated an additional four-yearterm to extend the Agreement to May 31, 2023. In order to negotiate the eight years, Council wanted some insurance for replacement of some of the trucks. Therefore, language was included to replace trucks for approximately 50% of the route trucks by the end of the franchise agreement. In addition, the number of months residents can stop service was amended from one 30- day stop service to four months. Additionally, Burrtec has agreed to hold the Producer Price Index (PPI) rate increase for Commercial only. Newfees and KY.] PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 programs proposed are the Residential Tax Roll Billing, a new Recycle Fee, new Vehicle Impact Fee, and Food Waste/ Organics Recycle Program coming into effect with the approval of AB1826. The latter three items won't be implemented until 2016, and as a result those items will be brought back to Council with staff proposes to implement them. Burrtec has agreed to pay $1.06 or 10% for Tax Roll Billing with $ 0.73 of it going to the Recycle Fund and $0.33 to the General Fund. The Tax Roll Billing is proposed to be applied to non -Master Billed residential homes, and a homeowner that is part of an HOA that pays the trash for them, is exempt from the Tax Roll Billing as well as Commercial. The 10% discount is consistent with what Master Billed customers experience, so they get a little savings. The Palm Desert Municipal Code Section 8.16.02, basically requires every property owner of a home within the City to establish trash service. Therefore, regardless of how long a property owner lives or stays in a home, they are required to establish service. In the Agreement itself under Section 2.13 - Mandatory Service, Burrtec is allowed the option to request Tax Roll Billing and they have done so, and the City is required to consider that option. As required, the City is to notify residents as it did through a letter. It is also required to hold a public hearing, which is what it's doing this evening. Tax Roll Billing is good for the City, because it addresses, to some extent, illegal dumping and stock piling of trash. If someone does not establish service that resident is either dumping it in their neighbor's bin or behind a commercial business, or stock piling it, which then causes a health and safety issue or a public nuisance at the minimum. Staff increased the one 30-day stop service to four months, which also allows them to stop service twice a year for two consecutive months for a total of four months. If Tax Roll Billing is approved, there isn't an out option, meaning it's all or nothing; all residents impacted will have to go to Tax Roll Billing. She displayed a chart of all the nine local cities to illustrate that Tax Roll Billing is not as uncommon as people think, stating five of the nine have been on Tax Roll Billing for several years. She also displayed another chart illustrating the current rates, the proposed rate increase, the new monthly rate, and the yearly tax rate that will be placed on the tax roll. For example, a 96-gallon container, the current rate is $10.71 per month and the maximum increase being requested is $0.12, which will make the new monthly rate $10.83 for a yearly cost of $129.96. The 64- gallon containerwill have a $0.12 increase for a yearly cost of $103.92; a 32- gallon container, which has the smallest and lowest rate increase of $.07, will have a yearly cost of $78.00. Additionally, if you have Green Waste Container, the yearly total is $13.92. Extra fees can be applied for having more than one trash container, walk-in service, etc., but these are not new charges, they remain the same. These fees would be applied to the tax roll above the property owners based level of service. If approved, the billing period would be July 1, 2015 to June 30, 2016, with submittal to the County Assessor in August 2015. Therefore, if approved, Burrtec will not bill customers for their July, August, September billing, instead one will see a separate fee on their property tax bill from the County. She said all the 34 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 services are the same, and the only difference is on how the service will be paid. The four -month stop service is a compromise, meaning those residents who are out of town for six to eight months, will only be allowed a four -month stop service. However, it's an increase to what was previously allowed, which is a 30-day stop service. The four -months stop service is consistent with what is being offered at other cities. Mayor Pro Tern Spiegel asked how the monthly $10.83 fee for a 96-gallon container compared to other cities in the Coachella Valley. Ms. Riddle replied Palm Desert was the lowest, stating it was $2.00 less than other cities. Responding to question about the four -months service, she explained residents can request a two -month stop service twice a year or they can choose to stop service for four -months. Further responding, she