HomeMy WebLinkAbout2021-02-09 Study Session - Energy Dept Parking Shuttle Visitor Center CITY Of
Pfill DESERT
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PALM DESERT, CALIFORNIA 92260-2578
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NOTICE OF STUDY SESSION
OF THE
PALM DESERT CITY COUNCIL
NOTICE IS HEREBY GIVEN that the Palm Desert City Council will convene
Thursday, February 9, 2012, at 2:00 p.m. in the Administrative Conference Room of the
Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California 92260, for
the purpose of conducting a Study Session. Said Study Session will be held in order to
discuss status of the Energy Department, Parking Shuttle, and Visitor Center.
R CHELLE D. KLASSE , CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
February 3, 2012
NO ACTIONS WILL BE TAKEN AT THE STUDY SESSION.
PURPOSE OF THE STUDY SESSION IS INFORMATION ONLY.
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........... CITY OF PALM DESERT
11
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!1 ) PUBLIC WORKS DEPARTMENT
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INTEROFFICE MEMORANDUM
To: Honorable Mayor and City Councilmember's
From: John Wohlmuth, City Manager
Date: February 9, 2012
Subject: Information relating to future of Shopper Hopper, Visitor Center, and
Energy Program
As you know, over the past several weeks we have been learning the cumulative effects
of the elimination of the City's Redevelopment Agency. I have estimated the total
exposure to the general fund to be 1.2 million dollars for the balance of this fiscal year
(5 month analysis attached). There is no doubt that future reorganization of the City will
be necessary. I am confident that our staff will find new and innovative ways to
approach this challenge. The estimated cost of eliminating RDA for the full fiscal year
2012/2013 is 2.88 million dollars (excluding Housing).
I have begun the process of reviewing services and programs provided by the
Redevelopment Agency and have identified three programs for immediate review:
1. El Paseo Courtesy Carts
2. City Visitor Center
3. Energy Program
Detailed analyses of each program have been prepared and are attached to this memo.
I have reviewed each report and have summarized my recommendations below.
El Paseo Courtesy Carts:
As reported, this program was created due to a heavy concentration of businesses in
and around the Presidents Plaza area. Several of the high intense uses that caused the
congestion have relocated which has alleviated many of the parking concerns. While
the Courtesy Carts are a nice amenity, there is a heavy cost associated which will need
to be picked up by the general fund. My recommendation is to eliminate this service at
the conclusion of the El Paseo season or after Fashion Week (April 1, 2012).
City Council Study Ses.. .1
Memorandum
February 9, 2012
City Visitor Center:
My recommendation would be to begin negotiations with the Palm Desert Chamber of
Commerce for the duration of our lease on El Paseo and then relocate the Visitor
Center to the Henderson Building in the Chamber of Commerce space. While there are
some initial obstacles (i.e. current lease) this option could save a substantial amount in
overhead and staffing costs in the long run. The report indicates several proposals for
potential short term costs savings which can be discussed with the Chamber. Whether
contracting with the Chamber or maintaining the operation with City staff, we should
reduce the hours of operation to 5 days a week with perhaps reduced hours (i.e. 10 am
to 5 pm vs. 9 am to 5 pm currently).
Energy Department:
The City has been very forward thinking in this department for many years. I do believe
that it is in the City's best interest to keep an energy department, however, some
reorganization can be utilized to maximize efficiency. The report from Martin Alvarez
indicates some proposed staff sharing alternatives with a proposal to reduce operations
costs for FY 2012/13. I believe Martin's approach will keep visibility of our Energy
Department while minimizing the impact to the general fund.
