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HomeMy WebLinkAbout2007-01-25MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING THURSDAY, JANUARY 25, 2007 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER - 3:00 P.M. Mayor Kelly convened the meeting at 3:03 p.m. II. ROLL CALL Present: Mayor Pro Tem Jean M. Benson Councilman Jim Ferguson Councilmember Cindy. Finerty Councilman Robert A. Spiegel Mayor Richard S. Kelly Also Present: Carlos L. Ortega, City Manager/RDA Executive Director Robert W. Hargreaves, Assistant City Attorney Sheila R. Gilligan, ACM for Community Services Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Amir Hamidzadeh, Director of Building & Safety Steve Smith, Acting Director of Community Development Patrick Conlon, Director of Office of Energy Management Paul S. Gibson, Director of Finance/City Treasurer Mark Greenwood, Director of Public Works David Yrigoyen, Director of Redevelopment & Housing Frankie Riddle, Director of Special Programs Jorge Rodriguez, Fire Marshal, Palm Desert Fire Dept./Riverside Co. Fire/CDF Frank Taylor, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION• Reauest for Closed Session: Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(b): Number of potential cases: 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 c Public Employment pursuant to Government Code Section 54957: Title of Position: City Attorney Conference with Labor Negotiator pursuant to Government Code Section 54957.6: Negotiating Party: Carlos L. Ortega/City of Palm Desert Upon a motion by Ferguson, second by Spiegel, and 5-0 vote of the City Council, Mayor Kelly adjourned the meeting to Closed Session at 3:05 p.m. He reconvened the meeting at 4:01 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. AWARDS, PRESENTATIONS, AND APPOINTMENTS None VI. CONSENT CALENDAR A. MINUTES of the Regular City Council Meeting of January 11, 2007. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY TREASURY - Warrant Nos. 125, 129, 133, 134, 135, 136, 140, 141, 142, 143, and 144. Rec: Approve as presented. C. CLAIM AGAINST THE CITY (#5731 by Lorenzo Cendejas in an Unspecified Amount. Rec: By Minute Motion, reject the Claim and direct the City Clerk to so notify the Claimant. D. YOUTH COMMITTEE MINUTES for the Meeting of December 5, 2006. Rec: Receive and file. 2 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 E. REQUEST FOR APPROVAL of Funding for Emergency Services for Satellite Phones. Rec: By Minute Motion, approve funding of $8,100 yearly to provide ongoing service for 12, handheld, satellite phones for use by the Mayor, City Council, Fire Chief, Police Chief, City Manager, Risk Manager, and other Emergency Team Section Chiefs — funds are available FY 2006/07 in Account No. 110-4260-422-3915; in subsequent years, funds will be available in Account No. 110-4260-422-2191. F. REQUEST FOR RATIFICATION of the City Manager's Approval of the Purchase and Installation of Equipment for Council Chamber Audio System Upgrade. This item was removed for separate consideration. Please see the resulting discussion and action under Section VII - Consent Items Held Over. G. REQUEST FOR APPROVAL of Tract Map No. 34597 (Serenity of Palm Desert, LLC, Applicant). Rec: Waive further reading and adopt Resolution No. 07-5, approving the Final Subdivision Map of Tract No. 34597 and the Improvement Agreement related thereto. H. REQUEST FOR APPROVAL of Installation of Tree and Plaque on City Property Honoring Marian Marsh Henderson. Rec: By Minute Motion, approve of the installation of a tree or native desert flora and plaque honoring the memory of Marian Marsh Henderson on City -owned property located at 72-861 El Paseo Drive. REQUEST FOR RATIFICATION of the City Manager's Approval of Payment for Construction of a Retaining Wall at the Civic Center Park Well Site (Contract No. C26160). Rec: By Minute Motion, ratify the City Manager's approval of payment in the amount of $14,850 for the subject project by A.C.R. Concrete, Indio, California — funds are available in Account No. 110-4610-453-3320. 3 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 J. REQUEST FOR APPROVAL of Amendment to the Community Development Block Grant (CDBG) Subrecipient Agreements with ABC Recovery Center and Stroke Recovery Center. Rec: By Minute Motion, approve: 1) ABC Recovery Center Amended Subrecipient Agreement Nos. C23050-K3 in the new amount of $59,500 and C25280A1 in the new amount of $75,500; 2) Stroke Recovery Center Amended Subrecipient Agreement No. C23730-J2 in the new amount of $108,965. K. INFORMATIONAL REPORT on the Palm Desert Community Center Weight Equipment. Rec: Receive and file. Councilmember Finerty requested Item F be discussed separately. Councilman Spiegel noted that $50,000 worth of equipment was purchased by the Coachella Valley Recreation & Park District for the Center in Palm Desert. Councilmember Finerty added that she looked at the equipment and felt it was a nice variety from a good company. Upon a motion by Spiegel, second by Ferguson, and 5-0 vote of the City Council, the remainder of the Consent Calendar was approved as presented. VII. CONSENT ITEMS HELD OVER F. REQUEST FOR RATIFICATION of the City Manager's Approval of the Purchase and Installation of Equipment for Council Chamber Audio System Upgrade. Councilmember Finerty stated she understood why staff felt it would be beneficial to return to the original system designer. However, she was concerned they were now recommending a different type of DSP base system, when they recommended the Intellix mixers that were now failing. Responding to the life expectancy of the Intellix Mixers, Ms. Klassen stated with advancement of technology today, 36 months was the expected life of any given electronic equipment; similar to the computers in the office, they are changed approximately every 18-24 months. In response to a guarantee on the new system, Ms. Klassen replied the vendor's personal and professional integrity was at stake, and the vendor was admonished to propose a system that would solve the problem. Upon further question, Ms. Klassen stated the equipment came with the standard 12-month warranty on service and parts, and thereafter it would be negotiable. 