said the current agreement allows for a one 30-day stop service. Councilmember Harnik asked who provides the service to other cities that are currently on the tax roll. Ms. Riddle stated Burrtec provides the service; however, she believes Palm Springs was serviced by Palm Springs Disposal, but they are not on the tax roll. Mayor Weber stated the reason the Council received so many letters and comments were because the letterwasn't clear and they didn't know that Tax Roll Billing was in place of the paper billing, and not an additional bill. Ms. Riddle said she received several calls, which primarily fell under three groups. One group understood the letter, but needed further clarification as to what was being proposed. The second group is strongly opposed to having their trash bill on the tax roll, stating they like the flexibility of paying their bill when they can. Then there was the group that has a second home in Palm Desert and doesn't have either service established or they are here only four or six months out of the year claiming to generate little or no trash. These customers would have to give a little, because they would only be allowed a four -month stop service. Mayor Weber declared the public hearing open and invited public testimony in FAVOR or in OPPOSITION to the Proposed Tax Roll Billing and the Amended Franchise Agreement with Burrtec. 35 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 The following individuals spoke in OPPOSITION to the proposed Tax Roll Billing and Amended Franchise Agreement with Burrtec for the following reasons/claims- MR. BRIAN TORSNEY, SR., Colebridge Street, Palm Desert, CA, strongly opposed Tax Roll Billing, stating it was not the function of City Government to become a collection agent for private business. MS. LINDA CALVEY, Florida Avenue, Palm Desert, CA, stated her Palm Desert home is a second home, which is used very little, and she takes her trash with her when she leaves. She said she didn't need the service and asked for an exemption. Ms. Riddle stated the Palm Desert Municipal Code states residents have to establish trash services, and for those with small amounts of trash could use the smallest container for a yearly cost of $78.00. Responding to question, Mr. Wohlmuth said the Ordinance has been in place since 1986. MR. FRANK ORLETT, District Manager of Burrtec Waste and Recycling Services, noted that even though the existing Agreement indicates a 30-day stop service and the proposed Agreement has four months, the company's typical practice is six months, which they plan to continue. He agreed to take a look at those folks who have special circumstances. MR. JOSE PEREZ, Goleta Avenue, Palm Desert, CA, strongly opposed Tax Roll Billing, because it will require him to pay in advance every six months, and he couldn't understand why the City would facilitate this. Additionally, he was opposed to the City buying trucks for Burrtec. MS. DEBBIE MILLER, De Anza Way, Palm Desert, CA, stated she was opposed to the City mandating its residents to pay for trash service on the tax roll, questioning if it will also put Time Warner, Direct TV, or other large corporations on their tax roll, which she thought was fundamentally wrong. MR. JOHN VIRGIN, Amaryllis Way, Palm Desert, CA, is strongly opposed to having his trash bill on the tax roll, claiming there was the potential to having a lien on his home if he didn't pay his bill. He said the City was making a private agreement with Burrtec to put the bill on his property tax, stating these are two different judgement debtors, which he didn't consent to. MS. ROCHELLE KRAUSE, The Lakes Country Club, Palm Desert, CA, adamantly opposes Burrtec being given the approval to collect trash fees through her property taxes, specifically for nonresident. She claimed she didn't generate any trash and is in Palm Desert for a small amount of time. Responding to question about her HOA, she explained her bill was paid 36 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 through the HOA, but now Burrtec is the trash collector on Tuesday, and she's never there on that day. Councilman Tanner asked Ms. Krause to provide her information to Burrtec so they can talk to her. MR. KARL RIMER, Candlewood, Palm Desert, CA, strongly opposed having his trash bill on the tax roll, stating it was wrong, questioning if the gas or water companies were next, and if the City will become the collection agency for them as well. He said Tax Roll Billing for a corporation invites a coziness with the City that shouldn't exist. As an example, he received a letter with the City's letterhead in a Burrtec envelope. He said perhaps it was time for another bid. MS. SABINE GAEDT, San Luis Rey Avenue, Palm Desert, CA. Ms. Gaedt had to leave for another commitment, but asked that her speaker care be read for the record, which states: "I oppose the Burrtec Tax Roll Billing proposal because it will place an undue burden on a single-family resident, and how do you