N M. WOHLMUTH
y Manager
JMW:RS
Attachments (as noted)
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..�'�:ti CITY OF PALM DESERT
11/1 FINANCE DEPARTMENT
.:<•�?=,�y°�.•• INTEROFFICE MEMORANDUM
TO: JOHN M. WOHLMUTH, CITY MANAGER
FROM: PAUL S. GIBSON, FINANCE DIRECTOR gi'l/
DATE: FEBRUARY 6, 2012
SUBJECT: RDA BUDGET TRANSFERS AND ADJUSTMENTS
As a result of the dissolution of Redevelopment, staff proposes the following transfers to the
General Fund and adjustments to the Redevelopment Agency budget:
Remaining Budget
1. Courtesy Cart Program $177,900
2. Energy Management Payroll 84,077
Energy Management Program 83,025
167,102
3. Visitor Center Payroll / PIO 88,860
4. Economic Development Program 45,423
5. Staffing of Redevelopment (February—June 2012)
Salary 466,987
Benefits 188,498
Program Costs 67,453
722,938
Grand Total $1,202.223
Currently, the above-listed expenses are represented in Fund 850, and action is required by
Council in the near future to appropriate these funds to the General Fund. There is still some
uncertainty as to whether the successor agency will be reimbursed for these expenses, and it is
likely the General Fund will ultimately cover these costs.
If you require any additional information, feel free to contact me. Thank you.
PSG:nmo
, CITY OF PALM DESERT
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-T'���'4-� OFFICE OF ENERGY MANAGEMENT
MEMORANDUM
To: John M. Wohlmuth, City Manager
From: Martin Alvarez, Redevelopment Manager
Date: February 6, 2011
Subject: Office of Energy Management
As of February 1, 2012, the Office of Energy Management's administration budget has
been transferred to the General Fund. The current staffing consists of one full-time
Technician and 50% of the Energy Manager's position. Both positions handle the
various energy related programs including the Set To Save program, Palm Desert
Energy Partnership coordination, the Energy Independence Program and coordination
with the Sustainability Committee.
Set To Save Program / Palm Desert Energy Partnership:
In December of 2010, the California Public Utilities Commission (CPUC) granted $6.9
million to the Palm Desert Energy Partnership (i.e. Set To Save Program) and approved
an extension of the Set To Save Programs until December 31, 2012. The CPUC funding
is used for Set To Save rebates, incentives, marketing, and administration. The City's
commitment to the Energy Partnership / CPUC is the continued staffing of the Office of
Energy Management through the end of the Set To Save program.
Staff works with our utility partners on a weekly basis to develop strategies to raise
community awareness of the Set To Save programs and the opportunities to save
money and energy. Staff handles daily phone inquiries on the One Stop Shop Pool
Pump Program, Free Residential Energy Surveys, Quality Installation Air Conditioning
Rebate, and other commercial and residential Set To Save rebates.
Recommendation/Option:
In order to minimize impacts to the General Fund, staff recommends that phone and
counter inquiries for the Set To Save Program be coordinated by 20% of a full-time
employee in the Technician classification and the Energy Manager can continue to
coordinate with the Palm Desert Energy Partnership to fulfill the commitments of the Set
To Save Program through the end of the term.
Energy Independence Program:
The City of Palm Desert has committed up to $15M to the Energy Independence
Program (EIP). To date, approximately $6.0M in loan funds have been issued. The EIP
continues to receive applications, however at a slower intake. In 2010, the EIP funded
G.\rda\Martin Alvarez\20121Memos\EnergyStafling.doc
.
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59 energy projects (5 per month). After the July 2010 FHFA statements were released,
which questioned the seniority position of our liens, EIP applications were significantly
reduced. In 2011, staff funded 25 energy loans (2 per month). Staff continues to
receive telephone and counter inquires for the EIP. In addition, the Energy Technician
conducts annual visual verification inspections required by the EIP Guidelines for all
projects completed after 2010.
The City Council has also committed significant legal resources to the EIP. In 2010, the
City filed a lawsuit against the FHFA road blocks. Our legal counsel awaits the final
ruling from the District Court and anticipates a preliminary hearing date in June 2012. If
the court rules to invalidate FHFA's statements, applications could regain momentum
and rise to the 2010 levels (60/year). If the District Court rules in favor or the FHFA, EIP
applications may continue to be submitted at the current pace (2/month).