4 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 Councilmember Finerty stated the screen at times was too dark and wondered if the projector system also part of the upgrade. Ms. Klassen replied that would be coming to City Council as a separate issue. Staff had received a demonstration on a new projector and felt it was a significant advancement over the existing one. The new one would be Digital Light Processor (DLP) as oppose to the existing one, which was not. Mayor Pro Tem Benson suggested that if the City was looking at such upgrades, it should also consider equipping the Administrative Conference Room (ACR), because the room was large, and it was difficult to hear during the many meetings held there. She noted that the CVAG Conference Room was smaller and yet outfitted with a sound system. Councilman Spiegel proposed getting a consultant to evaluate the City's needs and determine what upgrades were actually needed for the Council Chamber to be functional. He felt the City of Palm Desert had substandard equipment compared to other cities in the Coachella Valley. He suggested appointing two Councilmembers to a subcommittee to work on this project and return with a recommendation. Councilmember Finerty concurred. Mayor Pro Tem Benson recommended including all the City's conference rooms in the review. Councilman Ferguson agreed. He believed Palm Desert had the prettiest Council Chamber but the most technically inefficient. He believed the microphones, PowerPoint presentation capability, and overhead projector all needed to be upgraded. In answer to question, Mr. Hargreaves responded that if the proposal in the staff report was not approved, it would be considered rejected. Councilman Spiegel moved to, by Minute Motion, reject the proposal and appoint Councilmen Ferguson and Spiegel as a subcommittee to work with staff and a consultant to recommend overall upgrades to the City Council Chamber audio/visual equipment, as well as to consider the installation of audio/visual equipment in Civic Center Conference Rooms. Motion was seconded by Finerty and carried by a 5-0 vote. 5 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 VIII. RESOLUTIONS A. RESOLUTION NO. 07-6 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, VACATING EXCESS PUBLIC UTILITY EASEMENT ADJOINING PASEO BRAVO IN THE SPANISH WALK PROJECT, TRACT NO. 33837-1, UNDER PROVISIONS OF DIVISION 9, PART 3, CHAPTER 4, OF THE STREETS & HIGHWAYS CODE OF THE STATE OF CALIFORNIA (D. R. Horton c/o Stantec Consulting, Applicant). Responding to question, Mr. Greenwood said the subject utility easement vacation wouldn't affect the bicycle/pedestrian path planned near this project. Councilman Spiegel moved to waive further reading and adopt Resolution No. 07-6. Motion was seconded by Finerty and carried by a 4-0 vote, with Ferguson ABSENT. IX. ORDINANCES For Introduction: None For Adoption: None X. NEW BUSINESS A. REQUEST FOR APPROVAL OF AGREEMENT FOR THE PROVISION OF LEGAL SERVICES TO THE CITY OF PALM DESERT (CONTRACT NO. COO-008A). Councilman Ferguson moved to continue this item to the meeting of February 8, 2007. Motion was seconded by Spiegel and carried by a 5-0 vote. B. REQUEST FOR APPROVAL OF REQUEST TO USE CIVIC CENTER PARK FOR BOY SCOUT CAMPOREE -- MARCH 30 - APRIL 1, 2007. Parks & Recreation Service Manager Janis Steele noted representatives from the Boys Scouts of America were available to answer questions. She stated the Boy Scouts Camporee was requesting to hold their Camporee at the Civic Center Park, March 30-April 1. She went over the schedule and the activities planned; expecting 150-175 participants for the event. She noted adult supervision would be provided at a ratio of 1:4. Responding to question, she stated the Parks and Recreation Commission voted unanimously in support. Councilmember Finerty moved to, by Minute Motion, approve the subject request 6 © 0 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 by the Sunrise District of the Boy Scouts of America to utilize the Civic Center Park for a Camporee. Motion was seconded by Benson and carried by a 5-0 vote. C. REQUEST FOR APPROVAL OF DESIGNATED TIME PERIODS FOR BICYCLES TO UTILIZE THE PALM DESERT SKATE PARK. Councilman Ferguson was concerned that the exposed metal parts on the bicycles would damage the concrete in the Skate Park but noted that he didn't have any other issue with the bicyclists using the facility. Ms. Steele said after reviewing the request with City Risk Manager Gary Rosenblum and the California Joint Powers Insurance Authority (CJPIA), it was recommended the kickstands be removed from the bikes, which would be included in the rules for use. Additionally, she noted that this would be initiated for a trial period on a couple of different days. The request is supported by the Parks & Recreation Commission on a trial basis, and if it found that damage was occurring, the use could be discontinued and other options explored. Responding to question regarding enforcement of the rules, Ms. Steele said the Skate Park was currently supervised by a CVRPD, and City staff will continue to work closely with them in this undertaking. Signage would be installed and notification given to the skateboarders so they would be aware of the new program. Responding to question about how the bicycles would use the Skate Park, it was confirmed that the type of activity -riding around the bowl and up and over the undulations -would be similar to the way skateboarders use the Park. She further noted that there were no other parks in the