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.
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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
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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.
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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.)
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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.
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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.
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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.
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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.
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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).
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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
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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.
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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.
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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.
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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,
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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
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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).
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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%.
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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
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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
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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
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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.
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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
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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.
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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
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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,
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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
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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
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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.
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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.
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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
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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
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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
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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
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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
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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.
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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
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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.
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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,
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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,
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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
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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
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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).
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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.
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PRELIMINARY MINUTES DRAFT
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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.
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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