Recommendation/Option:
To address the staffing levels for the EIP, staff recommends that both telephone and
counter EIP inquires be coordinated by 20% of a full-time employee in the Technician
classification. Intake of EIP applications and processing requires additional staffing
resources, even at the current intake pace. EIP application processing can be
coordinated by 20% of a full-time employee in the Technician classification, 10% of the
Senior Financial Analyst and the Energy Manager. Staff recommends that the annual
visual verification inspections be conducted by the City's Building Inspectors.
Below is a summary of the current Energy Management budget for Fiscal Year 11/12,
proposed reductions for the remaining fiscal year and proposed budget for FY 12/13.
Energy Management Administration
Adjustment
Remaining Proposed
Description FY 11/12 FY 11/12 FY 12/13
Energy Manager (50%) $87,461 $87,461 $87,461 50%Allocated to Energy
Technician $114,965 $45,986 $45,986 40% Allocated to Energy
Office Supplies $250 $100 $250
Professional Services $50,000 $4,400 $10,800 Title Report Fees EIP
Mileage Reimbursement $1,000 $200 $500 EIP/PACE Meetings
Conferences/Seminars $1,500 $0 $0
Local Meetings $500 $0 $500 Contractor Meetings
Advertising Promotional $10,000 $1,000 $1,000 EIP Brochures
Printing / Duplicating $1,000 $200 $500
Dues $21,000 $5,000 $5,000 Aspen Accord Dues
Telephones $500 $0 $500
Postage & Freight $1,000 $200 $500
Capital Budget $2,200 $0 $0
$291,376 $144,547 $152,997
If you have any questions, please feel free to contact me at your convenience.
cc: Justin McCarthy, Assistant City Manager
G:\rda\Martin Alvarez\2012\Memos\EnergyStaffing.doc
CITY OF PALM DESERT
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�'1 I Redevelopment Agency
•''4' Ammo,': MEMORANDUM
To: John Wohlmuth, City Manager
CC: Justin McCarthy, ACM Redevelopment
From: Ruth Ann Moore, Economic Development Manager
Date: January 19, 2012
Contents: Attachment A — Grey 2011/2012 Schedule
Attachment B — Green 2012/2013 Proposed Schedule
Attachment C — Blue Proposed Schedule for Remainder of 2011/2012
Attachment D — Conditions of Approval
Subject: Courtesy Cart Program
The El Paseo Courtesy Cart Program has been funded through the Redevelopment
Agency. With the need to now fund that program through the General Fund, the following
is an overview of the program, review of the 2007 proposed parking structures and a
program modification for your consideration.
Background
The El Paseo Courtesy Cart Program began operation in September of 2004 with one cart;
five days per week. In the following two years, two additional carts were added and the
service was extended to seven days per week. The program currently operates from Labor
Day weekend through July 4th weekend (Attachment A—Grey), seven days per week with
the following budget:
• Regular Operations $158,000
Daily running 2-3 carts totaling 6,077 hours @ $26.00/hour
• Special Event Hours $ 5,000
Evening street-wide events totaling 170 hours @ $28.00/hour
• Yearly Maintenance $ 10,000
Total 2011/2012 Budget $173,000
The program has been well received by merchants and customers alike with strong
ridership consistently averaging between 49,000 and 51,000 rides each year. Many cities
have inquired about the program for their shopping districts including cities in California,
G:IRDAVRUTH ANN MOOREIWORD DATAIEL PASEO COURTESY SHUTTLEICART OPERATING PROPOSAL.DOC
Washington, Oregon, and Illinois. The carts have been highlighted in local media, in
national and international websites, and magazines that featured Fashion Week on El
Paseo. The El Paseo Business Improvement District features the program in all its
advertising including magazine, radio, websites, and the street-wide directories.