State of California with a dual use, so Palm Desert would be the first. The insurance would be the same as long as the Risk Manager's proposed guidelines are implemented. MR. MARLIN MCKENNY(sp?), Palm Desert, stated he was a professional racing bike rider for more than six years. With regard to damage to the concrete, he felt the bicycle steel pegs' metal would inflict less damage than the similar aluminum components on skateboards. He added that there were a few California skate parks that already allow bikes on an altemating day schedule, and there was no destruction; the other cities with this arrangement were Jurupa and Delano. He affirmed that the proposed hours in Palm Desert were acceptable, adding that they normally rode in the afternoons. He called attention to the 12 people in attendance today to support the proposal because they didn't have anywhere else to ride currently, and with the X-Games on ABC and the Gravity Games on NBC, there was a lot of interest. Councilman Ferguson moved to, by Minute Motion, approve of the designation of specific time periods for bicycles to utilize the Palm Desert Skate Park: Sunday - 6:00 a.m. to 12:00 p.m.; Wednesday - 3:00 p.m. to 5:00 p.m. Motion was seconded by Finerty and carried by a 5-0 vote. 7 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 D. CONSIDERATION OF CHANGING THE CLOSING TIME AT JOE MANN PARK. Councilman Ferguson asked what was the closing time for all parks in the City. Ms. Steele answered it was 11:00 p.m. Councilman Spiegel said the neighbors were annoyed with the basketball games, the City was experiencing problems with the dog park, and the shade structure had to be replaced. He said the Commission was requesting that Council change the closing time from 11:00 p.m. to 10:00 p.m. Councilmember Finerty agreed and appreciated staff responding to the issues at that park. Councilmember Finerty moved to, by Minute Motion, approve of changing the closing time at Joe Mann Park from 11:00 p.m. to 10:00 p.m. Motion was seconded by Spiegel and carried by a 5-0 vote. E. REQUEST FOR APPROVAL OF THE NAMING OF A PALM DESERT TRAILHEAD AND CONNECTION TO THE BUMP AND GRIND TRAIL. Councilman Ferguson moved to, by Minute Motion, approve of the naming of the trailhead and connection to the Bump and Grind Trail as the Mike Schuler Trailhead and Trail. Motion was seconded by Finerty and carried by a 5-0 vote. F. REQUEST FOR APPROVAL OF CONTENT FOR FREEDOM PARK KIOSKS. Councilman Ferguson moved to, by Minute Motion, approve of the list on the accompanying staff report and wording for the information to be contained on the 10 kiosks located at Freedom Park. Motion was seconded by Finerty. Councilmember Finerty complimented Ms. Steele for a well prepared packet. Ms. Steele gave the credit to Commissioner Gerry Dawson and stated she would thank him. Mayor Kelly called for the vote, and the motion carried by a 5-0 vote. G. CONSIDERATION OF A REQUEST FOR FUNDING OF THE PALM SPRINGS DESERT RESORT COMMUNITIES CONVENTION AND VISITORS AUTHORITY'S (CVA) CO-OP MARKETING CAMPAIGN TO INCREASE AIRLINE SERVICE. Marketing Manager Kristi Kneiding noted the staff report that outlined the program, including a packet provided by the Palm Springs Desert Resorts Convention and Visitors Authority (CVA) with details of the promotion. Vice 8 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 President of Tourism and Membership Development Woody Peek were present to answer questions. Councilmember Finerty asked if additional funds were given to the CVA aside from the annual $1 million this past year. Mrs. Kneiding replied none that she was aware of. Mayor Pro Tem Benson noted the City had a program years ago, which gave considerable more than $50,000 to bring air service in. She said it was difficult to convince the airlines to increase service in a seasonal market if they didn't have year-round passengers. At that time, they flew: Delta to Seattle, Atlanta, and Dallas, with only three cities spending $50,000 a year for several years attempting to get better service; she said Allegiant and others have done it on their own accord. When she read the promotion, she thought it was deja vu all over again, back trying to get airline service. Councilman Spiegel stated airline service did increase, and the CVA was fronting $200,000; and for every additional $100,000, they would add another City ( i.e., Seattle, Portland, and San Francisco, etc.). He said the City of Rancho Mirage agreed to $50,000, and the City of Palm Desert was the second City to review the promotion. He said the amount of advertising going into the market will determine the increase of passengers flying into the area so that on the shoulder season, the City could have a greater number visiting. He felt it was a different approach. Mayor Kelly agreed because it was not paying the airline directly but marketing areas that would increase ridership. Ms. Gilligan noted American Airlines and Alaska Airlines have already bought into the program and will also be promoting advertising through their agencies. MR. WOODY PEEK, Vice President Travel Industry Sales & Membership with the CVA, stated he understood the history where checks were written directly to the airlines, with the airline having total control of the advertising. He said the CVA met with American and Alaska Airlines and identified shoulder periods to address the flights staying, so that the CVA can help extend the service. He went on to say the promotion did not buy a flight, rather it marketed the destination in order to build demand. Councilmember Finerty asked if consideration to wait and see if the CVA was successful with their $200,000 to market Portland and San Francisco was an option before asking the cities for money. Ms. Kneiding explained that she was involved in a committee meeting with other city representatives, and it was the group consensus that $200,000 to 9 y MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 market Portland and San Francisco was not a significant amount of reach as a trial market. She said the result will show whether it helped or not, but in order to give it the true effort it deserved, it needed the additional funding. The benefit is that the City would receive a promotional value for the entire Coachella Valley, as opposed to writing a check directly to the airline. The City's benefit from the promotion included print magazines, radio promotions, and the on-line campaign the airlines have brought forth. Councilman Spiegel added that it would be reaching out to the local businesses as well with other promotional ideas. Ms. Kneiding stated the campaign would probably happen with or without the City's support, but it would lose out in that Palm Desert's hotels and attractions would not be offered as part of the promotional package. MR. PEEK stated that originally when they talked to the airlines, they missed the window to impact the shoulder season with the first two markets, and delaying it further could cause them to miss the multiple market promotion. Mayor Pro Tem Benson stated she was not opposed to the promotion; she was supportive of increasing tourism and bringing in the airlines and agreed that it was a different approach. Mayor Kelly commented this was the type of promotion the CVA should be doing for the entire Coachella Valley. Councilman Ferguson asked if designation of these funds was for the same committee that Mayor Pro Tem Benson served on. Mayor Pro Tem Benson replied that committee no longer existed but was once a division of the Marketing Committee. She said that committee was formed of Valley representatives that visited the airlines attempting to increase services, mainly American Airlines. She acknowledged it was a subsidy, noting they did advertising of the area on their own at the time. MR. PEEK stated each participating City would have a seat on the marketing group that controlled the look and message of the advertising campaign. Councilman Ferguson stated the funds should be dedicated for the promotional campaign only and not the administrative overhead of the CVA. Councilman Spiegel moved to, by Minute Motion: 1) Concur with the recommendation of the Marketing Committee and support the CVA spot marketing campaign in the amount of $50,000; 2) appropriate funds from the Unobligated General Fund to Account No. 110-4417-414-3221 for this purpose. Motion was seconded by Kelly and carried by a 4-1 vote, with Finerty voting NO. 10 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 n+a H. REQUEST FOR APPROVAL OF CONTRACT FOR PRODUCTION OF THE 2007 PALM DESERT ART OF FOOD & WINE FESTIVAL (CONTRACT NO. C26170). Ms. Gilligan reviewed the staff report and offered that members of Kemper Sports were available to answer questions about their proposal to produce the 2007 Art of Food & Wine Festival. Staff believed the first -year event was successful, with potential for development into a signature event for the City of Palm Desert. Therefore, staff recommended continuing with it for a second year, acknowledging it was in a deficit position after the first. Staff proposed to correct its position by bringing in Kemper Sports, an organization that produced events. Staff anticipates breaking even in 2007 and being revenue -producing in the future. Responding to question about the number of sponsors committed to participating again in 2007, Mrs. Gilligan said the Marriott and Southern Wine and Spirts have committed, and discussions have occurred with Shadow Ridge (a 2006 sponsor), but the bulk of the sponsorships would be the responsibility then of Kemper Sports. She added that there was talk of an airline sponsorship, involving more restaurants as sponsors, with plans to expand sponsorship by 60%. Responding to question, Ms. Kneiding confirmed that in 2006, Palm Springs Life contributed in -kind services with production of the program, as well as offering promotional benefits through Palm Springs Life, Palm Desert Magazine, and their city regional magazine network. She said they have since met with Kemper Sports and City staff and were extremely interested in being a player next year. In addition, KCET offered free television commercials valued in the amount of $150,000 worth of promotion. Councilmember Finerty asked what amount of the $446,000 from 'the anticipated corporate sponsors was secured. Staff replied that because the event was not yet approved by Council, it only had verbal commitments with no dollar value determined and no solicitation for sponsorship had been pursued. However, in -kind donations from Marriott and Southern Wine and Spirts were expected; Marriott Vacation Club International put up $50,000 last year, Pacific Western Bank sponsored in the amount of $10,000, and all have expressed interest again this year. Councilman Ferguson noted the fee for Kemper Sports was $285,000 with an 18% commission on sponsorships. He asked if they would receivel 8% commission on the sponsors already committed, in addition to a $100,000 contingency for a total outlay of $421,000 in the first year. Ms. Kneiding replied they would, with the exception of the City's contribution. She explained the contingency amount was geared more towards production of the event than expenditures for Kemper. The agreement was a one-year term and renewable for three years unless terminated. 