ensure proper billing when there is a change in the number or size of containers. Secondly, Government involvement in collecting monies for a private company should be minimal at all times. All her neighbors are of the same opinion." MR. H. SCOTT WATSON, El Menara Circle, Palm Desert, CA, stated Tax Roll Billing will place a burden on some when they have to come up with a six-month payment in advance, and the City should not be facilitating this for a corporation. MS. KIM HOUSKEN, Somera, Palm Desert, CA, voiced her concerned with Government getting their hand in one's pocket and never getting it back out. Also, how will a four -month stop service be handled if one is already billed. Additionally, she felt the Ordinance was vague, in that it states trash needs to be taken out weekly, not necessarily meaning she needed to pay for trash service, especially when there is none to be removed. She questioned if the City will be providing Burrtec with eight new trucks throughout the course of eight years, because what she heard seemed attenuated. Ms. Riddle replied that Burrtec would be providing a refund for the four months. MS. JOYCE THORTON, Virginia Avenue, Palm Desert, CA, expressed her opposition to having her trash bill on the tax roll. MR. KEN STENDELL, Ironwood Street, Palm Desert, CA, stated he opposed the tax roll assessment; however, if approved, he would like to see it unilaterally applied to all residents. He believed there are quite a number of units in master associations, and if they are billed on the tax roll, there wouldn't be a need for a price increase. 37 PRELIMINARY MINUTES DRAB i REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 With no further testimony being offered, Mayor Weber declared the public hearing closed. Councilman Jonathan stated the concern with placing the trash bill on the tax roll resonated with him. He said Mr. Virgin put it well, in that his contract with a private company has been elevated if he fails to pay, because the power of the Government was behind the bill. He is interested to hear what his colleagues have to say and he will keep an open mind. On the other hand, tax roll billing provides benefits to the City, which was standard for many other cities, stating that some people actually find it a convenience. He thanked everyone for coming out and voicing their opinion, because the Council tends to hear from people that are opposed to something, but then there are others that don't have an issue with it. At the end of the day, this can be viewed as a convenience, and as mentioned by Ms. Riddle, there are benefits which then are transferred to the residents. Mayor Pro Tern Spiegel stated Burrtec is the current name of the company, and the prior name was Waste Management, but it's the same people running the place. He said they have done an outstanding job for the City, and Palm Desert has the lowest cost in the Coachella Valley, which is a real asset. Whether or not Tax Roll Billing is needed, he wasn't sure, but he was in agreement with the proposed rate increases, extension of the contract, and he would vote in favor. Mayor Weber asked for further clarification on the purchase of the trucks, because the City wasn't buying them for Burrtec. Mr. Wohlmuth replied the City wouldn't be purchasing trucks and explained that Burrtec as a private business, needs to demonstrate to their parent company that they can purchase these trucks and pay them over a period of time. He said the trucks will be purchased and then paid over time. Palm Desert benefits from having new trucks in the community, because older trucks do more damage to the road system, and their headquarters is in Palm Desert. Mayor Weber asked if that was the main reason for the City asking for a longer contract period of eight years, which is to allow Burrtec to do their financing for the trucks. Mr. Wohlmuth agreed it was a primary reason, but not the only reasons. Now with respect to the City Ordinance, is that it's illegal for residents to haul putrescible (decomposable) waste across City streets. The reason it's in the Ordinance is because historically weekend or seasonal people take their trash to the City parks trash cans. He didn't know how many people use their next door neighbor's trash receptacle, but the City has had issues with people dumping their trash in the commercial bins behind Rite Aid, IN PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 President's Plaza, and Flooring Innovations. He said staff has been very concerned with Tax Roll Billing for years, but it became an issue when people stopped paying their bill. Then Burrtec calls the City asking it they should continue picking up the trash, because residents were still rolling out their containers. The issue became a joke that they were not paying Burrtec, but the trash was still being picked up. He said the City didn't want trash to end up in commercial bins throughout the City, which was happening during the recession. He said the City