During the City's parking study in 2007, it was determined that overall parking in the district
is adequate for current requirements. Unfortunately, parking is not evenly disbursed
throughout the mile-long district. Parking is heavily weighted in the center of the district but
does not fulfill current requirements for areas to the east (Presidents' Plazas I & II) or the
future requirements to the west (President's Plaza III).
Design and cost estimates for building parking structures in these public parking areas
were performed. Due to the existing property structures, utilities and accessibility
requirements by fire & safety, the proposed construction would not only demolish existing
parking but create little additional parking for the cost as indicated in the following:
President's Plaza I 423 existing spaces
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P>rking PRESIDENT'S PLAZA PARKING STRUCTURE SHEET
Dear' .ob........,...,v,m .A., OPTION 2-EAST SITE A102E
Proposed structure — 285 spaces at a total cost of$7,443,360
New structure would destroy 229 existing spaces
Net spaces gained — 56
Cost per net new stall - $132,917
G:IRDAIRUTH ANN MOOREIWORD DATAIEL PASEO COURTESY SHUTTLEICART OPERATING PROPOSAL.DOC
President's Plaza II 422 existing spaces
ini isi Feili"Ism PRESIDENT'S PLAZA PARKING STRUCTURE SHEET
- •-•^- +— OPTION 2s- WEST SITE Al O1W
Proposed structure — 321 spaces at a total cost of $6,037,920
New structure would destroy 192 existing spaces
Net spaces gained — 129
Cost per net new stall $53,782
President's Plaza III 560 existing spaces
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1 Iti.klnc PRESIDENTS PLAZA PARKING STRUCTURE SHEET
-• r�:, 1��»»w��^ »»« OPTION 2- WEST SITE A1.OIW
Proposed structure — 665 spaces at a total cost of$15,846,624
New structure would destroy 367 existing spaces
Net spaces gained — 298
Cost per net new stall $53,177
G:IRDAIRUTH ANN MOOREIWORD DATAIEL PASEO COURTESY SHUTTLEICART OPERATING PROPOSAL.DOC
' a
From these totals it was clear that adding 483 new parking spaces at a cost of over $29
million was impractical and not a good use of funds. The solution of moving people
throughout the mile-long shopping district is the El Paseo Courtesy Cart Program.
The shuttles allow customers to move to multiple locations without a need to move their
vehicle in order to continue shopping. Customers spend more time in the district to fulfill
their shopping and dining needs while the use of the Courtesy Carts reduces both traffic
and greenhouse gases by encouraging shoppers to park in one place.
Taking the estimated cost of $29 million for new structures, the El Paseo Courtesy Cart
program could operate for over 100 years for the same amount of money. Therefore, it
was more practical to use funds for the cart program rather than build parking structures to
support the economic vitality of the shopping district.
Program Modification
In consideration of funding for the program in the future, should City Council want to
continue the cart program, the following is an option to reduce operating hours while still
providing the most service while needed in season.
Monthly ridership numbers have been counted since the program's inception. Averaging
monthly ridership from the ten fully operational months of the past five year indicates an
average yearly ridership of 49,372.
As indicated in the graph below 40,312 riders or 81% of the ridership occurs from
November through May. After review of the ridership per week with the operator of the
program, a majority of the weekly ridership occurs between Wednesday and Sunday.
5 Yr Average Ridership '07 - '11
8000
7000
6000
so0o
4000
3000
2000
1000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
G:IRDAIRUTH ANN MOOREIWORD DATAIEL PASEO COURTESY SHUTTLEICART OPERATING PROPOSAL.DOC
The operator indicated that the use of three carts was more beneficial than operating
two carts, therefore, staff proposes operating November through Memorial Day in May
(Attachment B — Green), each week from Wednesday through Sunday, and operating
three carts during the busiest months from January through April with the following
results:
• Regular Operations $ 80,750
Daily running 2-3 carts totaling 3,104 hours @ $26.00/hour
• Special Event Hours $ 4,000
Evening street-wide events totaling 140 hours @ $28.00/hour
• Yearly Maintenance $ 10,000
Total 2012/2013 Budget $ 94,750
Savings between the current and proposed schedules $ 78,250
Within the operations contract, there is a provision that allows for the reduction of
operations at anytime. Should authorization to begin this new proposal occur on February
1, 2012, the operations for the remainder of the 2011/2012 budget would be reduced by
1,176 hours or $30,576 (Attachment C — Blue).