11 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 'rd Ms. Gilligan clarified the agreement was not an automatically renewable; it would be based on City Council approval for a third -year event and part of the City's budget. It would be up to Kemper Sports to determine the success of the event, the amount of revenue generated, and recommendation to proceed in subsequent years. She pointed out that part of the negotiation with Kemper included that the City was unable to commit to more than one year at a time, and she provided assurances that the contract would be clarified accordingly. Ms. Kneiding pointed out that Kemper Sports was very interested in being a partner in this event and wanted to show their commitment by planning to continue for more than one year. Further, she said the 5% increase programmed into the contract could be negotiated. Councilman Spiegel moved to, by Minute Motion: 1) Approve of the subject contract with Kemper Sports Management in an amount not to exceed $285,000; 2) appropriate $285,000 from the City's Unobtigated General Fund for this purpose. Motion was seconded by Benson. Councilmember Finerty expressed concern over the proposed budget, pointing out the total sources of funds was approximately $1.5 million of which $497,000 was the City's responsibility, $447,000 Corporate Sponsorships, and $475,000 in ticket sales. She said it was too speculative and it obligated the City to a huge amount of money for an event that was less than successful last year. She stated Kemper Sports qualifications to handle such an event were not in question, but questioned whether the City should spend $285,000, knowing that amount would increase. She believed the City had more pressing needs for Palm Desert residents, such as a local heliport to reduce response times from the existing facility in Hemet, and felt the Council needed to be better stewards with the City's money. The event was something that the hotels should produce, with corporate sponsors getting together on their own without the City's participation or having to be ultimately responsible for the $1.5 million. Therefore, she was opposed to this request. Councilman Ferguson said he opposed this item as well. He recalled the City invested $100,000 toward the event as a pilot program, and by his accounting, the City lost $280,000 in total. In order to break even, an improved cash position of $701,000 would need to be accomplished. He agreed with Councilmember Finerty's comment regarding the issue of sponsorship that the stakeholders that will benefit from the event should be involved, not just the City. Additionally, he thought the event was too spread out, with functions at Freedom Park, El Paseo, and Desert Willow, and people having varied interests (e.g. golfing or wine tasting). He could not foresee the numbers penciling out, considering the three-year contract and its escalators. Assuming the City participated, it represented a $1.4 million 12 Q MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 investment on something that lost $280,000 last year, and it didn't make good business sense to him. Councilman Spiegel stated the City's vitality was attributable to sales tax and hotel occupancy tax, not from the residents. He felt the event would generate traffic in Palm Desert and more than take care of the dollars the City was investing. Additionally, while the larger Coachella Valley cities have signature events, Palm Desert really doesn't other than the Golf Cart Parade; the golf tournaments at Bighorn were held at their discretion. Therefore, he moved to approve the contract, believing it would be a good thing for the City and grow over the years. Mayor Pro Tern Benson agreed, believing the City should have faith in Kemper's management of the event to make is successful this year. If not, it would be the last; but she felt they deserved the opportunity to try. She said it would be better for an outside consultant to handle the event than a hotel, so that other hotels can get on board knowing they will take share in it. As far as the event being too spread out, she understood thee was a transportation element in this proposal to get people around to the various venues, and she felt that would be a big asset. Mayor Kelly supported the proposal, realizing that there was the potential for spending $500,000. He believed the City would get more back from this event than the $1 million turned over to the CVA (Palm Springs Desert Resort Communities Convention & Visitors Authority) every year. He agreed that the City's streets, police, fire, and parks, all were dependent upon sales and hotel taxes, and he had great confidence in Kemper Sports to be successful. Mayor Kelly called for the vote, and the motion carried by a 3-2 vote, with Ferguson and Finerty voting NO. At this point in the meeting, with City Council concurrence, Mayor Kelly returned to the Redevelopment Agency Meeting Agenda of this date, Section IX - Awards, Presentations, and Appointments, Item A. REQUEST FOR APPROVAL OF ACTIONS RELATED TO CONTRACT WITH SUNLINE TRANSIT AUTHORITY FOR ROUTES 51 A & B (THE SHOPPER HOPPER) (CONTRACT NO. C24080A). Councilman Spiegel moved to, by Minute Motion: 1) Authorize the Mayor to award the subject contract for six months in an amount not to exceed $148,000 for vehicle operation, preventative maintenance, and fuel; 2) authorize the Director of Finance to set aside the amount of. $14,800 as 10% contingency (use of contingency requires additional action) for this contract; 3) approve an additional expense not to exceed $3,000 to cover 13 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 U the adjustment to the Red Route by 30 minutes for the previous six months; 4) approve an additional expense not to exceed $3,000 to cover miscellaneous repairs to the vehicles over the next six months. Motion was seconded by Finerty and carried by a 5-0 vote. J. REQUEST FOR DISCUSSION RELATIVE TO DESIGN AND CONSTRUCTION OF MEDIAN MODIFICATION ON FRANK SINATRA DRIVE BETWEEN PALM DESERT GREENS COUNTRY CLUB AND MARRIOTT'S SHADOW RIDGE. Councilman Spiegel moved to, by Minute Motion, continue the matter to the meeting of February 22, 2007. Motion was seconded by Ferguson and carried by a 5-0 vote. K. REQUEST FOR APPROVAL OF AGREEMENT FOR PROGRAM MANAGEMENT SUPPORT SERVICES