cannot enforce putrescible (decomposable) waste from ending up on the street. Mr. Hargreaves added that historically, garbage collection was one of the things that Cities did and continue to do, stating large cities do their own trash collection, including water, electricity, and police services. Cities have the option of getting into a billing arrangement or placing it on the tax roll. In fact, the same is done with water waste, stating CVWD collects water waste on the tax roll, because it's another thing you don't want people not doing. In other words, not connecting to the sewer. Cities historically collected the trash, but for small cities, it's a problem, especially with the advance systems used now. Over time, more and more cities have contracted with private haulers, but it's a municipal service that cities contract with private companies, and there is a franchise agreement that specifies it will be the only company that can do it. He said another company couldn't come in here and haul the trash, so it's not just like a private contract situation. It's a contract situation that the City mandates because it needed to have the trash picked up and paid for, which is why there is a structure of a franchise agreement and ordinance that requires residents to participate. He said it would be impractical to single out a few. And for the reasons stated by the City Manager is how the City arrived to tax roll billing. He said the City can't have a situation where people don't pay, because trash will end up where it's not appropriate. Councilman Tanner said Palm Desert was not going to buy any vehicles as verified by the City Manager. He understood there are people in the audience that are opposed to Tax Roll Billing, but it's one of the ways to control the costs going forward. During the recession, people were taking their trash to the sidewalk and it was getting picked up, stating he knew for a fact it was happening in his complex. He said Burrtec is a great company and the City has had a lot of success with them. Additionally, going forward, if the City is not happy with Burrtec or vice versa, both parties can opt out. He said it was a contract that appears to be eight years long, but if there is dissatisfaction on either side, it can be terminated. He was in favor of the Tax Roll Billing from a convenience standpoint, because it also helps control costs. Ms. Riddle requested that if the Tax Roll Billing is approved, that Council add the approval of the written report that was on file with the City Clerk's Office, 39 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 which lists the APN numbers, addresses, and the amount that will be placed on the tax roll. Councilman Tanner moved to, by Minute Motion approve: 1) By Minute Motion: a) Approve Tax Roll Billing, commencing with the November 2015 Tax Roll for all non - Master Billed residences; b) approve Contract Extension with Burrtec Waste and Recycling Services for a total of eight (8) years to May 31, 2023; c) approve the proposed 0% PPI Rate Increase and 6.09% Gate/Disposal Fee Increase from $41.70 to $44.24 ($2.54) per ton; d) apply the PPI and Gate/Tipping Fee Rate Increase to residential effective July 1, 2015; e) apply only the Gate/Tipping Fee Rate Increase to Commercial Accounts until 2018; f) approve Amended Franchise Contract (Contract No. C27411); g) approve written report on file with the City Clerk, describing the City's Refuse Fees, including amount and any delinquencies due and owing for such fees for each affected parcel of single-family residential property within the City; 2) Waive further reading and adopt Resolution No. 2015 - 48, approving the new Adjusted Rate Schedule of Fees (Exhibit 3 for Residential, Commercial, and Roll -off) for the Collection, Recycling, and Disposal of Municipal Solid Waste and Residential/Commercial Recycling contained in Contract No. C27410 - Solid Waste Management Services. Motion was seconded by Spiegel. Councilmember Harnik shared that in looking back to where she lived before, she realizes that her trash bill was on the tax roll. She understood the uncomfortableness, because people don't like taxes and government getting involved. However, as a Councilmember she has received those phone calls from companies who want illegal dumping of trash in their commercial bins, and she has received pictures as well, so there is an issue. Additionally, trash on the street will be picked up by Burrtec whether or not a resident pays for it. Again, there is a small part that doesn't feel good, but overall it makes sense to go with tax roll billing, so she will support it. Councilman Jonathan asked that Mr. Orlett be given an opportunity to address some of the concerns, in particular, whether Tax Roll Billing is an essential element of this whole contract. MR. FRANK ORLETT, District Manager for Burrtec Waste and Recycling Services, responded Burrtec is not the one placing the trash bill on the tax roll, because this was a City