The current vehicles have operated beyond all expectations and the purchase of new
vehicles is required. There are funds ($75,000) available through a condition placed on a
commercial development at the southwest corner of El Paseo and Sage to be used to
purchase new carts with any remaining funds to be used for operations (reference
Attachment D).
Should City Council wish to continue the Courtesy Cart program, staff will put the cart
purchase out to bid in anticipation of using new carts in fiscal year 2012/2013.
G:IRDAIRUTH ANN MOOREIWORD DATAIEL PASEO COURTESY SHUTTLEICART OPERATING PROPOSAL.DOC
201112012
SCHEDULE OF OPERATION Attachment A
September October December
Cart day mo hrs Cart day mo h - Cart day mo hrs
No. Days hrs day mo No. Days hrs day m . No. Days hrs day mo
CC1 M-SN 8 30 240 CC1 M-SN 8 31 248 CC1 M-SN 8 29 232 CC1 M-SN 8 30 240
CC2 M-SN 8 30 240 CC2 M-SN 8 31 248 CC2 M-SN 8 29 232 CC2 M-SN 8 30 240
CC3 W-SN 0 22 0 CC3 W-ST 8 18 144 CC3 W-ST+1 SN 8 17 136 CC3 W-SN 8 22 176
82 480 80 640 75 600 82 656
January February March April
Cart day mo hrs Cart day mo hrs Cart day mo hrs Cart day mo hrs
No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo
CC1 M-SN 8 31 248 CC1 M-SN 8 29 232 CC1 M-SN 8 31 248 CC1 M-SN 8 30 240
CC2 M-SN 8 31 248 CC2 M-SN 8 29 232 CC2 M-SN 8 31 248 CC2 M-SN 8 30 240
CC3 W-SN 8 21 168 CC3 W-SN 8 21 168 CC3 W-SN 8 23 184 CC3 W-SN 8 21 168
83 664 79 632 85 680 81 648
k,
May June July August
Cart day mo hrs Cart day mo hrs Cart day mo hrs Cart day mo hrs
No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo
CC1 M-SN 8 31 248 CC1 M-SN 8 30 240 CC1 M-SN 8 4 32 CC1 ST-SN 0 0 0
CC2 M-SN 8 31 248 CC2 M-SN 8 30 240 CC2 M-SN 0 0 0 CC2 M-SN 0 0 0
CC3 W-ST 8 16 128 CC3 W-ST 0 0 0 CC3 W-ST 0 0 0 CC3 W-SN 0 0 0
78 624 60 480 4 32 0 0
¶ONTHS OF OPERATION M-SN=Monday thru Sunday TOTAL HOURS/YEAR 6,136
Month No.of Carts W-ST=Wed thru Saturday
September 2 W-SN=Wed thru Sunday
October 3 ST-SN=Saturday thru Sunday
November 3 *off on Thanksgiving Day
December 3 *off on Christmas Day
January 3
February 3
March 3
April 3
May 3
June 2
July 1 (thru July 4th)
August 0G:\rda\Robin McCormick\Courtesy Cart\CC Schedule of Operation-Update 2011-12
FISCAL YR 2012.13
SCHEDULE OF OPERATION Attachment B
September October November December
Cart day mo hrs Cart day mo hrs Cart day mo hrs Cart day mo hrs
No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo
CC1 0 0 0 CC1 0 0 0 CC1 W-SN 8 21 168 CC1 W-SN 8 23 184
CC2 0 0 0 CC2 0 0 0 CC2 W-SN 8 21 168 CC2 W-SN 8 23 184
CC3 0 0 0 CC3 0 0 0 CC3 W-SN 0 0 0 CC3 W-SN 0 23 0
0 0 42 336 69 368
January February March April
Cart day mo hrs Cart day mo hrs Cart day mo hrs Cart day mo hrs
No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo
CC1 W-SN 8 22 176 CC1 W-SN 8 21 168 CC1 W-SN 8 23 184 CC1 W-SN 8 20 160
CC2 W-SN 8 22 176 CC2 W-SN 8 21 168 CC2 W-SN 8 23 184 CC2 W-SN 8 20 160
CC3 W-SN 8 22 176 CC3 W-SN 8 21 168 CC3 W-SN 8 23 184 CC3 W-SN 8 20 160
66 528 63 504 69 552 60 480
May June July August
Cart day mo hrs Cart day mo hrs Cart day mo hrs Cart day mo hrs
No. Days hrs day mo No. Days hrs day mo . No. Days hrs day mo No. Days hrs day mo
CC1 W-SN 8 21 168 CC1 0 0 0 CC1 0 0 0 CC1 0 0 0
CC2 W-SN 8 21 168 CC2 0 0 0 CC2 0 0 0 CC2 0 0 0
CC3 CC3 0 0 0 CC3 0 0 0 CC3 0 0 0
42 336 0 0 0
f
(— DNTHS OF OPERATION TOTAL HOURS/YEAR 3,104
Month No.of Carts
September 0 W-SN=Wed thru Sunday
October 0 .
November 2 *off on Thanksgiving Day
December 2 *plus Christmas Day
January 3 *plus Martin Luther King Day
'February 3 *plus President's Day
March 3
April 3
May 2 *plus Labor Day
June 0
• July 0
• August 0
G:\rda\Robin McCormick\Courtesy Cart\CC Schedule of Operation-2012-13
PROPOSED SCHEDULE- REMAINDER OF 2011/2012
SCHEDULE OF OPERATION Attachment C
September October November December
Cart day mo hrs Cart day mo hrs Cart day mo hrs Cart day mo hrs
No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo
CC1 0 0 0 CC1 0 0 0 CC1 0 0 0 CC1 0 0 0
CC2 0 0 0 CC2 0 0 0 CC2 0 0 0 CC2 0 0 0
CC3 0 0 0 CC3 0 0 0 CC3 0 0 0 CC3 0 0 0
0 0 0 0
January February March April
Cart day mo hrs Cart day mo hrs Cart day mo hrs Cart day mo hrs
No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo
CC1 0 0 0 CC1 W-SN 8 22 176 CC1 W-SN 8 23 184 CC1 W-SN 8 21 168
CC2 0 0 0 CC2 W-SN 8 22 176 CC2 W-SN 8 23 184 CC2 W-SN 8 21 168
CC3 0 0 0 CC3 W-SN 8 22 176 CC3 W-SN 8 23 184 CC3 W-SN 8 21 168
0 66 528 69 552 63 504
May June July August
Cart day mo hrs Cart day mo hrs Cart day mo hrs Cart day mo hrs
No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo No. Days hrs day mo
CC1 W-SN 8 21 168 CC1 0 0 0 CC1 M-SN 0 4 0 CC1 0 0 0
CC2 W-SN 8 21 168 CC2 0 0 0 CC2 M-SN 0 0 0 CC2 0 0 0
CC3 0 CC3 0 0 0 CC3 W-ST 0 0 0 CC3 0 0 0
42 336 0 0 0
MONTHS OF OPERATION TOTAL HOURSIYEAR 1,920
Month No.of Carts
September 0 W-SN=Wed thru Sunday
October 0
November 0
December 0
January 0
February 3 *plus Presidents Day
March 3
April 3
May 2 *plus Labor Day
June 0
July 0
August 0
G:\rda\Robin McCormick\Courtesy Cart\CC Schedule-Update 2011-12 Rmndr Yr
RESOLUTION NO. 07-75
CONDITIONS OF APPROVAL
CASE NOS. VAR 07-01 AND PP 07-08
Department of Community Development:
1. The development of the property shall conform substantially with exhibits on file
with the Department of Community Development, as modified by the following
conditions. The applicant shall construct a fourteen-foot six-inch (14'6") wide
sidewalk along the property's frontage as shown on the project site plan.