FOR THE PROPOSED MONTEREY AVENUE/DINAH SHORE DRIVE LANDSCAPING PROJECT (CONTRACT NO. C26180, PROJECT NO. 937-06). Councilman Spiegel moved to, by Minute Motion: 1) Approve of the subject agreement with NAI Consulting, Cathedral City, California, in the amount of $70,200; 2) approve a 10% contingency for the services in the amount of $7,020; 3) appropriate said funds from General Fund Reserves to the project account; 4) authorize the Mayor to execute said contract. Motion was seconded by Finerty and carried by a 5-0 vote. L. REQUEST FOR APPROVAL OF AGREEMENT FOR PROGRAM MANAGEMENT SUPPORT SERVICES FOR FEDERAL FUNDING OF THE I-10/MONTEREY AVENUE ON/OFF RAMP LANDSCAPING PROJECT (CONTRACT NO. C26190, PROJECT NO. 969-06). Responding to question, Mr. Greenwood said the project should be completed by 2008; the City was working with Caltrans. Councilman Spiegel stated the ramp will help traffic flow to Costco and Walmart, including the general traffic. Councilman Spiegel moved to, by Minute Motion: 1) Approve of the subject agreement with NAI Consulting, Cathedral City, California, in the amount of $18,500; 2) approve a 10% contingency for the services in the amount of $1,850; 3) appropriate said funds from General Fund Reserves to the project account; 4) authorize the City Manager to execute said contract. Motion was seconded by Ferguson and carried by a 5-0 vote. M. CONSIDERATION OF REQUEST FOR NOMINATION OF A PALM DESERT SISTER CITIES FOUNDATION EX OFFICIO MEMBER. Mayor Pro Tem Benson moved to, by Minute Motion, appoint Councilmember Finerty as the Ex Officio Director to the Palm Desert Sister Cities Foundation. Motion was seconded by Spiegel and carried by a 4-0-1 vote, with Finerty ABSTAINING. 14 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 With City Council concurrence, Mayor Pro Tem Benson was appointed as the Alternate Ex Officio Director to the Foundation. XL CONTINUED BUSINESS A. MINUTES OF THE REGULAR CITY COUNCIL MEETING OF OCTOBER 26, 2006 (Continued from the meetings of November 16 and December 14, 2006, and January 11, 2007). Responding to question, Ms. Klassen replied the minutes were typed by both herself and Deputy City Clerk Grace Mendoza. Councilman Ferguson noted at one point the City contracted out and wondered if that could be an option again. Ms. Klassen agreed to reevaluate. Councilman Spiegel moved to, by Minute Motion, approve the minutes of October 26, 2006, as presented. Motion was seconded by Ferguson and carried by a 4-0-1 vote, with Finerty ABSTAINING. B. REQUEST FOR AUTHORIZATION TO INITIATE THE PROCESS OF DETACHING THE CITY OF PALM DESERT FROM THE COACHELLA VALLEY RECREATION AND PARK DISTRICT (Continued from the meeting of November 16, 2006). Mr. Ortega stated staffs recommendation was a result of the recommendation from the Parks & Recreation Commission. Councilman Ferguson noted LAFCO required seven to eight months to process an application for detachment and he asked the City Attorney if there was anything that would forbid the City from initiating detachment during the six-month extension so that the City could be that much further along in the process. He stated it was great the City received $50,000 worth of gym equipment, but it was too little, too late. Mr. Hargreaves stated the application could be withdrawn at any time, with a certain amount of expense and staff time incurred in moving forward as suggested. Mayor Kelly agreed. Councilman Spiegel stated staff would need to bring in a consultant to analyze the budget and determine the personnel needed for the City to have their own system. He thought moving forward with a detachment and later withdrawing the application would diminish the City's image with LAFCO. 15 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 Mr. Ortega stated it was staff's intent, if Council went with staff's recommendation, to bring forward a white paper with budget and alternatives. Councilman Ferguson stated his concern was that Council was approaching a budget cycle, and if Council decided to detach sometime next fall, a huge budget adjustment would be required; or Council could plan for it now. Responding to question, Mr. Ortega stated the white paper would provide what the District did now, financial information, what could happen, and the financial ramification if the City was successful in its withdrawal. If in six months the City Council was still of the opinion to proceed, it would have a lot of that information. Councilman Ferguson requested a report for the next meeting as to what the CV Recreation and Park District expected to accomplish in six months. He said the Council provided them with a 30-day extension and got weight equipment out of it; now he wanted to know what a six-month extension will accomplish. Mayor Pro Tem Benson agreed and added she wanted to know specifically what they're going to do that will benefit the community. Councilmember Finerty said the bottom line was that the residents needed to be served and assured activities were not eliminated. She did not want to grant the CVRPD additional time, because recommendations from the Palm Desert Parks and Recreation Commission fell to deaf ears; it was only after they realized the Council was serious that they decided to improve. She agreed it was too late. She was in favor of moving forward with LAFCO and detaching. Councilman Spiegel suggested continuing the item for a Study Session with the CVRPD, so they can outline exactly what they would be accomplishing in the six months. Councilman Ferguson stated he was not a fan of sales pitches and would prefer something in writing but agreed to grant a continuance for the Study Session. MR. STAN FORD, Coachella Valley Recreation and Park District, stated he understood what the Council was requesting and would prepare that with the inclusion of the weight equipment and make it more efficient. In answer to time needed, he replied 30 days. He felt the packet already provided 90% of the information, but he would clean it up and be more direct. Councilmember Finerty stated the packet needed more substance, with a complete outline of services to be provided to the residents, to ensure that Palm Desert would get their money's worth. 