fee. He agreed it was more beneficial to the City to put it on the tax roll and also a benefit to Burrtec, because they will not longer be collecting waste that they are not getting paid for, which they had been doing for quite a period of time for the beautification of the City. He shared he has two homes, one in Palm Desert and one in Chula Vista and both bills are on tax rolls. He said tax roll billing was a common practice, and should the City ever decide to part ways, from a transition standpoint to another company, it's much easier on a tax roll than individual billing. He said this was the City's call and it made sense to do it, because this was not a new City tax. He said he was as conservative as the next guy so he understood the concern. Responding to question about the contract, he PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 confirmed that without the tax roll billing, it would affect the other items on the agreement, because certain concessions were made. Further responding, he said LA Waste picked up the trash in Chula Vista. Mr. Wohlmuth explained that if there wasn't tax roll billing, Items 3 and 4 would change, because there is a $1.06 difference there. Mayor Weber said she suspected that in a lot of places the trash bill is on the tax roll because the city itself is making the collection, which is why she asked who was doing it for Chula Vista. She said Burrtec was a private company and absolutely agreed with many who commented it wasn't the City's role to put billings of a private company on the tax roll. Clearly, this was an issue with people not paying their bill and Burrtec feeling like there is no enforcement. The City Manager has commented that Burrtec felt they had no alternative to collect a bill that was not paid, which is puzzling to her. Secondly, how does the City enforce a requirement in the Ordinance that everyone should have trash pickup, when it's unknown who has signed up for trash service. She believed there had to be another solution, because she was opposed to adding this to a property tax, which seemed inappropriate for the City to collect for a private company. Additionally, the tax roll billing is connected to Items 3 and 4, so the contract couldn't be separated for a vote, stating it either was yes/no or go back to the drawing board. Mr. Wohlmuth explained that Burrtec can do something about people not paying their bill, which is to stop service, but it doesn't stop the trash. With Burrtec stopping the service, it becomes a City, neighborhood, orcommercial issue. Mayor Weber said it's the same as when people don't maintain their property and leave a truck on blocks, the City has ordinances in place that allows Code to enforce. Mr. Wohlmuth replied those situations are much easier to catch than someone hauling waste in the trunk of their car. The only effective way for Code Enforcement is if you see trash piling up on people's back yard, which the Council has seen pictures. Secondly, if people are caught dumping trash at a commercial bin, they can be cited, but that's few and far between, because the City doesn't have a Code Enforcement Officer behind Rite Aid, Jonathan & Associates or any other store waiting for it to happen. Therefore, it's a hit and miss on whether it can actually be enforced. Historically, staff has seen it happening at City Hall and at the parks. Councilman Jonathan agreed with Councilmember Harnik in that he is uncomfortable with the concept of adding, to what essentially is a private contractor to a property tax billing. However, in looking at the proposal in 41 PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 totality from a policy standpoint, he concluded it was to the benefit of the residents. He didn't feel good about the tax roll component, and Council couldn't make everybody happy, but it had to do what they thought was right. Therefore, he will support staff's recommendation. Mayor Weber said she didn't feel the Council had clarification on what will be involved when a resident changes the size of the bin or add another bin, because something has already been placed on the tax roll for 12 months, and what about when the owner changes. Ms. Riddle replied that if a resident has a 96-gallon container, the fee will be $129.92, and if they downsize to a 64-gallon, the resident calls Burrtec to change the service, and they would issue a refund. Further responding, if someone increases the type of service, the resident will pay the difference the following year when the changes are put into place. Mayor Weber said it didn't sound like the most ultimate in efficiency. She asked if there was any other way to enforce everyone having trash service. She noted she has seen it too - people dumping their trash all over the place, and she's given them the evil eye. She had one person tell her it was okay, because they had permission. Mr. Wohlmuth reiterated that staff has been dealing with this for more than 20 years and he didn't know of any