2. The applicant shall submit to the City of Palm Desert an in-lieu parking fee in the
amount of seventy-five thousand dollars ($75,000) to apply towards either the
purchase of an El Paseo Courtesy Cart and one-year of its operation, or the
construction of a parking structure, at the sole discretion of the City.
3. Construction of a portion of said project shall commence within one year from the
date of final approval unless an extension of time is granted; otherwise, said
approval shall become null, void and of no effect whatsoever.
4. The development of the property described herein shall be subject to the
restrictions and limitations set forth herein which are in addition to all municipal
ordinances and state and federal statutes now in force, or which hereafter may be
in force.
5. Prior to issuance of a building permit for construction of any use contemplated by
this approval, the applicant shall first obtain permits and/or clearance from the
following agencies:
Coachella Valley Water District
Palm Desert Architectural Review Commission
City Fire Marshal
Public Works Department
6. Evidence of said permit or clearance from the above agencies shall be
presented to the Department of Building and Safety at the time of issuance of a
building permit for the use contemplated herewith.
7. Access to trash/service areas shall be placed so as not to conflict with parking
areas. Said placement shall be approved by applicable waste company and
Department of Community Development and shall include a recycling program.
8. Applicant agrees to maintain the landscaping required to be installed pursuant to
these conditions.
9. All sidewalk plans shall be reviewed and approved by the Department of Public
Works prior to final Architectural Review Commission submittal.
10. The project shall be subject to all applicable fees at time of issuance of building
permits including, but not limited to, Art in Public Places, Fringe-Toed Lizard,
TUMF, School Mitigation and Housing Mitigation fees.
.
•
� �"'' � •: CITY OF PALM DESERT
in i
INTEROFFICE MEMORANDUM
b ��� h r
To: John Wohlmuth, City Manager
From: Donna Gomez, Visitor Center Manager
Date: January 31, 2012
Subject: VISITOR CENTER MANAGEMENT OPTIONS
In March 2011 staff sought proposals from outside agencies in order to analyze options
related to the operation of the City's Visitor Center. Six proposals were received and a
committee selected two proposals for further consideration.
The attached financial analysis outlines both internal and external options for operating
the Palm Desert Visitor Center. Included are the top two proposals received; Landmark
and the Palm Desert Area Chamber of Commerce, as well as an option for reorganizing
internally to create operational savings. Although innumerable options exists, staff has
narrowed those for consideration. Ultimately the question is do we want to retain this
operation in house or contract out for services.
If the decision is to move forward with contracting for Visitor Center operations I would
recommend the City consider the following points critical to the successful continuance
of this service:
• Adequate staffing including a supervisor and sufficient staff to cover hours of
operation. Staffing should increase during seasonal highs.
• Address any possible conflicts of interest with agencies other responsibilities
• Adequate training of new employees should be incorporated into the transition
program — resources, POS, inventory, buying, policies and procedures
• Recommend supervisor possess retail experience
• If maintain a volunteer program, strong supervision and ongoing training should
occur
• Hours of operation — change to 10 a.m. — 5 p.m.
• At a minimum, close Sundays during the summer. Look at possibility of closing
two days per week year-round for further savings.
• Implementation of any recommendations adopted by the City pertaining to the
Landmark retail/merchandising study.