16 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 Councilman Spiegel moved to, by Minute Motion, continue this matter to the meeting of February 22, 2007. Motion was seconded by Benson and carried by a 5-0 vote. Mr. Ortega asked what type of information was requested other than what was already provided. Some of the responses were: a line item budget, new programs, their cost and schedule of when they will happen, and the amount going to administration. Councilman Ferguson did not want a Power Point presentation. XII. OLD BUSINESS None XIII. PUBLIC HEARINGS A. CONSIDERATION OF THE FORMATION OF CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 (Continued from the meeting of January 11, 2007). It was noted that the public hearing was continued because two parties involved in the matter represented they were very close to an agreement related to formation of the District. In response, Mr. Yrigoyen reported the parties had reached an agreement. Mayor Kelly noted that the public hearing was left open and he invited public testimony regarding Benefit Assessment District No. 1. MR. BILL CARVER, Palm Desert, CA, confirmed that his organization had reached a settlement with Monterey 170. He further believed that Wal-Mart and all of the entities involved in his property had reached agreement in the matter, and he supported formation of the District to handle the drainage problem. Mayor Kelly announced that the time for accepting ballots would be closing. With no further testimony or ballots received, he declared the public input portion of the public hearing to be closed. MS. ROBIN HARRIS, Bond Counsel, Richards, Watson, & Gershon, stated that the City Clerk's assistants would now be tabulating the ballots that had been submitted. Once tabulated, staff would return with a report of the results, and the public hearing could be closed. Ms. Klassen stated that pursuant to the procedures for the completion, return, and tabulation of the assessment ballots which have been adopted by this Council, tabulation of the ballots that were submitted and not withdrawn in support of or in opposition to the proposed assessment within the City of Palm Desert Benefit Assessment District No. 1 had occurred. A 17 c.) MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 total of 197 ballots were properly returned to the City Clerk. With ballots weighted according to the proportional financial obligation of each affected property, it was determined that ballots representing $112,092.68 in financial obligation were returned in support of the proposed assessment, and ballots representing $261.60 in financial obligation were returned in opposition to the proposed assessment. Therefore, 99.77% of the ballots, as weighted, were cast in support of the proposed assessment. Thus, there was not a majority protest against the proposed assessment. Councilman Spiegel moved to, by Minute Motion, waive further reading and adopt Resolution No. 07-3A, ordering modifications to the Engineer's Report in connection with Benefit Assessment District No. 1, approving the Engineer's Report as so modified, ordering formation of such District, and confirming a maximum assessment in connection therewith. Motion was seconded by Ferguson and carried by a 5-0 vote. Mayor Pro Tem Benson asked if District 1 and Section 29 encompassed all of the north sphere. Mr. Yrigoyen replied this assessment was Section 29, and at this point in time, no others have come forward. Responding to question regarding University Park, he stated an additional $20 million in bonds was being authorized and coming forward to Council the second meeting in February. He affirmed this assessment would finish covering all of the north sphere to Monterey Avenue. B. CONSIDERATION OF THE FORMATION OF CITY OF PALM DESERT SECTION 29 ASSESSMENT DISTRICT (NO. 2004-02) (Continued from the meeting of January 11, 2007). Mayor Kelly stated that this public haring had been left open, and he invited public testimony on formation of the City of Palm Desert Section 29 assessment District. MR. JEFF SCHROEDER, Senior Vice President of Ponderosa Homes, Palm Desert, CA, thanked the City Council for its consideration of this matter. He noted it had been a little over three years since the planning process began for the Assessment District to provide approximately $35 million worth of public improvements, including the widening of Gerald Ford Drive, installation of Portola Avenue from Gerald Ford Drive to Dinah Shore Drive; and Dinah Shore from Portola Avenue to 35thAvenue, all of 35th Avenue, and a couple of other streets. He said it had occasionally been difficult to get all seven property owners involved to agree during the process, further thanking City staff, specifically Mr. Greenwood, Ms. Scott, Ms. Tapia, and Mr. Gibson for all their efforts. Mayor Kelly announced that the balloting period was about to close. With no further public testimony or ballots received, he declared the public input portion of the public hearing to be closed. 