other way. The City can say it has mandatory service, but actually enforcement it, and dealing with the repercussion if someone doesn't pay their bill, is very difficult. Councilmember Harnik said there are a couple of other issues when talking about people who don't pay their bill and continue to put their trash out. She said these workers that pick up the trash work hard, and they don't have time to cross check to see who has paid. Additionally, Burrtec pays the dumping fees for that unpaid trash, and they haven't had anything to offset that cost. Further, CVWD was the best example, because here was a private company that takes care of the sewer service, because it's in the best interest of the residents, and nobody even notices it's on the tax bill. Mayor Weber disagreed, stating it wasn't quite the same, because at some point the City may not have Burrtec. Councilmember Harnik replied there may be a time when the City won't have CVW D. Mayor Weber called for the vote and the motion carried by a 4-1 vote (AYES: Harnik, Jonathan, Spiegel, and Tanner; NOES: Weber). CYA PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 XVIII. REPORTS AND REMARKS A. CITY MANAGER 1. City Manager Meeting Summaries for the Period of May 4-15, 2015. Mr. Wohlmuth called attention to the printed report provided in the agenda packets and offered to answer questions. With City Council concurrence, the Meeting Summaries Report was received and filed. B. CITY ATTORNEY None C. CITY CLERK 1. Announcement of City Council Study Session on Thursday, June 11, 2015 — 2:30 p.m., Administrative Conference Room, Regarding the Palm Springs Art Museum. Ms. Klassen called attention to the Study Session scheduling, and Councilmembers so noted. D. PUBLIC SAFETY 1. Fire Department None 2. Police Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL 1. Mayor's Meeting Summaries Report for the Period of May2-16, 2015. Mayor Weber referred to her printed report contained in the agenda packets. With City Council concurrence the Mayor's Meeting Summaries Report was received and filed. I'M PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 2. Council Requests for Action/Committee Reports/Comments: a) SCAG Workshop - Regional Transportation Plan — Councilmember Harnik said Southern California Association of Governments held a workshop yesterday at the Palm Desert Library Community Room. She said it was an excellent presentation, showing where the region is trying to go in response to a Federally mandated Regional Transportation Plan, along with the Sustainable Communities Strategy. She added SCAG was in the process of going through the communities to solicit input. b) International Council of Shopping Centers Annual Conference — Councilmember Harnik said she attended ICSC last week, and a lot of important information was obtained that will be helpful as the City proceeds with its General Plan Update Process. Further, she said there were some really good meetings from which the City will benefit in the future. c) Memorial Day Ceremonies — Councilmember Harnik said she attended two events, and they were very moving. At one event she was privileged to read the Presidential Proclamation and was honored to do so. d) Desert Sands Unified School District T.R.E.C. — Councilman Jonathan received, and believed his colleagues did as well, correspondence from DSUSD about scheduling a T.R.E.C. (Trustee Reaching Every Community) and wondered if Council would move forward with it. He said it was where School Board Members, part of the Two x Two Committee, take officials around to DSUSD facilities. In response to comment by his colleagues, he offered to provide the information to them. He felt it was very valuable, adding other cities have already gone through it with very positive feed back — an opportunity to learn more about the schools in the community. Councilmember Harnik commented that she participated in the one in La Quinta, and it was excellent. e) Public Safety Commission — Councilman Jonathan noted a recent report about Indio Police Department maintaining open lines of dialog with their youth and wondered if his colleagues who are liaisons to the Public Safety Commission would be willing to consider and make such a request as well. Mayor Pro Tern Spiegel and Mayor Weber agreed to take the idea forward for next school year. PRELIMINARY MINUTES DRAFT REGULAR PALM DESERT CITY COUNCIL MEETING MAY 28, 2015 f) SunLine Transit Agency — Mayor Pro Tern Spiegel reported that SunLine was purchasing five CNG (Compressed Natural Gas) cars and extended the same ability to purchase to the City if it so desired. Mr. Wohlmuth appreciated the information and said staff will talk to SunLine about the offer. 3. Council Consideration of Travel Reauests and Resorts: None XIX. ADJOURNMENT On a motion by Spiegel and unanimous consent of the City Council, Mayor Weber adjourned the meeting at 8:29 p.m. ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA SUSAN MARIE WEBER, MAYOR 45