PALM DESERT VISITOR CENTER
OPTIONS FOR CONSIDERATION
Remain As Is
• Open 7-days per week, closed only major holidays
• Hours of operation: 9 a.m. — 5 p.m. daily (staffed 8 a.m. — 5 p.m.)
• Staffing includes manager, senior office assistant, and two office assistant's
• Retail sales of approximately $120,000/year
Total Budget: $584,000
Internal Restructuring
This option includes creating new classifications within the city's existing salary and
classification structure. It allows for a reduction in long term staffing and operational
costs of the Visitor Center while maintaining control of daily operations. Full time and
one part time employee would be utilized. This option would require hiring of new
employees at the lower rate and consideration of status of existing Center employees.
Total Budget: $238,754
Landmark Golf
Landmark submitted a proposal that would maintain the Visitor Center in its current
location and would operate with similar staffing and management methods at a cost
savings.
Total Budget: $285,967
Palm Desert Chamber
The Chamber of Commerce presented a proposal for operating the Visitor Center that
would provide for a substantial cost savings. Staff would recommend additional
negotiation including the areas of staffing requirements.
Total Budget: $246,505
Additional Consideration
Staff initiated a dialogue with the property owners for the Visitor Center building. The
current lease agreement allows for the closing of the Visitor Center on Sundays. Staff
specifically requested consideration of allowing us to consider closing two days per
week in order to address operational and staffing costs. Within this discussion, the
property owner representative indicated a willingness to work with us in allowing a two
day closure, with the condition that we agree to a landlord recapture right. This would
give the landlord the right to recapture the location within 60 days if they had a suitable
replacement tenant.
If the City wished to consider this adjustment to the lease agreement it would make
sense to contract with the Chamber of Commerce. If and when the landlord reclaimed
the building, the Chamber could then relocate Visitor Center operations to their existing
site (note PD Chamber#2 option on attached summary) at a substantial costs savings.
With this option there would be a stronger focus on services as opposed to retail.
Visitor Center
Management & Operation - Summary of Proposals
Internal
Expenditure/Revenue Description Current Budget Restructuring Landmark P.D. Chamber P.D. Chamber#2
Payroll & Benefits 451,330.88 136,085.00 155,398.00 113,336.00 113,336.00
Management Fee - - 30,000.00 36,000.00 36,000.00
Total Payroll and Management Costs 451,330.88 136,085.00 185,398.00 149,336.00 149,336.00
Plus: Cities' Costs 116,900.00 76,500.00 76,500.00 76,500.00 41,500.00
(Utilities, Repair/Maint/Telep)
Lease Payment 65,769.00 65,769.00 65,769.00 65,769.00
Other Costs 10,400.00 8,300.00 4,900.00 4,900.00
Cost of Goods Sold 70,000.00 70,000.00 70,000.00 70,000.00 30,000.00
Total Proposed Budget: 703,999.88 358,754.00 405,967.00 366,505.00 225,736.00
Estimated Retail Sales Revenue ($120,000.00) ($120,000.00) ($120,000.00) ($120,000.00) ($50,000.00)
Total Net Budget: 583,999.88 238,754.00 285,967.00 246,505.00 175,736.00
ASSUMPTIONS:
1) Calculations reflect adjustments from original proposals to provide for a comparable comparison based on identical
staffing levels and hours of operation
2) Cost of Goods Sold were made consistent across the board to provide for an accurate comparison ($70,000)
3) Estimated rent for FY 2012 is$65,769 and is to paid by RDA
4) Visitor Center Manager could potentially receive lateral transfer to Marketing Manager position
5) Manager would retain oversight of VC including policy direction, planning, forecasting & budgeting responsibilities
6) If contracted out, existing VC employees will fill positions at City Hall created through attrition
7) PD Chamber option#2 includes release from our existing lease and a reduction in sales due to less retail space at existing building
8) City cost reduction shown under PD Chamber#2 option is due to reduced building maintenance and utility costs