18 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 MS. ROBIN HARRIS, stated that the City Clerk's assistants would now be tabulating the ballots that had been submitted. Once tabulated, staff would return with a report of the results, and the public hearing could be closed. Ms. Klassen stated pursuant to the procedures for the completion, return and tabulation of the assessment ballots which have been adopted by this Council, tabulation of the ballots that were submitted and not withdrawn in support of or in opposition to the proposed assessment within the City of Palm Desert Section 29 Assessment District (No. 2004-02) had occurred. A total of 188 ballots were properly returned to the City Clerk. With ballots weighted according to the proportional financial obligation of each affected property, it was determined that the ballots representing $38,454,875.24 in financial obligation were returned in support of the proposed assessment, and ballots representing zero dollars in financial obligation were returned in opposition to the proposed assessment. Therefore, 100% of the ballots, as weighted, were cast in support of the proposed assessment. Thus, there was not a majority protest against the proposed assessment. Councilmember Finerty moved to, by Minute Motion, close the public hearing. Motion was seconded by Ferguson and carried by a 5-0 vote. MS. HARRIS stated Resolution 07-4B required a modification to delete Section 13, which was approval of a purchase and sale agreement with respect to the retention basin. That agreement was still being finalized, and the intent was to bring it back to Council at the next meeting. Responding to question, Ms. Harris replied the Resolution can be approved as modified. Councilman Ferguson asked how an assessment district be formed when an agreement had not yet occurred. MS. HARRIS stated the assessment district would not be contingent, it would be formed and provide the Council with the ability to go on to the next step, which was the bond issue to pay for the improvements. What would need to happen before the bonds were issued would be to approve the purchase and sale agreement. MR. TOM NOBLE, stated he did not foresee a problem in finalizing the agreement. He said the major terms had already been agreed upon with the exception of minor legalities. Councilman Ferguson moved to, by Minute Motion, waive further reading and adopt: a) Resolution No. 07-4A, making certain findings in connection with proposed Section 29 Assessment District (No. 2004-02); b) Resolution No. 07-4B, approving the Engineer's Report in connection with City of Palm Desert Section 29 Assessment District (No. 2004- 02), confirming the assessments in connection with such District, ordering proposed 19 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 acquisitions and improvements to be made, approving as to form and authorizing the execution and delivery of certain agreements as modified to delete Section 13, and taking certain other actions; c) Resolution No. 07-4C, making certain designations in connection with City of Palm Desert Section 29 Assessment District (No. 2004-02). Motion was seconded by Spiegel and carried by a 5-0 vote. C. REQUEST FOR APPROVAL OF PHASE 1 OF A HILLSIDE DEVELOPMENT PLAN TO ALLOW THE CONSTRUCTION OF A PROPERTY ACCESS ROADWAY AND TURN -AROUND FOR PERCOLATION AND SOILS INVESTIGATION — PROPERTY LOCATED WEST OF THE PALM VALLEY STORM CHANNEL ON UPPER WAY WEST (APN 628-130-015) Case No. PP/HPD 05-17 (Baracuda LLC, c/o Bruce Kuykendall, Applicant). Applicant withdrew his application; therefore, no action was required. Mayor Pro Tem Benson wondered why Mr. Wally Kerrigan, who submitted a letter opposing this project and lived on Homestead Road, would object to a project on the hillside. Assistant Planner Mr. Ryan Stendell replied this project was a publicly noticed hearing, and it was possible Mr. Kerrigan received a notice because of the expanded noticing requirement to 2,000 feet, subject to the amendment to the Hillside Development Zone. XIV. REPORTS AND REMARKS A. CITY MANAGER 1. Mr. Ortega reminded City Councilmembers that the Fiscal Year 2007/08 Budget Calendar had been distributed, and the first meeting with staff and City Council for an update on the progress of current projects was scheduled for Thursday, February 15, 2007. 2. Mr. Ortega further asked City Councilmembers to review their schedules in order to arrange a City Council Study Session being planned for Thursday, March 22, 2007, at 2:00 p.m. with the City's Legislative Advocate in Sacramento, Anthony Gonsalves. He noted that most of the bills would have been introduced to the full session by that time, giving the City an idea of what it should look for and to also get an idea on the State's budget. B. CITY ATTORNEY None 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 C. CITY CLERK None D. PUBLIC SAFETY o Fire Department None o ; Police_ Department None E. MAYOR AND MEMBERS OF THE CITY COUNCIL o City Council Reauests for Action: None o City Council Committee Reports: 1. Palm Desert Chamber of Commerce — Councilman Spiegel reported the following: a) At Tuesday's Chamber Board Meeting, it was recommended that the next Golf Cart Parade be held on Sunday, October 28. He noted that the event was previously moved from November to January in an effort to benefit from being the same time as the Bob Hope Chrysler Classic, but this did not occur. Additionally, it was found that timing was not good for the schools to prepare floats and have their bands participate in the parade. Therefore, the Board recommended a return to holding the event in the fall. He said it was the Golf Cart Parade Committee's responsibility to approve it, but it was anticipated they would. b) The Palm Desert Chamber of Commerce was sponsoring a nine -day trip to China, October 31 - November 9, 2007, for the cost of $1,500, with excellent hotels and good food a part of the itinerary. He provided fliers to the City Clerk's Office and invited anyone interested to contact her office for one. o City Council Comments: None 21 Q MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING JANUARY 25, 2007 XV. ORAL COMMUNICATIONS - C None XVI. ADJOURNMENT On a motion by Ferguson, second by Spiegel, and unanimous vote of the City Council, Mayor Kelly adjourned the meeting at 5:46 p.m. ATTEST: RA HE LE D. ASSEK, CITY CLERK CITY OF PALM DESERT, CALIFORNIA k, ARD S KELLY, MA R 22